Session 5 :E-PRTR (EU-ETS)

QUALITY CONTROL/QUALITY ASSESSMENT

Iksan van der Putte

The EU Emissions Trading Scheme - Monitoring and Reporting

Operators of installations under the EU ETS must hold a Greenhouse Gas (GHG) emissions permit to operatefrom 1 January 2005.

Member States must ensure that the GHG emissions permit sets out the monitoring methodology in accordance with the Monitoring & Reporting Guidelines (MRG).

The verifier must reject the installation’s emissions report if he considers deviations

Non compliance leads to sanctions (a.o “penalties”)

The EU Emissions Trading Scheme - Monitoring and Reporting

Key M&R principles from the Directive: “Guidelines” are mandatory

Core monitoring and reporting requirements must be included in the installation’s permit

Biomass has an emission factor of zero

Calculation or measurement (supported by calculation)

The EU Emissions Trading Scheme - Monitoring and Reporting

The guidelines: 11 Annexes

General guidelines (Annex I), Guidelines on combustion emissions (Annex II), Guidelines on specific activity sectors (Annex III-XI)

Focus on calculation (measurement allowed):(total emissions = activity data * emission factor

* oxidation factor)

Tier-based approach

The EU Emissions Trading Scheme - Monitoring and Reporting

CO2 emissions = fuel consumption [TJ] * emission factor [tCO2/TJ]

* oxidation factor

Combustion emissions

Process emissions

CO2 emissions =activity data [t or m3] * emission factor [t CO2/ t or m3]

* conversion factorConversion factor = fraction of Carbon in input not converted to CO2

Tier - based approach:

Concept: Introduction of flexibility for monitoring for different types, sizes and ages of installations

Highest tier = most accurate monitoring Use highest tier unless unreasonable costs or technically not feasible

Provides a structured and transparent approach to characterize & improve monitoring methodologies

CO2-emissions =activity data * emission factor * conversion factor

Tier 1Tier 2 Tier 3 Tier 1Tier 2 Tier 3 Tier 1 Tier 2

The EU Emissions Trading Scheme - Monitoring and Reporting

Example of minimum Tier Level requirements

COMMISSION DECISION of 18 July 2007 establishing guidelines for the monitoring and reporting of greenhouse gas emissions pursuant to Directive 2003/87/EC of the European Parliament and of the Council (notified under document number C(2007) 3416) (Text with EEA relevance) (2007/589/EC)

Submission of annual verified emission reports If verified report not submitted by 31 March each year: operator transfers blocked

Criteria for verification Annex V

The EU Emissions Trading Scheme -Verification

The EU Emissions Trading Scheme - Penalties

Requirement to annually surrender allowances for verified emissions (30 April) Penalties of €100 / tonne (€40 / tonne from 2005 - 2007) for failure to do so Plus the obligation to surrender ‘missing’ allowancesin the subsequent year Publication of names of operators in breach of requirement to surrender sufficient allowances“name and shame”

The EU Emissions Trading Scheme -Harmonized compliance and enforcement elements

Monitoring & reporting Article 14 & Annex IV ET

Verification Article 15 & Annex V ETD

M&R guidelinesPenalties

Article 16 ETD

Details verification framework: There are no harmonised criteria for accreditation of verifiers and accreditation requirements differ between Member States.

A verifier should therefore comply with the national accreditation requirements Member States must set penalties for other breaches of trading rules: Non/late submission of verified emissions report; Fraud etc.Further harmonisation needed?Accreditation rules for verifiers?Detailed verification standards?

The EU Emissions Trading Scheme -Non harmonised compliance & enforcement elements

The EU Emissions Trading Scheme -Transaction registries

Allowances in electronic registries set up by Member States

Specific EU legislation for a standardised and secured system ofregistries based on UN data exchange standards

Provisions on the tracking and use of credits from JI and CDM projects are included

The registries system is similar to a banking system which keeps track of the ownership of money in accounts but does not look into the deals that lead to money changing hands

Example ETS enforcement system in the Netherlandsref. Kees van Kuyen Neth. Ministry of Environment VROM

Example ETS enforcement system in the Netherlands

Example ETS enforcement system in the Netherlands

Example ETS enforcement system in the Netherlands