The Kyoto Protocol Project Mechanisms

Background

The Kyoto Protocol allows for emission reductions to be carried out in projects implemented abroad through the Clean Development Mechanism (CDM) and Joint Implementation (JI).  These “project-based” mechanisms allow Parties to the Kyoto Protocol to implement emission reduction projects in other countries in exchange for credits which can be used towards achieving the Kyoto target.

Clean Development Mechanism (CDM)
When projects are carried out in countries without a Kyoto target (non-Annex I Parties) they operate under the “Clean Development Mechanism” and the credits earned are called “Certified Emission Reductions” (CERs).  The Clean Development Mechanisms (CDM) generates investment in developing countries, especially from the private sector, and promotes the transfer of environmentally-friendly technologies.

Joint Implementation (JI)
When projects are carried out in countries with a Kyoto target (Annex I Parties) they operate under “Joint Implementation” and the credits earned are called, “Emission Reduction Units” (ERUs). 

Irish Companies can also benefit from the project-based mechanisms.  The Linking Directive; (2004/101/EC) allows Operators under the EU ETS to use the credits earned through JI and CDM towards compliance.

Project Approval

Both the Clean Development Mechanisms and Joint Implementaion mechanisms require project approval by all Parties involved.  Project approval is granted through an official notice to prospective participants referred to as the “letter of approval” (LoA). 

Designated National Authority (DNA)
Approval for participation in each Clean Development Mechanism project must be gained by the Designated National Authority (DNA) in each Annex I and non-Annex I Party. 

Focal Point
Approval for each Joint Implementation  project must be gained by the Focal Point (FP) in each participating Annex I Party.  In line with the National Climate Change Strategy, the EPA is not currently mandated to approve Joint Implementation projects in Ireland, but issues letters of approval to Irish companies wishing to participate in Joint Implementation projects abroad.

The Kyoto Protocol Flexible Mechanisms Regulations 2006 (S.I. 244 of 2006) established the EPA as the designated National Authority and Focal Point in Ireland. 

Regulations

The Kyoto Protocol Flexible Mechanisms Regulations 2006 (S.I. 244 of 2006) established the EPA as the designated National Authority and Focal Point in Ireland

Applications
For information on applying for a letter of approval see Rules and Procedures

Contact Information
If you need to contact the Project Mechanisms team at the EPA for any reason please email us at:  MexAdmin@epa.ie

Further Information 
The UNFCCC website at www.unfccc.int.