Status of Joint Implementation and Green Investment Scheme

Vlad TruscaMinistry of Environment and Sustainable Development

Romania- Annual meeting of the Host Country Committee -

Cologne, 30 April-1 May 2007

Overview

Joint Implementation Status

JI Supervisory Committee

Green Investment Scheme Status

JI & GIS Questions

Joint Implementation Status

Reported volumes and values (PointCarbon, March 2007): 2005 - 28 Mt CO2 - 96 M Euro 2006 - 21 Mt CO2 - 95 M Euro 2007 - 45 Mt CO2 - 277 M Euro (forecasted)

JI projects - 156 (UNEP Risoe Centre, April 2007)

Most attractive sellers - Ro, Ukr, Bg (PointCarbon-Apr. 2007)

Most active buyers - the Netherlands, Denmark, Austria, WB

Most active sellers in the future - Russia and Ukraine

EU ETS (linking) - effect on the ERU price (increase)

EU ETS double counting issue - impossibility of developing JI projects at the installations covered by EU ETS - expected low number of projects in the new EU member states

Average price in 2006-6.5 Euro/ERU (4.5-12.5) (PointCarbon)

Type of JI projects

Type NumberVolume

2008 – 2012(thou. ERUs)

Afforestation 1 0,6% 410 0,3%

Biogas 4 2,6% 2272 1,6%

Biomass energy 18 11,5% 10183 7,0%

Coal bed/mine methane 5 3,2% 13154 9,0%

Energy distribution 9 5,8% 8774 6,0%

EE households 1 0,6% 350 0,2%

EE industry 12 7,7% 14139 9,7%

EE supply side 9 5,8% 7655 5,3%

Fossil fuel switch 8 5,1% 11838 8,1%

Fugitive 12 7,7% 43417 29,8%

Geothermal 4 2,6% 1639 1,1%

Hydro 26 16,7% 5486 3,8%

Landfill gas 20 12,8% 8823 6,1%

N2O 3 1,9% 8990 6,2%

Wind 24 15,4% 8503 5,8%

Total 156 100% 145633 100%

Source: UNEP Risoe Centre, April 2007

JI projects host countries

Host countries

All JI tracks JI Track 2

Numberthou. ERUs

annuallyNumber

thou. ERUs annually

Russia & Ukraine 45 19338 28 16953

Russia 31 14468 23 12879

Ukraine 14 4870 5 4074

Eastern Europe 103 9204 18 1360

Bulgaria 22 3382 5 466

Czech Republic 21 814 0 0

Romania 15 1590 2 223

Poland 14 879 3 192

Hungary 11 1437 1 141

Estonia 11 602 3 212

Lithuania 6 216 4 126

Slovakia 3 285 0 0

Others 8 705 1 57

Germany 3 194 1 57

New Zealand 5 511 0 0

Total JI countries 156 29247 47 18370

Source: UNEP Risoe Centre, April 2007

JI Supervisory Committee (JISC)

JISC established at COP/MOP 1 Montreal

JISC - process development and supervisory roles Development of project design document(s) Guidance on baseline setting and monitoring Recommendations to MOP on revisions of JI guidelines Supervision of Track 2 procedure Accreditation of independent entities

JISC - 6 meetings (5 in 2006), JISC 7 - 2-4 May

JI-Accreditation Panel (AP) - 4 meetings (3 in 2006)

2 JI technical workshops (1 in 2006)

2 Q&A sessions (SBs and MoP) and 1 side-event at MoP2

26 Oct. - launch of JI Track 2 process, only in 9 months!

50 JI PDDs submitted for comments (April 2007)

6 Oct. - opening of application process for entities wishing to become AIEs under JI

13 independent entities (AIE) have applied for accreditation by the JISC (April 2007)

25 Annex I Parties informed the UNFCCC about their designated JI NFP, from which 14 submitted also their procedures for approving JI projects

27 Mar.-determination of the first JI project (“Switch from wet-to-dry process at Podilsky Cement, Ukraine”) was deemed final as neither party involved nor 3 members of the JISC requested a review – 1st registered JI project

JI Supervisory Committee (JISC) - 2

Green Investment Scheme Status

No reported volumes and values

Only one IET (KP Article 17) transaction (Slovakia)

Only GIS studies: Ro, Bg, Ru, Uk, Lv

Potential sellers - new EU MS (Lv, Bg, Ro, Po) + Ru and Uk

Potential buyers - EU MS, Japan, Canada

More demand for JI than GIS due to lack of market interest yet and EU ETS (AAUs not allowed);

AAU price - very important for further development of GIS

GIS good for projects unlikely to become JI

Environmental and social integrity of GIS needed

Transparency to be handled properly

Green Investment Scheme Status - 2

Potential AAU supply - 7-8 Gt Potential CER/ERU supply - 1-3 Gt Limited private demand for AAUs Uncertainties: Canada, Japan

JI & GIS - Questions

How will JI continue to exist in the EU Member States considering EU ETS implications?

Will JI exist after 2012? How will it be shaped? In what sectors and activities?

What will be the JISC implications for Track I JI?

Is there a market for AAUs, with or without GIS?

What should be the price per AAU? Are the AAUs taxable?

How simple/complicated should a GIS be?

What should be the legal background for GIS?

What are the conditions for AAUs transactions between KP Parties and private entities?