ABSTRACT
This chapter considers the prospects and progress to date in Central and Eastern European (CEE) countries to participate in JI and IET. It discusses the evolution of JI and the negotiations of targets for the CEEs at Kyoto. Economic and moral arguments favouring domestic action are then explored with a discussion of some practical suggestions for how ‘green investment schemes’ could be deployed to limit ‘hot air’ in the Kyoto system, particularly by Russia and Ukraine. The chapter then describes the early experiences of the CEEs under the AIJ pilot phase and the insights gained by many countries through this experiment. The remainder of the chapter explains how prepared CEE countries are for meeting the mechanism participation requirements, illustrating the problems they will face with data on the capacity-related challenges. It then focuses on early ‘JI’ experiences from participation in carbon funds, principally the Dutch ERUPT programme and the World Bank Prototype Carbon Fund (PCF), before focusing in detail on how the EU ETS will affect the attractiveness of JI.
