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Contracting Issues
This section highlights the role contracts may play in the USIJI process and calls attention to general issues that prospective proposers should think about when drawing up contracts. IJI projects may require various types of routine contracts among participating entities, including contracts for the purchase of services and equipment, but some aspects of the IJI contracting process are unique and will require legal documents reflecting these special considerations. Distinctive features of IJI projects include the long-term nature of the contracts, the assignment of greenhouse gas reduction or sequestration benefits, project monitoring and verification provisions, and risk management. Where appropriate, this section will draw on the experiences of past IJI applicants to provide insight into how one might deal with these complex issues. However, each project is different and will have different contracting needs. The material presented in this chapter is not intended to substitute for professional legal advice. Rather, its purpose is to describe some of the major issues that may apply to a given contracting situation. By alerting potential applicants to some unique features of the IJI process, the section can assist proposers in developing highly effective, implementable IJI proposals which are backed up by credible legal documentation.

Contracts may play a role in the IJI process to protect interests of both parties and to ensure successful implementation of the IJI project. By clarifying the expectations and responsibilities of each party, contracts help increase the likelihood of project success. The presence of legally binding documentation can also help legitimize the project to third parties, e.g., project reviewers and the USIJI Secretariat. The establishment of contracts indicates a significant investment of time, money, and intellectual resources in planning a joint implementation project; as such they demonstrate parties' commitment to the long-term success of a proposed project.

Contents:

General Issues Regarding Contracts in the USIJI Process

Specific Issues to Negotiate in a IJI Contract

Other Considerations: Logistics of Contract Development

Conclusion

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