Track 2 determination

Projects undertaken in host Parties that do not meet the eligibility criteria in 9/CMP.1, Annex, paragraph 21 are subject to determination by an accredited independent entity (AIE) according to the Track 2 procedure.  Determination is one step in the Track 2 procedure, which is described in 9/CMP.1, Annex, paragraph 30:

The verification procedure under the Article 6 Supervisory Committee is the determination by an independent entity, accredited pursuant to appendix A below, of whether a project and the ensuing reductions of anthropogenic emissions by sources or enhancements of anthropogenic removals by sinks meet the relevant requirements of Article 6 and these guidelines (9/CMP.1, Annex, paragraph 30).

Requirements for determination

The requirements for determination of Track 2 projects are as follows:

  • That the project has been approved by the Parties involved;
  • That the project would result in emission reductions that are additional to what would otherwise occur;
  • That the project has an appropriate baseline and monitoring plan; and
  • That the project participants have submitted an analysis of the likely environmental impacts of the project (9/CMP.1, Annex, paragraph 33).

These are set out in full in 9/CMP.1, Annex, paragraph 33:

The accredited independent entity shall determine whether:

  1. The project has been approved by the Parties involved;
  2. The project would result in a reduction of anthropogenic emissions by sources or an enhancement of anthropogenic removals by sinks that is additional to any that would otherwise occur; 
  3. The project has an appropriate baseline and monitoring plan in accordance with the criteria set out in appendix B below;
  4. Project participants have submitted to the accredited independent entity documentation on the analysis of the environmental impacts of the project activity, including transboundary impacts, in accordance with procedures as determined by the host Party, and, if those impacts are considered significant by the project participants or the host Party, have undertaken an environmental impact assessment in accordance with procedures as required by the host Party (9/CMP.1, Annex, paragraph 33).

Role of the AIE

The role of the AIE in relation to project determination is reiterated in paragraph 3 of the Guidance on criteria for baseline setting and monitoring:

Under the Track 2 procedure, according to paragraphs 31 (c), 33 (b) and (c) and 37 of the JI guidelines, the accredited independent entity (AIE) shall:

  1. Receive from the project participants a project design document (PDD) that contains all information needed for the determination of whether the project has an appropriate baseline and monitoring plan in accordance with the criteria set out in appendix B of the JI guidelines;
  2. Determine whether the project would result in a reduction of anthropogenic emissions by sources or an enhancement of anthropogenic removals by sinks that is additional to any that would otherwise occur and has an appropriate baseline and monitoring plan in accordance with the criteria set out in appendix B of the JI guidelines
  3. Make, upon receipt of a report referred to under paragraph 36 of the JI guidelines, a determination of the reductions in anthropogenic emissions by sources or enhancements of anthropogenic removals by sinks reported by project participants in accordance with appendix B of the JI guidelines, provided that they were monitored and calculated in accordance with paragraph 33 of the JI guidelines (Guidance on criteria for baseline setting and monitoring, JISC 18, Annex 2, paragraph 3).

Once the AIE has determined whether the project conforms to the JI rules, it must make its determination publicly available:

The accredited independent entity shall make its determination publicly available through the secretariat, together with an explanation of its reasons, including a summary of comments received and a report of how due account was taken of these (9/CMP.1, Annex, paragraph 34).

The AIE makes its determination publicly available by submitting to the secretariat the JI determination report form (F-JI-DRep).  This form was first adopted by the Joint Implementation Supervisory Committee (JISC) at its fourth meeting (JISC 4, Annex 11).  The current version (Version 2) is available on the UNFCCC website here.

The guidelines for public availability are set out in the Procedures on public availability of documents under the verification procedure under the Joint Implementation Supervisory Committee.  This document was adopted in draft form by the Joint Implementation Supervisory Committee (JISC) at its second meeting (JISC 2, Annex 2).  Version 1, adopted by the JISC at its fourth meeting (JISC 4, Annex 13) is available on the UNFCCC website here.

The JISC provided further clarification on these Procedures in the Clarification regarding the public availability of documents under the verification procedure under the Joint Implementation Supervisory Committee.  This document was first adopted by the JISC at its sixth meeting (JISC 6, Annex 9).  The latest version (Version 4) was adopted by the JISC at its eighteenth meeting (JISC 18, Annex 4) and is available on the UNFCCC website here.

At its 19th meeting the JISC adopted the JI Determination and Verification Manual (DVM).  The document does not introduce any new mandatory provisions for determination or verification (JISC 19, paragraph 24), but it does provide detailed guidance on every step that AIEs should undertake in assessing whether track 2 projects comply with current CMP and JISC requirements.  The DVM is designed to assist AIEs in undertaking determinations and verifications in a systematic manner.  The DVM is available in the UNFCCC website here.

Change of AIE

A project participant may choose to change AIE after the PDD has been published and its public commenting period has finished, but prior to the submission of a determination by the AIE in accordance with paragraph 33 of the JI Guidelines (Annex to Decision 9/CMP.1).

The Clarification Regarding Project Participants' Change of Accredited Independent Entity outlines the circumstances in which project participants can change their AIE, as well as the process and requirements for notifying the JI Secretariat of the change.  The Clarification is available on the UNFCCC's website here.

JISC appraisal

The JISC appraises the determination report submitted by the AIE, according to the appraisal process set out in the Procedures for appraisals of determinations under the verification procedure under the Joint Implementation Supervisory Committee.  This document was adopted by the JISC at its fourth meeting (JISC 4, Annex 10) and is available on the UNFCCC website here.

The appraisal is undertaken by two JISC members, assisted by two experts assigned from the roster of experts.  The mandate of the appointed experts is set out in the Terms of reference for experts appraising determinations or participating in review teams under the verification procedure under the Joint Implementation Supervisory Committee.  This document was adopted by the JISC at its third meeting (JISC 3, Annex 4) and is available on the UNFCCC website here.

The expert input on the appraisal of the determination report is submitted to the JISC using the confidential JI Expert Input on JI Determination Appraisal Form (F-JI-ExInpDA) (Version 2), which can be accessed here.

The assigned JISC members will complete their appraisal by completing the confidential JI Determination Appraisal Form (F-JI-DA) (Version 2), which can be accessed here.  They then forward the form to the other members of the JISC via the secretariat.  The appraisal will state whether, in the opinion of the JISC members conducting the review (based on the input of experts), the project meets the criteria for JI projects.

Final determination and review

The determination of the AIE is deemed final 45 days after the date it is made public, unless a review is requested by a Party involved or three members of the JISC (9/CMP.1, Annex, paragraph 35).  A review is requested by completing and submitting the JI Determination Review Form (F-JI-DR) (Version 2), which can be accessed here.

Such a review may be requested, for example, if the appraisal by the assigned JISC members indicates that the project does not meet the criteria for JI projects.

If such a review is requested, the JISC shall finalize the review as soon as possible, but no later than six months or at the second meeting following the request for review.  The JISC shall communicate its decision on the determination and the reasons for it to the project participants and the public.  Its decision shall be final (9/CMP.1, Annex, paragraph 35).

If a review is requested, it will be conducted in accordance with the Procedures for reviews under the verification procedure under the Joint Implementation Supervisory Committee.  This document was originally adopted by the JISC at its third meeting (JISC 3, Annex 3).  The current version (Version 2) was adopted by the JISC at its tenth meeting (JISC 10, Annex 1) and is available on the UNFCCC website here.

The review team shall consist of two JISC members, including alternate members, who will be responsible for supervising the review.  One JISC member/alternate member of the review team shall be identified as lead member of the team and will be responsible for, inter alia, drafting the final recommendation of the team to the JISC.

During the review, the JISC may request a clarification or further information from the project participant/coordinating entity and/or the AIE, using the Form for Request for Clarification and/or further information (F-JI-Clar) (Version 2), which can be accessed here.

The Review Team completes the Form for Report by Review Team (F-JI-RRep) (Version 2) and submits it to the JISC for consideration.

Determination fee

A fee (the determination fee) is payable by project participants when a determination report (relating to the eligibility of a project under the JI rules) is submitted to the secretariat.

The determination fee is an upfront payment of the estimated amount due for the verification fee for the first year of the project. In other words, the determination fee is calculated based on expected average annual generation of emission reduction units (ERUs).

The fee payable is USD 0.10 for the first 15,000 tonnes of carbon dioxide equivalent (CO2-e), and USD 0.20 per tonne thereafter.  However, no advance payment is required for projects with an expected annual generation of less than 15,000 tonnes CO2-e.  The maximum advance payment is USD 350,000.

If no verification report is subsequently submitted, any amount exceeding USD 30,000 will be reimbursed.

These rules are set out in the Provisions for the charging of fees to cover administrative costs relating to the activities of the Joint Implementation Supervisory Committee.  Version 1 of this document was adopted by the JISC at its fourth meeting (JISC 4, Annex 16) and approved by the COP/MOP at its second meeting (2/CMP.2, paragraph 16(b)).  The document was revised on two occasions:

(1) following the decision of the COP/MOP at its second meeting (3/CMP.2, paragraph 8) to incorporate preferential treatment for small-scale projects; and

(2) following the decision to incorporate preferential treatment of joint implementation small-scale projects regarding advance payments.

The revised version (Version 3), was adopted by the JISC at its eighteenth meeting (JISC 18, Annex 9) and is available here:

Fee for processing of verification reports:

  1. USD 0.10 per tonne of CO2 equivalent of reductions in anthropogenic emissions by sources or enhancements of anthropogenic removals by sinks for the first 15,000 tonnes of CO2 equivalent generated by the project in question in a given calendar year;
  2. USD 0.20 per tonne of CO2 equivalent of reductions in anthropogenic emissions by sources or enhancements of anthropogenic removals by sinks for any amount in excess of 15,000 tonnes of CO2 equivalent generated by the project in question in a given calendar year, except as noted in (iii) below;
  3. For joint implementation programmes of activities, the fee in accordance with paragraph 1(b)(i) shall apply to all reductions of anthropogenic emissions by sources or enhancements of removals by sinks in a given calendar year.

The COP/MOP requested that the JISC report annually on the revenue raised through the charging of fees for the processing of verification reports and the accreditation of independent entities, with a view to reviewing these arrangements if required:

The Conference of the Parties serving as the meeting of the Parties: ...

  1. Requests the Joint Implementation Supervisory Committee, with the assistance of the secretariat, to report annually to the Conference of the Parties serving as the meeting of the Parties to the Kyoto Protocol on the revenue received by the secretariat from the charging of fees to cover administrative costs relating to the activities of the Committee, with a view to reviewing these arrangements as necessary (3/CMP.2, paragraph 17).

Changes to the project during implementation

Changes to the project's design as described in the PDD that occur after the determination has been deemed final, must be explained by project participants. The project participants must prepare a detailed description of all changes that have occurred and provide justification for these changes (JISC 23, Annex 2, paragraph 6). When verifying the project, the AIE must, in a separate section of the verification report (F-JI-VRep), list all relevant changes to the project design and express a determination opinion on those changes. The AIE must confirm that the conditions defined in paragraph 33 of the JI Guidelines (Annex to Decision 9/CMP.1) are still met for the project, and that the changes do not alter the original determination opinion for the project.

The Procedures Regarding Changes During Project Implementation (JISC 23, Annex 2) are available here.

Last updated on 20 December 2010

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