1. UNFCCC Information Event
Preparing for implementation: Initial requirements under the Kyoto Protocol
UNFCCC Information Event
Halldor Thorgeirsson
Clare Breidenich
Andrew Howard
Katia Simeonova

2. Overview of presentation
Objective: to remind Parties of the basic rules and requirements of the Kyoto Protocol
Particular emphasis on pre-commitment period
Basic Architecture: reporting, review and compliance
Initial report and accounting requirements
4th national communications and demonstrable progress
Secretariat’s preparation for implementation
Kyoto is a technically complex instrument
With EIF, Parties preparing for implementation
Several years since most of the rules developed and agreed, some of them developed recently (LULUCF)
New players, change in government
Objective of presentation is to remind Parties of the basic rules and requirements, particularly in the pre-commitment period, and the consequences of not meeting these requirements
Where to find more information

3. Compliance with Annex B targets
Final
emissions
Projected
emissions
LULUCF activities
Mechanisms
acquisitions
< =
>
Annex B
assigned
amount
Should be a familiar slide – a reminder of the overall compliance assessment for Kyoto Protocol
Several ways Parties can achieve Article 3.1 target:
- Reduce emissions
- Acquire additional units for Kyoto Mechanisms
- Issue Removal units from Article 3.3 and 3.4 activities
Slide is useful starting point for presentation because much of the Kyoto architecture is designed to support, monitor and facilitate compliance.
Emissions side
Assigned amount side

4. Kyoto compliance architecture
Joint implementation
National registries
International transaction log
CDM
Reporting of
quantitative
information
Compilation and accounting database
(emissions, assigned amount information, mechanisms eligibility)
COP/MOP
General overview of Kyoto compliance architecture
Blue are Party systems. Red are institutions, Green is Review process, Grey is secretariat data systems
Compliance systems starts with the reporting of information from Parties. All reports then subject to review under Article 8. Any questions of implementation identified by the review teams are to be addressed by the Compliance Committee.
Additionally, quantative information (I.e. emission inventories and assigned amount information) is imported directly into the secretariat’s data systems. If there are any questions of implementation raised regarding the quantitative data, the final information may be changed. After the review process, and resolution of any questions of implemenation by the compliance committee, data becomes official for purposes of the Kyoto Compliance assessment.
Reporting of
qualitative
information
Review process
Compliance Committee

5. Reporting, review and compliance procedures

6. Kyoto Protocol reporting
Initial report to
establish assigned
amount (once prior to
commitment period)
GHG Inventory with base year
Calculation of assigned amount under 3.7& 8
Calculation of commitment period reserve
National registry
National inventory system
LULUCF definitions and elections
Annual reporting (with
Convention inventory)
GHG Inventory
LULUCF information
Assigned amount info
3.14 information
National
communications
(every 5 years)
Convention elements
National Inventory System
National Registry
Supplementarity
Article 2 polices and measures
Legislative, enforcement and administrative arrangements
Technology transfer, capacity building and other Article 10 activities
Financial resources
Report on demonstrable
Progress (once in 2006)
Domestic measures
GHG trends
How measures will help meet commitments
Article 10 and 11 activities
Overview of Kyoto Reporting Requirements
- Note that these were intentionally built upon Convention reporting requirements
National Communications under the Protocol cover both Convention and Kyoto Implementation
In addition to the 4th national communication, there is also a one-time only report on demonstrable progress. Katia will provide information on these.
To initiate Kyoto accounting, Annex I Parties are also required to submit an initial report under Article 7.4. This is also a one-time only report.
And finally, the Protocol establishes annual reporting requirements which are built upon the Convention information submission. In addition the inventory, Parties are also required to submit information relating to assigned amounts, emissions and removals from Article 3.3 and 3.4 activities, and information on implementation of Article 3.14 of the Protocol. As the annual reporting requirement does not kick in until the commitment period, we will not address these requirements in this presentation.

7. Article 8 review process
Four types
- Review of initial report
- Periodic review of national communications
- Annual review of 7.1 information
- Expedited review to reinstate mechanisms eligibility
All review reports forwarded to Compliance Committee
 Compliance Committee to consider any ‘questions of implementation’ raised in the reports
For each reporting requirement under Article 7 there is a corresponding review under article 8. The first two types or review are most relevent for this presentation
Note that there is no separate review of the report on demonstrable progress – rather this information will be considered with the 4th national communication.
The expedited review is not a standard review, but only applies in the special case that a Party has lost mechanisms eligibility and wants to reestablish it.
Reminded that the review team does not resolve any problems identified, but rather raises questions of implementation which will be further consider by compliance committee

8. Compliance Committee ERT Any Party Compliance Committee COP/MOP Bureau
All review review reports
Questions of
implementation about
itself or another Party
Compliance Committee
Bureau
Facilitative
Branch
Enforcement
Branch
Annual report
Provision of general policy guidance
COP/MOP

9. Compliance Committee Branches
Enforcement Branch
- Resolves questions of implementation regarding quantitative requirements (targets, emissions, AA)
- Determines whether to apply adjustments or corrections for compilation and accounting purposes
- Can suspend or reinstate mechanisms eligibility
Facilitative Branch
- Provides advice and assistance for compliance
- Addresses questions of implementation regarding non-quantitative commitments, including Article 3.14
For each reporting requirement under Article 7 there is a corresponding review under article 8. The first two types or review are most relevent for this presentation
Note that there is no separate review of the report on demonstrable progress – rather this information will be considered with the 4th national communication.
The expedited review is not a standard review, but only applies in the special case that a Party has lost mechanisms eligibility and wants to reestablish it.
Reminded that the review team does not resolve any problems identified, but rather raises questions of implementation which will be further consider by compliance committee

10. Kyoto implementation timeline
3.1 Compliance Assessment
4th Nat Communication & Demonstrable Progress Reports
5th National Communication?
Voluntary Annual Reporting under 7.1
‘True-up period’ Report
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
Reports to establish Assigned Amount
Mandatory Annual Reporting under 7.1
Timeline of the Kyoto implementation from now until assessment of Compliance with Orange shading is actual commitment period
Note timing of 4th nat com and demonstrable progress, initial reports.
Mandatory annual reporting as of 2010 (2008 information)
Voluntary reporting earlier for mechanisms eligibility
Blue shows dates that reports are due from Parties. These reports trigger the associated review procedures under Article 8. The resulting review reports are automatically forwarded to the compliance committee for consideration, as appropriate.
Article 8 Review Process
Compliance Committee

11. Initial report under Article 7.4

12. Kyoto Protocol accounting
National systems
Annex I Party
systems
Emissions
inventories
Reporting
process
National registries
Kyoto Protocol units
Assigned amount
Eligibility requirements
Review and compliance processes
Reminder of Kyoto Architecture. Overall obligation of Annex B Parties under Article 3.1 is to ensure emissions do not exceed assigned amount at end of commitment period. Kyoto architecture is designed to monitor and assess Parties’ implementation of quantitative commitments
Emissions
Secretariat compilation and accounting
database
Article 3.1 compliance
assessment
> =
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13. Purpose of the initial report
“To facilitate calculation of its assigned amount and demonstrate
its capacity to account for emissions and assigned amount”
Report due by 1 January 2007
Submission triggers process to establish assigned amount and mechanisms eligibility
- In-country review by expert teams under Article 8 to be completed within 1 year
- All review reports forwarded to Compliance Committee for consideration
- Resolution of any questions of implementation to be done by Enforcement Branch
- Facilitative Branch to address any requests for advice and assistance
For each reporting requirement under Article 7 there is a corresponding review under article 8. The first two types or review are most relevent for this presentation
Note that there is no separate review of the report on demonstrable progress – rather this information will be considered with the 4th national communication.
The expedited review is not a standard review, but only applies in the special case that a Party has lost mechanisms eligibility and wants to reestablish it.
Reminded that the review team does not resolve any problems identified, but rather raises questions of implementation which will be further consider by compliance committee

14. Emissions-related elements
National System
GHG inventory
LULUCF Elections

15. National systems Required for estimation of GHG emissions and removals
To be established by 1 January 2007
Institutional, legal and procedural arrangements necessary to produce inventory
- Single national entity with inventory responsibility
- Inventory planning (define responsibilities, choice of methods and data)
- Preparation (use of good practice guidance, data collection, inventory uncertainty)
- Quality assurance and quality control procedures
- Reporting and archive inventory information

16. National systems (continued)
National System requirements are functional
 Compliance depends on ability to produce reliable inventory
Any questions of implementation identified by expert review team to be considered by the Enforcement Branch
National system required for mechanisms eligibility
Problems with national system could prevent Party from participating in Kyoto mechanisms

17. National greenhouse gas inventory
All gases and sources  Article 3.3/4 LULUCF removals not included until commitment period
Full geographic coverage
Complete time-series  All years from base year up to most recent available
Use of methods consistent with IPCC methodologies and Good Practice Guidance
Submitted in standardized electronic reporting tables (common reporting format)
National inventory report (description of methods used, data sources, etc)
Deforestation under 3.7 included

18. Base year inventory
Base year emissions used for assigned amount calculation
(unless other year or period has been approved)
- Elected year for F-gases (1990 or 1995)
- Deforestation emissions (if LUCF clause applies)
ERT may recommend application of a conservative ‘adjustment’ if problem is identified
 base year emission estimates adjusted downwards
Estimate (adjusted if necessary) is recorded in compilation and accounting database
Adjustments intended to correct inventory problems for purpose of accounting for emissions and assigned amount
Problems with base year inventory can result in a reduction in assigned amount

19. Land use, land-use change and forestry
Definitions for LULUCF parameters (e.g. forest, crown height, etc)
Elections of activities under Article 3.4
Accounting period (annual or over commitment period) for each 3.3 activity and each elected 3.4 activity
Party’s choices are recorded in C&A database and are mandatory for commitment period

20. Assigned-amount-related elements
Initial report of Annex B Party
Description of the national registry
Party’s calculation of its assigned amount
Commitment period reserve
Other assessment reports from administrator cooperation
Show results of independent testing
Show results of initializing registry communications with the ITL, in accordance with the data exchange standards

21. National registries
Electronic databases established by Annex B Parties
Track holdings of units in accounts for Parties and entities
Track transactions of units in and between accounts
- Issuance and conversion of units
- Acquisition of units from other registries
- Cancellation and replacement of units
- Retirement of units for compliance purposes
- Carry-over of surplus units to next commitment period
Process transactions in accordance with the specifications of the data exchange standards
Transactions monitored by the international transaction log

22. Setting aside assigned amounts
Annex B Parties show compliance with their
emissions commitments by ‘retiring’ assigned amounts
Units issued for assigned amount (Article 3.7 and 3.8)
Units issued for net removals from LULUCF activities
Units converted on the basis of JI projects
Units generated by CDM projects
Units acquired through emissions trading
Each unit equals 1 tonne of CO2 equivalent
Compliance is … when retirement = emissions

23. Establishment of Assigned Amount
Party calculates assigned amount (Article 3.7 and 3.8)
- reviewed base year inventory
- Annex B target
- An Article 4 agreement, if appropriate
Party’s calculation is reviewed in the initial review
Assigned amount recorded after review and consideration by the Compliance Committee
 Takes account of any adjustments made
Initial report is single opportunity to get it right.
Once recorded, assigned amount is fixed for the entire commitment period

24. Mechanisms eligibility requirements
Full eligibility
a. Party to the Kyoto Protocol
b. Assigned amount calculated
d. National registry in place for tracking assigned amount
Track 2 JI projects
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

25. Determining and maintaining eligibility
Automatic eligibility after 16 months of initial report (unless Enforcement Branch determines a requirement is not met)
Party must continue to meet requirements to maintain eligibility
- Annual inventory and assigned amount reporting
- Inventories pass the quality test in the annual review
Enforcement Branch can suspend eligibility

26. 4th national communication and report on demonstrable progress

27. Reporting on Convention implementation
National circumstances
Policies and measures
Projections
Vulnerability, impacts and adaptation
Financial resources and transfer of technology
Research and systematic observation
Education, training and public awareness

28. Reporting on Kyoto Protocol implementation
National Inventory System
National Registry
Supplementarity (in use of mechanisms)
Domestic policies and measures
Article 2 policies and measures
Legislative, enforcement and administrative arrangements
Technology transfer, capacity building and other Article 10 activities
Financial Resources

29. Elements defined by COP decisions
Annex II Parties to provide information on support programmes in developing countries on
- Adaptation (decision 5/CP.7)
- Meeting needs and concerns from the implementation of response measures (decision 5/CP.7)
All Parties requested to provide information on
- Monitoring the progress in implementation of the framework for capacity building (decision 2/CP.7)
- Implementation of the New Delhi work programme on education, training and public awareness under Article 6 (decision 11/CP.8)

30. Submission and Review Submission date: 1 January 2006
Inform the secretariat in case of delay
Delay of more than 6 weeks brought to attention of the COP/MOP, Compliance Committee and made public
Periodic review (in-country) for each Annex I KP Party
Starts when it submits the NC under the KP
Completed for all Parties in two years of the NC submission
Review outcome:
Potential problems (transparency, completeness, timeliness)
Recommendations and assessment (treatment of potential problems)
Problems with the NC could result in an action by the Facilitative Branch of the Compliance Committee

31. Report on demonstrable progress
Progress in achieving commitments by 2005 is mandatory (Article 3.2)
Report due on 1 January 2006, consistent with NC4 information (decisions 22/CP.7 and 25/CP.8)
- Description of policies and measures
- Trends in, and projections of, national GHG emissions
- Evaluation of the impact of domestic policies and measures on trends and projections
- Description of activities undertaken in fulfilment of the commitments under Articles 10 and 11

32. Consideration of the report on demonstrable progress
The secretariat to prepare a synthesis report
SBI and COP/MOP to consider synthesis report
Report could provide basis for assessing emissions and trends in light of the long-term climate challenge

33. Secretariat’s preparations for implementation

34. Status of Registry systems
Data exchange standards completed in 2004
 Coordinate registry systems processing
International transaction log
- Technical design completed in 2004
- Funding constraints have delayed implementation
- Completion of deployment expected in 3rd quarter of 2006
- Registries to initialize communications with ITL in 2nd half
CDM registry
- Deployed in 2004 (issuance/distribution of CDM units)
- Remaining development to be completed in July 2005

35. Status of review and compliance
Review processes basically in place
- Will be intensified for initial reviews
- More experts needed
- Consideration of how to streamline processes
Compliance Committee
- Internal procedures and databases under development
- Members of Committee to be elected at COP/MOP 1
- Elaborate procedures and working arrangements in 2006
Compilation and Accounting Database
- GHG information system in place
- additional modules under development on LULUCF, adjustments, assigned amount info (completed mid-2006)