Preparing for implementation: Preparing for implementation: Initial requirements under the Initial requirements under the

Kyoto ProtocolKyoto Protocol

UNFCCC Information Event

Halldor Thorgeirsson

Clare Breidenich

Andrew Howard

Katia Simeonova

Overview of presentationOverview 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

Secretariat’s preparation for implementation

Emissions side Assigned amount side

Projectedemissions

Annex Bassignedamount

Finalemissions

LULUCF activities

Mechanismsacquisitions

<=>

Compliance with Annex B targetsCompliance with Annex B targets

Reporting ofquantitativeinformation

Compilation and accounting database(emissions, assigned amount information,

mechanisms eligibility)

Reviewprocess

ComplianceCommittee

COP/MOP

Reporting ofqualitativeinformation

International transaction log

Joint implementation

CDM

National registries

Kyoto compliance architectureKyoto compliance architecture

Reporting, review and Reporting, review and compliance procedurescompliance procedures

Kyoto Protocol reportingKyoto Protocol reporting

Initial report toestablish assignedamount (once prior tocommitment 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

Annual reporting (withConvention inventory)

• GHG Inventory

• LULUCF information

• Assigned amount info

• 3.14 information

Nationalcommunications (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

Report on demonstrableProgress (once in 2006)

• Domestic measures

• GHG trends

• How measures will help meet commitments

• Article 10 and 11 activities

Article 8 review processArticle 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 ‘questionsof implementation’ raised in the reports

COP/MOP

Any PartyERT

Bureau

FacilitativeBranch

EnforcementBranch

Questions of implementation about itself or another Party

Compliance Committee

Annual report

All review review reports

Provision of generalpolicy guidance

Compliance CommitteeCompliance Committee

Compliance Committee BranchesCompliance Committee Branches

Enforcement Branch

- Resolves questions of implementation regardingquantitative 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 regardingnon-quantitative commitments, including Article 3.14

2006 2008 20092007 2012 2013 20142011 20152010

4th Nat Communication & Demonstrable Progress Reports

Reports to establish

Assigned Amount

Voluntary Annual Reporting under 7.1

5th National Communication?

‘True-up period’ Report

Mandatory Annual Reporting under 7.1

Article 8 Review Process

Compliance Committee

3.1 Compliance Assessment

Kyoto implementation timelineKyoto implementation timeline

Initial report under Article 7.4Initial report under Article 7.4

Kyoto Protocol accountingKyoto Protocol accounting

>=<

Emissions 2008 - 2012

Secretariat compilation

and accountingdatabase

Article 3.1 complianceassessment

Review and compliance processes

National systems

Annex I Partysystems

Emissionsinventories

Reportingprocess

National registries

Kyoto Protocol units

Assigned amount

2008 - 2012

Eligibility requirements

Purpose of the initial reportPurpose of the initial report

“To facilitate calculation of its assigned amount and demonstrateits 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 8to 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

Emissions-related elementsEmissions-related elements

National System

GHG inventory

LULUCF Elections

National systemsNational 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, datacollection, inventory uncertainty)

- Quality assurance and quality control procedures

- Reporting and archive inventory information

National systems (continued)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

National greenhouse gas inventoryNational 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)

Base year inventoryBase 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

Land use, land-use change and forestryLand 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

Party’s choices are recorded in C&A database and are mandatory for commitment period

Assigned-amount-related elementsAssigned-amount-related elements

Initial report of Annex B Party

Description of the national registry

Party’s 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

National registriesNational 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

Setting aside assigned amountsSetting aside assigned amounts

Annex B Parties show compliance with theiremissions 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

Establishment of Assigned AmountEstablishment 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

Party’s 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

Mechanisms eligibility requirementsMechanisms eligibility requirements

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

Full eligibility

a. Party to the Kyoto Protocol

b. Assigned amount calculated

d. National registry in place for tracking assigned amount

Track 2 JI projects

Determining and maintaining eligibilityDetermining 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

44thth national communication national communication and report on and report on

demonstrable progressdemonstrable progress

Reporting on Reporting on Convention implementationConvention 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

Reporting on Reporting on Kyoto Protocol implementationKyoto 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

Elements defined by COP decisionsElements 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)

Submission and ReviewSubmission 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

Report on demonstrable progressReport 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

Consideration of the report on Consideration of the report on demonstrable progressdemonstrable 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

Secretariat’s preparations for Secretariat’s preparations for implementationimplementation

Status of Registry systemsStatus 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

Status of review and complianceStatus 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)