|Project Bundling of small scale projects
for Joint implementation
Among the Kyoto Protocol flexible mechanisms,
the Joint Implementation (JI) is relevant in countries of Central and
Eastern Europe while as the Clean Development Mechanism (CDM) relates
to greenhouse gas reduction projects in Central and South America, Africa
and Southeast Asia.
Unfortunately, projects in these regions that would qualify for co-financing
are often small (<10,000 tons of CO2-eq per year). This usually does
not fit the requirements of carbon credit buyers who prefer contracting
large projects (>50,000 tons of CO2e per year) in order to minimize
the transaction costs. To use the emission reduction potential of small
projects and at the same time to keep the transaction costs limited, the
concept of flexible portfolio development has been established.
This concept involves assembling a set of subprojects of the same or similar
type into a bundle characterized by the following features: