The proposal for a directive 2003/0173, as known as “Linking” directive, amends the 2003/87/EC establishing a scheme for greenhouse gas emission allowance trading within the Community, in respect of Kyoto Protocol´s project mechanisms.

The core element of this proposal is to provide the recognition of JI and CDM credits as equivalent to EU emission allowances for their use within the Community scheme by operators to fulfil their obligations. Linkings will increase the diversity of compliance options within the Community scheme leading to a reduction of compliance costs for installations in the scheme.

This proposal will stimulate the demand for JI credits, in particular from Russia because of the great potential for projects there, and will lead to more investments by UE companies and the development and transfer of advanced environmentally sound technologies and know-how. By stimulating demand for CDM credits it will also assist developing countries hosting CDM projects in achieving their sustainable development goals through the transfer of environmentally sound technologies and know how.