I. Title of the Best Practice

II. Overview of the Best Practice

The federal government established the Clean Development Mechanism and Joint Implementation Office to enhance Canada's capacity to take advantage of the opportunities offered by the Clean Development Mechanism (CDM) and Joint Implementation (JI).

The Clean Development Mechanism and Joint Implementation are the two project-based mechanisms under the Kyoto Protocol which can assist industrialised countries, including Canada, to achieve their Kyoto commitments in a cost-effective manner, while contributing to the sustainable development of parties not included in Annex 1 of the Protocol. In addition, these mechanisms provide opportunities for Canadian organizations and enterprises, enabling project participants to obtain emission reduction credits through pursuing international projects.

BENEFITS OF PARTICIPATION
At Kyoto, Canada agreed to a target of 6% reduction of GHG emissions below the 1990 level by 2008-2012. Recognizing that emission reduction costs are often lower in developing countries and countries with economies-in-transition, the two mechanisms allow Canadian organizations and enterprises flexibility to reduce GHG emissions in more cost-effective ways than may be open to them in Canada.

The Clean Development Mechanism and Joint Implementation provide opportunities for Canadian organizations and enterprises to pursue international projects that reduce GHGs, while contributing to international efforts to address climate change. In addition, the two mechanisms provide several benefits for the host countries.

Opportunities for Canadian industry can include:

Generation of emission reduction credits
Access to new markets and investment opportunities
An opportunity to demonstrate the viability of a voluntary approach
A showcase for environmental leadership

Opportunities for host countries can include:

Lower level of fossil fuel dependence
Reduced energy cost
Improved energy efficiency
Health benefits from improved local air quality
Access to climate-friendly technologies
Increased investment in priority sectors of the economy
Socio-economic benefits due to enhanced infrastructure and improved employment opportunities

PARTICIPANTS
Canadian industry, non-government organizations and all levels of governments can participate in CDM and JI projects.

PROJECT ELIGIBILITY
Substantial opportunities exist for private and public sector involvement in projects that result in reductions in GHG emissions or removals by carbon sequestration activities. For example, initiatives may relate to:

energy efficiency (e.g. in transportation, buildings and industrial processes);
renewable energy;
electricity production and distribution;
oil and gas production;
switching to alternative fuels;
waste management; and
sustainable agriculture and forestry.

Negotiations on the international rules and procedures to govern the use of CDM&JI are likely to conclude by the spring of 2001, however the following project criteria have already been established:

All projects must achieve emission reductions that would not have otherwise occurred in the absence of the project;

Projects must be approved by both countries involved;

CDM projects must generate real, measurable and long-term benefits related to the mitigation of climate change.

In the current pilot phase of joint implementation, which was launched in 1995, projects are referred to as "Activities Implemented Jointly" (AIJ).

ROLE OF THE CDM AND JI OFFICE
The federal government established the Clean Development Mechanism and Joint Implementation Office to enhance Canada's capacity to take advantage of the opportunities offered by these mechanisms. The Office:

Acts as the day-to-day federal government contact point on the CDM and JI with links to other federal government programs, expertise and resources;

Facilitates Canada's participation in the CDM and JI by assisting Canadian project proponents with host country approval and exploring strategic cooperation arrangements with host countries; and

Provides technical guidance to companies participating in the CDM and JI.

The Office works closely with several federal government programs and agencies that are involved in climate change issues, including the federal Climate Change Secretariat, Environment Canada, Natural Resources Canada, the Canadian International Development Agency, Industry Canada, and Agriculture and Agri-Food Canada.

The Office also addresses projects submitted under the AIJ

III. Categorizing the Best Practice

1. Classification(s) (Indicate main classification(s) only.)
( ) Regulatory Approach (Policy approaches - regulations, incentives, etc)
( X ) Practical Action (Action undertaken independently by a social actor)
( ) Social Network Mechanism (Cooperative structure)

2. Social Actor(s) Involved (Indicate main social actor(s) only.)
( ) Citizens
( X ) Central government
( X ) Local government
( X ) Business

3. Sector(s) (indicate main sector(s) only.)
( X ) Energy
( X ) Household
( X ) Transportation
( X ) Industrial Enterprises
( X ) Other (Non-Industrial) Business
( X ) Agriculture / Land Use / Forestry
( ) Other (Please specify) -- Commercial / Institutional

4. Target Greenhouse Gas(es)
( X ) CO2
( X ) CH4
( X ) N2O
( X ) HFC
( X ) PFC
( X ) SF6
( ) Other (Please specfy.)

IV. List of Attachments

None

V. Please indicate a person to contact for more information about this Best Practice.

Contact Person:	Pamela O'Donnell
Title:	Deputy Head
Organization:	Canada's CDM and JI Office
	Climate Change and Energy Division (AEC)
	International Environmental Affairs Bureau
	Department of Foreign Affairs and International Trade
Email:	Pamela.O'Donnell@dfait-maeci.gc.ca or
	cdm.ji@dfait-maeci.gc.ca
Tel:	(613) 995-4788
Fax:	(613) 944-0064
Address:	125 Sussex Drive Ottawa, Ontario K1A 0G2