1. Jozsef Feiler, Office of the Parliamentary Commissioner for Future Generations

2.  Why to do GIS?  Chronology of Hungarian GIS  UNFCCC requirements  Target areas for emission reduction  Legal framework  Institutional framework  Making a deal  Delivering what is promised

3.  Earlier emission reductions are beneficial not only to climate, ◦ but stimulate investment, ◦ can bring improved social conditions, ◦ improved energy security  It allows to capitalise on a systemic change which brought negative consequences  It helps to initiate climate awareness in society in place – special earmarked support scheme  (this is an urgent issue – time is running out...)

4.  August 2006 – Submission of Initial report under Kyoto Protocol - trading can start in 16 months  January 2007 – Feasibility study on GIS in Hungary – potential target areas  April 2007 – Government decision on start of GIS negotiations  June 2007 – Act on implementation of KP  September 2007 – Study on potential buyers, price range and contract modalities  October 2007 – Study on the possible GIS portfolio ◦ Minister of Env. Approves the modalities of AAU sales

5.  November 2007 – Start of AAU sales negotiations with the involvement of Min. of Finance  Decmber 2007 – Govt. Decree on the modalities of Kyoto Mechanisms, including GIS  March 2008 – National Climate Strategy – setting priorities  June 2008 – ISO 14064 standard introduction  June 2008 – connection to the International Transaction Log  August 2008 – firs AAU deals signed ◦ Documentation on project applications and grant scheme in residentian energy efficiency  March 2009 – study on public sector emission reduction measures is ready ◦ Grant framework for public sector is ready

6.  Its assigned amount has been calculated and recorded in accordance with relevant guidelines and decisions (and 16 months passed);  It has in place a national system for the estimation of emissions by sources and removals by sinks of all greenhouse gases;  It has in place a national registry;  It has submitted annually the most recent required inventory; and  It submits the supplementary information on assigned amount and makes any  adjustments and recalculations required

7. CO 2 emissions by final energy end-users in Hungary, 2004

9.  Act on implementation of Kyoto Protocol ◦ AAU: intangible treasury asset ◦ Rights and responsibilities over management of the Kyoto assets ◦ Areas on revenues of the sale of Kyoto assets can be used  Act on State Budget – special treatment of the revenues for GIS

10.  Govt. Decree on use of Kyoto Flexible mechanisms ◦ Conditions for the sale of AAUs ◦ Contract regarding the sale of AAUs ◦ Aim of the GIS ◦ Support conditions and types in the GIS (state aid rules ) ◦ Conditions for application ◦ Decision over applications

11.  Institutional capacity for negotiations and implementation  Rules of support for projects ◦ Additionality ◦ Motivation for GHG reduction ◦ Administrative management ◦ Coordination with other grant schemes, other ministries ◦ Verified emission reductions

12.  Elaboration of the model contract ◦ Transfer arrangements (escrow agent?) ◦ Greening framework ◦ Control of the greenign framework ◦ Legal requirements ◦ Price ◦ Rights and duties ◦ Dispute settlement

13.  Establish target areas properly – win-win solutions are possible!  Legal and institutional bacground  Not „free money” – proper system for delivery/asset management strategy  Cooperation  Urgency...