carbon monitoring reporting & verification (mrv) - the lrqa perspective
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Improving performance, reducing risk
Carbon Monitoring, Reporting & Verification (MRV)
The Verifier’s Perspective
Content
– MRV In the EU ETS, the role of the verifier
– MRV in the EU ETS, the role of
operators
– Lessons Learnt
LRQA’s experience with MRV – Our credentials
Assessment, Validation, Verification and Training against:
– Cap-and-trade schemes and offset mechanisms:
– UK ETS
– EU ETS (incl Aviation)
– California ARB
– Tokyo Metropolitan Government ETS
– Japanese Voluntary ETS
– Korean GHG & Energy Target
Management System
– Clean Development Mechanism
– Gold Standard
– VCS
– Climate Action Reserve
– Inventories & product footprints:
– 14064
– GHG Protocol
– California Climate Action Registry
– The Climate Registry
– PAS 2050
– Japanese Carbon Footprint of Products Scheme
LRQA’s experience with MRV – Our credentials
– Technical committees that improve and develop standards including ISO, IETA, WRI, WBCSD and the ETG
– Provided the verifiers perspective for the EU ETS Commission Decision on Monitoring and Reporting
– Part of the European Co-operation for Accreditation drafting accreditation requirements
for verifiers
– Represented UK on development of ISO 14064 standards for GHG validation, verification and monitoring
– Member of Japan Operational Entities Association (JOEA)
– One of only five strategic verification partners of the CDP (formerly the Carbon Disclosure Project)
– Vice President of the Association of DOE’s under the CDM – DIA
– On the Board of the International Emissions Trading Association (IETA)
Improving performance, reducing risk
MRV in the EU ETS
The Role of the Verifier
What is MRV?
– MRV is the process by which the GHG data is
– Monitored,
– Reported and
– Verified.
– Data Monitoring includes: data acquisition, analysis, processing, recording
and calculation – completed by the operator
– Reporting involves the final facts and figures as reported to the regulator by the operator
– Verification is the independent and accredited process of checking that
the data and information reported has been monitored and reported in accordance with the requirements and is materially correct
Verification
– An independent and accredited methodology to address the
reliability, credibility and accuracy of monitoring systems and the
reported data and information relating to emissions
– To provide trust that the report is a faithful representation and is
reliable for all users
– An effective and reliable tool upon which an operator can work to improve performance in M&R emissions
Independence
– Independent and impartial in carrying out the verification activities
– Verifiers can not also:
– Be operators
– Own operators
– Have any relations with operators that may affect their independence
and impartiality
– Trade allowances
– Conduct verification where this creates a conflict of interest, e.g.
where:
– Consultancy services or technical assistance for monitoring and
reporting have been provided
Requirements to Safeguard Independence
– Verifiers are required to
establish, document, implement
and maintain systems to ensure
continuous impartiality and
independence of:
– the verifier (the
organisation),
– other parts of the same legal
entity, and
– all personnel and contractors
involved in the verification
process.
Accreditation
– An attestation by a national accreditation body that a verifier meets the
requirements set to carry out the verification of an operator’s report in
accordance with the Regulation.
– Accredited by industrial sector
– Accredited against:
– EU Regulation 600/2012, on the verification and accreditation of
verifiers;
– ISO 14065; and
– The European Cooperation for Accreditation document - EA 6/03.
EA 6/03 – General Requirements
– Stipulates:
– Scope, role and depth of verification
– Organisational requirements (systems required) of the verification
body
– Stages of the verification process
– Reporting requirements
– Competence of verifiers, technical reviewers and management
EA 6/03 - Competence of Verifiers
– Technical Sector Competence
– Technical ability to manage the EU ETS verification work for the accredited sectors.
– Including: unique industry process parameters, testing techniques, measuring/monitoring arrangements, calculation methodologies and relevant legislative requirements etc.
– Generic Competence
– EUETS Regulations for M&R, V&A
– National Legislation
– Data and Information Auditing
– Verification Process
Verification Body Systems
– To ensure our accreditations and
the quality assurance of our
services, we maintain:
– Our quality management
system (forms, procedures,
processes, records)
– Technical reviews
– Internal audits (offices)
– Witnessed visits (verifiers in
the field)
– Update briefings and
refresher training of staff
(verifiers, technical reviewers, managers,
administrators)
Improving performance, reducing risk
MRV in the EU ETS
The Role of the Operator
MRV - Operator requirements
– Apply for a permit & monitoring plan
– Monitor their emissions data in accordance with the Regulations and their monitoring plan
– Submit a verified annual emission report to the Regulator by 31 March each year
– Using the standard template
– Provide the verifier with access to all required information
– Retain their relevant records for a minimum of 10 years
EU ETS MRV Process
Importance of operations
Operations is the centre of gravity for monitoring and
reporting
&
the platform for successful verification
Operational Challenges
– Focussing on the data gathering
and compilation process, in addition to the report
– Ensuring their management
systems are up-to-date to keep
up with changes to reporting requirements & staff turnover
– Ensuring their management
systems cover their software and
understand the calculations and formula contained within
– Ensuring records are retained to
facilitate verification
The Verifier : Operator Relationship
Myth
– The verifier works alone
– The verifier reports all issues
identified at the end of the
process
– Errors found will lead to a ‘not
verified’ opinion
Fact
– The verifier will work with the
operator to verify the data and
reports
– Issues identified are reported as
soon as they are identified
– The verifier will identify errors &
the operator must correct them where possible
Improving performance, reducing risk
MRV in the EU ETS
Lessons Learnt
Lessons Learnt
Overview Observations
– Emissions trading:
– Is an effective mechanism to reduce GHG emissions
– Enables industry and operators to decide on the most cost effective means of emissions reduction for them
– Provides a financial incentive to do better
– Is dependent on accurate monitoring and reporting, and data quality
– Credibility and confidence in the integrity and fairness of the scheme is enhanced by the independent verification process
Lessons Learnt
Scheme Design & Implementation
– Started off small and grew to incorporate more sectors and gases,
based on experience
– Importance of accurately setting an overall emissions cap and
allocating emission allowances
– Importance of effective approval of permits and monitoring plans
– The benefits of electronic, standard application, permitting and reporting systems
– Importance of effective, competent and independent verification
and accreditation
Lessons Learnt
Consultation & Communication
– Strong coordination/communications
between Government, Regulators,
Verifiers, Accreditors and Industry:
– Emissions Trading Group
– European Co-operation for
Accreditation
– Public consultations on guidance documents
– Workshops to introduce new requirements/documents
– Regulator road-shows
– Helpdesks / websites for queries and guidance.
Lessons Learnt
Good Guidance Documents
– Good guidance enables good
MRV and resulting data that can
be trusted
– Guidance is needed to address the following areas:
– Sectoral scope for inclusion
– Monitoring requirements
– Reporting requirements
– Verification requirements
– Accreditation requirements for verifiers
Lessons Learnt
Operator Preparation
– Smooth MRV processes require:
– Preparedness
– Familiarisation and understanding of the requirements and guidance documents
– The identification of responsible people/teams
– Attendance at training events, workshops, road shows
– Liaison with others in the industry, to share experiences and knowledge
– Establishment of MRV as part of your business management systems
– Engagement with a verifier early – in order to identify and remedy any gaps/issues prior to deadlines
– Consideration of split verification over the year (quarterly or 6 monthly)
Lessons Learnt
Typical Issues Identified at Verification
– Missing sources & fuels (e.g.
back-up power generation,
back-up fuels)
– Inconsistent/incorrect calculation methods
– Greater metering uncertainty
than required
– Calculation mistakes (e.g.
conversion errors, incorrect emission factors)
– Typing errors (e.g. during
manual transposition)
Improving performance, reducing risk
Refreshments and Q&A
Lloyd’s Register and variants of it are trading names of Lloyd’s Register Group Limited, its subsidiaries and affiliates.
Copyright © Lloyd’s Register Quality Assurance Limited 2013. A member of the Lloyd’s Register group.
Improving performance, reducing risk
Madlen King
Global Head of Climate Change & Sustainability
E madlen.king@lrqa.com
@madlenking
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