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).
The 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 establish 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 provides 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.
Any entity that holds an account in the Australian National Registry of Emissions Units is eligible to apply for a CDM or JI Letter of Approval from Australia's National Authority. Find out how to apply for an account in the National Registry on the Clean Energy Regulator's website.
Application and approval procedures
The Australian Government, through the National Authority for the CDM and JI, may authorise private entities' participation in CDM and JI project activities at its discretion. The National Authority will not approve participation in:
- projects involving the destruction of trifluoromethane, and nitrous oxide created as a result of producing adipic acid
- projects for the production of nuclear energy
- projects for the production of hydropower with a generating capacity of greater than 20MW, unless the project meets criteria adopted by the European Union (EU)
Issuance of letters of approval to participate in a CDM or JI activity in no way guarantees that any Certified Emission Reductions (CERs) or Emission Reduction Units (ERUs) may be used for compliance under Australian legislation.
Guidance materials
Australia’s Designated National Authority is currently reviewing the below guidance material for authorising participation in the CDM and JI against national policies.
The internationally agreed rules for the CDM and JI require Parties participating in the CDM and JI to establish national guidelines and procedures for approving JI projects.
See the guidelines and procedures for each of the flexibility mechanisms:
- Australia's National Guidelines and Procedures for Approving Participation in Clean Development Mechanism Projects [1.41MB PDF] [628.1KB DOCX]
- Australia's National Guidelines and Procedures for Approving Participation in Joint Implementation Projects [1.31 MB PDF] [510.3KB DOCX]
These documents provide general guidance for entities wanting to:
- invest in a CDM project or a JI project outside of Australia
- transfer the resulting emission reduction units or certified emission reductions into the Australian National Registry of Emissions Units (ANREU)
They provide some background information on the mechanisms and set out the National Authority's application and approval procedures.
Entities wishing to establish or invest in a CDM or JI project should seek appropriate financial and legal advice.
These guidelines will be updated if the internationally agreed CDM or JI rules are amended or if the Government introduces new policies related to these mechanisms.
Any party with an interest in establishing a JI project in Australia should contact our department (via the National Authority) regarding requirements for establishing such a project.
Letter of approval
CDM letters of approval
See letters issued by Australia's National Authority for the CDM and JI (as at 7 December 2015).
Project name |
Applicant |
Host party |
Date issued |
---|---|---|---|
Chengzigou Hydro Power Plant |
Perenia Pty Ltd |
People's Republic of China |
7/12/2015 |
Perpetual 7.5 MW Non-conventional Renewable Sources Biomass Power Project in India |
WeAct Pty Ltd |
India |
7/12/2015 |
Electricity generation by utilization of waste heat from calcined petroleum coke production process |
WeAct Pty Ltd |
India |
23/10/2015 |
6.25 MW grid-connected Sattegala Mini Hydel Scheme at SLS Power Industries Ltd in Chamarajanagar District, Karnataka |
WeAct Pty Ltd |
India |
23/10/2015 |
13 MW Grid Connected Dandela Mini Hydel Scheme, Karnataka State, India |
WeAct Pty Ltd |
India |
23/10/2015 |
9 MW Neria Hydroelectric project, Karnataka, India |
WeAct Pty Ltd |
India |
23/10/2015 |
4.5 MW grid-connected Sugur Mini Hydel Scheme at SLS Power Industries Ltd in Bellary District, Karnataka |
WeAct Pty Ltd |
India |
23/10/2015 |
Chambal Power Limited's (proposed 7.5 MW biomass based power project at Rangpur, Kota district, Rajasthan |
WeAct Pty Ltd |
India |
23/10/2015 |
Project for the catalytic reduction of N2O emissions with a secondary catalyst inside the ammonia reactor of the nitric acid plant at Dongbu Hannong Chemicals Ltd., Ulsan, Korea (Dongbu) |
Thomas Winklehner |
Republic of Korea |
23/10/2015 |
Hubei Duhe Pankou Hydropower Plant |
Perenia Pty Ltd |
People's Republic of China |
31/07/2015 |
Khe Bo Hydropower Project |
Blue World Carbon SEA Pte Ltd |
Viet Nam |
13/04/2015 |
Energy Efficient Stoves Program |
World Vision Australia |
Federal Democratic Republic of Ethiopia |
22/07/2013 |
Yunnan Diqing State Deqin County Shibahe Second Level Hydropower Project |
Pure Carbon Capital Pty Ltd |
People's Republic of China |
17/12/2012 |
Dong Nai 4 Hydropower Project |
CO2 Asia Pte Ltd |
Viet Nam |
13/12/2012 |
Guodian Wuqi zhouwan 1st 49.5MW Wind Power Project |
Sinoda Carbon Capital Pty Ltd |
People's Republic of China |
04/12/12 |
Guodian Wuqi zhouwan 2nd 49.5MW Wind Power Project |
Sinoda Carbon Capital Pty Ltd |
People's Republic of China |
04/12/12 |
Tram Tau Hydroelectric Power Plant |
Blue World Carbon SEA Pte Ltd |
Viet Nam |
3/12/2012 |
Dak Mi 1-1A Hydroelectric Power Project |
Blue World Carbon SEA Pte Ltd |
Viet Nam |
3/12/2012 |
Biogas recovery from wastewater treatment in Hargy Oil Palms Ltd, palm oil mill. |
Perenia Pty Ltd |
Papua New Guinea |
7/11/2012 |
Biogas recovery from wastewater treatment in PT. Umbul Mas Wisesa Palm Oil Mill |
Perenia Pty Ltd |
Indonesia |
7/11/2012 |
Xinjiang Hami Southeast Wind Zone Yandun Third Wind Farm Project |
Macquarie Bank Limited |
People's Republic of China |
25/10/2012 |
Hebei Shangyi CGN Dongshan Wind Power Project |
Macquarie Bank Limited |
People's Republic of China |
27/09/2012 |
Guangkong Huidong Dongshanhai Huangbu Wind Power Generation Project |
Macquarie Bank Limited |
People's Republic of China |
27/09/2012 |
FELDA Biogas Plant (Methane Recovery and Utilisation) at FPISB Umas Palm Oil Mill, Malaysia |
Perenia Pty Ltd |
Malaysia |
24/08/2012 |
FELDA Biogas Plant (Methane Recovery and Utilisation) at Sungai Tengi Palm Oil Mill, Malaysia |
Perenia Pty Ltd |
Malaysia |
24/08/2012 |
CGN Jinta Hongliuwa 9 MW Grid-connected PV Power Generation Project |
Macquarie Bank Limited |
People's Republic of China |
30/08/2012 |
CGN Dunhuang Phase II 9 MW Grid-connected PV Power Generation Project |
Macquarie Bank Limited |
People's Republic of China |
30/08/2012 |
Dunhuang 9MW solar power project |
Macquarie Bank Limited |
People's Republic of China |
15/08/2012 |
Youyu Yangqianhe Tieshanbao 49.5 MW Wind Power Project |
Macquarie Bank Limited |
People's Republic of China |
15/08/2012 |
Nanba Associated Gas Processing Plant and the Auxiliary Engineering |
Macquarie Bank Limited |
People's Republic of China |
15/08/2012 |
Guangdong Jiahu Wind Farm Project |
Macquarie Bank Limited |
People's Republic of China |
15/08/2012 |
Xitieshan Phase III 60 MWp Grid-connected Solar PV Power Generation Project |
Macquarie Bank Limited |
People's Republic of China |
1/08/2012 |
Birahi Ganga Hydro Electric Project |
Perenia Pty Ltd |
India |
1/08/2012 |
Rishiganga Hydroelectric Project (RGHEP), India |
Perenia Pty Ltd |
India |
1/08/2012 |
Nafra Hydroelectric Project, India |
Perenia Pty Ltd |
India |
31/07/2012 |
Rongnichu Hydroelectric Project (RHEP), India |
Perenia Pty Ltd |
India |
31/07/2012 |
Tawau Geothermal Power Project |
Perenia Pty Ltd |
Malaysia |
23/07/2012 |
Methane Capture and Utilization Project at Asia Palm Oil Mill, Malaysia |
Perenia Pty Ltd |
Malaysia |
23/07/2012 |
Methane Capture and Utilization Project at Melewar Palm Oil Mill, Malaysia |
Perenia Pty Ltd |
Malaysia |
23/07/2012 |
Methane Capture and Utilization Project at Carotino Palm Oil Mill, Malaysia |
Perenia Pty Ltd |
Malaysia |
23/07/2012 |
Miyar Hydroelectic Project |
Perenia Pty Ltd |
India |
23/07/2012 |
Sorang Hydro Electric Project |
SMEC International Pty Ltd |
India |
16/05/2012 |
Ulu Jelai Hydropower Plant Project |
Perenia Pty Ltd |
Malaysia |
15/05/2012 |
Ting Ting Hydroelectric Project |
Perenia Pty Ltd |
India |
15/05/2012 |
Tashiding Hydroelectric Project |
Perenia Pty Ltd |
India |
15/05/2012 |
Suzhou Phase III Municipal Solid Waste Incineration for Power Generation Project |
Macquarie Bank Limited |
People's Republic of China |
20/04/2012 |
Zhenjiang Municipal Solid Waste Incineration for Power Generation project |
Macquarie Bank Limited |
People's Republic of China |
20/04/2012 |
Suqian Municipal Solid Waste Incineration for Power Generation Project |
Macquarie Bank Limited |
People's Republic of China |
20/04/2012 |
Ta Loi 2 Hydro Power Project |
Perenia Pty Ltd |
Vietnam |
10/04/2012 |
Srepok 4A Hydropower project, Vietnam |
Perenia Pty Ltd |
Vietnam |
5/04/2012 |
Song Bung 2 Hydropower project, Vietnam |
Perenia Pty Ltd |
Vietnam |
5/04/2012 |
Manglad Small Hydroelectric Project |
Perenia Pty Ltd |
India |
8/03/2012 |
Fumin Mayingshan 40.5MW Wind Power Project |
Macquarie Bank Limited |
People's Republic of China |
6/03/2012 |
Fumin Dafengyakou 33MW Wind Power Project |
Macquarie Bank Limited |
People's Republic of China |
6/03/2012 |
CPF Minburi Wastewater Biogas Capture and Utilisation Project |
Carbon Treasury International Pty Ltd |
Thailand |
6/03/2012 |
Suoi Choang Hydro Power Project |
Perenia Pty Ltd |
Vietnam |
6/03/2012 |
Dong Chum 2 Hydro Power Project |
Perenia Pty Ltd |
Vietnam |
6/03/2012 |
Nam Luc Hydro Power Project |
Perenia Pty Ltd |
Vietnam |
6/03/2012 |
Trung Son Hydro Power Project |
Perenia Pty Ltd |
Vietnam |
17/02/2012 |
Nam Mo 3 Hydro Power Project, Vietnam |
Perenia Pty Limited |
Vietnam |
17/02/2012 |
Nam Toong Hydro Power Project |
Perenia Pty Limited |
Vietnam |
16/11/2011 |
Nam Hoa 2 Hydro Power Project |
Perenia Pty Limited |
Vietnam |
9/11/2011 |
Song Cho 2 Hydro Power Project |
Perenia Pty Limited |
Vietnam |
9/11/2011 |
Nam Dong 4 Hydro Power Project |
Perenia Pty Limited |
Vietnam |
27/09/2011 |
Southern Cross Carbon Rural Lighting Program for Bangladesh |
Southern Cross Carbon |
Bangladesh |
14/09/2011 |
Wellbeing Green CFL Program for Pakistan |
Southern Cross Carbon |
Pakistan |
14/09/2011 |
VKG Steels & Energy Private Limited - 8 MW WHR Based Captive Power Project |
Emit Securities Limited |
India |
9/08/2011 |
Shanghai Lingang natural gas based power generation project |
Macquarie Bank Limited |
People's Republic of China |
20/07/2011 |
Bagasse based Cogeneration Project at Pudukkottai Tamil Nadu, India |
Emit Securities Limited |
India |
19/07/2011 |
Guangxi Dahua Hydropower Project |
Macquarie Bank Limited |
People's Republic of China |
15/04/2011 |
Chu Linh and Coc San Hydropower Project |
Perenia Pty Limited |
Vietnam |
5/04/2011 |
6 MW Rice Husk based cogeneration plant at Bhageshwari Papers Private Limited |
Emit Securities Limited |
India |
28/01/2011 |
2.25 MW Rice Husk based cogeneration plant at Siddeshwari Industries Pvt Ltd |
Emit Securities Limited |
India |
28/01/2011 |
Rice Husk based cogeneration plant |
Emit Securities Limited |
India |
28/01/2011 |
RDF Power Projects Ltd. - Integrated Solid Waste Management Project |
Emit Securities Limited |
India |
28/01/2011 |
2.5 MW Rice husk based cogeneration plant at Hanuman Agro Industries Limited |
Emit Securities Limited |
India |
18/01/2011 |
10 MW Biomass based renewable energy generation for the grid at Varam Bio Energy (P) Limited in Bhandara District, Maharashtra |
Emit Securities Limited |
India |
18/01/2011 |
Sesa - Waste Heat Recovery based power generation |
Emit Securities Limited |
India |
8/12/2010 |
14.85 MW grid connected wind farm project, at various locations in Tamil Nadu |
Emit Securities Limited |
India |
17/11/2010 |
Secondary Catalytic Reduction of N2O emissions at ONPI Nitric Acid Plant in Bacong, the Philippines |
Orica Finance Limited |
The Philippines |
22/06/2010 |
Yunnan Lixianjiang Shimenkan Hydropower Project |
Macquarie Bank Limited |
People's Republic of China |
18/01/2010 |
JL letters of approval
See letters issued by Australia's National Authority for the CDM and JI (as at 7 December 2015).
Project name |
Applicant |
Host party |
Date issued or refused |
---|---|---|---|
Reduction of agricultural emissions by partial replacement of nitrogen fertilizer and soil tillage change |
EMIT Securities Limited |
Hungary |
Issuance: 25/02/2013 |
Landfill gas mitigation project on seven Hungarian landfills (HU1000051) |
Emit Securities Limited |
Hungary |
Issuance: 09/04/2010 |
Read more
Read more about Clean Development Mechanisms:
Read more about Joint Implementation:
See also
Read how Australia meets international climate change commitments