In the coming months the prospects for JI/AIJ in the region will become more defined. As mentioned in the paper several countries in the region have created criteria for JI/AIJ projects and others are expected to follow. In the short term (3-5) years the outlook for financing for JI/AIJ projects will likely improve over what has been experienced thus far. Much depends on a December 1997 FCCC follow-up meeting, COP 3, where countries are to agree on a "legally binding" emissions reductions protocol, possibly including an agreement on a carbon trading scheme. In the U.S. the major carbon emitting lobby (energy, manufacturing, transportation sectors) prior to this meeting have taken a hard line position in order to limit the U.S. proposal to the UN FCCC. They generally claim that climate change may or may not be occurring and any link to man-made actions is difficult to assert at this time. This view contradicts a preponderance of the scientific evidence. This position is generally supported in the U.S. Congress - who must ratify any treaty agreed to by the Administration. The European Union is advocating a stronger emissions reduction proposal than the U.S. Despite the apparent contradictions and confusion, indications are that after the meeting the major carbon emitting sectors will be more receptive to financing carbon offset projects.
