- emission trading
The 7th EU ETS Compliance Conference was attended by approximately 100 participants and particularly targeted towards:
- interactive discussions in two breakout sessions on suggestions for simplifications and possible improvements to Commission Regulation (EU) No 601/2012 (MRR) and Commission Regulation No 600/2012 (AVR) as proposed by members of the Monitoring & Reporting and Accreditation & Verification Task Forces respectively;
- exchange of experiences concerning EU ETS inspections and enforcement of industrial installations and topical issues affecting aviation.
The conference was started with a key note address from Jos Delbeke, Director General of DG Climate Action. A comprehensive and clear overview was given on progress made since the Paris agreement in 2015 including ratification of the agreement and on other steps and successes achieved since last year. Reference was made to the recent ICAO Global Market-Based Measure (GMBM) agreement for aviation and steps forward on MRV for maritime emissions. Summary was also provided on the so-called winter package: a set of measures related to energy efficiency, renewable energy, internal market for electricity and gas and a new system of governance based on accurate monitoring and reporting. In his keynote address, Mr. Delbeke restated several times the importance of MRVA suggesting it as the backbone of systems depending on integrity of data. The role of Member States and Competent Authorities in continued improvement of EU ETS compliance was further acknowledged as well as the heed that is increasing paid by other countries worldwide to EU ETS practices, not least related to MRVA. Mr. Delbeke closed his address by encouraging continued good work in seeking further improvements, but in particular in relation to simplifying requirements wherever possible.
The key note address was followed by a presentation on general findings and common compliance issues identified and addressed with the Member States (MS) in 2016, outlining the MRVA action plans and follow-ups discussed with MS, experiences concerning 2016 Peer Reviews and an overview of Article 21 reporting. This was followed by a presentation on MRVA simplifications that are possible within the existing legal EU ETS framework with special attention drawn to an exemplar simplified monitoring plan aimed to demonstrate the potential of Article 13 of the MRR. This presentation also served as input for thought and discussion in the two breakout sessions that followed the morning plenary session of conference:
- Breakout session I focused on discussion and exchange of MS views on suggestions for possible improvements to Commission Regulation (EU) No 601/2012 (MRR) for Phase 4 as proposed by member of the TF MR.
- Breakout session II discussed and exchanged MS views on suggestions for possible improvements to Commission Regulation (EU) No 600/2012 (the AVR) for Phase 4 as proposed by members of the TF AV.
Both breakout sessions carried on in the afternoon with round table discussions and Q&A on suggestions made. The afternoon programme concluded with five plenary presentations. The first three on international initiatives: international cooperation on ETS, the recent ICAO agreement on a global market-based measure for aviation emissions, and on MRV shipping. The final two presentations updated on DECLARE including developed functionality for aviation that will soon be made available for testing, and on other issues relevant to MRVA in Phase 3 including summary of the findings of a recent MRVA costs study.
The second day of the conference started with two further breakout sessions:
- Breakout session III on Inspection and Enforcement of Installations, starting with a presentation on the new guidance that is being completed as part of the MRVA Support project. This was followed by three presentations by MS representatives outlining their experiences and use of checklists in EU ETS inspections, and an extensive discussion on how the inspection practice in the MS could be improved and the role the Compliance Forum could contribute to harmonised enforcement in Europe.
- Breakout session IV on Inspection and Enforcement for Aircraft Operators (AOs) began with a MS Tour de Table discussion on ICAO GMBM and its implications. This was followed by MRVA compliance, inspection and enforcement issues, including proposed update of MRR Guidance Document No 2, a presentation on MS response to an aviation compliance questionnaire, an update on special reserve applications, and a presentation on enforcing administrative penalties within the EU. A Tour de Table on taking Enforcement Measures concluded the breakout session.
After lunch the rapporteurs of the four breakout sessions presented the main discussion points, the conclusions and the recommendations of their respective sessions. Then the Commission presented insight to plans and projects in support of MRVA in 2017, followed by five presentations from Task Force managers concerning their reviews of activities carried out in 2016 and plans for 2017.
In closing this year’s Compliance Conference the two co-chairs summed up the key messages for participants to take home from the conference, such as increasing cost-effectiveness and efficiency of MRVA including by making greater use of existing opportunities for simplifications. Major progress has been made in EU ETS compliance, but further improvement is still justified and is a continuous process. It was agreed that the Compliance Forum remains the right platform to share experiences and to identify good practices. DECLARE was acknowledged as a key tool to consider for further improving workflow efficiency and compliance regarding MRVA processes. Major steps made in international cooperation, in aviation (CORSIA) and in shipping, were also recognised, whereby the experience of MRVA in EU ETS is serving as a solid foundation for ETS in other countries and in other global systems.
The full proceedings of the conference are presented below:
- Conference programme
- Bullets: Keynote Address by Jos Delbeke, Director General, DG Climate Action
- Concluding key messages to take home
Day I Presentations – Morning Programme
- Compliance issues addressed with the Member States in 2016
- MRVA simplifications possible within the existing framework
Break-out Session I: Monitoring and Reporting (M&R)
Discussion of possible M&R improvements for EU ETS Phase 4 as suggested by Member State representatives of the Compliance Forum M&R Task Force
- Requirement for procedures in the MP
- Improvement principle and Improvement report
- Simplifications for simple emitter installations
- Categorisation of source streams
- Monitoring in the context of CCS
- M&R of activity data for adjustment of allocation
Break-out Session II: Accreditation & Verification (A&V)
Discussion of possible A&V improvements for EU ETS Phase 4 as suggested by Member State representatives of the Compliance Forum A&V Task Force
- Approval of waive of site visits
- Non-conformities and non-compliance issues in the AVR
- Information exchange
- Definition of site for aviation/Criteria for waive of site visits
- Clarification of accreditation scope 98
Day I Presentations – Afternoon Programme
Update on international issues
- International Cooperation on ETS (Capacity building/Outreach)
- Latest developments ICAO GMBM
- Update on MRV Shipping
Other issues relevant to EU ETS Phase 3
Day II Presentations – Morning Programme
Break-out Session III: Inspection & Enforcement of Installations
MS approaches on inspection and enforcement (selection of installations, checklists and tools used, inspection on site, enforcement measures and follow-up)
- Draft inspection guidance
- Experiences in EU ETS inspections in Finland
- ETS dedicated inspections in Ireland
- Inspections and enforcement in Cyprus
Break-out Session IV: Inspection & Enforcement for Aircraft Operators (AOs)
MS approaches on inspections and enforcement measures and challenges
- ICAO GMBM introduction to implications
- Revision of Guidance Document 2
- Responses to the AO compliance questionnaire
- Debt recovery arising from enforcement
Day II Presentations – Afternoon Programme
Rapporteur summaries of Breakout Sessions
Main discussion points, conclusions and recommendations
MRVA support plans, projects, activities for 2017
Task Force proposals
- Task Force Monitoring and Reporting (M&R)
- Task Force Accreditation and Verification (A&V)
- Task Force Aviation
- Task Force E-reporting
- Task Force Carbon Capture and Storage (CCS)