GRETA GREENHOUSE GAS REGISTRY FOR EMISSIONS TRADING ARRANGEMENTS

GRETA GREENHOUSE GAS REGISTRY FOR EMISSIONS TRADING ARRANGEMENTS Overview of the UNFCCC registries Workshop on China’s National administration and approval of CDM projects 20 th November 2007 Guohong Hotel, Beijing

GRETA Kyoto registries and ITL n National registries: n n Accounts for governments and businesses Electronic databases for n n n Transactions: n n recording holdings of units tracking movements of units Creation, transfer and use of units The transaction log: n n Checks transactions when they are proposed Ensures the integrity of transactions before completion

GRETA International rules n Basic registry requirements (COP 7) n n Basic data exchange standards (COP 8) n n Beyond these, Parties free to implement as they wish More exact technical details The data exchange standards relate to: n n n Sequence and content of electronic messages Language protocol and messaging format Transaction rules Serial numbers, account numbers and transaction numbers Security and data quality measures

GRETA ITL twin purposes n Provides certainty of delivery under carbon market trading n n Occupies central location in network of national registries Supports the secure communications between systems that coordinate transaction and reconciliation processing Ensures that only Kyoto-valid transactions may be undertaken Safeguards integrity of Kyoto compliance accounting n n Ø Ø Checks that transactions conform to Kyoto Protocol rules Tracks international movement of emission allowances Keeps account of allowance holdings for each Annex B Party Supports comparison of allowance holdings and actual emissions

GRETA ITL tasks n n Communications hub connects all registries Checks transactions against n n n technical standards for data exchange (46 checks defined) policy-related rules (95 checks defined) Builds up records of holdings and transactions which mirror registries Regularly reconciles ITL records with registry records Notifies registries of required transactions (eg cancellation) Feeds EU transactions to the CITL for supplementary checking

GRETA Current EU ETS

GRETA Future Kyoto communications

GRETA Interaction processes Transaction log checks against • Reference data • Data format • Holdings data • Validity rules Registry inputs Issuance of AAUs, RMUs, CERs Transactions • Base data • Unit choice • Account choice Conversion (ERU issuance) Reconciliation • Holdings data • Entity data External transfers Internal transfers (cancellation) Internal transfers (retirement) Carry-over Reconciliation of data Results • Issued units • Units removed from accounts • Units added to accounts • Units carried-over • Logged data • Inconsistencies discovered

GRETA GREENHOUSE GAS REGISTRY FOR EMISSIONS TRADING ARRANGEMENTS CDM registry

GRETA Functions n n Not a transaction log – a registry Limited range of functions compared to national registries n n Issuance Transfers (Internal and External) Cancellation CDM registry is not used for compliance

GRETA From CDM to a NR National Registry (NR) CDM registry (of an Annex I Party) (for Non-Annex I Parties) Sender/receiver Communication via the data exchange standards Sender/receiver Communications hub Autochecks Transaction log Sender/receiver

GRETA Procedures n Issuance n n Key Issue: Occurs frequently rather than once per Commitment Period Linked to CDM administrator software for project data and issuance instructions ITL will check both data sources before approval n

GRETA Procedures (cont’d) n Forwarding n n Key Issue: Participants are requesting transfer from the pending account Requires SOP ADMIN to be paid In accordance with registered modalities and procedures Information on how to apply for a holding account in the CDM Registry can be found on: http: //cdm. unfccc. int/Issuance. CERs. html

GRETA

GRETA CERs Issued (as end of August 2007 Accumulated)

GRETA Current CDM registry status n n n CDM Registry v 2. 0 is fully operational and started real-time operation on the 14 of November 2007 Overall, 844 CDM projects have been registered to-date 256 projects have already had Certified Emission Reduction units (CERs) issued into the CDM registry On 14 November, Japan received into the national registry its CERs – the first ever transfer of CERs from the CDM registry to a national registry n

GRETA n Thank you for your attention! Joachim Jämttjärn (Mr) Head of GRETA International Registry Cooperation EU/UN Emissions Trading Department for Environment Food and Rural Affairs (Defra) Ergon House Horseferry Road London SW 1 P 2 AL, UK Tel: +44 (0)20 7238 4749 Mob: +44 (0)77 85 35 20 58 E: joachim. jamttjarn@defra. gsi. gov. uk