This note compiles and analyses available information in relation to the scope, effectiveness and functioning of the flexibility mechanisms under the Kyoto Protocol. The note focuses on the two project-based mechanisms under the Kyoto Protocol, namely the clean development mechanism (CDM) and joint implementation (JI). It considers possible improvements to institutional arrangements and governance in relation to the CDM Executive Board, the Joint Implementation Supervisory Committee (JISC), designated operational entities under the CDM and accredited independent entities under JI, as well as possible improvements to the rules and procedures for the two mechanisms, including technical issues such as additionality and methodologies. The note draws on a number of information sources, including submissions by Parties, the work of the CDM Executive Board and the JISC, and issues for consideration in the current commitment period identified by Parties during the work of the Ad Hoc Working Group on Further Commitments for Annex I Parties under the Kyoto Protocol