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Kyoto Protocol flexibility mechanisms

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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

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

For a Letter of Approval for a CDM or JI project, applications must be accompanied by the following documents:

  • Project Design Document (or, for a Track 1 JI project, the equivalent document required by the Host Party)
  • Host Party Letter of Approval (if it has been issued)
  • signed declaration of compliance with the Kyoto Protocol and the internationally agreed CDM/JI rules
  • if the project is a hydropower project with a generating capacity above 20MW, a validated Compliance Report

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

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

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

Last updated: 12 November 2020

Content ID: 67495