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).

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:

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