Approval of JI and CDM projects with Germany as host and investor country – An analysis of the German project mechanisms act
The Kyoto Protocol obliges its signatories to reduce their greenhouse gas emissions to a certain level. In order to meet these reduction obligations, the countries are not limited to taking solely domestic action. They can, in part, meet these commitments through international emissions reduction projects within the ambit of mechanisms such as 'Joint Implementation' (JI) and the 'Clean Development Mechanism' (CDM). Both tools are of great practical importance because they provide the opportunity to meet emission reduction commitments in a cost-effective way while at the same time transferring advanced technologies to other countries. This article considers the legal background of JI and CDM, which depends on the regulatory architecture created by the United Nations and the European Union, and analyzes the requirements of the German Project Mechanisms Act for the approval of JI and CDM projects with Germany as a host or investor country.