What type of units are created and transferred through Joint Implementation (JI) projects?

The type of units that are created and transferred through Joint Implementation (JI) projects are known as Emission Reduction Units (ERUs). JI is one of the mechanisms established under the Kyoto Protocol that allows industrialized countries to invest in emission reduction projects in other industrialized countries to earn ERUs. These units represent a specific amount of carbon dioxide equivalent emissions that have been reduced or removed through approved projects.

By generating ERUs, countries can use these units to help meet their own greenhouse gas reduction targets, effectively creating a financial incentive for investing in projects that also lead to environmental benefits. This mechanism promotes cost-effective reductions and encourages an international collaboration towards achieving sustainability goals. Thus, the correct answer accurately reflects the purpose and function of JI projects in the context of carbon trading and emission reductions.