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Session 5 : E-PRTR (EU-ETS) QUALITY CONTROL/QUALITY ASSESSMENT Iksan van der Putte. The EU Emissions Trading Scheme - Monitoring and Reporting. Operators of installations under the EU ETS must hold a Greenhouse Gas (GHG) emissions permit to operate from 1 January 2005.
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Session 5 :E-PRTR (EU-ETS) QUALITY CONTROL/QUALITY ASSESSMENT Iksan van der Putte
The EU Emissions Trading Scheme - Monitoring and Reporting Operators of installations under the EU ETS must hold a Greenhouse Gas (GHG) emissions permit to operate from 1 January 2005. Member States must ensure that the GHG emissions permit sets out the monitoring methodology in accordance with the Monitoring & Reporting Guidelines (MRG). The verifier must reject the installation’s emissions report if he considers deviations Non compliance leads to sanctions (a.o “penalties”)
The EU Emissions Trading Scheme - Monitoring and Reporting Key M&R principles from the Directive: “Guidelines” are mandatory Core monitoring and reporting requirements must be included in the installation’s permit Biomass has an emission factor of zero Calculation or measurement (supported by calculation)
The EU Emissions Trading Scheme - Monitoring and Reporting The guidelines: 11 Annexes General guidelines (Annex I), Guidelines on combustion emissions (Annex II), Guidelines on specific activity sectors (Annex III-XI) Focus on calculation (measurement allowed): (total emissions = activity data * emission factor * oxidation factor) Tier-based approach
The EU Emissions Trading Scheme - Monitoring and Reporting Combustion emissions CO2 emissions = fuel consumption [TJ] * emission factor [tCO2/TJ] * oxidation factor Process emissions CO2 emissions = activity data [t or m3] * emission factor [t CO2/ t or m3] * conversion factor Conversion factor = fraction of Carbon in input not converted to CO2
The EU Emissions Trading Scheme - Monitoring and Reporting • Tier - based approach: • Concept: Introduction of flexibility for monitoring • for different types, sizes and ages of installations • Highest tier = most accurate monitoring • Use highest tier unless unreasonable costs or technically not • feasible • Provides a structured and transparent approach to • characterize & improve monitoring methodologies • CO2-emissions = • activity data * emission factor * conversion factor • Tier 1Tier2 Tier 3 Tier 1Tier 2 Tier 3 Tier 1 Tier 2
Example of minimum Tier Level requirements COMMISSION DECISION of 18 July 2007 establishing guidelines for the monitoring and reporting of greenhouse gas emissions pursuant to Directive 2003/87/EC of the European Parliament and of the Council (notified under document number C(2007) 3416) (Text with EEA relevance) (2007/589/EC)
The EU Emissions Trading Scheme - Verification Submission of annual verified emission reports If verified report not submitted by 31 March each year: operator transfers blocked Criteria for verification Annex V
The EU Emissions Trading Scheme -Penalties Requirement to annually surrender allowances for verified emissions (30 April) Penalties of €100 / tonne (€40 / tonne from 2005 - 2007) for failure to do so Plus the obligation to surrender ‘missing’ allowances in the subsequent year Publication of names of operators in breach of requirement to surrender sufficient allowances “name and shame”
The EU Emissions Trading Scheme - Harmonized compliance and enforcement elements Monitoring & reporting Article 14 & Annex IV ET Verification Article 15 & Annex V ETD M&R guidelines Penalties Article 16 ETD
The EU Emissions Trading Scheme - • Non harmonised compliance & enforcement elements • Details verification framework: There are no harmonised criteria for accreditation of verifiers and accreditation requirements differ between Member States. • A verifier should therefore comply with the national • accreditation requirements • Member States must set penalties for other breaches of trading rules: Non/late submission of verified emissions report; Fraud etc. • Further harmonisation needed? • Accreditation rules for verifiers? • Detailed verification standards?
The EU Emissions Trading Scheme - Transaction registries Specific EU legislation for a standardised and secured system of registries based on UN data exchange standards Allowances in electronic registries set up by Member States Provisions on the tracking and use of credits from JI and CDM projects are included The registries system is similar to a banking system which keeps track of the ownership of money in accounts but does not look into the deals that lead to money changing hands
Example ETS enforcement system in the Netherlands ref. Kees van Kuyen Neth. Ministry of Environment VROM