Joint Implementation (JI) Introduction
Joint implementation is very similar to the Clean Development Mechanism, and has in fact adopted largely the same methodologies, project cycle, and overall structures. The key difference is that Joint Implementation is designed to assist industrialized Annex I countries in meeting their targets through investment and development of projects in other Annex I countries. As the host country also has a target under the Kyoto Protocol (unlike CDM host countries), a Joint Implementation project must reduce emissions against a 'business as usual' baselines, in order to free up Emission Reduction Units (ERUs) to sell.
Emissions from the host country are limited under the KP; JI projects reduce emissions in the host country and free up part of their total amount (Assigned Amount) which can then be transferred to the investor country in the form of ERUs. These are then subtracted from the host country's allowed emissions, and added to the total allowable emissions of the investor country. JI projects may start from 2000 onwards, however, ERUs can only be used for compliance from 2008, even in the EU ETS.