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
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.
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