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A market-based implementation mechanism defined in Article 6 of the Kyoto Protocol, allowing Annex I countries or companies from these countries to implement projects jointly that limit or reduce emissions, or enhance sinks, and to share the Emissions Reduction Units.
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See also Emissions Reduction Unit.
Russia and Ukraine were the two biggest beneficiaries of the JI system, which allowed them to trade emissions reductions units (ERUs) 'proving' that carbon cuts had been made, for assigned amount units (AAUs) from rich world polluters, in the exotic lexicon of carbon trading.
Developed countries could earn additional emission reduction units by financing energy-efficient projects (e.g., clean-development mechanisms) in developing countries.
Under the flexibility mechanisms, an artificial market is created in which the emission allowances or emission reduction units are traded.
Its market mechanisms included the sale of "emission reduction units," which are earned when a developed country reduces its emissions below its commitment level, to developed countries that have failed to achieve their emission targets.
The prices of EU Allowances (EUAs), Certified Emission Reductions (CERs) from Kyoto-based CleandDEmissionnt Mechanism pReductionnd Emission RedUnitsn Units (ERUs) from Kyoto-based Joint Implementation projects and the future development of these prices are important factors for the economic impact of the EU-ETS on the aviation sector.
Here, we define the seller to be the supplier of REDD emission reduction units, whereas the buyer is the IIR.
There is general agreement in REDD policy circles that emission reduction units generated by any REDD mechanism under the UNFCCC must be "real" and environmentally integer.
It has been argued that emission reduction units should be fully 'fungible' and that CO2 sequestered in vegetation (a carbon credit) is directly equivalent to CO2 emissions from fossil fuel burning.
The Protocol provides for trading of emission reduction units between parties and for joint emission reduction and sink enhancement projects between developed countries through Joint Implementation JII) and between developed and developing countries through the Clean Development Mechanism (CDM), although the rules about how these mechanisms will operate are still to be negotiated.
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