Европейска схема

Kyoto Protocol Mechanisms

Bulgaria assists the implementation of the mechanisms under the Kyoto Protocol and will continue to do so. The mechanism “joint implementation” (Art. 6 of KP) is considered an important initiative to attract investments in energy efficiency, renewable energy sources, co-generation and new low carbon and carbon free technologies. Bulgaria has developed and is implementing rules and criteria for assessment of “joint implementation” projects. Twelve projects have been approved and some of them have already started.

Directive 2004/101/ЕС, amending the Emission trading Directive 2003/87/ЕС, also known as “Linking Directive”, establishes a link between the Community Emission trading scheme and the mechanisms under the Kyoto Protocol. This is a result of the efforts to investigate economically efficient measures for companies with the purpose to reduce GHG emissions. The emission reduction units from the “joint implementation” projects and the certified emission reductions from “clean development” projects (Art. 12 of Kyoto Protocol) are allowed to contribute up to a certain limit to the fulfilment of the obligations of operators under the European Emission trading scheme, i.e. they are considered as equal units to the allowances.

However, the Linking Directive reduces the scope and opportunities for implementation of such projects, especially for new Member States which also are hosting “joint implementation” projects. This occurs as a result of the requirement of the European Union to avoid the so-called direct and indirect double counting of reduced GHG emissions (i.e. emissions reduced under “Joint Implementation” project can not be allocated to installations within the EU ETS).

In order to avoid double counting of reduced emission as a result of projects with direct effects, the same quantity of allowances is cancelled from the installation where the reduction is achieved as is the quantity of emission reduction units transferred to another country under the “joint implementation” project.

Indirect effect of the double counting occurs in such JI projects which lead to reduction in the energy consumption in the network and to the production of electricity (energy efficiency or renewable energy sources). Such projects are implemented for installations outside the scope of the Scheme but have an effect on the installations participating in the Scheme.

In order to avoid the double counting of JI projects, allowances are set aside. For the direct double counting this quantity is taken from the allowances of the specific installation where the reduction has been achieved. For the indirect double counting allowances are taken from the allowances of the production of electric energy sector.

During the Second period (2008-2012), the maximum share of ERUs and CER for fulfilment of the obligations of operators is limited to 20% of the allowances allocated to them.