Andrew Howard

1
Internationaltransaction log Roles and
functions Intersessional consultations on
registry systems Bonn 8-10 November 2004
Andrew Howard UNFCCC secretariat www.unfccc.int a
howard_at_unfccc.int
2
Integration of the ITL
Independent transaction log
Communications hub
Virtual private network
3
ITL roles and functions

• Independently checks transactions proposed by
  registries against modalities, rules and limits
  set out in COP decisions
• Registries required to terminate transactions
  where discrepancies from the rules are identified
• ITL and its communications hub are integrated in
  the processing and stages of the data exchange
  standards
• Regular reconciliation of registry data with the
  ITL
• ITL notifications informing registries of
  required actions

ITL ensures integrity of transactions before
their completion
4
Technically speaking
5
Key design issues

• Real-time performance, high availability
• Message queuing to handle high volumes
• Oversight of the secure network with registries
• Platform independent
• Modular design to allow growth and change
• Flexibility to add or change ITL checks

6
Supporting technical specifications

• Database design and structure
• Logical flows for transaction and reconciliation
  processes
• Detailed specifications for ITL checks
• Links to other databases for some checks
• - Compilation and accounting database
• - CDM information system
• - JI information system (track 2)
• Detailed specifications for ITL notifications

7
Core data in the ITL
8
Integration with STLs

• ITL passes messages to STLs where involved
  Parties belong to a regional trading scheme (eg
  EU trading)
• - Standard transaction processes
• - Internal transfers under EU trading
• Direct pass through of information where desired
  (eg account management messages)
• Limited processing by ITL in order to maintain
  consistent records with STLs (eg splitting unit
  blocks)

9
Message sequence with STLs
4. Specific EC checks applied by CITL
5. Return evaluation result
11. Finalize transaction
14. Finalize transaction
1. Propose transaction
15. Notify ITL
3. Route proposalto appropriate STL
12. NotifyITL
10. Notify transferring registry
13. Notify CITL
8. Notify ITL
6. Forward proposal to acquiring registry
2. Perform ITL checks on proposal
9. Finalize transaction
7. Finalize transaction
10

• ITL notifications
• Indicating required actions

11
ITL notifications to registries
12
Cancellation types
13
Replacement types
14
Fulfilment of ITL notifications

• 30 days to fulfil required actions
• Notification identifier is given by registries
  for each transaction relating to the notification
• ITL associates relevant transactions with
  identifiers? ITL assesses when required actions
  are completed
• Follow-up notifications by the ITL? to indicate
  when a required action is complete? to provide
  status updates on fulfilment
• Unfulfilled cancellation and replacement
  notifications taken into account in CPR
  calculations (after 30 days)

15

• ITL response codes
• Indicating negative check results

16
ITL responses

• No discrepancies identified? positive message,
  transaction continues
• Discrepancies identified? negative message,
  registry terminates transaction? response code
  indicates reason for check failure
• Some checks are primarily technical? ensuring
  that registry systems communicate well
• Some checks are primarily policy-related?
  ensuring conformity with Kyoto rules
• Check categories define order in which checks are
  applied

17
Check categories
18
ITL response code examples