MRV systems within the EU ETS (Directive

2003/81/EC) - relevant lessons for Moldova

Introduction to Clima East MRV support activities

Mr Zsolt Lengyel, Team Leader & Key Expert

22 July 2015, Chisinau, Moldova

Content of presentation

1. Clima East introduction

2. Context – EU climate action

3. MRV activities within Clima East

4. Climate action in the context of the

Association Agreement between the EU and Moldova

1) Clima East introduction (a)

Beneficiary countries: Armenia, Azerbaijan, Belarus, Georgia, Moldova, Russian Federation and Ukraine (partner countries – PCs)

Project time frame: October 2012 – October 2016

Project budget: approx. EUR 7 million*

Funding authority: The European Commission (EC), DEVCO

* Part of a larger 'Clima East project' package, containing pilot projects on ecosystems based approaches to climate change (EUR 11 million) implemented by UNDP

1) Clima East introduction (b)

1. Practical outputs and observable benefits for the national partners and stakeholders

2. Added value from the regional scope of Clima East

3. Learning from Partner Countries and the European Union, contributing to coordinated efforts to tackle climate change challenges, where possible

1) Clima East introduction (c)

Demand driven structure – built-in flexibility

• Responsive to beneficiary countries’ requirements

• Focus on gaps and additionality of activities, synergy with other donors

• Following the emerging needs from the international negotiations on the implementation of Doha Climate Gateway and 2015 agreement

• Expert Facility

1) Clima East introduction (d) National focus – seeking regional synergies and mutual benefits

• Pooling experience and sharing ideas and approaches

• Transfer of best practice from EU but also within region

Accessibility – both to documentation and to expertise

• Brussels base as bridge to EU expertise

• High quality website, visibility and events to maintain momentum

• Help desk

1) Clima East introduction (e)

The overall objective of Clima East is to support PCs so that they are better equipped for greenhouse-gas emission reductions and better prepared to deal with climate change impacts

(1) Clima East introduction (f)

1. Increased understanding of the EU climate and energy acquis and the 20/20/20 agenda

2. Responsible public institutions will competently address the Kyoto and post-Kyoto regime under the UNFCCC, and (for Annex I) be strengthened to comply with regulations

3. State-of-the-art national climate change mitigation and adaptation policies developed, fine-tuned and implemented

4. Increased capacity for climate change vulnerability and impact assessments and increased capacity for adaptation planning

5. National and/or regional Emissions Trading Schemes prepared and started

6. Progress made in elaboration of low carbon development strategies (expected primarily in Armenia, Azerbaijan, Georgia, and Moldova)

RA 1,3,4,5C6 - Association

Agreement supportGE, MD, UA

Clima East Activity Matrix – 2015 Moldova

Mitigation

Adaptation

Workplan Expert Facility

RA 1,2,3,6C1- INDC & C2-COP

Negotiator support & C3 Climate Action Mainstreaming

AM, AZ, BY, GE, MD, UARA 1,3,5

EU ETS Fuel Quality Directive (18-MD)

MD

RA 1,3,4Vulnerability Modelling

and Software (010-AZ-GE; 011-MD; 025-AM;

AZ, AM, GE, MD

AM – Armenia MD – MoldovaAZ – Azerbaijan UA – UkraineBY – Belarus RUS – RussiaGE – Georgia

RA 4NAP Roadmap (24-AM);

Accreditation of PMU for Adaptation Fund (009-

AM) AM

RA 2,3,4,6LULUCF Inventory

& land use data Improvement (8-UA; 21-MC)AM, AZ, BY, GE,

MD, UA

RA 1,2,3,4,5,6Principles of climate

policy (7-UA)UA

RA 1,3,4Adaptation Strategy for

Agriculture (005-BL) BY

X11-Donor Co-ordination & signposting

X4-Expert Facility

Management

X5-Partner Country

Beneficiary & Stakeholder Engagement

X2-3 Website

&Helpdesk

X6-Lessons learned &

Results Dissemination

X7-Monitoring &

Evaluation

X8-Reporting to EC & Steering

Committee

X9-Clima East Review Conferences

(2015 Adaptation C. )

X1-Programme Development & Planning

Shared interest core (C)

Cross-cutting (X)

Expert Facility activity (EF) –illustrative sample

RA = Result Area number

New Expert Facility Applications

AM, AZ, BY, GE, MD, UA, multi-country

RA 2,3,6INDC – key sector

mitigation measures (28-AM)

AM

RA 2,3,4C5 – Vulnerability and impact assessment for adaptation planning

AM, AZ, BY, GE, MD, UA

RA 1,2,3,5C4-MRV for Large

Industrial Emitters, economy wide GHG inventory systems &

NAMA MRVAM, AZ, BY, GE, MD,

UA , RUS

(2) The mitigation context – Limiting global warming to below 2 degrees Celsius

(2) EU climate and energy policy up to 2020: Greenhouse gas emissions since 1990

4.000

4.200

4.400

4.600

4.800

5.000

5.200

5.400

5.600

5.800

KP

BY

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

Mt

CO

2 e

qu

iva

len

t

EU-28 +IS historic emissions EU-28 projections With Existing Measures

estimated overachievement compared to target 2013-20 Target for the 1st commitment period (2008–2012)

Target for the 2nd commitment period (2013–2020)

CP1 Kyoto Mechanisms

CP1 C.sinks

4.3 GtCO2 eq

1.5 GtCO2 eq

5.8 GtCO2 eq

Overachievement CP1:

Potential Overachievement CP2:

Total :

(2) 2030 Framework: Agreed headline targets 2030 Framework for Climate and Energy

2020

2030

New governance system + indicators

-20 % Greenhouse

Gas Emissions

20% Renewable

Energy

20 % Energy

Efficiency

- 40 % Greenhouse Gas

Emissions

27 % Renewable

Energy

27%* Energy Efficiency

10 % Interconnection

15 % Interconnection

* To be reviewed by 2020, having in mind an EU level of 30%

(2) Emission reductions in ETS and non-ETS

(3) MRV activities for Moldova (a)

The programme will consist of a series of workshops at national level, in order to enable participation of the largest possible group of beneficiaries, including government officials, representatives of local environmental agencies, local government officials, technical experts and, for MRV of industrial installations, representatives of industry associations as well as environmental managers from industrial sectors potentially included in the MRV system for ETS/INDC(NAMAs).

The first workshop addresses three thematic areas: • institutional and regulatory framework, responsibilities of the

competent authority, permitting, compliance check, database management

• monitoring emissions on the level of installations (covering specificities of monitoring emissions for energy and key industrial sectors)

• verification and accreditation of verifiers

(3) MRV activities for Moldova (b) The programme will enable the participants:

• to understand the concept of MRV system as a bottom up comprehensive summary of

the total (industrial) emissions of the country. • understand IPCC guidelines and other reporting standards – such as the EU ETS MRV

and ISO. • become familiar with the methodologies for calculating/estimating GHG emissions from

industrial installations, • become familiar with accreditation process for the verifiers approving the data reported

by installation, • institutional framework, permitting, data collection • a full compliance cycle under emission trading vs MRV obligations, • the concept of registry necessary to manage the allowance accounts in case of an

emission trading scheme; understanding how the EU registry works for the EU ETS and possible options for a registry of industrial emissions in their country.

• recommendations of the CEEF2014-018-MD project for implementing elements of ETS in Moldova

• follow, understand and apply the emerging INDC/NAMA MRV system elements

(4) Association Agreement – Climate implications (a)

Chapter 17 Climate Action Article 92 The Parties shall develop and strengthen their cooperation to combat climate

change. Cooperation shall be conducted considering the interests of the Parties on the basis of equality and mutual benefit and taking into account the interdependence existing between bilateral and multilateral commitments in this field.

Article 93 Cooperation shall promote measures at domestic, regional and international

level, including in the areas of: (a) mitigation of climate change; (b) adaptation to climate change; (c) carbon trading; (d) research, development, demonstration, deployment and diffusion of safe and

sustainable low-carbon and adaptation technologies; (e) mainstreaming of climate considerations into sector policies; and (f) awareness raising, education and training

(4) Association Agreement – Climate implications (b)

Chapter 17 Climate Action Article 97

The Republic of Moldova shall carry out approximation of its legislation to the EU acts and international instruments referred to in Annex XII to this Agreement according to the provisions of that Annex. – Directive 2003/87/EC of the European Parliament and of the Council of 13 October

2003 establishing a scheme for greenhouse gas emission allowance trading within the Community

– Regulation (EC) No 842/2006 of the European Parliament and of the Council of 17 May 2006 on certain fluorinated greenhouse

– Regulation (EC) No 1005/2009 of the European Parliament and of the Council of 16 September 2009 on substances that deplete the ozone layer

– Directive 98/70/EC of the European Parliament and of the Council of 13 October 1998 relating to the quality of petrol and diesel fuels and

How to contact us

The project team can be contacted at personal e-mail addresses (zsolt.lengyel [ at ] climaeast.eu, victor.cotruta [ at ] climaeast.eu)

and :

info@climaeast.eu Clima East Office

c/o Milieu Ltd Chaussée de Charleroi No. 112, First Floor

1060 Brussels (Belgium) Tel: +32 2506 1000

Website:

English: www.climaeast.eu Russian: http://russian.climaeast.eu/