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EU wide voluntary harmonisation of JI/CDM project types accepted for compliance
The EU legislation currently excludes two types of JI/CDM credits (nuclear and temporary forest credits) while Member States 'may' allow the use of others and hereby currently take different approaches.
In addition, conditions are attached to the use in the EU ETS of carbon credits from hydroelectric projects exceeding 20 MW of installed capacity. The requirement is relevant in the case of JI/CDM credits to be surrendered in the Member States registries under the EU ETS. It aims to ensure that hydro projects are developed along the options least damaging to the environment (exploring possible alternatives) and addressing such issues as gaining public acceptance, and fair and equitable treatment of all affected stakeholders, including local and indigenous people.
In line with Article 11b(6) of the Directive 2004/101/EC Member States approving hydroelectric CDM/JI projects above the threshold of 20 MW have to "ensure compliance (of such projects) with the international criteria and guidelines, including those contained in the World Commission on Dams 2000 Report"
- Since entry into force of Directive 2004/101/EC (the Directive), this requirement has been interpreted differently by Member States. In the absence of a harmonised approach, some Member States have placed a range of supplementary conditions on the use of CDM credits from large hydro projects by the operators.
- At the request of Member States and market participants, the Commission has endeavoured to facilitate a voluntary coordination process through the Climate Change Committee and its working group with the Member States involving also outside stakeholders.
As a result, Member States have arrived at uniform guidelines on the application of Article 11b(6) 
[54 KB] of the Directive and a template of a questionnaire [73 KB] guiding project proponents through the preparation of a compliance report.
The guidelines and the template will be published by Member States approving hydroelectric projects by 1 April 2009 with a view that all new applicants use that format for application at the latest by 1 July 2009.
Those Member States that have so far not approved large hydropower project activities have indicated that they would use the harmonised approach, if asked for approval of such projects.
Member States will monitor the functioning of the voluntary harmonised approach to the implementation of Article 11b(6) of the Directive and put it periodically under review in order to ensure equal treatment in the ETS of carbon credits from projects complying with the requirements of Article 11b(6) of the Directive.