1. EU-MRG Stakeholder Day Experience in Monitoring & Reporting in the EU-ETS: Stakeholder Consultation May 12, 2005 Sina Wartmann, Ecofys s.wartmann@ecofys.de s.

2. EU-MRG Stakeholder Day Overview Background Concept of stakeholder consultation The questionnaire Stakeholder groups addressed Results Outlook

3. EU-MRG Stakeholder Day Background Review clause in the EU-MRG: „The Commission will review this Annex and Annexes II—XI by 31 December 2006, taking into account experience with the application“ (Annex I, 1) Potential changes anticipated to be in place well ahead 1 January 2008

4. EU-MRG Stakeholder Day Stakeholder Consultation I Goal: Collect experience gained in the application of the MRG from operators and authorities Specific Objectives: Collect structured and comparable feedback for key issues Provide space for technical comments on all annexes Provide space to express positions and comments

5. EU-MRG Stakeholder Day Stakeholder Consultation II Consultation includes:  Questionnaire with ratings + possibility for additional written comments  Invitation to submit position papers  „Stakeholder Day“ with presentations by stakeholder groups and sectoral sessions  Publication of results

6. EU-MRG Stakeholder Day The Questionnaire I Evaluate the guidelines as a whole according to the following aspects: Accuracy Flexibility Cost-effectiveness User-friendlyness Providing a level playing field

7. EU-MRG Stakeholder Day The Questionnaire II Evaluate the following aspects for each of the specific technical annexes: Clarity Applicability Tier thresholds Installation coverage

8. EU-MRG Stakeholder Day The Questionnaire III Further aspects to be judged and rated: Consistency with other reporting systems or standards Definitions Usefulness of monitoring and reporting principles Guidance on the application of tier system Guidance on uncertainty assessment Reporting templates....

9. EU-MRG Stakeholder Day Target Group Operators participating in the EU-ETS addressed through their EU industry associations National Ministries of the Environment Regional competent authorities Non-governmental organisations: e.g. CEN & IETA Non-governmental organisations: e.g. CAN Europe & WWF

10. EU-MRG Stakeholder Day Consultation Process Questionnaires and invitation to submit further comments and position papers sent out in early March Distributed via E-Mail to a standard list of EU- stakeholders and Member State focal points Posted on DG ENV emission trading website Deadline for submission of questionnaires and position papers: April 15th

11. EU-MRG Stakeholder Day Results Feedback received from: Industry associations at EU and national level Operators Ministries and other competent authorities Other non-governmental organisations in the form of questionnaires as well as position papers and other written comments.

12. EU-MRG Stakeholder Day Questionnaires Received SectorsNo. of questionnaires Combustion25 Iron & Steel7 Refineries11 Cement & Lime31 Ceramics9 Pulp & Paper4 Glass10 General (EPAs, Consultants...)12 Total109

13. EU-MRG Stakeholder Day Position Papers & Other Comments SectorsNo. of position papers/other written comments Combustion6 Iron & Steel1 Refineries1 Cement & Lime3 Ceramics2 Pulp & Paper0 Glass0 General (EPAs, Consultants...)9 Total22

14. EU-MRG Stakeholder Day Results I Accuracy: Good-very good, but leading to excessive costs Flexibility: Satisfactory – poor, more flexiblity needed regarding tier thresholds and calculation methods Cost-effectiveness: poor – very poor, good as a principle but not well implemented in the MRG

15. EU-MRG Stakeholder Day Results II User-friendlieness: poor –Many sections need clarification –Many references from one section into another –Shift information from Annex I into sectoral annexes Providing a level playing field: no opinion –Depends on interpretation by member states –At present differing interpretations in many fields! –Harmonization needed

16. EU-MRG Stakeholder Day Results III Hot-Spots: Principles: Cost-efficiency, flexibility Cross-cutting issues: harmonisation, EN ISO 17025, emission factors, uncertainty assessment At sectoral level: tier thresholds, calculation methods for process emissions General message: Simplify and make less prescriptive in order to balance accuracy against cost- effectiveness

17. EU-MRG Stakeholder Day Next Steps Stakeholder Day on 12 May 2005 Publication of presentations and meeting minutes on DG ENV web-site Follow-up discussions between stakeholders and Commission/consortium, where appropriate (summer 2005) Participation of stakeholders in review process of revised MRG (during 2006)