A1258690205jgzBS

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Checks to be performed by the international
transaction log Consultations on registry
systems prior to SBSTA 22 Bonn 13-14 May 2005
Andrew Howard UNFCCC secretariat www.unfccc.int a
howard_at_unfccc.int
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Overview

• Establishing the basis for transactions
• Reporting, review and compliance
• Project cycles for the CDM and JI
• Verifying the validity of transactions
• Checks performed by the ITL
• Reconciliation between the ITL and registries
• Transaction storylines
• Issuance, conversion and retirement
• Emissions trading between registries
• Required transactions with notifications

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Context

• Registry systems are integrated in the Kyoto
  processesto monitor and assess compliance of
  Annex B emissions targets

Reporting, review, compliance
Reference data
Registry transactions
Reporting, review, compliance
Party reporting
CDM and JI procedures
Reference data
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Processes before registry transactions
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Reporting, review, compliance
Reporting on emissionsand assigned amounts Article 8 review
Pre-commitment periodreporting (Article 7.4) Initial review
Annual supplementaryinformation (Article 7.1) Annual review
Periodic supplementaryinformation (Article 7.2) Periodic review
True-up periodinformation (Article 7.4) Annual review
Review reports may highlight problems as
questions of implementation
Compliance Committee may decide to correct the
assigned amount information of a Party before it
is recorded as official data
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Official information used in transactions
Official information given to ITL from compilation and accounting database Relevant transaction
Assigned amount (under Article 3.7/8) Issuance of AAUs
Commitment period reserve (CPR) External transfers
Net LULUCF removals (Article 3.3/4) Issuance of RMUs
Net LULUCF emissions (Article 3.3/4) Cancellation (net source)
Mechanisms eligibility External transfers and acquisitions Retirement of CERs, tCERs, lCERs
Units available for carry-over Carry-over
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CDM project cycle
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Project information used in transactions
Project information given to ITL from CDM and JI information systems Relevant transaction
CDM emission reductions or removals Issuance of CDM credits
Excess issuance of CDM credits Cancellation (excess issuance)
Reversal in removals under the CDM(in relation to lCER projects) Replacement of lCERs
Failure to submit certification report(in relation to lCER projects) Replacement of lCERs
JI emission reductions or removals Conversion of AAUs/RMUs to ERUs
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Registry transactions
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ITL checks

• Registries generate a proposal message for a
  transaction
• ? ITL independently checks the proposed
  transaction
• 140 checks defined
• Primarily technical nature to ensure standard
  communications
• ? 46 checks defined
• Primarily policy-related nature to ensure
  conformity to modalities, rules and limits under
  Kyoto
• ? 15 general checks
• ? 78 transaction-specific checks

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ITL check categories
Version and authentication Can the ITL verify senders identity?
Message viability May the message be processed?
Registry status Are registries involved able to operate?
Data integrity Does the data makes sense?
Message sequence Is the message in the correct order?
General transaction checks Does the message comply with general requirements for transactions?
Transaction-specific checks Does the message comply with Kyoto requirements for the type of transaction?
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ITL response code examples
Response code 2017 5008
Check name Project identifier AAU issuance quantity
Check description CERs, tCERs, lCERs and ERUs must have a valid project identifier The quantity of AAUs issued must not exceed allowed quantity for the commitment period
Check category Data integrity Transaction-specific
Transaction type All Issuance
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Reconciliation

• 3 tier reconciliation processes allows comparison
  of
• Tier 1 Total unit holdings
• Tier 2 Records of serial numbers of any unit
  type or account type
• Tier 3 logs of transaction data and database
  changes
• Reconciliation identifies
• Specific inconsistent unit
• Specific instance of non-conformity with data
  exchange standards
• Manual intervention procedures to resolve the
  inconsistency

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Notifications

• 30 days to fulfil required actions
• Notification identifier is given by registries
  for each transaction relating to the notification
• ITL associates relevant transactions with
  identifiers? ITL assesses when required actions
  are completed
• Follow-up notifications by the ITL? to indicate
  when a required action is complete? to provide
  status updates on fulfilment
• Unfulfilled cancellation and replacement
  notifications taken into account in CPR
  calculations (after 30 days)

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Processes after registry transactions
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Reporting, review, compliance
Reporting on emissionsand assigned amounts Article 8 review
Annual information Annual review
Periodic information Periodic review
True-up information Annual review
Review reports may highlight problems as
questions of implementation
Any inconsistencies not resolved through
reconciliation may be subject to a correction in
the assigned amount information of a Party before
it is recorded as official data