european commission: environment directorate general slide: 1 registry systems for the eu emissions...

European Commission: Environment Directorate General Slide: 1

Registry systems for the Registry systems for the EU emissions trading schemeEU emissions trading scheme

SBSTA pre-sessionalsSBSTA pre-sessionals

Bonn, Germany, 2 June 2003Bonn, Germany, 2 June 2003

Olivia HartridgeOlivia Hartridge

DG Environment, European CommissionDG Environment, European Commission


Common Position: scope and timingCommon Position: scope and timing

European Parliament 1European Parliament 1stst reading: 10 October reading: 10 October 20022002

Common Position between EP and Council Common Position between EP and Council reached: 18 March 2003reached: 18 March 2003

European Parliament 2European Parliament 2ndnd reading: 30 June-4 reading: 30 June-4 July 2003July 2003

If no 2nd reading agreement between EP and If no 2nd reading agreement between EP and Council: conciliation is initiatedCouncil: conciliation is initiated

EU ETS to commence in 2005 in up to 28 EU ETS to commence in 2005 in up to 28 countries …countries …

… … so implementation has begun in earnestso implementation has begun in earnest


Registries for the EU schemeRegistries for the EU scheme

Regulation to be adopted laying down minimum Regulation to be adopted laying down minimum requirements for Member States’ registriesrequirements for Member States’ registries

Draft regulation by September 2003Draft regulation by September 2003 Therefore, work in progress to develop functional Therefore, work in progress to develop functional

and technical specifications for Community and technical specifications for Community registry and European Transaction Log …registry and European Transaction Log …

… … and minimum requirements for Member and minimum requirements for Member States’ national registriesStates’ national registries


Some basic considerationsSome basic considerations

●Registries are NOT trading platforms, and so Registries are NOT trading platforms, and so transfers are entirely distinct from trades and transfers are entirely distinct from trades and price informationprice information

●Registries may be maintained in a consolidated Registries may be maintained in a consolidated systemsystem

●Any person may hold allowancesAny person may hold allowances



(i)(i) Trades within a single Member State give rise Trades within a single Member State give rise to adjustment between the operators involved to adjustment between the operators involved in that Member State onlyin that Member State only

(ii) (ii) Trades between entities in different Member Trades between entities in different Member States give rise to:States give rise to:

a) adjustment of allowance holdings between a) adjustment of allowance holdings between operators involvedoperators involved

b) adjustment of assigned amount units b) adjustment of assigned amount units between Member States involved (from 2008)between Member States involved (from 2008)



Monitoring Mechanism Proposal: Article 6Monitoring Mechanism Proposal: Article 6

““The Community and its Member States shall The Community and its Member States shall establish and maintain registries in order to establish and maintain registries in order to ensure the accurate accounting of the issue, ensure the accurate accounting of the issue, holding, transfer, cancellation and retirement of holding, transfer, cancellation and retirement of assigned amount units, removal units, emission assigned amount units, removal units, emission reduction units and certified emission reduction units and certified emission reductions. These registries shall incorporate reductions. These registries shall incorporate registries established pursuant to Article 19 of registries established pursuant to Article 19 of Directive xx/xxxx/EC …”Directive xx/xxxx/EC …”


Creation of allowancesCreation of allowances

2

2

JI or CDM project identifier Unique consecutive number

For non JI or CDMprojects = 0000

Unique number (by block) this will enable identification

of the instrument

FR-00-0-00-0000-0000000001-0012345678-03-EU

Party of origin (ISO 3166 standard)

EU tag shows that an AAU has beenconverted to an EAU. For otherInstruments, field = XX

Vintage indicates the year

(non compulsory field with regards to UNFCCC)

Issuance commitment period pre-Kyoto numbers

are 00, 1st commitmentperiod from 2008-2012

will be 01,etc.

Unit type 0=pre-commitment period,1=AAU, 2=RMU, 3=ERUconverted from an AAU,4=ERU converted from

an RMU, 5=CER

LULUCF activity This field is relevant

only for RMUs. For all otherinstruments = 00

Box 1: Example of numbering of blocks of EUAswithin the EU Registry Scheme.


Relationship between ETL and ITLRelationship between ETL and ITL

REGISTRY A

REGISTRY B

ETL

X 7 X 7

ITL

REGISTRY A

REGISTRY B

ETL

X 7 X 7

X 7

2005-2008 After 2008


Macro processesMacro processes

● The following macro processes have been The following macro processes have been defined for the functional specifications:defined for the functional specifications:

The management of registry accounts The issuance, allocation, cancellation, retirement and

eventual banking of allowancesThe transfer of allowances domestically/internationallyThe assessment of compliance - reconciliation between

holdings of allowances and verified emissionsThe production of reports


Key issues Key issues

Maintaining compatibility with UNFCCC data Maintaining compatibility with UNFCCC data exchange standardsexchange standards

Ensuring access to information delivers Ensuring access to information delivers transparency but does not impact on markettransparency but does not impact on market

CPR the responsibility of individual Parties, not CPR the responsibility of individual Parties, not entitiesentities

Minimising administrative costs:Minimising administrative costs: Linking entities’ account numbers to Member State

permit numbering systems? Providing verifiers’ access to input entities’ annual

emissions data?

european commission: environment directorate general slide: 1 registry systems for the eu emissions...

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