This report identifies problems and solutions that emerged from the experience with joint implementation (JI) forest projects in Costa Rica, and discusses their significance to the design of the Clean Development Mechanism (CDM) established by the 1997 Kyoto Protocol. It also addresses some of the concerns of project developers, environmentalists, and Parties as they grapple with defining the CDM and the role of forest management in climate change mitigation.
The findings in this report are based on the first-ever, on-the-ground review of actual carbon sequestration projects. During 1996 and 1997, the Center for International Environmental Law (CIEL) and the Centro de Derecho Ambiental y de los Recursos Naturales (CEDARENA) reviewed the general policy framework and four specific forest projects adopted under Costa Rica’s Joint Implementation (JI) Program. This review was based on examination of project documents, discussions with project sponsors and government officials, and visits to project sites. Costa Rica was selected because it hosts more JI Projects than any other country, and because it has the most highly developed JI program of any non-Annex I (developing)country. The resulting case study describing these projects is included as Part II of this study.