Parties involved

A Party involved is defined in the Procedures for including additional project participants or Parties involved in joint implementation projects after final determination under the verification procedure under the Joint Implementation Supervisory Committee as a Party that provides a written approval for a project:

A Party involved in a JI project implemented under the Track 2 procedure is a Party that provides a written project approval (Procedures for including additional project participants or Parties involved in joint implementation projects after final determination under the verification procedure under the Joint Implementation Supervisory Committee, JISC 8, Annex 5, paragraph 2).

This document was adopted by the Joint Implementation Supervisory Committee (JISC) at its eighth meeting (JISC 8, Annex 5).

Eligibility criteria for Parties

9/CMP.1, Annex, paragraph 21 sets out six eligibility criteria for engaging in the transfer and/or acquisition of emission reduction units (ERUs) from Joint Implementation (JI) projects:

Subject to the provisions of paragraph 22 below, a Party included in Annex I with a commitment inscribed in Annex B is eligible to transfer and/or acquire ERUs issued in accordance with the relevant provisions, if it is in compliance with the following eligibility requirements:

  1. It is a Party to the Kyoto Protocol
  2. Its assigned amount pursuant to Article 3, paragraphs 7 and 8, has been calculated and recorded in accordance with decision 13/CMP.1
  3. It has in place a national system for the estimation of anthropogenic emissions by  sources and anthropogenic removals by sinks of all greenhouse gases not controlled by the Montreal Protocol, in accordance with Article 5, paragraph 1, and the requirements in the guidelines decided thereunder
  4. It has in place a national registry in accordance with Article 7, paragraph 4, and the requirements in the guidelines decided thereunder
  5. It has submitted annually the most recent required inventory, in accordance with Article 5, paragraph 2, and Article 7, paragraph 1, and the requirements in the guidelines decided thereunder, including the national inventory report and the common reporting format.  For the first commitment period, the quality assessment needed for the purpose of determining eligibility to use the mechanisms shall be limited to the parts of the inventory pertaining to emissions of greenhouse gases from sources/sector categories from Annex A to the Kyoto Protocol and the submission of the annual inventory on sinks
  6. It submits the supplementary information on assigned amount in accordance with Article 7, paragraph 1, and the requirements in the guidelines decided thereunder and makes any additions to, and subtractions from, assigned amount pursuant to Article 3, paragraphs 7 and 8, including for the activities under Article 3, paragraphs 3 and 4, in accordance with Article 7, paragraph 4, and the requirements in the guidelines decided thereunder (9/CMP.1, Annex, paragraph 21).

Host Parties that meet these eligibility criteria are eligible to use the 'Track 1' verification process, where the determination of the eligibility of the project and the monitoring and verification of emission reductions are subject to national rules and procedures only:

Where it is considered to meet the eligibility requirements set out in paragraph 21 above, a host Party may verify reductions in anthropogenic emissions by sources or enhancements of anthropogenic removals by sinks from an Article 6 project as being additional to any that would otherwise occur, in accordance with Article 6, paragraph 1 (b).  Upon such verification, the host Party may issue the appropriate quantity of ERUs in accordance with the relevant provisions of decision 13/CMP.1 (9/CMP.1, Annex, paragraph 23).

Parties that do not meet these eligibility criteria may still host JI projects, but are required to use the 'Track 2' verification process under the Joint Implementation Supervisory Committee (JISC).  However, Parties must meet the requirements in paragraphs (a), (b) and (d) before they will be eligible to issue and transfer ERUs to project participants:

Where a host Party does not meet the eligibility requirements set out in paragraph 21 above, the verification of reductions in anthropogenic emissions by sources or enhancements of anthropogenic removals by sinks from an Article 6 project as being additional to any that would otherwise occur, in accordance with Article 6, paragraph 1 (b), shall occur through the verification procedure under the Article 6 Supervisory Committee, as set out in section E below.  The host Party may, however, only issue and transfer ERUs upon meeting the requirements in paragraphs 21 (a), (b) and (d) above (9/CMP.1, Annex, paragraph 24).

When does a Party meet the eligibility criteria?

A Party is considered to meet the eligibility criteria if 16 months have elapsed since the submission of its national inventory report under the Kyoto Protocol:

A Party included in Annex I with a commitment inscribed in Annex B shall be considered:

  1. To meet the eligibility requirements referred to in paragraph 21 above after 16 months have elapsed since the submission of its report to facilitate the calculation of its assigned amount pursuant to Article 3, paragraphs 7 and 8, and to demonstrate its capacity to account for its emissions and assigned amount, in accordance with the modalities adopted for the accounting of assigned amount under Article 7, paragraph 4, unless the enforcement branch of the Compliance Committee finds in accordance with decision 24/CP.7 that the Party does not meet these requirements, or, at an earlier date, if the enforcement branch of the Compliance Committee has decided that it is not proceeding with any questions of implementation relating to these requirements indicated in reports of the expert review teams under Article 8 of the Kyoto Protocol, and has transmitted this information to the secretariat (9/CMP.1, Annex, paragraph 22(a)).

A Party is considered to continue to meet the eligibility criteria unless the enforcement branch of the Compliance Committee has suspended its eligibility:

A Party included in Annex I with a commitment inscribed in Annex B shall be considered:

  1. To continue to meet the eligibility requirements referred to in paragraph 21 above unless and until the enforcement branch of the Compliance Committee decides that the Party does not meet one or more of the eligibility requirements, has suspended the Party’s eligibility, and has transmitted this information to the secretariat (9/CMP.1, Annex, paragraph 22(b)).

The secretariat maintains a publicly available list of those Parties that meet the eligibility requirements and those that have been suspended:

The secretariat shall maintain a publicly accessible list of Parties that meet the eligibility requirements and that have been suspended in accordance with relevant provisions contained in decision 24/CP.7 (9/CMP.1, Annex, paragraph 27).

Parties that meet the eligibility criteria may still elect to be subject to the Track 2 verification process under the JISC, or may adopt rules that modify only part of this Track 2 process and adopt the remainder:

A host Party which meets the requirements in paragraph 21 above may at any time elect to use the verification procedure under the Article 6 Supervisory Committee (9/CMP.1, Annex, paragraph 25).

Additional requirements for Parties involved

All Parties involved in JI projects must inform the secretariat of their designated focal point for project approval and any national guidelines for determination, monitoring and verification:

A Party involved in an Article 6 project shall inform the secretariat of:

  1. Its designated focal point for approving projects pursuant to Article 6, paragraph 1(a);
  2. Its national guidelines and procedures for approving Article 6 projects, including the consideration of stakeholders’ comments, as well as monitoring and verification (9/CMP.1, Annex, paragraph 20).

Parties must also make publicly available certain information relating to projects which they are hosting:

A Party hosting an Article 6 project shall make publicly available, directly or through the secretariat, information on the project in accordance with the reporting guidelines set out in appendix B below and the requirements contained in decision 13/CMP.1 (9/CMP.1, Annex, paragraph 28).

A Party that authorises the participation of a public or private entity in the CDM remains responsible for fulfilling its emission reduction obligations under the Kyoto Protocol and must ensure that the entity's participation complies with the rules:

A Party that authorizes legal entities to participate in Article 6 projects shall remain responsible for the fulfilment of its obligations under the Kyoto Protocol and shall ensure that such participation is consistent with the present annex.  Legal entities may only transfer or acquire ERUs if the authorizing Party is eligible to do so at that time (9/CMP.1, Annex, paragraph 29).

A Party involved may also be a project participant in a JI project, in which case it will have the same rights and obligations as other project participants (for example, in relation to adding new project participants and communication with the Joint Implementation Supervisory Committee).

Last updated on 7 September 2010

Related topics

Letter of approval

Track 1

Track 2

Joint Implementation Supervisory Committee