Transcript Monitoring, Reporting and Verification in the EU ETS: Status and Implementation Stakeholder Day on the EU MRG Cologne 12 May 2005 Marco Loprieno Climate Change Unit European.

Monitoring, Reporting and Verification in
the EU ETS: Status and Implementation
Stakeholder Day on the EU MRG
Cologne
12 May 2005
Marco Loprieno
Climate Change Unit
European Commission, DG Environment
European Commission: DG Environment
Monitoring….
at the heart of the EU ETS

Companies must monitor and report their
GHG emissions from 1 January 2005
onwards

Installations must have a permit, with
monitoring and reporting requirements set
out therein, from 1 January 2005 onwards
European Commission: DG Environment
The EU MRG framework…
1. Determination of emissions (monitoring):
Installation-based calculation and measurement
of CO2-emissions including archiving, QA/QC &
Documentation
2. Reporting of Emissions:
Annual installation-specific emissions report
3. Verification of emission report
Checked by an independent verifier
European Commission: DG Environment
The Objectives of the EU-MRG

Transparency

Consistency with national inventories

Cost-effective, sufficiently flexible approaches for
different sectors, technologies, installation sizes and ages

Total uncertainty within acceptable ranges
European Commission: DG Environment
Annex I: General Guidelines
General requirements for monitoring and reporting:
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System boundaries

Calculation and measurement
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Selection of emission factors and oxidation factors

Retention of information

Quality assurance and control
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Guidance on uncertainty assessment

Reporting requirements
European Commission: DG Environment
Annex II-XI: Sectoral Guidelines
II)
General combustion installation guidelines
III-XI) Sector specific provisions for monitoring and
reporting:

Potential GHG-sources of typical installations/processes

Potential categories of GHG-emissions (combustion,
processes)
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Specific calculation methods

Process-specific emission factors
European Commission: DG Environment
Tier Approach
Tiers: approaches with different levels of accuracy for
calculation of emissions

Tier 1: lowest level of accuracy - increasing
numbering reflects increasing accuracy

Choice of tiers: Obligatory use of highest tier unless
this is not technically feasible or leads to unreasonably
high costs

Choice of tiers to be approved by competent authority
as part of permitting process

European Commission: DG Environment
Reporting

Annual report to the competent authority

To be verified by an independent Verifier
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Information provided


Production data relevant for level of emissions: consumption of
fuel-/ input material, production output, etc.

Emission factors, oxidation/conversion factors

Emissions for each of the activities carried out
Information publicly available Art 17 of Directive
2003/4/EC on Access to environmental information
European Commission: DG Environment
Verification & Accreditation



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No harmonised verification and accreditation
requirements in Directive
Some Member States have already set up
systems for verifying allocation data
Mutual recognition of verifiers left to the
discretion of individual Member States
Possibilities for harmonising verification
regime for second trading period?
European Commission: DG Environment
ETS Next Steps
No far-reaching changes to the allocation
process foreseen for the 2nd round of NAPs
 Fine tuning
 Looking to the future, cautious about making
alterations to the scheme – policy debate
should not get carried away
 .....Commission review of MRG

European Commission: DG Environment
MRG Next Steps
EU-MRG are the legally binding framework
for monitoring and reporting within the EUETS
 1st report in March 2006 – but monitoring
started on 1 January 2005
 Fine-tuning of Guidelines for 2nd Period
 Input from stakeholders who have hands-on
experience of the scheme is crucial

European Commission: DG Environment
MRG Next Steps
Report from Stakeholder Day to MS
 Update from ECOFYS Study (end of the year/
beginning next year)
 From now on MRG on the agenda of
discussion with MS
 DG ENV Monitoring Web Page
 Commission review of MRG – Proposal by
mid 2006 – Adoption: end 2006

European Commission: DG Environment
MRG Next Steps
DG ENV Monitoring Web Page:
 EU-MRG language version
 FAQs on Monitoring & Reporting
 Results of Stakeholder Consultation
http://europa.eu.int/comm/environment/climat/
emission/mrg_en.htm
Contact: [email protected]
European Commission: DG Environment