1. EU ETS Phase III – Monitoring, Reporting & Verification Andy Taylor Global Product Manager EU ETS

2. 2 EU ETS Phase III MRV May 2011 Bureau Veritas at a Glance ► Created in 1828 ► A global leader in conformity assessment services in the areas of quality, health and safety, environment and social responsibility (QHSE) 2010 revenue: >€3bn More than 900 offices in 140 countries ► EU ETS Verification Body Currently Accredited/ Licensed/ Endorsed by 15 EU Member States (Including Poland) Currently active in all EU ETS sectors Have verified approximately 1000 installations/ operators ► IETA Member

3. 3 EU ETS Phase III MRV May 2011 New Regulations ► Revised EU ETS directive (Articles 14 & 15) requires adoption of two new regulations 1. Regulation on Monitoring and Reporting (M&R) 2. Regulation on Verification and Accreditation of Verifiers (A&V) ► Will replace the current EC Decision which sets out requirements of MRV ► Evolution not Revolution ► Aims Aims to improve harmonisation across EU Enhance credibility of the Trading System

4. 4 EU ETS Phase III MRV May 2011 Timeline ► Online public consultation Closes 10 th June 2011 ► Final Drafts by end of June ► Climate Change Committee vote September 2011 ► Regulations to come into force from 31 st December 2011 ► M&R regulation will be applied to monitoring and reporting of emissions from 1 st January 2013 ► A&V regulation will first apply to the verification of 2013 annual emissions i.e. reports submitted in March 2014

5. 5 EU ETS Phase III MRV May 2011 M&R Regulation ► Based on MRG (EC Decision) and new MRG annexes (new sectors, Aviation, CCS etc) ► No major technical changes, mainly reformatting to the required format of an EU regulation. ► Claims: Resolved a large number of known issues Made approaches more consistent Introduced simplifications where possible Retained approaches which worked well Significantly reduced duplications More guidance-like text to be placed into guidance

6. 6 EU ETS Phase III MRV May 2011 V&A Regulation ► Builds on Council Regulation on Accreditation 765/2008 ► Expands on and replaces the requirements of current MRG. ► Has used current available standards/ guidance MRG ISO 14065/ 14064 part 3 European cooperation on Accreditation guidance (EA 6/03) ISAE 3000 ► All Member States required to appoint one national accreditation body (public authority) ► All verifiers required to apply/ reapply for accreditation to ISO 14065 by the end of 2013 ► Single verifiers still allowed but must apply for accreditation to ISO 14065 (issues include independent technical review, verification decision, demonstration of competence) ► EU ETS specific peer review between Accreditation Bodies

7. 7 EU ETS Phase III MRV May 2011 THANK YOU FOR YOUR ATTENTION! andy.taylor@uk.bureauveritas.com

8. 8 EU ETS Phase III MRV May 2011