>> Kyoto Mechanisms

A key feature of the Kyoto Protocol is agreement on various 'Kyoto Mechanisms' which may be used by nations to achieve their targets set by the protocol. Two such mechanisms are “Clean Development Mechanism (CDM)” under Article 12 and “Joint Implementation (JI)” under Article 6 .

Emission credits derived from JI/CDM projects could be used by the investor for complying with their own domestic climate commitments or could be sold to governments or other companies.

>> Project Stages

Stages in Kyoto projects are as follows:

• Project approval (Article 12.5a) approved by the host and investor governments to ensure consent and contribution to host country sustained development;
• Validation of project design (12.5b) to ensure the baseline and monitoring/ validation/certification protocol meets Kyoto standards;
• Monitoring of emissions (12.7) by project operators/owners to track project performance/ collect/internally verify data on actual project emissions;
• Verification/certification of emission reductions (12.5c and 12.7) by operational entities to determination the quantity of emission reductions achieved based on standards;
• Issuance of carbon emission reduction certificates by the executive board of the Kyoto conference of parties (protocol 12.4) based on conclusions of certification reports (step 4).

>> Kyoto Mechanism Criteria

JI/CDM projects must fulfil the relevant Kyoto Mechanism criteria, which are:

• environmental and financial additionally (see discussion below);
• cost effectiveness;
• compatibility with national development priorities of the host country;
• host country approval;
• designed to allow quantitative monitoring and verification;
• limit emission caused by energy and/and use;
• result in nett carbon reductions at the national level, local benefits generation taking into account the interests of the indigenous and local populations and sustainable management of natural resources;

>> Additionality

Both JI and CDM projects must provide emission reductions that are additional to any that would otherwise occur (environmental additionally) the emissions which would otherwise occur are called base line emissions. It is vital before any project is undertaken the following must occur:

• Approval by the host country and the investor country’s respective governments that the proposed project complies with JI/CDM criteria;
• Baseline emission are extensively and scientifically audited.

Without these 2 preliminary steps being undertaken it could not be confidently asserted that any emission reductions achieved in the course of the project would realise certifiable emission credits.