Andrew Howard UNFCCC secretariat unfccct ahoward@unfccct

1. Registry systems and the data exchange standards Intersessional consultations on registry systems Bonn 8-10 November 2004 Andrew Howard UNFCCC secretariat www.unfccc.int ahoward@unfccc.int

2. Ensuring compliance • All Annex B Parties to comply with Kyoto Protocol targets • Units may be used to demonstrate compliance - Assigned amount (target values) - Removals from LULUCF activities - Project credits under the CDM and JI • Accurate accounting in accordance with Article 7.4 • Reporting of additions and subtractions to assigned amount

3. Compliance with Annex B targets Mechanisms acquisitions LULUCF activities < = > Final emissions Projected emissions Annex B assigned amount Emissions side Assigned amount side

4. What registry systems have to do National registries established by Annex B Parties • Electronic databases for tracking the - issuance and holdings of units - transfers of units under the mechanisms - replacement and cancellation of units - retirement of units for compliance purposes - carry-over of units to the next commitment period • Accounts for governments and entities International transaction log (ITL) established by the secretariat • Checks transactions when they are proposed against rules • Ensures the integrity of transactions before completion

5. Accounts and transactions Issuance of AAUs and RMUs German registry Canadian registry Carry- over Transfers Party account Party account Legal entity a/c Legal entity a/c AAU RMU Retirement (for compliance) Legal entity a/c Legal entity a/c ERU CER tCER lCER Retirement a/c Retirement a/c Cancellation a/c Cancellation a/c Cancellation (not for compliance) Replacement a/c Replacement a/c

6. Registries, ITL and STLs Supplementarytransaction log1 Supplementarytransaction log2 Supple-mentarychecks Independent transaction log Basechecks Communications hub Virtual private network NR1 NR2 NR3 NR4 CDM-R

7. Sufficient harmonization International rules define • Basicregistry requirements (decision 19/CP.7) Parties have significant scope to implement as they wish • Basicdata exchange standards (decision 24/CP.8) Recognized that exact technical specifications are needed Detailed specifications of the data exchange standards • Define how registries enact the mechanisms • Developed by the secretariat, with registry developers • Version 1.0 completed in draft #7 form • Procedures for use and development are to be implemented through registry administrator cooperation

8. Data exchange standards • Management of secure communications over the Internet • Transaction processing sequences • Reconciliation processing sequences • Message formats to ensure all communications can be read, including serial, account and transaction numbers • ITL response codes to indicate negative check results • ITL notifications and other administrative processes • Initialization and testing of communications with the ITL • Change managementprocedures for the standards

9. Cooperation among administrators • Effective, long-term cooperation among administrators of - National registries - CDM registry - Independent transaction log (ITL) - Supplementary transaction logs (STLs) • To facilitate and promote accuracy, efficiency and transparency in the operation of registry systems • Common operational procedures, recommended practices and sharing of information and experience • Builds on technical capability set by data exchange standards • COP 10 to adopt modalities for the structure and procedures

10. Annual electronic reporting Aggregate registry information on holdings and transactions Electronic format to be adopted at COP 10 Reporting at end of the commitment period Additions and subtractions to assigned amount Total retirement for compliance purposes Units available for carry-over the next commitment period Review of national registries Pre-commitment period review Ongoing testing, recording changes Parties’ reporting and review

11. Timing Marrakesh Accords Commitment Period Complianceassessment Parties develop registries Data Exchange Standards ITL  2002 2003 2004 2005 2006 2007 2008-2012 2014  EU trading

12. Intersessional consultations • Ensure that the data exchange standards specifications conform to previous COP decisions • Take stock of progress by registry system administrators • Consider the cooperation between administrators - Common operational procedures - Modalities for the cooperation (SBSTA 21) • Consider the role of the ITL administrator - ITL checks and public information - Operational issues (SBSTA 21)