Joint implementation (JI) is a mechanism defined in Article 6 of the Kyoto Protocol (PDF, 66KB) that allows companies to undertake projects in countries with a Kyoto target, to reduce greenhouse gas emissions. Joint implementation offers Parties a flexible and cost-efficient means of fulfilling a part of their Kyoto commitments, while the host Party benefits from foreign investment and technology transfer.
Such projects are then credited with Emissions Reduction Units (ERUs) which:
- governments can use to meet their Kyoto targets
- companies can use to meet their allocations under the EU Emissions Trading System
- Find out more about the EU Emissions Trading System
Each ERU is equivalent to one tonne of CO2 and can be traded and sold. The mechanism stimulates sustainable development and emission reductions, while giving industrialised countries some flexibility in how they meet their emission reduction limitation targets.
There are two different procedures for JI, depending on the host country’s eligibility requirements. These are commonly referred to as Track 1 and Track 2:
- Track 1 is subject to supervision by the host country.
- Track 2 is subject to international supervision by the Supervisory Committee for JI.
The Clean Development Mechanism (CDM) allows companies to undertake emission reduction projects in developing countries without a Kyoto target and credit them with Certified Emission Reductions (CERS). Further information on CDM can be on our CDM page:
What is our role?
From 1 June 2011, the Environment Agency is the UK’s Designated Focal Point (DFP) for JI and issues the Letters of Aproval (LOA). Any applications made prior to this date will continue to be processed by the Department of Energy & Climate Change (DECC).
The Government does not approve JI projects in the UK, but can issue letters of approval to UK companies wishing to participate in JI projects overseas.
How is approval of participation given?
We can issue a Letter of Authorisation (LOA) to any company, irrespective of its location. The only exception to this is the UK’s ‘overseas dependent territories’. We can approve companies based in these territories provided they have joined the UK ratifications of the United Nations Framework Convention on Climate Change (UNFCCC) and the Kyoto Protocol.
We will not issue a LOA to companies based in territories that have not yet ratified, unless the company in question has a branch in the UK. Before submitting applications relating to ‘overseas dependent territories’, please contact us:
What is required to obtain a LOA?
To receive a LOA you will need to submit the following:
- a copy of the host country’s LOA
- a copy of the Project Design Document (PDD)
- a signed declaration of compliance with the national guidance rules and procedures of the host country as notified to the UN Framework Convention on Climate Change (UNFCCC) for a Track 1 project
- a signed declaration of compliance with the international JI rules and procedures for a Track 2 project
- The applicable fee
Making payments for applications for LOAs
The charging scheme requires each applicant to pay an administrative fee before their application is assessed by the DFP.
We cannot proceed with an application until the fee has been received.
For information on how to make a payment, please read our charging information:
Guidance
This guide provides you with the necessary information to obtain a LOA. You can read the frequently asked questions if you need further information:
Further information
Further information regarding the JI project process and eligibility requirements can be found on the UNFCCC website:
To receive credits (ERUs) from JI projects, you will need to open a 'person holding account' in the UK registry. A number of documents are required to open an account and fees are applicable. Further information and the link to apply for an account is available on the Registry home page:
Contact us
If you have a query regarding the JI application process, please contact us:
Call us directly on 01925 542538 or 01925 542583
