Download Type of relationships in GHG emission trading scheme

Presentation
“Green Investment Schemes – greenhouse
gas emissions quotas trading mechanisms
in Ukraine according to the Kyoto Protocol
to the Convention on Climate Change”
International Charity organization
“Environment-People-Law”
Maryana Bulhakova
[email protected]
Plan
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GHG emission quota trading mechanisms according to international
documents.
Quota’s price.
Climate protection legislation in Ukraine – the base for the GHG emission
quota trading mechanisms in Ukraine.
Type of relationship in quota trading mechanisms in Ukraine.
GHG emission quota status.
Obligatory reduction of GHG emissions in Ukraine. Participation of the
Ukrainian enterprises in quota trading schemes.
Emissions trading Registry.
Spending the money received from selling quota to the other countries.
What should be regulated in legislation for the emission trading
mechanisms to work properly.
Sanctions for the violation of the legislation that regulate quota trading.
Some amendments to the existing laws.
Public participation.
GHG emission quota trading mechanisms
according to international documents
• Rules for international GHG
emissions trading and two
other “soft mechanisms” of
Kyoto Protocol
(Marrakech, Morocco, 2001)
• Necessary condition to keep
quota reserve – for preventing
from too high emission’s quota
selling
• Obligation for countries from
Annex 1 to prepare reports on
their activity in using
absorbents for receiving the
right to participate in emission
trade mechanisms and other
mechanisms, as well as the
information about the taken
steps in biodiversity
conservation.
To be eligible to use mechanisms of quota trading
according to Kyoto protocol Parties to the
Convention should comply with certain requirements
• To be a Party to the Kyoto Protocol;
• To adopt national rules and procedures of adopting the projects,
their monitoring and verification;
• To establish national system for the estimation of anthropogenic
emissions by sources and anthropogenic removals by sinks of all
greenhouse gases not controlled by the Montreal Protocol;
• To submit annually the most recent required inventory of
anthropogenic emissions by sources and anthropogenic removals
by sinks of all greenhouse gases not controlled by the Montreal
Protocol;
• To register assigned amount of emissions;
• Periodic preparing of national reports on climate change;
• To place in National Registry.
Quota’s price
• The price for quota depends on many factors,
including the value of CO2 reduction, market
demand and supply
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400
200
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price for reducing of 1 tonn of CO2, US$
Ukraine
Russia
EU
USA
Japan
Climate protection legislation of
Ukraine – base for the quota trading
mechanisms on GHG emissions
• Practically absence of legal regulation of
environmental issues concerning climate
change mitigation (e.g. on the level of
normative principles, as well as concrete
competence of governmental bodies that
implement climate protection policy)
Type of relationships in GHG emission
trading scheme The
other
states
Ukraine
Companies in
Ukraine
Companies in
Ukraine
Ukraine
The
other
states
• Public relationships
• Private relationships
The
other
states
Status of GHG emission quota in Ukraine
• The realization of unused right (allowance)
on GHG emissions, according to the
established quota for Ukraine.
• The quota is a state’s property
Obligatory reduction of GHG emissions in
Ukraine. Participation of certain enterprises in
quota trading scheme in Ukraine
• The state in the relationships with the enterprises in Ukraine should
hold the position of the subject of public law, to be able to establish
obligatory responsibilities regarding GHG emissions reductions.
• As far as participation in trading is voluntary, it is necessary to
foresee incentives for the companies to take the steps aimed at
GHG emissions reduction.
• Economical mechanisms, aimed at GHG emissions reduction (EU
experience) – establishing taxes on CO2 emissions and other
energetic taxes, standards of heat insulation, purchase of emissions
permits.
• In EU trading scheme in certain branches limits are being counted
for certain enterprises. At the end of reporting period the enterprise
should demonstrate its compliance with the requirements of
established emissions limits. Thus, if the enterprise overuses its
quota, the projects of emissions reduction should be established in
the company on obligatory basis.
Registry of emissions trading
• Regular entering of the information the conforms
with the reality to the monitoring body.
• The permits on CO2 emissions, amount of units
of CO2 emissions to be sold and reduced should
be registered in the Register, as well as
transferring quotas from one account to another.
• Registers should be partly accessible for public,
but there also should be sections closed for
public.
• National account in the Registry.
Distribution money received from other states
for the GHG emissions quota selling
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Special purpose of spending money received from
selling excessive quota for the following GHG
emissions reduction.
Complex joining of the following elements:
Will of enterprise (competitions, queues);
Objective necessity of implementing GHG emissions
reduction projects;
GHG emissions reduction projects design and
approval on concrete enterprises.
Creating of independent body with the members of
lawyers, economists, state governors, including
experts and scientific personnel for the work on the
projects of GHG emissions reduction.
What should be regulated in Ukrainian
legislation in the Emissions trading scheme
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Policy of prevention the negative consequences of climate change and
GHG emissions trading should be carried out by authorized bodies;
Creation of reporting system, anthropogenic GHG emissions and
absorbents assessment, system of GHG emissions agreements
registration (Registry functioning);
Rules on GHG emissions trading scheme (UK Rules, 2005) regulate
following key issues:
GHG emissions permits (issuing conditions, annulling, permits
transmission, price etc.);
Registers, functions of Register’s administrators;
Calculating and distributing GHG emissions permits;
Compliance the companies’ activity with the GHG emissions permits,
appeal procedures;
Informing. National security.
Violations and penalties.
Authorities’ responsibilities.
Establishing sanctions for the violations of
legislation that regulates quota trading mechanisms
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For the violation of quota trading mechanisms
sanctions can be established regarding:
state, as a party who ratified international agreement;
enterprises where environment-protective measures
according to the mechanisms of Kyoto protocol are
being implemented;
the other participants of the quota trading market.
For the violation of environmental limits of emissions
there can be: a) criminal, b) administrative, c) material,
d) disciplinary, e) environmental (preventive)
responsibility.
Some changes to the existing
legislation in Ukraine
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The climate should be considered as an object of legal environmental protection
(direct norm in the law);
Among main principles of environmental legislation it is necessary to foresee the
obligation to take the steps to prevent negative climate change;
Necessity to carry out scientific research in this sphere, defining the responsible
bodies;
Taking climatic issues into account during the environmental impact assessment;
Obligation to mitigate negative influence of certain sectors of economy on climate
change;
Reporting of enterprises on implemented policy aimed at mitigation influence of their
activity on climate change;
Concrete steps, aimed at GHG emissions reduction in energy sector, building sector,
agriculture and other industries;
Obligation for enterprises to carry out steps aimed at GHG emissions reduction;
Direct norm about responsibility for non-compliance with the prohibition of activity that
leads to negative climate changes, obligation to comply with normative stipulations of
activity that influences climate change.
Public participation
• Access to information regarding climateprotection policy in Ukraine;
• Participation in decision making process and
law-drafting work;
• Appropriate consideration of the results of public
participation in decision making process by
competent authorities;
• Mechanisms of public participation in GHG
emissions trading scheme (Registry users,
access to information about spending money
received from selling quota).