Joint Implementation is a mechanism established in Article 6 of the Kyoto Protocol. This mechanism allows a developed country with a high cost of domestic greenhouse gas (GHG) reduction to set up projects in other developed countries with lower costs and benefit obtaining carbon credits that count towards their emissions targets or commitments.

Joint implementation can allow a country to trade emission reduction units (ERU’s) while obtaining international investment and technology.

Source: Development in Environmental Economics by Edwin Woerdman