FACT SHEET ON JOINT IMPLEMENTATION

October 22, 1997

Description

Joint Implementation (JI) is an innovative, market-based approach for addressing global climate change that uses international partnerships to achieve low-cost reductions in greenhouse gas emissions. Under JI, a company in the United States invests in a project which reduces emissions in another country and uses those reductions as a less expensive means of meeting its own target. The U.S. has proposed that a formal regime that gives credit for JI projects be part of a new climate change agreement.

How it would work

Consider the example of a project announced today as part of a pilot program on joint implementation instituted by the United States. Two U.S. companies (Solar Electric Power and Light of Washington, D.C. and Trexler and Associates, Inc of Oak Grove, Oregon) will work with Renewable Energy Services Company of Asia, Ltd. to market and install 812,000 solar home systems in Sri Lanka. These systems will replace the use of kerosene lamps for lighting and the use of diesel-electric charging of lead-acid ba tteries for powering small home appliances. The result will be a 1.5 million metric ton reduction in greenhouse gas emissions and cleaner energy for tens of thousands of people.

U.S. experience

Under the U.S. pilot program on JI (formed under the existing climate change convention), 28 projects have been approved in 12 countries, including Costa Rica, Bolivia, the Czech Republic, and Russia. These projects span a range of technologies, includin g solar, geothermal, and wind power; fuel switching for district heating; biomass energy; and reforestation. U.S. companies and organizations already participating include Commonwealth Edison, Wisconsin Electric Power, Kenetech Windpower, Sealweld Corp., American Electric Power, PacificCorp, Detroit Edison, Clean Air Coalition, and many others.

Benefits

Lower costs: JI provides a strong incentive for companies and countries to search the globe for the lowest cost ways of reducing greenhouse gas emissions.

Expanded exports of U.S. technology: The enormous potential for JI projects around the world creates major opportunities for the increased sale of U.S. energy efficiency and alternative energy technologies.

Technology transfer: Increased reliance on more energy efficient technologies and less carbon-intensive energy alternatives will help developing countries meet their growing energy needs with more environmentally sustainable solutions.