This annual report of the Joint Implementation Supervisory Committee (JISC) to the Conference of the Parties serving as the meeting of the Parties to the Kyoto Protocol (CMP) covers activities from 18 November 2006 to 19 October 2007. The report does not cover the period from 20 October to 27 November, the closing date of the ninth meeting of the JISC; however, the Chair of the JISC, Ms. Fatou Gaye, will highlight any relevant matters during this period in her oral report to the CMP. The report recommends actions to be taken by the CMP, at its third session, and particularly on a revised fee structure and the availability of resources. It also refers to work undertaken by the JISC during this reporting period, including on the further operationalization of the verification procedure and handling of the associated project caseload, and the operation of the Joint Implementation Accreditation Panel. Based on this information, the CMP may wish to provide further guidance on JI to the JISC. The report also highlights the areas of governance, management and resources, which are critical to ensuring the efficient, cost-effective and transparent functioning of the JISC. The JISC, in developing the JI management plan for 2008–2009, among other issues, reiterates the urgent need for adequate and predictable resources to implement its activities