Agreement between the Government of Romania and the Government of the Republic of Finland on cooperation regarding the joint implementation and international trading of emissions, based on the Kyoto Protocol to the United Nations Framework Convention on Climate Change.

This Agreement applies to the procedures which, in accordance with art. 6 and 17 of the Kyoto Protocol, facilitates the development and implementation in Romania of projects to reduce greenhouse gas emissions and the transfer to the Finnish side of the agreed quantity of emission reduction units (ERUs), resulting from the projects respectively. If the Parties agree, GHG emission reductions resulting from early 2008 from Joint Implementation (JI) projects may be converted into Assigned Quantity Units (AAUs) during the period 2008-2012 and traded to the Finnish Party, based on art. 17 of the Kyoto Protocol. The Parties agree to explore the possibilities and develop procedures for the use of international emissions trading based on art. 17 of the Kyoto Protocol, in the form of a green investment scheme. Both parties agree to apply to the Kyoto Protocol and the relevant rules, decisions, guidelines, modalities and procedures adopted thereafter so as to meet the eligibility requirements for the purchase, issuance and transfer of ERUs and AAUs from 1 January 2008 or as soon as possible after that date. If the eligibility to use art. 6 and 17 of the Kyoto Protocol of one of the parties has been suspended, the party in question will do everything possible to regain its eligibility as soon as possible. The Romanian side must ensure that the funds obtained from the sale of the ERUs will be used to finance those specific projects from which the ERUs resulted.3. The Romanian side transfers the agreed and pre-paid quantity of ERUs and AAUs to the Finnish side, in the agreed period for each project, in accordance with art. 6 and 17 of the Kyoto Protocol, but not later than 2012.