Draws on experiences of Central and Eastern European countries to examine the Joint Implementation (JI) and the Clean Development Mechanism (CDM) flexibility mechanisms created by the Kyoto Protocol and explores issues regarding their implementation.

Executive Summary

Drawing from the rich experience of Central and Eastern European countries in Activities Implemented Jointly (AIJ) -- the Joint Implementation (JI) phase launched in 1995 -- the authors look at the institutional infrastructure for countries that wish to host climate-friendly development projects.

Countries desiring to implement JI or CDM programs must address three fundamental issues in order to create viable programs and facilitate investment:



  • Accurate and accessible baselines. Make sure that project baselines are accurately assessed and the appropriate number of credits transferred;
  • Consistency with national objectives. Ensure that projects are integrated into current national development plans; and
  • Lower project costs. Reduce the high transaction costs associated with investment.

Without attention to these concerns, the authors contend, it will be difficult for governments to implement effective JI or CDM programs.