Double Counting

Double counting of emission reductions would occur if a measure was implemented at an ETS covered installation – thus leading to free EUAs and at the same time to the issuance of JI credits (ERUs). Emission reduction projects may have this effect directly (e.g. switch to biomass at power plant) or indirectly (e.g. wind park). To solve the problem, states either don’t accept JI projects or they have included a so-called “JI Reserve” in their national allocation plans. Thus the state will decommission EUAs in the volume of issued project ERUs.

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