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The concept of joint implementation as a way to implement climate change mitigation projects in another country has been controversial ever since its inception. Developing countries have raised numerous issues at the project-specific technical level, and broader concerns having to do with equity and burden sharing. This paper summarizes the findings of studies for Brazil, India, Mexico and South Africa, four countries that have large greenhouse gas emissions and are heavily engaged in the debate on climate change projects under the Kyoto Protocol. The studies examine potential or current projects/programs to determine whether eight technical concerns about joint implementation can be adequately addressed. They conclude that about half the concerns were minor or well managed by project developers, but concerns about additionality of funds, host country institutions and guarantees of performance (including the issues of baselines and possible leakage) need much more effort to be adequately addressed. All the papers agree on the need to develop institutional arrangements for approving and monitoring such projects in each of the countries represented. The case studies illustrate that these projects have the potential to bring new technology, investment, employment and ancillary socioeconomic and environmental benefits to developing countries. These benefits are consistent with the goal of sustainable development in the four study countries. At a policy level, the studies' authors note that in their view, the Annex I countries should consider limits on the use of jointly implemented projects as a way to get credits against their own emissions at home, and stress the importance of industrialized countries developing new technologies that will benefit all countries. The authors also observe that if all countries accepted caps on their emissions (with a longer time period allowed for developing countries to do so) project-based GHG mitigation would be significantly facilitated by the improved private investment climate

Concerns About Climate Change Mitigation Projects: Summary of Findings from Case Studies in Brazil, India, Mexico, and South Africa