Deutsch | English

Letter of Approval (LoA) for Companies

print page

Approval of Projects in line with Article 6 (Joint Implementation) and Article 12 (Clean Development Mechanism) of the Kyoto Protocol

Requirements for LoA issuance

Applicants, who require the issuance of a LoA of the Republic of Austria for a JI- or CDM-project are kindly requested to provide Kommunalkredit Public Consulting with following documents:

  • Project Documentation (Project Design Document; Information on socioeconomic and environmental impact)
  • Validation Report
  • Letter of Approval by Host Country – if available
  • Further information  - if required

For the issuance of a LoA a fee of EUR 1,200 is charged.
Submission Agent:
Kommunalkredit Public Consulting
Abteilung Klima und Energie
Türkengstraße 9
1090 Wien

Precondition for the recognition of Large Hydro Power Plants

The guidelines for the Austrian JI/CDM Program provide that hydropower projects with a generating capacity exceeding 20 MW have to comply with  the  relevant international criterias and guidelines, including those of the Final Report 2000 "Dams and Development: A New Framework for Decision-Making" of the  World Commission on Dams (WCD), (6 Z § 6a "conditions for recognition as a JI or CDM Project"). This provision implements the requirements of Art.11b (6) of the Directive 2003/87/EC as amended 2004/101/EC.

On the part of member states it was intended to harmonize the interpretation of this provision of the directive in order to ensure a consistent approach towards project promoters in all Member States. In addition, the confidence of Member States in the use and acceptance of JI/CDM credits from projects that were approved by other member states should be strengthened. It is a voluntary harmonization measure, ongoing projects are not affected. Projects within governmental purchasing programs are not covered in the future.

On 25th November 2008 the Federal Minister for Agriculture, Forestry, Environment and Water Management (BMLFUW) agreed to harmonize the established guidelines.

These guidelines include a "Guideline" in which the status and applicability of the guidelines are explained, and a "Checklist" for hydropower projects in the CDM or JI mechanism greater than 20 MW. The guidelines shall be applied from July 2009 on.

The "Guideline" provides that Letters of Approval (LoAs) for hydropower projects whose credits should be used by investing in the EU ETS, shall be issued not until the preparatory phase, and only with parallel requirements for the sustainability of these projects. The parallel requirements are listed in the checklist in the form of questions. This list must be validated by a DOE (Designated Operational Entity). In addition, the Guideline provides that information about (future) hydropower projects greater than 20 MW shall be made publicly available.

Background

The coming into force of the Kyoto Protocol in 2005 resulted in binding limits for Greenhouse Gas Emissions for industrialised countries. To support sustainable development and cost efficient mechanisms to reach the Kyoto targets, two project mechanisms, according to Article 6 (Joint Implementation) and Article 12 (Clean Development Mechanism) were introduced.

Article 6 and Article 12 of the Kyoto Protocol include the participation of private (natural or corporate bodies) or public institutions in these project mechanisms.

The combination of the project based mechanisms of the Kyoto Protocol with the Emission Trading System (ETS) in the European Community allows to use the generated Emission Reductions, purchased from projects according to Article 6 and Article 12, for compliance with the commitments according to Para 3 of the directive 2003/87/EC. This cost effective option increases the spectrum of options inside the common system and reduces the overall costs for the compliance with the Kyoto protocol. Equally it increases the liquidity of the common market for greenhouse gas certificates. The increasing demand in JI-credits will result in the development and transfer of modern, environmentally sound technologies as well as in the investment in environmental know how. As a result of the increasing demand in CDM-credits, developing countries, where CDM-projects are implemented, have the possibility to get support for their sustainable development.

Austria adopted this option in § 19 b of the Emissionszertifkategesetzes (EZG BGBl. I 135/2004 idF. 171/2006 (Emission Certificate Law) as well as in § 38 UFG (Environmental Support Act) and in the Directive for the Austrian JI/CDM Programme.