Kyoto Protocol: Joint implementation (JI) a useful mechansim for the refurbishment of the infrastructure in the CEECs
Bianca Gusenbauer, Vienna University of Economics and Business Administration, Austria
The Kyoto Protocol outlines a plan to decrease the emission of green house gases (GHG) by 5.2%. The European Union further raised the reduction target to 8.0%, which is applicable to member countries. This abatement is to be realized by three different mechanisms: Emission Trading (ET), Joint Implementation (JI) and Clean Development Mechanism (CDM). As stated in the Kyoto Protocol, JI-projects are designated for Annex-I-countries. These countries must contribute demonstrably to the CO2 abatement, which must be measurable. Austria must reduce 13% of its CO2 emissions from its 1990 level, which means, it must decrease its CO2 level by 20%. Since the Austrian economy and policy face the threat of reduction costs, they will focus on JI projects in the Central and Eastern European Countries (CEECs) to fulfil the target, which has to be met in the first trading period. The focus of this paper is to explain the Kyoto Protocol in connection with Project Finance. Therefore, it is necessary to give an outline of both topics and combine them to draw up the advantages, risks and costs that are involved.

Keywords: Kyoto Protocol, Joint Implementation, Transaction costs, Project Finance, CEEC

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