Application of the Multiple Benchmark System (MBS) to selected case study projects

Joint Implementation (JI) and the Clean Development Mechanism (CDM) have been established under the Kyoto Protocol as project-based instruments to mitigate greenhouse gases of the industrialized countries to the levels imposed by their Kyoto commitments. An unresolved issue associated with the implementation of these two flexibility mechanisms, concerns the choice of the appropriate baseline for calculating the emission reductions in JI or CDM projects. This article describes a computerized tool that constructs and compares different types of standardized baselines and benchmarks. The analysis focuses on the suitability of several different types of benchmarks for assessing the emission reductions of certain types of projects. The analysis is also expanded into a discussion of the extent to which benchmarks reduce the crediting of non-additional projects and limit the risk of missed additional investments. This tool has been applied to actual JI and CDM projects in the Russian Federation and Indonesia.