Joint Implementation (JI) is an element of the Kyoto Protocol that creates Emission Reduction Units (ERUs) from emission abatement projects in Annex 1 (emissions-capped) countries - Canada, Europe, Japan, New Zealand and former USSR. ERUs can be used for compliance in the EU ETS and other national schemes, such as in Canada and Japan. ERUs may be issued to qualifying projects from 1 January 2008.
The JI principles are similar to the CDM though since they interact with national caps under the Kyoto Protocol, they are subject to national policies. As a result, the mechanisms are less developed and in practice. JI is mostly being implemented in Russia, Ukraine, Bulgaria and Romania.
EU ETS