Joint implementation: an effective instrument of North-South environmental co-operation?

Abstract

There are doubts whether Annex I countries would be able to meet their emission-reduction commitments under the Rio Treaty, quite apart from the question of adequacy of commitments. Against this background, joint implementation (JI) is fast emerging as a complementary policy tool through which reductions in global carbon emissions could be achieved. This paper puts the issue of JI into context, including a hypothetical reforestation example, and addresses the question of whether it can work. The main finding is that although the potentials are huge, it cannot be taken for granted that joint implementation would produce the desired results. There are a number of pitfalls to watch out for if the potential contribution of this instrument is to be actualised. It is argued that the real advantage of the JI approach lies, not so much in short-term emission reduction or carbon sequestration, but in the longer term when projects based on environmentally relevant technology transfer successfully alter the energy-efficiency path of developing countries. The need for a guiding legal framework, a more direct role for private business, and the need for LDCs to be allowed to trade their share of emission-reduction credits constitute the main recommendations of the paper.