The Green Investment Scheme (GIS) is a newly developed mechanism in the framework of International Emission Trade (IET). It is designed to achieve greater flexibility in reaching the targets of the Kyoto Protocol while preserving environmental integrity of IET.
Under the GIS a Party to the Protocol expecting that the development of its economy will not exhaust its Kyoto quota, can sell the excess of its Kyoto quota units (AAUs) to another Party. The proceeds from the AAU sales should be “greened”, i.e. channeled to the development and implementation of the projects either acquiring the greenhouse gases emission reductions (hard greening) or building up the necessary framework for this process (soft greening).
The development of the GIS requires additional effort in creating the necessary legislative, administrative and institutional basis.
The Climate Change Programme follows the development of the GIS schemes in the CEE Region and provides assistance to the countries building capacity for the GIS.
In the years 2005-2006 the Climate Change Programme focused on the development of the GIS in Romania. A team of the experts examined the existing institutions and legislation, and made suggestions as to how the GIS can be incorporated there. Also a list of the projects potentially eligible for financing through GIS has been created. The results were summarized in the Report.
