Principles for a robust MRV System Lessons learnt from Kyoto Mechanisms Workshop 15: Accounting and accountability: Towards a credible and robust carbon market Werner Betzenbichler, Mexico-City, 20 Oct 17  

Key principles for a robust MRV system A clear, non-ambiguous regulatory framework legislation, regulations, methodologies, reporting, verification, accreditation Lessons learnt from Kyoto mechanisms: Modalities and procedures (Marrakech Accords) have never been implemented as written, regulatory work was delivered by CDM-EB and through guidance by the CMP Changes in framework after launching the scheme are always cumbersome and painful  utilize successful templates Loopholes in non-ambiguous regulations / methodologies will always be used by somebody who can create profits out of it Clear accounting rules (if…, then…)

Key principles for a robust MRV system Availability of resources Human resources – supervising authority, consultants, verifiers, accreditation services Monitoring support (calibration services, laboratories) Lessons learnt from Kyoto mechanisms: Monitoring support services are not available everywhere in a adequate manner Establish (train) multipliers who will distribute know-how / capabilities Create possibility to exchange views among the various stakeholders (e.g. roundtables) – a common understanding helps a lot Consider availability when setting timelines for implementing a scheme

Key principles for a robust MRV system Clear roles and responsibilities Authority, operators or project participants, verifiers / Third Parties, accreditation body Lessons learnt from Kyoto mechanisms: Clear descriptions are helpful (e.g. roles of accreditation assessors, impartiality of verifiers) Avoidance of any conflict of interest is a must Enforcement should be accompanied by penalties (fines, loss of accreditation or loss of licenses, etc.) Universal understanding of the role of Third Parties is not yet given Bribery and corruption are acutely poisonous to robustness (correlation to good governance)

Key principles for a robust MRV system Transparency Public access to information and underlying rules Stakeholder involvement Regular reviews (with public available reports) and a continuous improvement process Lessons learnt from Kyoto mechanisms: Create trust for keeping stakeholders/players motivated Although MRV is highly technical, regular reports should be understandable for non-experts React immediately by corrective measures, if problems become evident

Key principles for a robust MRV system Robustness in verification and accreditation Key principles to be applied by verification and accreditation bodies: impartiality, competence, factual approach to decision making, openness and confidentiality Lessons learnt from Kyoto mechanisms: Competence requirements can span a huge variety of areas (technologies, industry sectors, accounting, auditing, economics, legislation, language, cultural aspects) Allocation of time and resources is key for ensuring a level playing field Balance on quality and costs Regular performance assessments keep quality at high level (but have an impact on costs)

Thank you for your attention! Designated Operational Entities & Independent Entities Association (D.I.A.) c/o beCe carbon experts GmbH Hagenstrasse 7 D - 85416 Langenbach GERMANY t: +49 87 61 722 38 22 office@diassociation.org www.diassociation.org Werner Betzenbichler Werner.Betzenbichler@bece-experts.com