Operationalization and priority of joint implementation projects

The inclusion of joint implementation (JI) in the United Nations Framework Convention on Climate Change is a breakthrough for international cooperation on climate actions. The following paper discusses the economic rationale for the industrialized countries to invest in JI projects in developing countries by analysing the economic effects of carbon emission limits for China. Some operational issues of JI are addressed and potential areas for JI projects that may be in China's interest are discussed. This paper is based on the report prepared for the Netherlands Ministry, of Housing, Spatial Planning and the Environment under Contract 95140042. The views expressed here are those of the author.