Joint Implementation (JI) is a project-based mechanism based on Article 6 of the Kyoto Protocol. A project that is carried out jointly by two developed countries, both of which have pledged to an emission mitigation target under the Kyoto Protocol, falls within the scope of Joint Implementation.
In case an industrialised country implements or finances a climate project in another industrialised nation, it can have the resulting emission reductions counted towards its Kyoto target in the form of Emission Reduction Units (ERUs). Of course, the host country cannot credit these units, which means that it has to reduce its own units by the exported amount.
Joint implementation is a flexible and cost-effective method for Parties to meet part of their Kyoto commitments. At the same time, the host Party benefits from foreign investment and technology transfer.