Registry systems for the EU emissions trading scheme

1
Registry systems for the EU emissions trading
scheme

• SBSTA pre-sessionals
• Bonn, Germany, 2 June 2003
• Olivia Hartridge
• DG Environment, European Commission

2
Common Position scope and timing

• European Parliament 1st reading 10 October 2002
• Common Position between EP and Council reached
  18 March 2003
• European Parliament 2nd reading 30 June-4 July
  2003
• If no 2nd reading agreement between EP and
  Council conciliation is initiated
• EU ETS to commence in 2005 in up to 28 countries
  
• so implementation has begun in earnest

3
Registries for the EU scheme

• Regulation to be adopted laying down minimum
  requirements for Member States registries
• Draft regulation by September 2003
• Therefore, work in progress to develop functional
  and technical specifications for Community
  registry and European Transaction Log
• and minimum requirements for Member States
  national registries

4
Some basic considerations

• Registries are NOT trading platforms, and so
  transfers are entirely distinct from trades and
  price information
• Registries may be maintained in a consolidated
  system
• Any person may hold allowances

5
Registries for the EU scheme

• (i) Trades within a single Member State give rise
  to adjustment between the operators involved in
  that Member State only
• (ii) Trades between entities in different Member
  States give rise to
• a) adjustment of allowance holdings between
  operators involved
• b) adjustment of assigned amount units between
  Member States involved (from 2008)

6
Registries for the EU scheme

• Monitoring Mechanism Proposal Article 6
• The Community and its Member States shall
  establish and maintain registries in order to
  ensure the accurate accounting of the issue,
  holding, transfer, cancellation and retirement of
  assigned amount units, removal units, emission
  reduction units and certified emission
  reductions. These registries shall incorporate
  registries established pursuant to Article 19 of
  Directive xx/xxxx/EC

7
Creation of allowances
2
8
Relationship between ETL and 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
9
Macro processes

• The following macro processes have been defined
  for the functional specifications
• The management of registry accounts
• The issuance, allocation, cancellation,
  retirement and eventual banking of allowances
• The transfer of allowances domestically/internatio
  nally
• The assessment of compliance - reconciliation
  between holdings of allowances and verified
  emissions
• The production of reports

10
Key issues

• Maintaining compatibility with UNFCCC data
  exchange standards
• Ensuring access to information delivers
  transparency but does not impact on market
• CPR the responsibility of individual Parties, not
  entities
• Minimising administrative costs
• Linking entities account numbers to Member State
  permit numbering systems?
• Providing verifiers access to input entities
  annual emissions data?