Progress in the field of JI is currently being hampered by a lack of consensus amongst key stakeholders in government on what constitutes an eligible JI project in terms of qualifying on environmental grounds under the Kyoto Protocol. Furthermore, progress is hindered by lack of agreement and understanding of what procedures, models, frameworks, and guidelines should be used to judge and evaluate the merits of proposed JI investments. Lack of consensus and agreed methodologies is resulting in lengthy delays in project implementation and consequently high development costs for investors. This, in turn, is discouraging potential investors from investing in clean energy technologies that could significantly reduce GHG emissions in these countries using the Kyoto JI "flexible mechanism"
The BASE project will
work with these governments (the UNFCCC "focal points" in each
country) and other key stakeholders (e.g., industry, research institutions)
to develop a set of baseline tools, methodologies and guidelines that
will be tailored to the Climate Change objectives of each country. It
will help develop a consensus amongst the key stakeholders (particularly
those ministries most relevant to promoting and approving JI projects)
on the processes necessary to satisfy minimum requirements of additionality
for JI applicants.
In developing these tools and guidelines, the project will help speed up the process of JI investment as well as help the candidate countries with their commitments under the Kyoto Protocol. Developing agreed national methodologies for defining the eligibility for investments under the Joint Implementation designation will result in reduced project development costs for investors, while simultaneously providing both investors and other key government agencies responsible for promoting investments clear guidance on JI project eligibility.
Additionally, by helping these countries accelerate investment in clean energy in the electricity sector (thereby improving environmental performance), this will help to speed up these countries' accession to the EU. The participating governments view JI as an important tool to help in the accession process, particularly by speeding up investment in "clean" energy, and thereby transferring new technologies and know how to their economies to facilitate that transition.