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 during the period from 20 October 2007 to 12 September 2008, the closing date of the twelfth meeting of the JISC. The report recommends actions to be taken by the CMP at its fourth session. It also refers to work undertaken by the JISC during this reporting period, including on the further operationalization of the verification procedure under the JISC and the associated project caseload, and operation of the joint implementation accreditation process. The report also highlights the areas of governance, management and resources, in particular noting the need for adequate and predictable resources to ensure an effective implementation of joint implementation activities. Based on this information, the CMP may wish to provide further guidance on joint implementation to the JISC