accounting of emissions and assigned amount under the kyoto protocol clare breidenich unfccc...
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Accounting of Emissions and Accounting of Emissions and Assigned Amount under the Kyoto Assigned Amount under the Kyoto
ProtocolProtocol
Clare Breidenich
UNFCCC Consultant
OverviewOverview
Introduction to Kyoto Compliance Architecture
Role of reporting, review and compliance procedures in accounting of emissions and assigned amount Eligibility to participate in the Kyoto Mechanisms Accounting prior to, during and at end of commitment
period
LULUCF Accounting
Emissions side Assigned amount side
Projectedemissions
Annex Bassignedamount
Total Annex Aemissions
LULUCF activities
Mechanismsacquisitions
<=>
Compliance with Article 3.1 commitmentsCompliance with Article 3.1 commitments
Reporting ofquantitativeinformation
Compilation and Accounting Database(emissions, assigned amount information,
mechanisms eligibility)
Reviewprocess
ComplianceCommittee
COP/MOP
Reporting ofqualitative
information
Kyoto Compliance ArchitectureKyoto Compliance Architecture
International Transaction Log
Joint Implementation
CDM
National Registries
GHG National Systems
Role of reporting, review and Role of reporting, review and compliance procedures in compliance procedures in
accounting for emissions and accounting for emissions and assigned amountassigned amount
Reporting, review and compliance procedures Enable establishment, suspension and reinstatement
of mechanisms eligibility Verify that Party is accounting for emissions and
assigned amount correctly Result in official data for compliance purposes Enable determination of Parties’ compliance with
Article 3.1 commitment at end of commitment period
Kyoto Protocol accountingKyoto Protocol accounting
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Emissions2008 - 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
Review Tasks related to accounting Review Tasks related to accounting
Review inventories, and where appropriate, recommend application of adjustments
Review transactions of Kyoto Protocol units and, where appropriate, recommend corrections
Review implementation of requirements related to mechanisms eligibility
Raise questions of implementation for consideration by the Compliance Committee All QUIs related to accounting considered by
Enforcement Branch
Inventory AdjustmentsInventory Adjustments
Intended to correct problems for purpose of accounting for emissions and assigned amount
Recommended by ERT when inventory incomplete or inconsistent with IPCC good practice guidance Party provided opportunity to correct problem Applied with consent of Party or by Compliance Committee
Always result in conservative estimate BY emissions reduced CP emissions increase
Adjustments to CP inventories may have consequences for mechanisms eligibility
Eligibility to Participate in the Kyoto Eligibility to Participate in the Kyoto MechanismsMechanisms
Kyoto Mechanisms eligibility requirementsKyoto Mechanisms eligibility requirements
Participation in Kyoto mechanisms dependent on compliance with specific methodological and reporting requirements: Party to the Kyoto Protocol Initial assigned amount established National System in place National Registry in place Annual Inventory Annual information on assigned amount, and
accounted correctly
Eligibility Requirements by mechanismEligibility Requirements by mechanism
Same six criteria apply, but consequences differ by mechanism: Emissions trading:
Must be in compliance with all requirements to transfer or acquire units
Joint Implementation:Track one: Must meet all requirementsTrack two: Must have national registry in order to
issue and transfer ERUs CDM:
Must meet all requirements in order to use CERs, tCERs and lCERs
Inventory eligibility requirementInventory eligibility requirement
Decision 15/CMP.1 specifies that a Party will fail to meet the annual inventory requirement if and only if: Inventory not submitted w/in 6 weeks of due date Omission of Annex A key source that accounts for 7% or more
of annual emissions Total adjustments to Annex A sources in a year of the
commitment period exceeds 7% of submitted emissions At any point in time, sum of adjustments across years of the
commitment period exceeds 20% compared to submitted An adjustments is applied in three consecutive years to key
source that accounts for 2% or more of Annex A emissions
Reporting requirements for eligibilityReporting requirements for eligibility
National Inventory Initial report, Annual reports beginning in 2007
All years from BY to most recent within 6 weeks of due dateAll sectors (Annex A and Convention LULUCF Tables) No omissions of Annex A sources of 7% or more
Beginning in 2010Submission of KP LULUCF Magnitude of adjustments for Annex A emissions apply
Annual AA information starting year after first transfer or acquisition of Kyoto Protocol units
If transfer in 2008, report in 2009
Process for establishing eligibilityProcess for establishing eligibility
Normal outcome of reporting, review & compliance procedures
Automatically eligible 16 months after submission of initial report, unless Enforcement Branch determines at an earlier date that Party fails to meet one or more of the requirements
Party remains eligible until and unless Enforcement Branch suspends eligibility
If suspended, Party can request reinstatement Directly to Compliance Committee Through the Review Process (expedited review procedures)
Accounting before, during and after Accounting before, during and after commitment periodcommitment period
Initial AccountingInitial Accounting
Submission and review of initial report leads to Establishment of initial assigned amount in tonnes of CO2 eq Determination of Party’s eligibility to participate in each of the
Kyoto mechanisms Recording of parameters for LULUCF accounting
Possible adjustments to BY emissions, and consequent reduction in initial assigned amount
Following review & resolution of any QUIs by compliance committee, data recorded in CAD and provided to ITL Registry can now issue AAUs If eligible, can begin transferring and acquiring Kyoto Protocol
units
Annual Accounting Annual Accounting 2007 – 2009 2007 – 2009
Submission of annual report voluntary under Kyoto, but… required for full eligibility to participate in the Kyoto Mechanisms Convention inventory AA information, when applicable
Inventories not subject to adjustment during this period
Party’s holdings of Kyoto Protocol units recorded annually in CAD, after review & resolution of QUIs Compliance with mechanisms eligibility requirements updated
as necessary and provided to ITL
Eligible Parties continue to transfer and acquire units
Reporting of assigned amount info Reporting of assigned amount info
Decision 15/CMP.1 requires information on its aggregate holdings and transactions of Kyoto Protocol units in its annual report. begin submitting this information the year after it first
transfers or acquires units (probably in 2009)
Decision 14/CMP.1 adopted Standard Electronic Format (SEF) for reporting Kyoto Protocol units Information from national registry Summary of holdings and transactions of Kyoto
Protocol units for previous calendar year
SEF TablesSEF Tables
Aggregate holdings of Kyoto Protocol units at the beginning and end of the previous calendar year by unit type and account type.
Summary of transactions Internal transactions (issuance, cancellation,
retirement, etc.) Transfer to and acquisitions from other registries
Expiration and replacement of tCERs and lCERs
Cumulative additions to and subtractions from assigned amount to date
PartySubmission yearReported yearCommitment Period
AAUs ERUs RMUs CERs tCERs lCERs AAUs ERUs RMUs CERs tCERs lCERs
3.3 Deforestation
Replacement for non-submission of certification report
AAUs ERUs RMUs CERs tCERs lCERs
Table 2 (a). Annual internal transactions
Other cancellation
Article 12 afforestation and reforestation
Article 3.3 and 3.4 issuance or cancellation
Transaction typeArticle 6 issuance and conversion
3.3 Afforestation and reforestation
3.4 Cropland management3.4 Forest management
3.4 Grazing land management
Subtractions
Party-verified projectsIndependently verifed projects
Additions Unit type Unit type
Retirement
Retirement Unit type
Transaction type
Sub-total
Replacement for reversal of storage
3.4 Revegetation
Replacement of expired tCERs Replacement of expired lCERs
Example SEF TableExample SEF Table
Annual Accounting 2010 – 2013Annual Accounting 2010 – 2013
Annual reports mandatory: Convention inventory + KP LULUCF Accounting for annually elected LULUCF activities SEF information Changes in national systems and registries (3.14 info required, but not relevant for accounting)
Adjustments May be applied for Annex A emissions May be applied for annually accounted LULUCF
activities
Annual Accounting 2010 – 2013 Annual Accounting 2010 – 2013
Information recorded annually in CAD: Annex A emissions & any adjustments applied For annually accounted LULUCF activities,
Net emissions/removals and any adjustments applied Accounting quantity
Holdings and transactions of Kyoto Protocol units Compliance with mechanisms eligibility requirements updated
as necessary
Registry must issue or cancel units for annually accounted LULUCF activities each year
Eligible Parties continue to transfer and acquire units
Annual Accounting 2014Annual Accounting 2014
Annual Report Final inventory data for commitment period (Last
chance to recalculate emissions & removals) Accounting for CP-accounted LULUCF activities
Information recorded in CAD Total Annex A emissions for commitment period
Indicates total quantity of units to be retired Final accounting quantity for all 3.3 and 3.4 activities
(annual and CP accounting)
Annual Accounting 2014Annual Accounting 2014
After review and compliance procedures complete for all Parties, ‘true-up period’ begins Exact date to be determined by COP/MOP decision
Registry must undertake final transactions of Kyoto Protocol units
Transfers & acquisitions of KP UnitsAll issuance/cancellation for CP-elected LULUCF
activitiesRetirement of sufficient units to cover total Annex A
emissions
2015 Accounting2015 Accounting
True-up period report AA information for 2014 calendar year + true-up period in 2015 All units retired for commitment period All units that Party wishes to ‘carry-over’ to next commitment
period Review tasks
Total Annex A emissions ≤ retired units? Check units available for carry-over
Compliance determination: Deduction of units at 1.3:1 for excess emissions Suspension of transfer rights for non-compliance
Following review and compliance procedures Registry can initiate carry-over of valid units Any Party found in non-compliance must cancel units from 2nd
commitment period accounts
Summary of Information required Summary of Information required in Annual Reportsin Annual Reports
Reporting Element 2007 2008 2009 2010 2011 2012 2013 2014 2015(True-up report)
Convention Inventory ● ● ● ● ● ● ● ●
KP LULUCFInventory
● ● ● ● ●
SEF & AA information
○ ● ● ● ● ● ● ●
Calculation of AQ for Annual LULUCF activities
● ● ● ● ●
Calculation of AQ for CP LULUCF activities
●
3.14 Information(not relevant for accounting)
● ● ● ● ●
Units Retired ●
Units for carry-over ●
Accounting for LULUCF Activities Accounting for LULUCF Activities under Articles 3.3 and 3.4under Articles 3.3 and 3.4
General approach to LULUCF AccountingGeneral approach to LULUCF Accounting
Accounting frequency for each 3.3 activity and each elected 3.4 activity indicated in Party’s initial report For annually elected activities, Party must issue or cancel units
corresponding to net removals or net emissions from that activity following review and compliance procedures in each of years 2010 – 2014
For commitment period elected activities, Party must issue or cancel units corresponding to net removals or net emissions over the entire commitment period following review and compliance procedures in 2014 only
Parties report Emissions and removals (in KP CRF tables) reported annually,
regardless of accounting frequency for the activityCalculation of the ‘accounting quantity’ only when activity is
accounted
The Accounting Quantity for LULUCF activitiesThe Accounting Quantity for LULUCF activities
Represents the cumulative obligation to issue or cancel units to date for a given CP year A negative AQ indicates cumulative net removals
issuance of RMUs A positive AQ indicates cumulative net emissions
cancellation of units
For CP-elected activities, AQ will be calculated and reported only once in 2014
For annually-elected activities, AQ will be calculated and reported annually and will capture all emissions and removals to date (E.g. 2011 AQ will be based on net emissions and removals in 2008 and 2009) Will capture any recalculations of estimates for previous CP
years
Issuance and CancellationIssuance and Cancellation
AQ to be calculated by Party, in accordance with sinks accounting rules and checked by ERT Any adjustments applied to emissions and removals
for an activity will be result in modification of accounting quantity
AQ will be recorded in CAD and provided to ITL
Party’s national registry can then issue or cancel units Quantity of units to be issued or cancelled at any
point in time depends on AQ, and quantity of units previously issued or cancelled
Relationship of AQ to issuance & cancellationRelationship of AQ to issuance & cancellation
Submission Year
Inventory Year
Net Emissions &
RemovalsAccounting
Quantity Action
2010 2008 -15 -15 Issue 15 RMUS2008 -152009 -15 -30 Issue 15 RMUs2008 -152009 -152010 -15 -45 Issue 15 RMUs2008 -152009 -152010 -152011 -15 -60 Issue 15 RMUs2008 -102009 -102010 -102011 -102012 -10 -50 Cancel 10 units
2011
2012
2013
2014
Example Calculation of LULUCF AQsExample Calculation of LULUCF AQs
BY 2008 2009 2010 2011 2012 Total
A. Article 3.3 activities
A.1. Afforestation & Reforestation -75A.1.1. Units of land not harvested since the beginning of the commitment period -10 -10 -10 -10 -40 -40A.1.2. Units of land harvested since the beginning of the commitment period -35
Unit A -2 -2 -5 -3 -12 -12Unit B -4 10 -3 -6 -3 -3Unit C -4 -3 -2 15 6 0Unit D -3 10 0 -4 3 0Unit E -5 -5 -5 -5 -20 -20
A.2. Deforestation -30 200 0 -10 160 160B. Article 3.4 activities
B.1. Forest Management (if elected) -60 -80 -60 -40 -240 -150
FM cap 65 -65
3.3 offaset 85 -85
B.2. Cropland Management (if elected) -2 -10 -10 -10 -6 -36 -8 -28
B.3. Grazing Land Management (if elected) 5 -2 -3 -3 -4 -12 20 -32
B.4. Revegetation (if elected) 0 -3 -3 -5 -5 -16 0 -16
GREENHOUSE GAS SOURCE AND SINK ACTIVITIES
Net emissions/removals (1) Accounting limits
Accounting
Quantity (2)
(Mt CO2 equivalent)
Reference Manual on accountingReference Manual on accounting of emissions & assigned amount of emissions & assigned amount
Why Reference Manual? Rules for implementation of the Protocol are
scattered across numerous decisions Many questions from Annex I Parties regarding
requirements for implementation of the Protocol Need to facilitate a common, consistent approach by
experts and institutions involved in supporting and assessing implementation – Parties, ERTs, Compliance Committee, Secretariat
Available November, 2007?
Reference Manual ContentsReference Manual Contents
Overview of Kyoto Protocol and Principal Commitments Particular focus on requirements and systems that relate to
accounting of emissions and assigned amounts
Process for accounting for emissions and assigned amount prior to, during and after commitment period
Requirements for participation in the Kyoto Protocol mechanisms Eligibility criteria procedures for establishment, maintenance, suspension and
reinstatement of eligibility
Detailed chapters on requirements related to accounting of emissions and assigned amount