Access to Justice for the Private Sector in Joint Implementation Projects under the Kyoto Protocol: A Brief Study of Possible Disputes and Remedies Available to Private Participants in International Carbon Emission Reduction Projects

摘要

The Kyoto Protocol has not only created carbon emission reduction obligations for industrializedcountries, but also opportunities for the private sector to participate in its "flexible mechanisms". Oneof these mechanisms is Joint Implementation, which allows private legal entities to engage ininternational emission reduction projects that generate tradable emission rights. Private parties can actas verifiers of the emission reductions achieved by such projects, or as buyers of the generatedemission rights (which can be used, e.g., for compliance under the European Union Emissions TradingScheme). During the Joint Implementation project cycle, these private parties can become involved inseveral types of disputes with various counterparties. This paper explores the legal remedies availableto such private parties. Long-term private sector investment and contribution to the objectives of theKyoto Protocol are more likely to occur in a stable regulatory environment, which requires a certaindegree of legal protection. This includes proper access to justice in case disputes arise.