What are the differences between two policy strategies to mitigate \(\mathrm{CO}_{2}\) emissions, Clean Development Mechanism (CDM) and Joint Implementation (JI)?

Answer: The major differences between CDM and JI are: 1. Participating countries and project location: CDM projects are implemented in developing countries, while JI projects take place within developed countries. 2. Emission reduction credits: CDM provides Certified Emission Reduction (CER) credits, while JI grants Emission Reduction Units (ERUs). 3. Project types: CDM focuses on projects promoting sustainable development and reducing emissions, whereas JI projects involve technology transfer and know-how between developed countries for emission reduction and energy efficiency. 4. Project approval procedures: CDM projects require approval from the host country's Designated National Authority (DNA), validation by a Designated Operational Entity (DOE), and registration by the CDM Executive Board. In contrast, JI projects follow either Track 1 (national procedures) or Track 2 (international verification) approach, with project approval and verification from the host country's authorities or the Joint Implementation Supervisory Committee (JISC).