Title: PAVING THE ROAD FOR THE IMPLEMENTATION OF A NATIONAL GREENHOUSE REGISTRY IN ROMANIA
1PAVING THE ROAD FOR THE IMPLEMENTATION OF A
NATIONAL GREENHOUSE REGISTRY IN ROMANIA
- Mihaela DUPLEAC - TERRA Millennium III,
ROMANIA - Development of Registries, RECCANCEE Side Event,
SBSTA, June 7, 2003
21. INTRODUCTION
- Project in the frame of RECs Support for the
Implementation of the Kyoto Protocol - October 2002 - March 2003
- TERRA Millennium III - apolitical,
non-governmental and not for profit organization
for environment protection regional center of
CAN CEE, legitimated by the UN to follow the
UNFCCC negotiations
3- Objectives
- overview of the intl. requirements (UNFCCC, EU)
for national registries (NR) - overview of the national circumstances that
support/hinder the implementation of a NR in
Romania - establishment of the specific needs related to
the NR implementation - establishment of a scheme for the NR under the
most probable option for Romanias participation
in flexible mechanisms - contribution to capacity building in Romania -
recommendations on the next steps.
4- Methods
- desk research
- international requirements
- trading schemes
- existing climate policy, legal framework,
institutions, capacity, needs, financial support - existing monitoring and registration systems
- interviews
- specialists - env. energy research, statistics,
companies, financing institutions operators of
existing registries - decision makers (MWEP, MIR)
- brainstorming
- comments on the draft paper.
52. INTERNATIONAL REQUIREMENTS ON THE
IMPLEMENTATION OF A GHG REGISTRY
- UNFCCC Guidelines
- EU Proposed Scheme for GHG Emissions Allowance
Trading
6UNFCCC Guidelines
- Kyoto Protocol each Annex I Party shall
establish and maintain a NR - COP 7, Marrakesh Accords decisions on NR, CDM
registry and independent transaction log - COP 8, New Delhi technical standards for the
structure and data formats of registry systems.
7EU Proposed Scheme for GHG Emissions Allowance
Trading
- MS/authorities will grant GHG permits that set
obligations to hold transferable allowances equal
to the actual emissions - Yearly, companies must submit for cancellation a
number of allowances corresponding to their
actual emissions - Holding and tracking of allowances will be done
through an electronic register - Preliminary phase 2005-2007
- Second phase - five years periods, starting 2008
- Linked national registries - crucial component
- Synergies with existing legislation (IPPC
Directive) - EPER - Accession countries may link to the EU scheme by
entering into agreements with EU Parties to
mutually recognize each others allowances - Proposal does not foresee inclusion of credits
from JI and CDM.
83. NATIONAL CIRCUMSTANCES FOR THE IMPLEMENTATION
OF A GHG REGISTRY IN ROMANIA
- GENERAL
- Romania - Annex I country
- Ratified the Kyoto Protocol in 2001
- MoUs with The Netherlands, Switzerland, Austria,
Norway, Denmark - AIJ already, JI under development ET envisaged.
9- INSTITUTIONAL FRAMEWORK
- MWEP national climate change focal point
- Future National Environmental Agency
- Environment Protection Inspectorates
- National Commission on Climate Change
- Institutes of research (ICIM, INMH, ISPE,
ICEMENERG) - National Institute of Statistics
- NGO - TERRA Mileniul III.
10- CLIMATE CHANGE STRATEGY AND ACTION PLAN
- No specific CC strategy
- Guidelines for NAPCC initiated by REC Romania
(March 2003) - Strategies for the environment protection (1996
2001-2004) - National strategy for economic development of
Romania - National strategy for sustainable development
- Sectoral strategies
- NEAP (1995) new one scheduled for 2003.
11- LEGISLATION
- Ratification of UNFCCC in 1994 (Law) Ratification
of Kyoto Protocol in 2001 (Law) - Law on environmental protection
- Law and ministerial orders on the protection of
atmosphere - Set of laws regarding the Environment Fund
- Law regarding integrated pollutants prevention
and control (IPPC Directive) - Ministerial order for the set up of the PER.
12- NATIONAL COMMUNICATIONS AND INVENTORIES
- NC 1 (1995) - used CORINAIR
- NC 2 (1998) - used the 1995 IPCC Guidelines,
includes Inventory for 1989-1991 and estimates
for 1992-1994 - NC 3 (2003) - draft revised UNFCCC Guidelines
- Inventory for 1992-2000 and National Inventory
Report for 2000 were submitted in Dec. 2002,
based on revised UNFCCC Guidelines and Common
Reporting Format.
13Circumstances that SUPPORT the Implementation of
a NR in Romania
- Political Commitment
- First Annex I country that ratified the Kyoto
Protocol - commitment to participate in flexible mechanisms
(ranked as the most interested AC) - commitment to keep the pace with EU initiatives
- Legislation
- primary legislation in place
- precedent created setting up of the PER
- existing primary and secondary legislation on
electronic commerce - Experience with other registries
- most existing registries in the country are
operated by governmental institutions, under
specific regulation - existing capacity for developing, operating and
maintaining registries is satisfactory - many Romanian companies dealing with software
development and computerized services emerged on
the internal and international market - March 2003 National Guide of Pollutant Emissions
issued implementation of PER - public register
to provide environmental information on
industrial activities covered by IPPC Directive
(including GHGs) useful for air emissions
trading between facilities ? PER and NR efforts
can be joint.
14Circumstances that HINDER the Implementation of a
NR in Romania
- Strategy - no clear strategy on GHG mitigation
- Compliance with the UNFCCC reporting requirements
- until present the country has not provided the
GHG Inventories annually only 3rd Inventory (for
1992-2000) complies with the requirements - Institutional
- reduced climate related capacity in the MWEP
- National Commission on Climate Change met only
once a year (1997-2002), no working group, no
activities between meetings starting 2003, the
frequency of the meetings has raised - Monitoring systems for air quality
- lack of funds ? very few stationary sources are
equipped with continuous measurement instruments
to monitor air emissions - a reliable inventory can not be achieved at a
regional/local level ? data uncertainties in
collecting emissions info from sources, low
capacity on verification of data at the local
inspectorates for environment protection - Financing - financial assets at MWEP are
unsatisfactory new Environmental Protection Fund - Status of international negotiations on registry
systems - not finalized yet, ongoing discussions
in the EU, Romania follows the discussions.
15National Registry Built in Romania or Acquired
from Abroad?
- 1) ACHIEVEMENT OF THE REGISTRY IN ROMANIA
- Romania has the background, necessary expertise
and means - less costly, while respecting international
requirements - best adaptation to the local situation
- built on existing databases in the country
- implemented using existing infrastructure
- limited external support technical and financial
assistance (MoUs) - establishment of national framework of recording
relevant information, as a preliminary step to
the NR, while intl. negotiations settle an agreed
and detailed set of requirements for the NR
16- 2) ACQUIRING THE REGISTRY FROM ABROAD
- readily made Registry, once such systems emerge
internationally - eliminate concerns regarding credibility and
compatibility with other international registry
systems - low existing legislative, financial and even
technical capacity in the country - international negotiations have not been
finalized yet ? stand-by approach - international technical and financial assistance
for the implementation (MoUs) - 3) WHILE STANDARDS ARE STILL BEING NEGOTIATED
INTERNATIONALLY, ROMANIA NEEDS TO START THE
INSTITUTIONAL FRAMEWORK FOR THE REGISTRY - designation of the NR Administrator
(governmental/private body) - selection and training of personnel
- definition of the NR requirements etc.
174. DESIGN OF A NATIONAL GHG REGISTRY FOR ROMANIA
- ROMANIAS POLICY OPTION REGARDING
PARTICIPATION IN FLEXIBLE MECHANISMS - Romania is willing to participate in JI and ET
(seller) - currently it is envisaged that only the
government will be entitled to trade further on,
probably legal entities will also be allowed to
trade - a domestic trading system is not likely to evolve
at present in Romania.
18GENERAL REQUIREMENTS FOR THE DEVELOPMENT OF A
NATIONAL REGISTRY
- NR to ensure accurate accounting of the issuance,
holding, transfer, acquisition, cancellation and
retirement of AAUs, ERUs, RMUs and the carry-over
of the AAUs and ERUs - concordance with technical standards (mandatory
and indicative) - issuance and transactions occur
in an accurate, transparent and efficient manner - Romania will have to provide a description of its
NR to the UNFCCC (Marrakesh Accords) - NR will be reviewed at UNFCCC
- Romania may link its NR to the EUs trading
scheme by entering into agreements with EU
Parties so as to mutually recognize each others
allowances - Romanias NR will be integrated in the EU network
of NR and linked to the Central Emissions
Register.
19FUNCTIONS OF THE REGISTRY (1)
- Recording of units
- holding account - containing initial AAUs RMUs
and ERUs initiated in JI projects - cancellation account - corresponding to each
commitment period - retirement account - for each commitment period,
to demonstrate compliance - each legal entity authorized to trade will have
at least one holding account - available list of legal entities (to UNFCCC
Secretariat and public) - serial numbers - assigned to AAUs, RMUs, ERUs
- account numbers - assigned to every account in
the NR.
20FUNCTIONS OF THE REGISTRY (2)
- Processing transactions
- issuance
- no. of AAUs to be issued is equal to no. of tones
of CO2e corresponding to Romanias assigned
amount (92 of emissions in 1989) - issuance of RMUs, equivalent to net GHG removals
- issuance of ERUs, as result of JI projects
- cancellation (AAUs, RMUs, ERUs), in case
- the LULUCF activities result in a net source of
GHG emissions - of non-compliance
- retirement - valid AAUs, ERUs and RMUs shall be
retired for the commitment period, to be used for
demonstrating compliance - carry-over - neither retired nor cancelled AAUs
can be carried over (if retirement account shows
compliance).
21FUNCTIONS OF THE REGISTRY (3)
- Substantiation of compliance/ Reporting
- Information from and about NR will be
incorporated in the annual Inventory reports and
the National Communications - The National Inventory Report shall contain
information on any changes that have occurred in
the NR, compared to last submission - Access to information
- NR records non-confidential information
- Publicly accessible user interface through the
Internet - Data transparency ? improved credibility
regarding - implementation of measures for compliance
achievement - reliable systemof GHG emissions monitoring,
verifying, registration and reporting ?Romania
would be a trustworthy counterpart for
transactions (including JI projects).
225. RECOMMENDATIONS FOR THE ESTABLISHMENT OF A
NATIONAL REGISTRY IN ROMANIA
- POLICY
- Urgent development of CC strategy, stating also
the modalities Romania will participate at
flexible mechanisms - A more enhanced MWEP coordination of the CC
related activities strategy before action plan - LEGISLATION
- Creation of a specific legal framework to set up
the registry (i.e. Ministerial Order, as for PER) - definition of the NRs functions
- data collection, validation and registration in
the NR - assigning an institution responsible with the NR.
- Emission trading needs to be regulated
- Transposition of the Council Decision 93/389/EEC
as amended by Decision 99/296/EC for a Monitoring
Mechanism of Community GHG Emissions - inclusion
in the MWEPs Program of Priority Measures
(2002-2004).
23- COMPLIANCE WITH UNFCCC REPORTING REQUIREMENTS
- Prior to January 1, 2007, Romania will have to
submit to the UNFCCC Secretariat the report on
calculation of its assigned amount for the first
commitment period, plus a complete inventory - Romania will have to issue a quantity of AAUs
equivalent to its assigned amount in its NR - Romania will have to authorize
- legal entities to participate in projects
- legal entities to make transactions.
- Immediate implementation of measures should
commence, as the country lacks infrastructure and
capacity.
24- INSTITUTIONAL BUILDING
- Assign of an institution as Central Administrator
of the NR, governmental (MWEPs option)/ private
body - Romania - separate registry, not a consolidated
one - Later, brokerage companies will evolve.
- CAPACITY BUILDING
- Development of a national institutional
infrastructure MWEP, inspectorates for
environment protection, Central Administrator,
MIR (and agencies) - Coordination between
- responsibles in the MWEP
- MWEP and other governmental institutions
- targeted trainings addressed to personnel,
including in inspectorates for environment
protection international assistance needed.
25- MONITORING
- Monitoring systems needs a dramatic improvement
- increase of number of monitored sources and
- endowment with high quality monitoring equipment.
- Enforcement of the existing legislation in the
environment protection - Close follow-up of the fulfillment of the
so-called programs for compliance of facilities
by inspectorates. - FINANCING
- MWEP does not dispose of sufficient financial
assets - New Environment Protection Fund, low resources
- Further need for international financing
assistance (agreements under MoUs, GEF capacity
building).
26- Dr. Mihaela DUPLEAC
- Executive Director
- TERRA Mileniul III
- 1-3 Walter Maracineanu Sq., Room 171, sector
1, Bucharest, ROMANIA - Tel/fax 4021- 312 68 70
- Email terra_at_fx.ro terramileniul_at_xnet.ro
- Http//terraIII.ngo.ro