Overview

The mechanism known as ‘joint implementation’ (JI), established by Article 6 of the Kyoto Protocol, enables an Annex B country with an emission reduction commitment under the Kyoto Protocol to transfer or acquire emission reduction units (ERUs) to or from any other Annex B Party.

ERUs are each equivalent to one tone of carbon dioxide, and they may be earned from a project that removes or reduces carbon dioxide from the atmosphere. JI is considered mutually beneficial to both the party acquiring and transferring ERUs. That is, JI is a flexible and cost effective means which assists Annex B Parties to adhere to their emission reduction commitments under the Kyoto Protocol; and is also an effective means of supporting host Parties by providing foreign investment and technology transfer.

Russia has always been seen as a key potential jurisdiction for JI projects with many international companies exploring opportunities to develop projects there. However, with no projects having been approved until now and uncertainty around the ability to get such projects approved significant uncertainty as to when and if JI would be formerly implemented existed.

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