NATIONAL SYSTEMS UNDER ARTICLE 5 OF THE KYOTO PROTOCOL

1. NATIONAL SYSTEMS UNDER ARTICLE 5 OF THE KYOTO PROTOCOL EC workshop on Quality Control and Quality Assurance of Greenhouse Gas Inventories and the Establishment of National Systems Copenhagen, 2-3 September 2004 Astrid Olsson (aolsson@unfccc.int) Programme Officer UNFCCC secretariat

2. Article 5, paragraph 1 of the Kyoto Protocol Each Party included in Annex I shall have in place, no later than one year prior to the start of the first commitment period, a national system for the estimation of anthropogenic emissions by sources and removals by sinks of all greenhouse gases not controlled by the Montreal Protocol. Guidelines for such national systems, which shall incorporate the methodologies specified in paragraph 2 below, shall be decided upon by the Conference of the Parties serving as the meeting of the Parties to this Protocol at its first session.

3. Decision 20/CP.7 • Recommends that COP/MOP.1 adopt draft decision -/CMP.1 • (Article 5.1) • Encourages Annex I Parties to implement the recommended guidelines for NS under Article 5.1 of the KP as soon as possible with the aim of gaining experience with their implementation • Urges Annex II Parties to assist EIT Parties, through appropriate bilateral or multilateral channels, with the implementation of the guidelines for NS under Article 5.1, of the KP

4. Draft decision -/CMP.1 (Article 5.1) • Guidelines for national systems under Article 5, paragraph 1, • of the Kyoto Protocol • Adopts the guidelines for NS under Article 5.1, of the KP as contained in the annex to the present decision; • Urges Annex I Parties to implement the guidelines as soon as possible.

5. Guidelines for National Systems APPLICABILITY The provisions of these guidelines shall apply for each Party included in Annex I which is also a Party to the Kyoto Protocol. Parties’ implementation of national system requirements may differ according to national circumstances, but shall include the elements described in these guidelines. Any differences in implementation shall not impair the performance of the functions described in these guidelines.

6. Guidelines for National Systems DEFINITION (According to Annex to decision 20/CP.7) A national system includes all institutional, legal and procedural arrangements made within a Party included in Annex I for estimating anthropogenic emissions by sources and removals by sinks of all greenhouse gases not controlled by the Montreal Protocol, and for reporting and archiving inventory information.

7. Guidelines for National Systems • OBJECTIVES • Enable Annex I Parties • Estimate GHG emissions and removals • Report these emissions and removals in accordance with Article 7.1, and relevant decisions of the COP and/or the COP/MOP • To assist Annex I Parties in meeting their commitments under Articles 3 and 7 • To facilitate the review of the information submitted under Article 7 by Annex I Parties, as required by Article 8 • To assist Annex I Parties to ensure and improve the quality of their inventories

8. Guidelines for National Systems • CHARACTERISTICS • National systems should be designed and operated: • To ensure transparency, consistency, comparability, completeness and accuracy of inventories • To ensure the quality of the inventory through planning, preparation and management of inventory activities • Support compliance with KP commitments related to the estimation of GHG emissions and removals • Enable Annex I Parties to consistently estimate emissions and removals of all GHGs, as covered by the 1996 IPCC Guidelines and IPCC GPG

9. Guidelines for National Systems • GENERAL FUNCTIONS • Each Annex I Party shall: • Establish and maintain the institutional, legal and procedural arrangements • Ensure sufficient capacity for timely performance of the functions • Designate a single national entity with overall responsibility for the national inventory • Prepare national annual inventories and supplementary information in a timely manner in accordance with Article 5 and Article 7.1 and 7.2 • Provide information necessary to meet the reporting requirements defined in the guidelines under Article 7 in accordance with the relevant decisions of the COP and/or COP/MOP

10. Guidelines for National Systems • SPECIFIC FUNCTIONS • A. Inventory planning • Each Annex I Party shall: • Designate a single national entity with overall responsibility for the national inventory • Define and allocate specific responsibilities in the inventory development process • Elaborate an inventory QA/QC plan • Establish processes for the official consideration and approval of the inventory

11. Guidelines for National Systems • SPECIFIC FUNCTIONS • B. Inventory preparation (I) • Each Annex I Party shall: • Identify key source categories • Prepare estimates in accordance with the methods described in the 1996 IPCC Guidelines and the IPCC GPG • Collect sufficient activity data, process information, and emission factors as are necessary to support the methods selected for estimating GHG emissions and removals • Make a quantitative estimate of inventory uncertainty • Ensure that any recalculations are prepared in accordance with the IPCC GPG • Compile the national inventory in accordance with Article 7.1 • Implement general inventory QC procedures (tier 1)

12. Guidelines for National Systems • SPECIFIC FUNCTIONS • B. Inventory preparation (II) • Each Annex I Party should: • Apply source category specific QC procedures (tier 2) • For key source categories • For individual source categories where significant methodological and/or data revisions have occurred • Provide for a basic review of the inventory by personnel that have not been involved in the inventory development • Provide for a more extensive review of the inventory for key source categories, as well as source categories where significant changes in methods or data have been made

13. Guidelines for National Systems • SPECIFIC FUNCTIONS • C. Inventory management • Each Annex I Party shall: • Archive inventory information for each year • Provide review teams under Article 8 with access to all archived information used by the Party to prepare the inventory • Respond to requests for clarifying inventory information resulting from the different stages of the review process, and on the national system, in a timely manner in accordance with Article 8 • Each I Party should make the archived information accessible by collecting and gathering it at a single location

14. National systems and eligibility requirements Reporting and review processes relating to eligibility

15. Verifying compliance with the targets National systems National registries Annex I Party systems Reporting process Emissions inventories Assigned amount info Review, adjustment, compliance processes Secretariat compilation and accounting database Kyoto Protocol Compliance Committee Assigned amount 2008 - 2012 Emissions 2008 - 2012 >= <

16. Key points on the emissions side (I) • Reliable inventories are fundamental for determining compliance of Parties with their Kyoto targets • calculation of assigned amount under Articles 3.7 and 3.8 • maintaining mechanisms eligibility • end of commitment period compliance test • Initial inventory with full time-series is important for calculation of assigned amount under both track 1 and 2

17. Key points on the emissions side (II) • National GHG inventory requirements: • All gases and sources LULUCF removals not required for base year • Full geographic coverage • Complete time-series All years from base year (1990 or other) up to most recent available • Use of methods that are consistent with IPCC methodologies and GPG • Common Reporting Format Standardized electronic reporting tables • National inventory report Description of methods used, data sources, etc.

18. Key points on the emissions side (III) National systems that meet the requirements of the guidelines for NS are a key element to ensure reliable inventories that meet the requirements of the COP guidelines for inventories (and the COP/MOP guidelines for supplementary inventory information)

19. Key points on reporting/review procedures for eligibility • Determination of eligibility requirements is normal outcome of reporting, review and compliance procedures • All Annex I Parties are subject to an initial “pre-commitment period” review • Annex I Parties report and are subject to review annually • All review reports considered by the Compliance Committee • No eligibility  no participation on Kyoto mechanisms: • No issuance, transfer or acquisition of AAU, ERU, CER and RMU • Compliance Committee makes determination of eligibility

20. JI Track 2 a. Party to the Kyoto Protocol b. Assigned amount calculated d. National registry in place for tracking assigned amount Eligibility requirements for ET, CDM and JI ET, CDM and JI Track 1 (full eligibility) a. Party to the Kyoto Protocol b. Assigned amount calculated c. National system in place for estimating emissions/removals d. National registry in place for tracking assigned amount e. Submission of most recent required emissions inventory f. Accurate accounting of assigned amount and submission of information

21. Initial reporting and review • Initial report and review is “to facilitate calculation of assigned amount and demonstrate capacity to account for emissions and assigned amount” (Pre-commitment period review) • GHG inventory focus on base year (1990 or other) • National system • National registry • Calculation of initial assigned amount under Articles 3.7 and 3.8 • Calculation of commitment period reserve • Selection of sinks activities under Article 3.3 and 3.4

22. Annual reporting and review • Annual greenhouse gas inventory • Annual assigned amount information • Changes in the national registry • Changes in national system • Calculation of commitment period reserve • .

23. Timing … when is it all to happen? • Eligibility requirements for Annex B Parties are integral to the system to safeguard the integrity of the Kyoto Protocol • Parties are to meet requirements for the following prior to 2007 (or one year after entry into force of the Protocol for the Party), • National system • GHG inventory • Calculation of assigned amount under Articles 3.7 and 3.8 • National registry • Notification of Article 3.3 and 3.4 information • Selection of Article 3.4 activities

24. Additional information • SBSTA 19 (Milan, December 2003) • Submissions by Parties (30 September, 2004) • Information on NS under Article 5.1, of the KP for the preparation of national GHG inventories. • Request the secretariat to organize a workshop on NS in the first half of 2005. • Request the secretariat to compile information on NS as input to the workshop

25. National systems for estimating emissions • Institutional, legal and procedural arrangements necessary to prepare national greenhouse gas inventory in accordance with 7.1 • Single national entity • Planning (define responsibilities, choice of methods and data) • Preparation (Use of good practice, inventory estimation, documentation) • Quality assurance and quality control procedures • Archive inventory information • Requirements are functional • Flexibility for national circumstances • Compliance depends on ability of system to produce reliable inventory.

26. Final remarks • Parties already have NS • Assess current NS, if in line with Article 5.1 Guidelines • NS developed for KP • NS in place help reporting under Convention • Help for Non-Annex I Parties, if they wish to implement it • KP enters into force • ‘Healthy’ for process ‘pre-commitment period’ review start in 2006 • Practical matter for process