The Climate for Joint Implementation: Case Studies from Russia,Ukraine, and Poland

Joint implementation (JI) can provide flexibility in meetingKyoto Protocol commitments, and 44 nations have already participated inthe U.N. Framework Convention on Climate Change – Activities Implemented Jointly (AIJ) pilot. Thispaper surveys JI policy and projects in three countries – Russia, Ukraine,and Poland – over the past five years and examines the effects of domesticinstitutions, foreign policy, and investment trends on JI in each country.The institutional and economic situation in the three nations differs greatly,and these distinctions have resulted in very different circumstances for AIJprojects, affecting both their number and scope. Poland has a well-definedset of rules and procedures for JI and its economy is quite strong. Ukrainehas not yet established criteria or clear procedures for AIJ project reviewsalthough it does have an Interagency Commission on Climate Change.Ukraine's economy declined by over 40% in the 1990s. Russia'seconomy has also declined, to a lesser extent. Russia does have aprocedure for reviewing AIJ projects, though it has temporarily halted thesereviews. Countries seeking JI investment can take several steps to improve thenumber and quality of AIJ projects that they receive. In the long term,governments can create macroeconomic stability and a solid legalinvestment basis to attract investment for JI and other areas. In the shortterm, however, governments can undertake several simple and inexpensivesteps to promote JI. Establishing clear rules and procedures for AIJprojects is an important step. So too are clearly delegating responsibilityfor AIJ project review and providing a single JI point of contact in thegovernment to which investors and project developers can turn. Gainingmore experience in implementing AIJ projects now is important preparationfor fully implementing the Kyoto Protocol beginning in 2008.