International action - Kyoto Mechanisms
The Kyoto Protocol allows for emissions reduction projects to be carried out in other countries and to receive credits for the corresponding emissions reductions or limitations. These Kyoto project mechanisms rely on the fact that emissions of greenhouse gases contribute equally to global warming wherever they are emitted, meaning that companies can choose to reduce emissions where it is cheapest for them.
When projects are carried out in countries without a Kyoto target (non-Annex I Parties, ie developing countries) projects operate under the “Clean Development Mechanism”. When they are carried out in countries with a target (Annex I Parties) they operate under a process known as “Joint Implementation”. More information can be found on the UN’s official website for the Kyoto Mechanisms.
Clean Development Mechanism and the UK DNA
Defra was established as the UK’s Designated National Authority (DNA) for the Clean Development Mechanism (CDM) in July 2004. We have established a simple procedure for issuing letters of approval to companies wishing to participate in a CDM activity. For more information see our Clean Development Mechanism Page.
Joint Implementation and the UK DFP
Defra was established as the UK’s Designated Focal Point (DFP) for Joint Implementation (JI) in July 2004. The Government is not currently approving JI projects in the UK, but can issue letters of approval to UK companies wishing to participate in JI projects abroad. For more information see our Joint Implementation page.
Climate Change Projects Office
The Climate Change Projects Office is a one-stop shop providing information on climate friendly business opportunities available through the Kyoto Mechanisms. It offers practical advice and support to business interested in developing Joint Implementation and Clean Development Mechanism emission reduction projects. Carbon credits from these projects can count towards the UK's 12.5% emissions reduction target under the Kyoto Protocol. The Office can also identify contacts in relevant Government departments. It can be contacted by e-mail at ccpo.enquiries@berr.gsi.gov.uk.
The Government is undertaking a review of the role of the UK Climate Change Projects Office. Stakeholders are invited to participate in the review process by attending a half-day workshop to be held on the afternoon of 16 January 2008. Further information can be found on the CCPO website (part of the Department for Business, Enterprise and Regulatory Reform website).
Linking to EU Emissions Trading Scheme
The credits from the Kyoto Mechanisms can then be used for compliance with Kyoto targets or to cover emissions within the EU’s emissions trading scheme.
The "Linking
Directive" (2004/101/EC) 
allows
greenhouse gas emission credits earned through the Kyoto flexible mechanisms – Joint
Implementation and the Clean Development Mechanism – to be used
for compliance by operators of UK installations covered by the EU Emissions
Trading Scheme. It also includes some additional provisions on the approval
of project activities under the Kyoto flexible mechanisms. The Linking
Directive is implemented in the UK through The Greenhouse Gas Emissions
Trading Scheme (Amendment) and National Emissions Inventory Regulations
2005.
Page last modified: 12 December 2007
Page published: 23 November, 2005