Joint Implementation (JI)

Joint Implementation (Article 6) is a project-based mechanism designed to facilitate contracts between a host and investor.

The host company receives capital and technology, which the investing firm supplies in exchange for credits called emission reduction units (ERUs).

During the period of 2008-2012, two classes of project activities generate ERUs:

1. those that reduce GHG emissions
2. those that enhance carbon sinks, such as reforestation

Depending upon whether that organization acquired or transferred the ERUs, the Annex I investor and host governments increase or decrease their national assigned amounts respectively. As a result, the total of Annex I authorized GHG emissions remains constant.

Currently no JI projects are being implemented and the rules are not yet clearly set. However, many countries are involved in a pilot phase called Activities Implemented Jointly (AIJ).