Preparing for implementation: Initial requirements under the Kyoto Protocol

1
Preparing for implementation Initial
requirements under the Kyoto Protocol

• UNFCCC Information Event
• Halldor Thorgeirsson
• Clare Breidenich
• Andrew Howard
• Katia Simeonova

2
Overview of presentation

• Objective to remind Parties of the basic rules
  and requirements of the Kyoto Protocol
• Particular emphasis on pre-commitment period
• Basic Architecture reporting, review and
  compliance
• Initial report and accounting requirements
• 4th national communications and demonstrable
  progress
• Secretariats preparation for implementation

3
Compliance with Annex B targets
Projected emissions
Annex B assigned amount
Emissions side
Assigned amount side
4
Kyoto compliance architecture
Joint implementation
International transaction log
National registries
CDM
Reporting of quantitative information
Compilation and accounting database (emissions,
assigned amount information,mechanisms
eligibility)
COP/MOP
Reporting of qualitative information
Reviewprocess
ComplianceCommittee
5
Reporting, review and compliance procedures

6
Kyoto Protocol reporting

• Initial report to
• establish assigned
• amount (once prior to
• commitment period)
• GHG Inventory with base year
• Calculation of assigned amount under 3.7 8
• Calculation of commitment period reserve
• National registry
• National inventory system
• LULUCF definitions and elections

• National
• communications
• (every 5 years)
• Convention elements
• National Inventory System
• National Registry
• Supplementarity
• Article 2 polices and measures
• Legislative, enforcement and administrative
  arrangements
• Technology transfer, capacity building and other
  Article 10 activities
• Financial resources

• Annual reporting (with
• Convention inventory)
• GHG Inventory
• LULUCF information
• Assigned amount info
• 3.14 information

• Report on demonstrable
• Progress (once in 2006)
• Domestic measures
• GHG trends
• How measures will help meet commitments
• Article 10 and 11 activities

7
Article 8 review process

• Four types
• - Review of initial report
• - Periodic review of national communications
• - Annual review of 7.1 information
• - Expedited review to reinstate mechanisms
  eligibility
• All review reports forwarded to Compliance
  Committee
• ? Compliance Committee to consider any
  questions of implementation raised in the
  reports

8
Compliance Committee
Any Party
ERT
Questions of implementation about itself or
another Party
All review review reports
Compliance Committee
Bureau
Facilitative Branch
Enforcement Branch
Annual report
Provision of generalpolicy guidance
COP/MOP
9
Compliance Committee Branches

• Enforcement Branch
• - Resolves questions of implementation
  regarding quantitative requirements (targets,
  emissions, AA)
• - Determines whether to apply adjustments or
  corrections for compilation and accounting
  purposes
• - Can suspend or reinstate mechanisms
  eligibility
• Facilitative Branch
• - Provides advice and assistance for compliance
• - Addresses questions of implementation
  regarding non-quantitative commitments,
  including Article 3.14

10
Kyoto implementation timeline
3.1 Compliance Assessment
4th Nat Communication Demonstrable Progress
Reports
5th National Communication?
Voluntary Annual Reporting under 7.1
True-up period Report

2006
2008
2009
2007
2012
2013
2014
2011
2015
2010
Reports to establish Assigned Amount
Mandatory Annual Reporting under 7.1
Article 8 Review Process
Compliance Committee
11
Initial report under Article 7.4
12
Kyoto Protocol accounting
gt lt
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Purpose of the initial report

• To facilitate calculation of its assigned amount
  and demonstrate
• its capacity to account for emissions and
  assigned amount
• Report due by 1 January 2007
• Submission triggers process to establish assigned
  amount and mechanisms eligibility
• - In-country review by expert teams under
  Article 8 to be completed within 1 year
• - All review reports forwarded to Compliance
  Committee for consideration
• - Resolution of any questions of implementation
  to be done by Enforcement Branch
• - Facilitative Branch to address any requests
  for advice and assistance

14
Emissions-related elements

• National System
• GHG inventory
• LULUCF Elections

15
National systems

• Required for estimation of GHG emissions and
  removals
• To be established by 1 January 2007
• Institutional, legal and procedural arrangements
  necessary to produce inventory
• - Single national entity with inventory
  responsibility
• - Inventory planning (define responsibilities,
  choice of methods and data)
• - Preparation (use of good practice guidance,
  data collection, inventory uncertainty)
• - Quality assurance and quality control
  procedures
• - Reporting and archive inventory information

16
National systems (continued)

• National System requirements are functional
• ? Compliance depends on ability to produce
  reliable inventory
• Any questions of implementation identified by
  expert review team to be considered by the
  Enforcement Branch
• National system required for mechanisms
  eligibility

Problems with national system could prevent Party
from participating in Kyoto mechanisms
17
National greenhouse gas inventory

• All gases and sources? Article 3.3/4 LULUCF
  removals not included until commitment period
• Full geographic coverage
• Complete time-series? All years from base year
  up to most recent available
• Use of methods consistent with IPCC
  methodologiesand Good Practice Guidance
• Submitted in standardized electronic reporting
  tables (common reporting format)
• National inventory report (description of methods
  used, data sources, etc)

18
Base year inventory

• Base year emissions used for assigned amount
  calculation
• - 1990 (unless other year or period has been
  approved)
• - Elected year for F-gases (1990 or 1995)
• - Deforestation emissions (if LUCF clause
  applies)
• ERT may recommend application of a conservative
  adjustment if problem is identified
• ? base year emission estimates adjusted
  downwards
• Estimate (adjusted if necessary) is recorded in
  compilation and accounting database

Problems with base year inventory can result in
a reduction in assigned amount
19
Land use, land-use change and forestry

• Definitions for LULUCF parameters (e.g. forest,
  crown height, etc)
• Elections of activities under Article 3.4
• Accounting period (annual or over commitment
  period) for each 3.3 activity and each elected
  3.4 activity

Partys choices are recorded in CA database and
are mandatory for commitment period
20
Assigned-amount-related elements

• Initial report of Annex B Party
• Description of the national registry
• Partys calculation of its assigned amount
• Commitment period reserve
• Other assessment reports from administrator
  cooperation
• Show results of independent testing
• Show results of initializing registry
  communications with the ITL, in accordance with
  the data exchange standards

21
National registries

• Electronic databases established by Annex B
  Parties
• Track holdings of units in accounts for Parties
  and entities
• Track transactions of units in and between
  accounts
• - Issuance and conversion of units
• - Acquisition of units from other registries
• - Cancellation and replacement of units
• - Retirement of units for compliance purposes
• - Carry-over of surplus units to next commitment
  period
• Process transactions in accordance with
  thespecifications of the data exchange standards
• Transactions monitored by the international
  transaction log

22
Setting aside assigned amounts

• Annex B Parties show compliance with their
• emissions commitments by retiring assigned
  amounts
• Units issued for assigned amount (Article 3.7 and
  3.8)
• Units issued for net removals from LULUCF
  activities
• Units converted on the basis of JI projects
• Units generated by CDM projects
• Units acquired through emissions trading
• Each unit equals 1 tonne of CO2 equivalent

Compliance is when retirement emissions
23
Establishment of Assigned Amount

• Party calculates assigned amount (Article 3.7 and
  3.8)
• - reviewed base year inventory
• - Annex B target
• - An Article 4 agreement, if appropriate
• Partys calculation is reviewed in the initial
  review
• Assigned amount recorded after review and
  consideration by the Compliance Committee
• ? Takes account of any adjustments made

Once recorded, assigned amount is fixed for the
entire commitment period
24
Mechanisms eligibility requirements
Full eligibility

• a. Party to the Kyoto Protocol
• b. Assigned amount calculated
• c. National system in place for estimating
  emissions/removals
• d. National registry in place for tracking
  assigned amount
• e. Submission of most recent required emissions
  inventory
• f. Accurate accounting of assigned amount and
  submission of information

25
Determining and maintaining eligibility

• Automatic eligibility after 16 months of initial
  report (unless Enforcement Branch determines a
  requirement is not met)
• Party must continue to meet requirements to
  maintain eligibility
• - Annual inventory and assigned amount reporting
• - Inventories pass the quality test in the
  annual review
• Enforcement Branch can suspend eligibility

26
4th national communication and report on
demonstrable progress
27
Reporting on Convention implementation

• National circumstances
• Policies and measures
• Projections
• Vulnerability, impacts and adaptation
• Financial resources and transfer of technology
• Research and systematic observation
• Education, training and public awareness

28
Reporting on Kyoto Protocol implementation

• National Inventory System
• National Registry
• Supplementarity (in use of mechanisms)
• Domestic policies and measures
• Article 2 policies and measures
• Legislative, enforcement and administrative
  arrangements
• Technology transfer, capacity building and other
  Article 10 activities
• Financial Resources

29
Elements defined by COP decisions

• Annex II Parties to provide information on
  support programmes in developing countries on
• - Adaptation (decision 5/CP.7)
• - Meeting needs and concerns from the
  implementation of response measures (decision
  5/CP.7)
• All Parties requested to provide information on
• - Monitoring the progress in implementation of
  the framework for capacity building (decision
  2/CP.7)
• - Implementation of the New Delhi work programme
  on education, training and public awareness
  under Article 6 (decision 11/CP.8)

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Submission and Review

• Submission date 1 January 2006
• Inform the secretariat in case of delay
• Delay of more than 6 weeks brought to attention
  of the COP/MOP, Compliance Committee and made
  public
• Periodic review (in-country) for each Annex I KP
  Party
• Starts when it submits the NC under the KP
• Completed for all Parties in two years of the NC
  submission
• Review outcome
• Potential problems (transparency, completeness,
  timeliness)
• Recommendations and assessment (treatment of
  potential problems)

Problems with the NC could result in an action
by the Facilitative Branch of the Compliance
Committee
31
Report on demonstrable progress

• Progress in achieving commitments by 2005 is
  mandatory (Article 3.2)
• Report due on 1 January 2006, consistent with NC4
  information (decisions 22/CP.7 and 25/CP.8)
• - Description of policies and measures
• - Trends in, and projections of, national GHG
  emissions
• - Evaluation of the impact of domestic policies
  and measures on trends and projections
• - Description of activities undertaken in
  fulfilment of the commitments under Articles 10
  and 11

32
Consideration of the report on demonstrable
progress

• The secretariat to prepare a synthesis report
• SBI and COP/MOP to consider synthesis report
• Report could provide basis for assessing
  emissions and trends in light of the long-term
  climate challenge

33
Secretariats preparations for implementation
34
Status of Registry systems

• Data exchange standards completed in 2004
• ? Coordinate registry systems processing
• International transaction log
• - Technical design completed in 2004
• - Funding constraints have delayed
  implementation
• - Completion of deployment expected in 3rd
  quarter of 2006
• - Registries to initialize communications with
  ITL in 2nd half
• CDM registry
• - Deployed in 2004 (issuance/distribution of CDM
  units)
• - Remaining development to be completed in July
  2005

35
Status of review and compliance

• Review processes basically in place
• - Will be intensified for initial reviews
• - More experts needed
• - Consideration of how to streamline processes
• Compliance Committee
• - Internal procedures and databases under
  development
• - Members of Committee to be elected at COP/MOP
  1
• - Elaborate procedures and working arrangements
  in 2006
• Compilation and Accounting Database
• - GHG information system in place
• - additional modules under development on
  LULUCF, adjustments, assigned amount info
  (completed mid-2006)