What is debundling?

Debundling is defined in the Provisions for Joint Implementation small-scale projects as follows:

Debundling is defined as the fragmentation of a large project into smaller parts (Provisions for Joint Implementation small-scale projects, Version 3, JISC 18, Annex 3, paragraph 14).

The debundling rules provide that where a project is properly characterised as a small part of a large project activity (rather than a separate small-scale (SSC) project), the project activity shall not be entitled to benefit from the simplified provisions for SSC projects:

Taking into account paragraph 16 below, a debundled component of a large project is not eligible to benefit from the specific provisions for JI SSC projects (Provisions for Joint Implementation small-scale projects, Version 3, JISC 18, Annex 3, paragraph 14).

Identifying debundled projects

Debundled projects are identified according to the following rule:

A proposed JI SSC project shall be deemed to be a debundled component of a large project if there is a JI (SSC) project with a publicly available determination in accordance with paragraph 34 of the JI guidelines:

1. Which has the same project participants;
2. Which applies the same technology/measure and pertains to the same project category*; and
3. Whose determination has been made publicly available in accordance with paragraph 34 of the JI guidelines within the previous 2 years; and
4. Whose project boundary is within 1 km of the project boundary of the proposed JI SSC project at the closest point (Provisions for Joint Implementation small-scale projects, Version 3, JISC 18, Annex 3, paragraph 15).

* The second part of this subparagraph applies if the already existing project is a JI SSC project.

Exception for sub-threshold bundles

If the combined size of proposed small-scale projects that are deemed to be debundled components of a large-scale project does not exceed the limits for that type of small-scale project, the bundle will be eligible to use the simplified provisions for JI SSC projects:

If a proposed JI SSC project is deemed to be a debundled component of a large project in accordance with paragraph 15 above, but both together, the component and the other JI (SSC) project(s), do not exceed the thresholds for JI SSC projects as set in paragraphs 7 and 8 above, the component can be regarded as a JI SSC project and benefit from the relevant provisions (Provisions for Joint Implementation small-scale projects, Version 2, JISC 6, Annex 1, paragraph 16).