Reporting, Review and Compliance under the Kyoto Protocol: the Case of Initial Report

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Reporting, Review and Compliance under the Kyoto
Protocol the Case of Initial Report

• VERTIC/REC Workshop
• 9-10 October 2006
• Katia Simeonova
• Manager
• Reporting, Data and Analysis Programme

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Kyoto Implementation
Implementation Eligibility criteria
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Preparation of the Initial Report
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Initial Report

• Modalities for accounting for assigned amount,
  under Article 7.4 (Decision 13/CMP.1)
• Report due prior to 1 January 2007, or one year
  after the entry into force of the Kyoto Protocol
  for a Party
• Each Party shall facilitate the calculation of
  its assigned amount pursuant to Article 3,
  paragraphs 7 8, for the commitment period and
  demonstrate its capacity to account for its
  emissions and assigned amount. To this end, each
  Party shall submit a report in two parts.

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Elements of Initial Report

• Part One of report
• Complete national inventory
• Base year for F-gases
• Burden-sharing agreement under Article 4
• Calculation of its assigned amount
• Part two
• Calculation of commitment period reserve
• Identification of values for activities under
  Article 3.3 and 3.4 (LULUCF definitions)
• Election of activities under 3.4 and accounting
  period for each
• Description of National System
• Description of Registry

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National system

• Required for estimation of GHG emissions and
  removals
• To be established by 1 January 2007
• Provide information on institutional, legal and
  procedural arrangements necessary to produce
  reliable inventory

Problems with national system could prevent Party
from participating in Kyoto mechanisms
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National system (continued)

• Requirements are functional, including
• Single national entity with inventory
  responsibility
• Roles and responsibilities of various agencies
  participating in inventory planning and
  preparation
• Inventory planning (define responsibilities,
  choice of methods, data and emission factors)
• Inventory preparation (use of IPCC good practice
  guidance, data collection, inventory uncertainty)
• Key source analysis and recalculation of
  previously submitted inventories
• Quality assurance and quality control procedures
• Reporting and archive inventory information

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National greenhouse gas inventory

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

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Land use, land-use change and forestry

• Definitions for LULUCF parameters (e.g. minimum
  width of forest area)
• Example of Hungary minimum land area (0.5 ha),
  minimum width of forest area (10m), minimum tree
  crown cover (30) and height (5m)
• Elections of activities under Article 3.4
• Example of Hungary elects forest management
• (does not elect crop land management, grazing
  land management and revegetation)

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Land use, land-use change and forestry(continued)

• Accounting period (annual or over commitment
  period) for each Article 3.3 activity and each
  elected 3.4 activity
• Example of Hungary intends to account for
  Article 3.3. And 3.4 annually

Partys choices on LULUCF will be recorded in
Compilation Accounting database and become
mandatory for commitment period
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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, replacement, retirement and
  carry-over
• Process transactions in accordance with
  thespecifications of the data exchange standards
• Transactions monitored by the international
  transaction log

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National registries (continued)

• Number of reporting requirements, e.g.
• Responsibilities, database structure, security
  measures, procedures to minimize discrepancies
• Example of Hungary rather complete description
• Results from test procedures and assessment
  reports from RSAF
• Show results of independent testing
• Show results of registry initializing and
  exchanges with the ITL, according to data
  exchange standards

Problems with national registry could prevent
Party from participating in Kyoto mechanisms
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Assigned amount calculation

• Assigned amount calculation takes into account
• Base year emissions according to Annex A to the
  Kyoto Protocol (1990 or other year approved by
  the COP, F-gases (1990 or 1995), and
• Emissions from deforestation, if applicable, and
• Annex B target or Article 4 arrangements, if
  applicable,
• Example of Hungary
• AA BY emissions (average of 1985-87) excl.
  LULUCF and Fgases base year Fgases1995 Annex
  B target5years
• BY emissions(123 178 046-33 169-349 502)238
  715
• 123 034 090 Mg CO2eq
• No emissions from deforestation
• AA 123 034 0900.945 578 260 222 Mg CO2eq

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Assigned amount calculation LULUCF inclusion

• Assigned amount calculation LULUCF inclusion
  guided by decision 13/CMP.1
• Determine whether LULUCF sector as a whole is a
  net source of emissions for 1990 (summary table 2
  of the CRF, under category 5 (LULUCF), then
• Determine whether Party has net emissions from
  deforestation (info item in Table 5 of the CRF,
  under Forest Land converted to Other Land-Use
  Categories

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Commitment period reserve calculation

• Commitment period reserve (CPR) equals to
• 90 of the Party assigned amount, or
• 100 of five times its most recently reviewed
  inventory, whichever is lower
• The second condition will mostly apply to EIT
  Parties
• Example of Hungary
• 90 of the AA 0.9578 260 222
• 520 434 200 Mg CO2eq
• On most recent inventory (2004) 83952 541 5
• 419 762 705 Mg CO2eq.
• CPR 419 762 705 Mg CO2eq

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Review of the Initial Report
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Initial Review under Article 8

• Decision 22/CMP.7
• For each Party included in Annex I the review
  prior to the first commitment period shall be
  initiated upon receipt of the initial report.
  The review shall be completed within 12 months
  of the initiation of the review and a report
  shall be forwarded expeditiously to the
  Conference of the Parties serving as the meeting
  of the Parties to the Kyoto Protocol and the
  Compliance Committee.

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Initial Review and Annual 2006 Review

• Decision 26/CMP.1
• The secretariat to organize, in accordance with
  corresponding guidelines, the initial review
  under Article 8 of the Kyoto Protocol, in
  conjunction with the review of greenhouse gas
  inventories submitted in 2006, while exercising
  certain degree of flexibility in applying the
  agreed timelines, provided that each initial
  review is completed no later than one year of the
  date of submission of the initial report.

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Initial Review Tasks

• Assess functionality of national system (Article
  7 and Article 5.1 requirements)
• Review inventory, including LULUCF, focus on base
  year
• If appropriate, recommend adjustments to base
  year
• Assess registry conformity with Article 7.4
  requirements
• Review calculation of assigned amount, based on
• Reviewed inventory
• Articles 3.7 and 3.8 of Protocol,
• Annex B of Protocol, and
• Article 4 and base year different from 1990, if
  appropriate
• Review calculation of commitment period reserve

All reviews conducted in-country and to be
completed within one year!
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Review Compliance Linkage

• Review of initial report leads to
• Fixing of assigned amount for the 1st commitment
  period
• Establishment of eligibility to participate in
  the mechanisms
• Recording accounting rules and parameters for
  LULUCF
• All review reports forwarded to Compliance
  Committee
• Compliance Committee to consider questions of
  implementation raised in review reports, if
  applicable, and take relevant decisions
  (Enforcement branch)
• Final emissions (reported adjustments) and
  assigned amount recorded in Compilation
  Accounting Database
• Some parameters from the Compilation
  Accounting Database will be released to ITL, e.g
  eligibility status
• These data to be used for compliance assessment
  at end of commitment period

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Review Eligibility Linkage

• Review of initial report leads to establish
  eligibility to participate in the mechanisms
• Automatic eligibility after 16 months of the
  initial report (unless the Enforcement branch
  determines that some requirements are not met)
• Need to complete review and compliance cycle on
  time
• Otherwise eligibility status will be established
  even if the review-compliance cycle is not
  completed
• Party must continue to meet requirements to
  maintain eligibility
• Annual inventory and assigned amount reporting
• Inventory passed quality tests in the annual
  review
• Enforcement branch can suspend eligibility

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Implications for the Review Process Compared to
Annual Inventory Review

• Initial Reviews need to cover more elements than
  inventory reviews (national systems, registries,
  assigned amount accounting)
• Additional knowledge and expertise needed for
  ERTs
• Role of the Kyoto Protocol training courses
• Review reports must clearly indicate potential
  problems, how these problems were addressed
  during the review and any questions of
  implementation, if applicable
• Reviews can be initiated at any time, not all on
  same cycle as annual review
• Huge task with very high resource requirements
• Secretariat is prepared to organize teams
  throughout the year and managed to automate many
  review tools/products
• Possible to compress some steps in inventory
  review

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Scope of the Review National System

• Review of National System
• Many elements already covered as part of review
  in-country review, i.e. institutional
  arrangements, cross-cutting good practice
  guidance
• Requirements are essentially functional
  flexibility for national circumstances
• A good inventory is also an indication of a good
  national system
• National system must cover Article 3.3 and 3.4
  activities, even though Parties will not yet be
  reporting related supplementary information

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Scope of the Review Inventory

• Complete inventory review
• Focus on the base year for the initial review
• Only one opportunity for Party to get the base
  year inventory right future recalculations will
  not result in changes to Partys assigned amount
• Any adjustments applied will be used in the AA
  calculation
• Review of LULUCF for possible application of the
  final clause in Article 3.7 (Parties for whom
  LULUCF constituted net source in 1990 shall
  include deforestation emissions only in the
  assigned amount calculation, decision 13/CMP.1)
• Consistent base year (1990 or 1995) for all
  F-gases
• Focus on the last year for the 2006 annual review

Base year inventory will be the most important
and difficult part of the review
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Scope of the Review National Registry

• Review of National Registries (22/CMP.1, 13/CMP.1
  and 16/COP.10)
• A detailed initial test and review to take place
  under the Registry System Administrators Forum
• Covers technical standards for data exchange
• Ensures that the registry conforms with these
  standards
• Outcome Independent Assessment Report (IAR),
  which may not be available to ERTs before and
  during in-country visit
• Forward the IAR to ERTs during the review process
• ERTs will
• Check the institutional arrangements, staff
  allocation, roles and responsibilities
• Review the IAR and prepare the final assessment
  of registry

Initial review report of ERTs to make the final
conclusion on the conformity of registries with
technical standards and guidelines and to provide
information to COP/MOP and CC
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Scope of the Review Assigned Amount

• Review of the assigned amount accounting
• Calculation of assigned amount under Articles 3.7
  and 3.8 is simple arithmetic 5 x base year
  emissions x Annex B or Article 4 target
• Expect that most difficulties will be with
  respect to the underlying inventory (and
  adjustments)
• Base year for F-gases
• Article 4 arrangements
• Base year for EIT Parties
• LULUCF inclusion in base year calculations (only
  for Parties for whom LULUCF constituted net
  source in 1990 and include only emissions from
  deforestation 13/CMP.1))

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Scope of the Review Commitment Period Reserve
(CPR)

• Review of the CPR calculation in accordance to
  decision 11/CMP.1
• A request for each Annex I Party to maintain in
  its National Registry a CPR, which should not
  drop below
• 90 of the Party assigned amount according
  Article 3.7 and 8, or
• 100 of five times its most recently reviewed
  inventory
• The second condition will mostly apply to the EIT
  Parties
• The outcome of the review (e.g. AA, LULUCF
  parameters, CPR) after the Compliance Committee
  considers any potential problem of implementation
  will be recorded in the Compilation and
  Accounting Database
• At that time the most recently reviewed inventory
  for most Parties will be 2006 inventory submission

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Approach for Initial Review

• Submission by Parties
• Four initial reports already submitted Japan,
  Hungary, New Zealand and Slovak Republik
• Two more are coming soon Norway and Switzerland
• Assumption 80 of all Kyoto Parties to submit
  their reports on time
• 31 reviews to be conducted mostly in the first
  half of 2007 to meet the one year dead-line
• Initial and 2006 annual review have already been
  initiated, e.g. status reports and no separate
  initial check stage is envisaged
• Review materials to be provided to ERT around 7
  weeks before the review
• ERT to identify any early questions, and send
  these to Party in advance of review (e.g. around
  one week before the review) and the secretariat
  to send SA Part III

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Approach for Initial Review (continue)

• In-Country visit to occur within 3-7 months of
  submission
• Identification of problems, including possible
  adjustments during in-country visit
• Party comments/revisions provided within 6 weeks
• ERT calculates and recommends adjustments,
  prepares and sends the draft report to Party
  within 8 weeks
• Party provides comments on the draft report and
  accepts or rejects adjustments within 4 weeks
• ERT prepares final report within 4 weeks
• Reports published and forwarded to Compliance
  Committee (1 week ?)
• Altogether 30 weeks review, including 7 weeks
  preparation, 1 week in-country visit and 22 weeks
  for preparing and publishing the report

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Reporting, Review and Compliance Case of
Adjustments during the Initial Review and Beyond
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Initial reports, review and eligibilityERT, CC
and CAD/ITL links in the case of adjustments
Base year inventory
12 months
16 weeks
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Reporting and review timing of reports and
eligibility establishing
3.1 Compliance Assessment
4th Nat Communication
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
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Compliance with Annex B targets
Projected emissions
Annex B assigned amount
Emissions side
Assigned amount side