A United Nations panel has proposed merging the two tracks of its Joint Implementation (JI) emissions cutting mechanism under the Kyoto Protocol, the JI Supervisory Committee (JISC) said.
Under JI, companies can invest in carbon-cutting projects in nations that signed up to emissions targets under Kyoto, and in return receive emissions reduction units (ERUs), which can be used toward their own corporate emissions targets or sold for profit.
Currently, countries can either issue carbon credits for emissions reductions made themselves — known as Track 1 — or let the U.N. do an independent assessment, under Track 2.
The proposal would see the establishment of a unified track in place of the two distinct regulatory tracks, the panel said.
“We’re putting forward ambitious but extremely practical proposals that would draw on the best features of national and international approaches to incentivizing emission reduction projects,” said JISC Chair Benoit Leguet in a statement.
Last week, Russia approved its first Track 2 project. JI projects in Russia are expected to generate the lion’s share of around 150 million ERUs, which are expected to be issued by the end of 2012.
“Still, it is thought unlikely that the JISC could continue its work without a significant overhaul of its operations, including its funding model,” the JISC said.
The panel’s recommendations will be considered and approved at U.N. talks for a new global climate pact in Cancun, Mexico, next month.
Four months ago, the panel was forced to postpone meetings due to the lack of funds.
The Kyoto Protocol expires in 2012 and there are concerns that if there is no global climate agreement next month, a gap will open at the end of the protocol.
The JISC is asking for a mandate from next month’s talks to ensure the JI will be able to continue if such a gap occurs.
In particular, it wants to know if it can approve new projects after 2012 and that credits can be issued from the start of 2013 to allow countries to use them to meet emissions reduction targets which end in 2012.
