A SUSTAINABLE FRAMEWORK FOR JOINT IMPLEMENTATION

The Kyoto Protocol has recently opened new opportunities for joint imp lementation (JI) activities between parties to the Framework Conventio n on Climate Change. Before JI markets can develop, however stakeholde r acceptability of the instrument must be enhanced. Remaining barriers to acceptability include the lack of an agreed approach to assess add itionality-the emission reductions achieved by a JI project relative t o a baseline-and the lack: of an operational framework to ensure that sustainable development and international equity objectives are met by JI activity. Difficulties besetting current approaches to assessing a dditionality are rooted in the uncertainties characterizing assumed ba selines. This paper outlines an observable baseline framework for JI p rojects in the energy sector, which could remove these uncertainties. In contrast to current approaches to define baselines, observable base lines are calculated from om a country's existing energy and emissions data, and not from the particularities of a hypothetical baseline pro ject. The framework provides for unique baseline definitions, permitti ng unambiguous assessments of additionality. Furthermore, observable b aselines dynamically adjust over time to ensure that many sustainabili ty development objectives are met by JI activity. I will demonstrate a number of sustainability benefits that naturally result from applicat ion of the framework, and explore additional conditions that can be ad ded to the framework to promote international equity objectives.