A French view of the shaping of a

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• A French view of the shaping of a
• National Registry
• for GHG Allowance trading
• Presentation to The Registries Workshop prior to
  SBSTA 16
• by
• Philippe Meunier MIES
• and
• Heneage Legge-Bourke CDC IXIS
• Bonn, June 2nd - 3rd 2002

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Summary

• The requirements of the French Regulator
• Kyoto compatibility
• Reliability
• Security
• A dynamic tool for applying national policy
• How CDC responded to the challenge
• The requirements
• The options
• Some solutions
• The consequences
• The model for a French National Registry

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• First section
• The Regulators requirements

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The Regulators requirements - n 1 - Kyoto

• Respect the terms of the Kyoto Protocol and
  the Marrakech Accords in every respect
• which means creating a National Registry which
• records allocations
• records transfers
• links with other national registries
• links to the UNFCCC/CDM transaction logs
• allows direct accessibility for participants
• enables compliance (including CPR)
• allows selected access by the public

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The Regulators requirements-n2- Reliability

• Be certain that
• the information held is accurate and correctly
  reflects the true position before and after
  transfers
• real time information is available all-the-time
• rigorous respect is maintained of all limitations
  (e.g. commitment period reserve)

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The Regulators requirements - n3 - Security

• Ensure that information is securely held and
  that access to information is only available to
  those for which it is intended

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The Regulators requirements - n 4 - A dynamic
tool for applying national policy

• A Registry to provide information
• on a single site
• which reconciles holdings of allowances and
  verified emissions
• which enables application of penalties/banking
• which enables decision-taking on policy
  implementation

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• Première partie
• Faisabilité du registre avec les outils de EEF

Second section CDCs response
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CDC s response - the requirements

• Caisse des dépôts et consignations (CDC) as a
  100 state-owned,  AAA-rated public
  establishment, has a mission to act in the
  public interest
• Approach to the challenge as a financial
  institution, conscious of its mission,
  conservative in its approach, attentive to the
  requirements of the French Authorities, the Kyoto
  Protocol and the proposed European Directive
• Compatibility with other systems - so need to
  look at what others were doing

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PricewaterhouseCoopers / Natsource
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CDC s response - the options

• Irrespective of their legal definition, treat
  allowances like financial securities or treat
  them as something  different 
• New build or adapt existing systems - can they
  cope with the requirements?

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CDC s response - the solutions

• Treat allowances like public or private
  financial instruments (whatever the legal
  definition)
• Handle transfers on an existing secured
  electronic financial securities registry i.e.
  bottom-up approach - no new build from scratch
• PwC audit - Existing secured electronic
  financial securities registry systems can cope
  with minimal adaptation
• Double-entry book-keeping
• Inter-communicability between registries already
  exists

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CDCs response - the consequences

• Satisfies the requirements - fit for purpose
• Reliable and complete information
• Secure access is possible at differing levels
• Systems can communicate with others
• Saves time
• Saves money

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• Première partie
• Faisabilité du registre avec les outils de EEF

Third part Model of a Registry
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Interactive presentation of the model of the
Registry
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Contacts

• MIES p.meunier_at_mies.pm.gouv.fr
• CDC IXIS h.legge-bourke_at_cdcixis.com

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