What is bundling?
'Bundling' is not defined in the rules for the Joint Implementation (JI) mechanism. However, the following definition is provided in the rules of the Clean Development Mechanism (CDM):
Bringing together of several small-scale CDM project activities, to form a single CDM project activity or portfolio without the loss of distinctive characteristics of each project activity (EB 21, Annex 21, paragraph 3).
Small-scale (SSC) projects can be bundled at several stages of the project cycle (under the Track 2 process):
Projects meeting the thresholds referred to in paragraphs 7 and 8 above and not being a debundled component of a large project according to section 2. above may be bundled at the following stages in the project cycle under the verification procedure under the JISC:
- Project design document;
- Determination referred to in paragraph 33 of the JI guidelines;
- Monitoring;
- Determination referred to in paragraph 37 of the JI guidelines (Provisions for Joint Implementation small-scale projects, Version 3, JISC 18, Annex 3, paragraph 17).
Bundled projects need not be in the same project category:
Bundled JI SSC projects may, but do not necessarily, pertain to the same project category (Provisions for Joint Implementation small-scale projects, Version 3, JISC 18, Annex 3, paragraph 18).
Projects in the bundle must all have the same crediting period and each must comply with the requirements for SSC projects:
All projects in the bundle shall:
- Have the same crediting period; and
- Comply with the provisions for JI SSC projects defined in the present document, in particular the thresholds referred to in paragraphs 7 and 8 above; and
- Retain their distinctive characteristics (i.e. location, technology/measure etc.) (Provisions for Joint Implementation small-scale projects, Version 3, JISC 18, Annex 3, paragraph 19).
The composition of the bundle cannot change over time, unlike the programme of activities (PoA) under the CDM.
Bundled projects must submit a form (F-JI-SSC-BUNDLE) with information on the bundle and indicating that the projects are to be bundled:
If proposed JI SSC projects are to be bundled, a form with information on the bundle (F-JI-SSC-BUNDLE)6 and a written statement signed by all project participants indicating that they agree that their individual projects are part of the bundle and nominating one project participant to represent all project participants in communicating with the JISC shall be sent to the accredited independent entity (AIE) (Provisions for Joint Implementation small-scale projects, Version 3, JISC 18, Annex 3, paragraph 21).
In the letter of approval for the project, the Parties involved must indicate that they are aware that the projects are bundled:
The Parties involved in the projects of the bundle shall indicate in their project approval in accordance with paragraph 31 (a) of the JI guidelines that they are aware of the bundle (Provisions for Joint Implementation small-scale projects, Version 3, JISC 18, Annex 3, paragraph 22).
The accredited independent entity (AIE) must forward the information relating to all projects in the bundle to the secretariat at the same time, so that they are made publicly available together:
The AIE shall forward the documents referred to in paragraphs 21 and 22 above to the secretariat when making the determination referred to in paragraph 33 of the JI guidelines with regard to the projects in the bundle publicly available in accordance with paragraph 34 of the JI guidelines. All documents referring to a bundle shall be submitted to the secretariat at the same time (Provisions for Joint Implementation small-scale projects, Version 3, JISC 18, Annex 3, paragraph 23).
If projects in a bundle use the same baseline, this must be justified according to the particular circumstances of each project in the bundle:
If projects in a bundle referred to in section 3. above use the same baseline, this has to be justified by considering the particular situation of each project in the bundle (Provisions for Joint Implementation small-scale projects, Version 3, JISC 18, Annex 3, paragraph 29).