EU Study development of registries specifications

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EU Study development of registries
specifications

• IETA Bonn SBSTA
• Laurent Segalen
• June 2003

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Important Notice

• This presentation was prepared for the IETA Side
  Event solely in order to explain the content and
  timetable of the study referenced
  ENV.E.1/ETU/2002/0014 which is being carried out
  by CDC IXIS, PwC Baker McKenzie for the
  European Commission and to draw the attention of
  the Side Event to certain issues arising from
  this study.
• All views, opinions and statements in this
  presentation are only those of PwC. No inference
  should be drawn that any of the content of this
  presentation represents in any form or substance
  the opinion of the European Commission or of its
  officers nor that any of the proposed schemes
  herein have been or will be approved or validated
  by the European Commission or its officers in the
  context or otherwise of the above-mentioned
  study.
• Whilst every effort has been made by PwC to
  ensure the proposals and schemes shown in this
  presentation are well founded, no responsibility
  in any form is assumed by PwC for any actions
  that any parties may take with respect to any of
  the proposals and/or statements and content in
  this presentation. Each party should take its own
  precautionary measures and conduct its own
  verifications before basing any action or
  decision in whatever context on any subject
  contained in this document.

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Prerequisites to functional technical
specifications

• The EU Directive concerns only legal entities.
• EU registries will be integrated with Kyoto
  registries so that each national registry should
  be able to handle both Kyoto allowances and
  credits and EU allowances.
• There will therefore be only one national GHG
  registry for each MS.
• Registries may be maintained in a consolidated
  system (Art 19)
• The ETL will be separate from the national
  registries and or/ any consolidated system of
  registries
• Any person may hold allowances (Art 19)

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Registries based on accounting tools

• Kyoto registries can be considered as accounting
  tools
• One of the main options we have considered so far
  in this study is the use of the double-entry
  book-keeping accounting method to account for
  participants positions.

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Functional specifications (1/2)

• The following functional specifications need to
  be integrated into the workings of each national
  registry
• Creation of EAUs
• Initial Allocation
• Domestic Transfer
• International/Regional Transfer
• Freezing of transfers in absence of a
  satisfactory report (Art 15)
• Compliance/Retirement
• Cancellation

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Functional specifications (2/2)5 key
macro-processes

• The management of registry accounts
• The issuance, allocation, cancellation,
  retirement and eventual banking of allowances
• The transfer of allowances and credits
• The assessment of compliance - reconciliation
  between holdings of allowances and credits and
  verified emissions
• The production of reports

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Key issue 1 proposed interface ETL / ITL
2005-2008
After 2008
REGISTRY A
REGISTRY B
X 7
ETL
X 7
REGISTRY A
REGISTRY B
X 7
X 7
X 7
ETL
ITL
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Key issue 2 proposed numbering of EUA
Party of origin (ISO 3166 standard)
Vintage Indicates the year
Unit type 1AAU, 3ERU, 5CER
JI or CDM project identifier Unique consecutive
. For non JI or CDM0000
FR - 00 0 - 00 - 0000 - 000000000001 -
000000001000 - 03 - 097
End block
Issuance commitment period Pre-Kyoto are 00,
period from 2008-2012 will be 01, etc.
LULUCF activity This field is relevant to RMUs,
for all other instruments 00
Unique number 12 consecutive number enables
identification of instruments by block (Start)
EU tag (ISO 31661 standard) Shows that an
AAU/ERU/CER has been converted into an EU
allowance
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Key issue 3 CPR

• Question Should the CPR apply to all legal
  entities between 2005 and 2008 or should this be
  consolidated at the EU level?
• CPR applies only to Parties in the Kyoto
  Protocol, whereas the EU trading scheme only
  applies to legal entities (companies, etc.).
• Consequence The CPR will not apply to legal
  entities before 2008 but will have to be
  respected by Parties from 2008 on. It remains to
  be determined how the CPR will be applied to
  legal entities from 2008.

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Key issue 3 CPR

• Question Should the CPR apply to all legal
  entities between 2005 and 2008 or should this be
  consolidated at the EU level?
• CPR applies only to Parties in the Kyoto
  Protocol, whereas the EU trading scheme only
  applies to legal entities (companies, etc.).
• Consequence The CPR will not apply to legal
  entities before 2008 but will have to be
  respected by Parties from 2008 on. It remains to
  be determined how the CPR will be applied to
  legal entities from 2008.

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Technical specifications key elements to consider

• IT Organization (Project Mgmt, Team, Hosting)
• Technical architecture (incl. web server,
  application server, database server, LDAP
  directory server, Exchange Module)
• Communication standards (Exchange Protocols,
  Authentification, Confidentiality)
• User Management (Passwd, Security)
• Business Continuity (Availabity, Disaster,
  Back-up)

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Next steps

• Functional specifications draft delivered
  discussed
• Technical specifications draft delivered
• July / September draft framework completed

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CDC IXIS - Heneage Legge-Bourke h.legge-bourke
_at_cdcixis.comBM - Anthony Hobleyanthony.hobley
_at_bakernet.com PwC - Laurent Segalen
laurent.segalen_at_fr.pwc.com