Download Webinar on `Legal frameworks of national MRV systems` 20.02.2014

Webinar on ‘Legal frameworks of national MRV systems’
20.02.2014
Summary Note
A. Role of national MRV systems
The establishment of MRV systems which appropriately reflect national circumstances can help
Parties: reach the 2 degree goal, build trust through ensuring that emission reduction efforts at all
levels are being recognized, and ultimately access necessary financial resources.
Solid national MRV systems can enable Parties to significantly enhance their mitigation and
adaptation efforts leading in turn to cost savings and greater efficiency.
The existence of national MRV systems is instrumental in helping Parties react in a systematic way
to all data and emission reduction requirements plan the necessary allocation of resources and
establish themselves as credible participants in the international carbon markets.
B. Types of legal frameworks for national MRV systems
When it comes to the establishment of a legal framework for an MRV system there is no one-size
fits all. MRV systems need to reflect a country’s national circumstances with the underpinning legal
framework spanning among different administration/government levels, covering a number of
concerned parties, and containing both mandatory and voluntary components. Some indicative types
of legal frameworks presented at the webinar are largely generalized below:
Type I: A legal framework requiring at its core inter-ministerial coordination as well as
coordination at both state and federal government levels and enabling data quality checks and
verification activities. Core activities under this legal framework rely largely on stringent legislation
and are supported through the establishment of primarily voluntary working groups. This legal
framework although it assumes primarily a top-down approach allows cooperation with industry via
voluntary agreements and MoUs, which are negotiated as various reporting requirements evolve.
Type II: A legal framework similar to Type I in terms of structure but where the underlying
legislation goes beyond emission inventories addressing also in a comprehensive manner the
extensive MRV requirements of climate policies whether related to mitigation or adaptation. In
addition to verification and quality control activities, this legal framework also encompasses policy
evaluation components.
Type III: A legal framework again similar in structure to Type I, however, entailing almost no
voluntary components and relying largely on stringent legislation which addresses in a separate,
albeit coordinated manner, industrial and inventory emissions.
Type IV: A framework assuming clearly a bottom-up approach and relying primarily on the
voluntary cooperation of major emission producers. This framework also relies on existing norms
and initiatives as other legal frameworks do but aims more at internalizing those at the ground level
in an effort to ensure steady/high quality activity data streams to underpin GHG emission reporting.
This framework relies primarily on third party verification.
1
C. Main considerations in establishing a legal framework for an MRV system
No matter the type of legal framework established to underpin a national MRV system there are
some important considerations:








Starting simple is key! Using existing data and structures can help minimize costs and
increase a system’s efficiency.
Ensuring that the legal framework enables the use of tools, data and information available
through existing international agencies, and institutions (IEA, FAO, UNFCCC, WRI, CDP
etc) can help address initial data and system deficiencies, and minimize costs.
A legal framework should secure the involvement and coordination of relevant entities at
local, state, and federal levels, as applicable so as to ensure a common understanding of the
existing goals and requirements and the delivery of the necessary information.
Establishment under any MRV framework of working groups, task forces, committees at
various levels can help with the early resolution of problems and can provide for the
continuous and productive exchange of views and information - whether on a technical or a
political basis - on how to best address the requirements at hand.
Establishing a multi-purpose legal framework for MRV is preferable as it can lead to higher
data quality, consistency of reporting among various reporting streams (climate change, air
pollution, statistical requirements) and lower costs.
Adopting a holistic approach and tackling mitigation and adaptation requirements under one
MRV legal framework can help countries develop and establish a cohesive climate plan
while better addressing international requirements and national goals.
The establishment of clear guidelines, deadlines and QA/QC procedures should be an
integral part of a legal framework for MRV whether established on a voluntary or
mandatory basis so as to ensure the credibility of the reported information and its on-time
delivery.
A framework that enables the use of electronic systems and standard forms and formats can
ensure the better monitoring and review of information over time.
Quality assurance/quality control (QA/QC)
An important component of any legal framework for MRV is a strong QA/QC system comprizing
of comprehensive checklists, adequate crosschecks, internal and external verification/evaluation
bodies. When it comes in particular to voluntary agreements, third party verification/auditing is key.
D. MRV systems on a voluntary or a mandatory basis?
As mentioned previously, first and foremost national MRV systems need to reflect national
circumstances. The extent to which an MRV framework should be established on a voluntary vs.
mandatory basis is a national decision. In any case, it should be noted that all voluntary agreements
should encompass at least a quality assurance element as well as a clear commitment for
cooperation throughout the data collection, evaluation and verification process whether internal or
external.
Advantages of voluntary agreements
Voluntary agreements tend to be more flexible as they allow to react quickly to new or changing
requirements, they are also often favored by industry which tends to be reluctant to accept new
binding legal instruments. Voluntary agreements require starting from the ground-up which can
2
help gain a better appreciation for the availability and potential use of existing data as well as for
confidentiality concerns, leading ultimately to the establishment of a solid data basis for any MRV
system. Voluntary agreements allow to start simple avoiding heavy bureaucratic structures and they
offer the opportunity to evolve into more formal structures as experience is gained.
Disadvantages of voluntary agreements
Voluntary agreements often require significant ground work in particular in incentivizing the target
groups (companies, industry, other authorities) to participate, feel comfortable with and ultimately
internalize the data collection processes and requirements. Voluntary agreements also present a
particular challenge in ensuring that all relevant information is provided in a quality, consistent,
transparent, comprehensive manner. Such uncertainty can be detrimental when having to respond to
specific and time-constrained international requirements.
Incentivizing participation to voluntary agreements: why’s and how’s
Experience has shown that the main incentives for companies/industry to provide the data and
information needed to support a national MRV system on a voluntary basis are:
1) there are higher costs associated with mandatory reporting,
2) data not directly provided by the concerned industry/companies could be overestimated
affecting among other negatively a company’s public image,
3) voluntary agreements provide the opportunity to better negotiate data use and confidentiality
issues,
4) voluntary data reporting often allows for more recent data to be reported providing a more
accurate picture,
5) effective participation in the carbon markets and potential benefits can be maximized
through solid reporting.
3