This report covers the work of the Joint Implementation Supervisory Committee (JISC) during the period from 24 October 2009 to 23 October 2010, during which the JISC held five meetings and one round-table consultation with stakeholders. By the end of the reporting period, 236 project design documents (PDDs) had been submitted and published on the UNFCCC website and 23 positive determinations regarding PDDs had been deemed final by the JISC. These would achieve emission reductions of approximately 370 million tonnes of carbon dioxide equivalent (t CO2 eq) and 35 million t CO2 eq during the first commitment period of the Kyoto Protocol, respectively. This report highlights achievements and challenges faced by the JISC in its supervision of the mechanism. In particular, it reports the experience of JISC with the verification procedure under the JISC (Track 2 procedure) with a view to making improvements for the future operation of joint implementation (JI) in response to the request by the Conference of the Parties serving as the meeting of the Parties to the Kyoto Protocol (CMP) at its fifth session. It also highlights the work undertaken in the areas of the Track 2 procedure and accreditation activities and interaction with stakeholders. Further, this report includes a number of recommendations for actions by the CMP. Lastly, it reports on the financial status of the resources for the work on JI, including the financial projection up to 2012 in response to the request by the CMP at its fifth session