Registries at 578 workshop, Oct 2001

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Issues in linkingregistries and the transaction
log
Pre-sessional consultations on registries Bonn,
2-3 June 2002
Andrew Howard UNFCCC secretariat ahoward_at_unfccc.in
t
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Scope of presentation

• Policy frameworks
• - Use of the Kyoto mechanisms
• - Domestic and regional emission trading schemes
• Relationship between domestic, regional and
  Article 17 trading
• Considerations in linking trading schemes

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Registries to meet policy needs
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Necessary registry links
Registry links to the outside world
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Options for DET/RET and the transaction log
DET schemes 1. Isolated DET (with no inter-DET
trading) 2. Linked DET (with inter-DET
trading) RET schemes 3. RET only 4. RET with
further DET schemes but only in non-RET
sectors An RET scheme may be further linked with
other RET or DET schemes
Unit options Use AAUs, RMUs, ERUs and CERs
(Kyoto units) Use other units specific to the
DET or RET DET/RET units Need conversion to
Kyoto units for international trade Or
international trades need backing with Kyoto unit
trades Either way International trades need
monitoring by the transaction log
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DET, RET and Article 17 emissions trading
Registry A
Registry B
Registry C
Registry D
Registry E
Registry F
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Considerations in emissions trading links
Ability to use lowest cost abatement
opportunities internationally? to reduce costs
of mitigating climate change Protecting the
stringency of entity obligations under DET or
RET? entity obligations may be influenced by
linking to other Parties schemes Respecting
necessary limits set by the Marrakesh Accords?
commitment period reserve, LULUCF limits and
supplementarity Environmental integrity? to
ensure targets (environmental goals) are met and
to increase credibility Transaction costs? to
enhance efficiency and not lose benefits of
trading to other schemes Equity considerations?
can influence chances of implementing DET or RET
schemes
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Legal considerations in emissions trading links

• Legal considerations in linking registries
• How are units legally defined?
• Are units from other Parties recognized?
• What restrictions apply under relevant domestic
  law?
• What constitutes legal ownership of the units?
• What constitutes a change in legal ownership? Is
  it irrevocable?
• At what point does a transferred unit change
  legal jurisdiction?
• What is the legal status of the transaction log?
• What dispute resolution procedures should apply?

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Issues in linkingregistries and the transaction
log
www.unfccc.int
Andrew Howard UNFCCC secretariat ahoward_at_unfccc.in
t