Data Consistency: EU-ETS/UNFCCCSetting the scene - EU ETS
Copenhagen – 9 February 2006
EU COM/EEA Workshop: Data Consistency National GHG Inventories & Reporting under the EU-ETS
Jochen Harnisch, [email protected]
EU-ETS: Dimensions of Consistency
• Legal consistency with scope of ETS Directive
• Quantitative consistency: national GHG inventories
• Conceptual consistency: inventory approaches in national GHG inventories
• Consistency with other emissions trading schemes
• Clear source attribution / identification between different inventories
• Compatibility with industy practices and GHG estimation protocols
• Tracking of installation based emission reduction measures in national inventory
Legal Framework of EU-ETS
• Objective: ETS to help Member States to meet EU Kyoto obligations cost-effectively
• Traded EU-Allowances will be backed by AAUs starting from 2008
• Direct emissions approach
• Installation based
Quantitative: Emission Factors
• EU-MRG 2004 require the use of site specific emission factors and NCV for most large installations
• Most significant deviations: coal, lignite, natural gas
• Observed deviations for bulk fuels: 1-10 %
• Random or systematic?
• Wealth of information available in spring 2006
• Careful analysis warranted offering opportunities to improve inventory quality
Quantitative: Oxidation Factors
• EU-MRG prescribe use of site specific oxidation factors for large installations using solid fuels
• Incomplete burnout: Most significant deviations: coal, lignite and peat – few percent max.
• Total impact on inventory: limited but sytematic
• Default factors for smaller installations and other fuels not always consistent with what MS use in the national inventories
Quantitative: Continuous Emissions Monitoring • Revised EU-MRG will contain an Annex on CEMS
• Can be used for CO2 and non-CO2
• Not widely used for CO2 and accompanied by
calculation based on fuel use
• Candidates for 2008-2012: N2O from production
of nitric acid and adipic acid
• Quantitative inconsistencies – but impact is likely to be limited
Conceptual: Transferred CO2
• ETS-Directive: Direct emissions from installations
• EU-MRG 2004 provide few constraints to deduction of CO2 from an installation
• No requirement of long term storage
• To be reported as memo-item
• Backing of EUAs with AAUs leads to inconsistency in the case of most cases of “transferred CO2”
• Carbon Capture and Storage: Similar situation but potentially much larger volumes
Source Identification / Attribution
• ETS - reporting by installations includes codes from IPCC-Source Categories and EPER for each activity
• However, operators and competent authorities are unfamiliar with IPCC and EPER systems
• From one installation emissions for different categories may occur but are unlikely to be consistently attributible
• Further methodoligal improvement and guidance on diffentiation for individual activities
Recognition of ETS Reductions
• ETS helps to find the most cost-effective reduction options across the ETS-sector
• However – consideration in national ghg inventory not granted, e.g.:
- Fuel switch between fuel sub-categories
- Shifting of biomass fuels between sectors
- Use of alternative raw materials
- Non-CO2 ghg abatement in opted-in sectors
• Main criterion today: Measure mirrored in national energy statistics
Linking of ET Schemes• Internationally, a diversity of mandatory and voluntary ET
schemes is evolving
• Most are national or multi-national
• However, also entire sectors like aviation are under discussion for integration / linking
• Linking with other ETS schemes likely to be limited to parties which have ratified the KP
• National ghg inventories are likely to provide the “anchor” for schemes
• Lithmus test: level of consistency with national inventories?
Challenges• Appropriate use of the wealth of information from EU-ETS
to improve inventory quality
• Avoid losses of AAUs from countries because of loopholes and inconsistencies
• Avoid situations of investments or fuel switch without result in national ghg inventory
• Improve assignment & identification of emissions
• Common communication line for inventory reviews and potential adjustment procedures
• Recommendations for review of EU-MRG for second trading period
Thank you for your attention!
Contact:
Jochen Harnisch
Ecofys GmbH
phone: +49 911 994358-12
e-mail: [email protected]