How does the EC assess the limits on Joint Implementation/Clean Development Mechanism use by companies under the EU ETS?
In addition to domestic action by member states to reduce their greenhouse gas emissions, the Kyoto Protocol allows member states to invest in Joint Implementation (JI) and Clean Development Mechanism (CDM) projects in other countries and use credits from these for compliance purposes towards part of their emission reduction commitments. Member states are required to ensure that the use of Kyoto project credits is supplemental to domestic action.