National Authority for the Clean Development Mechanism and Joint Implementation

What are the 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.

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).

Similarly, 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.

What is 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 the Department of Climate Change and Energy Efficiency (DCCEE) 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 through the issuance of Letters of Approval.

Because the Government has decided that Australia will not be hosting JI projects in the first commitment period of the Kyoto Protocol (2008-2012), the National Authority will only approve JI projects and participation in JI projects in other Annex I countries.

Who can apply 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. For information on how to apply for an account in the National Registry, please refer to https://nationalregistry.climatechange.gov.au.

Application and approval procedure

An application for a Letter of Approval 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.

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. Australia’s National Guidelines and Procedures for Approving Participation in Clean Development Mechanism Projects (448 KB) and Australia’s National Guidelines and Procedures for Approving Participation in Joint Implementation Projects (449 KB) provide guidance on considerations in exercising this discretion.

For detailed guidance on Australia’s CDM application and approval procedures

Australia’s National Guidelines and Procedures for Approving Participation in Clean Development Mechanism Projects (448 KB)  (word 525 KB)

Attachment B: CDM Letter of Approval application and declaration of compliance (112 KB)   (word 100 KB)

Attachment C: CDM request for review (153 KB)  (word 86 KB)  

For detailed guidance on Australia’s JI application and approval procedures

Australia’s National Guidelines and Procedures for Approving Participation in Joint Implementation Projects  (449 KB) (word 234 KB)

Attachment B: JI Letter of Approval application and declaration of compliance (126 KB)  (word 100 KB)

Attachment C: JI request for review (112 KB)  (word 86 KB)

For a list of CDM Letters of Approval issued by Australia’s National Authority for the CDM and JI

Clean Development Mechanism Letters of Approval issued by Australia’s National Authority for the CDM and JI (65 KB) (RTF 127 KB)

For a list of JI Letters of Approval issued by Australia’s National Authority for the CDM and JI

Joint Implementation Letters of Approval issued by Australia’s National Authority for the CDM and JI (63 KB) (RTF 126 KB)