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Andrew HowardUNFCCC secretariat

www.unfccc.intahoward@unfccc.int

Registry systems and transaction types

Consultations on registry systemsprior to SBSTA 22

Bonn13-14 May 2005

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Registries allow for Annex B Parties to demonstratecompliance with their emission targets under the Kyoto Protocol

Registry systems

Tonnes of emissions during the commitment

period (2008-2012)

Tonnes of assigned amount held by the Party for the commitment period

=

Computerized registries ensure accurate assigned amount holdings

Reporting and review processes ensure accurate emissions data

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Emissions side Assigned amount side

Projectedemissions

Annex Bassignedamount

Finalemissions

LULUCF activities

Mechanismsacquisitions

<=>

Compliance with Annex B targets

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Annex B Parties retire units in registries to show compliance

Setting aside assigned amounts

AAU Assigned amount unit Based on assigned amount of Party under Article 3.7/8

RMU Removal unit For gases absorbed from the atmosphere through sinks

ERU Emission reduction unit For emissions reductions and removals through a JI project

CER Certified emission reduction For emissions reducedthrough a CDM project

tCER Temporary CER For removals through sinksunder a CDM project

lCER Long-term CER For removals through sinks under a CDM project

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Registries are electronic databases

• Track holdings of units in accounts for Parties and entities

• Track transactions of all units

• Networked with each other over the internet

National registries

• Established by Annex B Parties

• Allow the retirement of assigned amounts for compliance purposes

CDM registry

• Established by the CDM Executive Board for non-Annex I Parties

• Specifically for the management of credits from CDM projects

What registries do

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• Being established by the secretariat

• Checks transactions proposed by registries against Kyoto rules

• Ensures integrity of assigned amount accounting under Kyoto

International transaction log

Proposestransaction

ITLChecksproposal

Registry

Confirmsrules are metRegistry

Recordstransaction

Confirms actionITL

Recordstransaction

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CDMregistry

International transaction logBasechecks

European Uniontransaction log

Supple-mentarychecks

Nationalregistry

Nationalregistry

Nationalregistry

Nationalregistry

Other supplementarytransaction logs

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Transaction types

Issuance Initial creation of units (AAU, RMU, CER)

Conversion Transforming AAUs or RMUs to ERUs for a JI project

External transfer Moving units to another registry

Cancellation Disabling the units from use against a target

Replacement Replacing tCERs or lCERs with more permanent units

Retirement Setting aside units for use against a target

Carry-over Changing unit validity to next commitment period

Expiry Date Change Amending the lifetime of tCERs or lCERs

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Sufficient harmonization

International rules define

• Basic registry requirements (decision 19/CP.7)

Parties have significant scope to implement as they wish

• Basic data exchange standards (decision 24/CP.8)

Recognized that exact technical specifications are needed

Detailed specifications of the data exchange standards

• Coordinate processing undertaken in all registry systems

• Version 1.0 developed by the secretariat, with registry developers

• Procedures for use and further development to be implemented through cooperation among registry system administrators

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• Secure communications over the Internet

• Transaction processing sequences

• Reconciliation processing sequences

• Message formats to ensure all communications can be read, including serial, account and transaction numbers

• ITL response codes to indicate negative check results

• ITL notifications and other administrative processes

• Initialization and testing of communications with the ITL

• Change management procedures for the standards

Data exchange standards

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COP 10 requested consultations on

• Checks to be performed by the ITL

• Conformity of the checks with relevant COP decisions

Pre-sessional consultations