In order for countries to participate in the project mechanisms there are some key eligibility require-ments that need to be met. Generally speaking, countries intending to use the credits have the most onerous eligibility requirements. Countries that host CDM projects have the least eligibility requirements, and countries may issue ERUs under Second Track JI on limited eligibility requirements. These requirements are summarised below.

The eligibility requirements that allow an Annex I host country to participate in JI First Track are stricter than the requirements applying to the Second Track.

Participation requirements for host Country

To participate at JI First Track the host Country must:

• Have ratified the Kyoto Protocol.
• Have established its Assigned Amounts (AA) in accordance with the Protocols and Accords.
• Have in place a national system for estimation of GHG emissions by sources.
• Have in place a national emissions registry in accordance with guidelines to record the acquisition and transfer of AAUs, ERUs, CERs, and RMUs.
• Have submitted to the UNFCCC annually a GHG inventory report in accordance with guidelines
• Have submitted to the UNFCCC supplementary information on its assigned amount.
• Have established a Designated Focal Point for approving projects.
• Have in place its national guidelines and procedures for approving JI projects.

Documentation and verification requirements

• The Host Party is free to decide upon and define the rules for verification of ERUs from a JI project.

Issuance of ERUs

• ERUs can be issued by the host Country. No approval is required from JI Supervisory Committee.

There are fewer requirements on the country for a Second Track JI project, and hence in addition to fulfilling these requirements, the JI Supervisory Committee must approve the project.

Participation requirements for host Country

To participate at JI Second Track the host Country must:

• Have ratified the Kyoto Protocol.
• Have established its Assigned Amounts (AA) in accordance with the Protocols and Accords.
• Have in place a national emissions registry in accordance with guidelines to record the acquisition and transfer of AAUs, ERUs, CERs, and RMUs.
• Have established a Designated Focal Point for approving projects.
• Have in place its national guidelines and procedures for approving JI projects.
  

Documentation and verification requirements

• Host Party has to follow the verification procedure under the Article 6 Supervisory Committee, which includes the development of a Project Design Document (PDD).
• The PDD needs to be determined by an Accredited Independent Entity (IE) accredited by the Article 6 Supervisory Committee.

Issuance of ERUs

• If JI Supervisory Committee does not call the Accredited Independent Entity’s determination report into a review procedure then host Party can issue ERUs.