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Department of Climate Change, Energy, Enviroment and Water

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  1. Home
  2. Climate change
  3. International climate action
  4. Kyoto Protocol flexibility mechanisms

Sidebar first - EN - Climate change international commitments

  • Climate change
    • International commitments
      • International partnerships
      • Supporting climate action in the Indo-Pacific region
      • Supporting climate action in developing countries
      • Intergovernmental Panel on Climate Change
      • Kyoto Protocol flexibility mechanisms
      • Office of the Special Adviser to the Australian Government on Low Emissions Technology
      • Australian engagement at COP27

Kyoto Protocol flexibility mechanisms

 

The Clean Development Mechanism (CDM) and Joint Implementation (JI) are two project-based flexibility mechanisms under the Kyoto Protocol.

These mechanisms are based on the principle that the benefit to the climate of reducing greenhouse gas emissions is the same regardless of where they are reduced.

Clean Development Mechanism and Joint Implementation

The CDM allows countries with an emission reduction target under the Kyoto Protocol (Annex I Parties) to implement greenhouse gas reduction or removal projects in non-Annex I Parties in order to generate Certified Emission Reductions (CERs).

JI provides for Annex I Parties to implement projects in the territory of other Annex I Parties to generate Emission Reduction Units (ERUs).

Like all Kyoto units, CERs and ERUs can be used by Annex I Parties to meet their Kyoto targets. They can also be traded on international carbon markets under the third flexibility mechanism: international emissions trading.

Australia's National Authority for the CDM and JI

The internationally agreed rules for the CDM and JI established that Parties participating in the CDM and JI must establish a Designated National Authority (DNA) and Designated Focal Point (DFP) to approve private entities' participation in CDM and JI projects respectively.

Australia's DNA and DFP are grouped into a single body within our department called Australia's National Authority for the CDM and JI. Like all DNAs and DFPs, Australia's National Authority may provide authorisation to private entities to participate in projects by issuing Letters of Approval.

Applying for approval to participate in CDM and JI projects

Under review

The Australian Designated National Authority is reviewing how it authorises CDM and JI participation against national policies. We are not currently accepting applications for Letters of Approval during this review process. For further information please email DNA@industry.gov.au.

Read more

Read more about Clean Development Mechanisms:

  • UNFCCC CDM
  • Designated national authorities
  • Designated operational entities
  • CDM Rulebook

Read more about Joint Implementation:

  • UNFCCC JI
  • Designated focal points
  • Accredited independent entities
  • JI Rulebook

See also

Read how Australia meets international climate change commitments

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Last updated: 18 November 2022

© Department of Climate Change, Energy, the Environment and Water

We acknowledge the Traditional Owners of country throughout Australia and recognise their continuing connection to land, waters and culture. We pay our respects to their Elders past, present and emerging.