Background

In September 1997 the World Bank and the Government of Switzerland formally launched a collaborative initiative to assist potential host country governments in exploring the opportunities and potential benefits from participating in the AIJ (Activities Implemented Jointly) pilot phase, and in formulating their own positions regarding AIJ and JI (Joint Implementation).

Prior to the Kyoto conference, the program focused on countries with economies in transition. Following agreement in Kyoto on the establishment of a Clean Development Mechanism (CDM), the scope of the program has been expanded to also include developing countries and assist them in assessing their role in the CDM, identify potential investment projects and develop national policies regarding the CDM.

In addition to Switzerland, the program has expanded to include other bilateral donors (e.g. Australia, Germany, Finland, Austria and Canada) which provide co-financing to host countries to analyze the issues of implementing the Kyoto Protocol flexible mechanisms in a National Joint Implementation/Clean Development Mechanism (JI/CDM) Strategy Study (NSS). Host country interest, donor preferences and a country's greenhouse gas (GHG) emissions reduction (i.e. GHG offset potential) are among the factors that determine the selection of NSS host countries. The World Bank serves as an advisor and facilitator, assisting host country governments in discussing the terms of reference for the studies, making arrangements for donor funding, administering contracts with consultants and providing methodological guidance. The national strategy studies program aims at building local capacity. Studies are therefore conducted by host country experts in collaboration with experts from donor countries and the World Bank.