On 4 May 2005 the German Federal Cabinet passed the Project Mechanism Law (ProMechG). The Federal Environment Agency (UBA) is the public authority appointed to be in charge of introducing the flexible mechanisms of the Kyoto Protocol. “This will expand upon the competencies of the Federal Environment Agency in international climate protection“, said Professor Dr. Andreas Troge, President of the Federal Environment Agency.

In addition to emissions trading, the Kyoto Protocol makes provisions for two other climate protection instruments that grant the signatory states flexibility in the implementation of their emissions reductions targets. Project-based mechanisms can generate emissions credits to be used in emissions trading. They are the Clean Development Mechanism (mechanisms for sustainable development in lesser developed countries) as of 2006, and Joint Implementation (community projects among industrial countries) as of 2008.

ProMechG contains the legal provisions valid in Germany for carrying out CDM and JI projects, and thereby implements the EU Linking Directive. One of the tasks of the national authority in charge is to check whether projects reflect the objectives of climate protection policies.