1. Case Study: Hungary Jozsef Feiler Climate Protection and Energy Unit

2. Content  Situation in Hungary  Needs and challenges  Lessons learned

3. Initial report Done! Inventory Base year for f-gases AA and committment period reserve LULUCF National System National Registry Review.....

4. The easy bit National Registry –Registry for EU ETS – DEFRA registry –Maintained by the National Inspectorate for Environment, Nature and Water –Extended mandate by law (in preparation) –Issue under evaluation: continue with DEFRA software or use the software provided by the European Commission?

5. The challenging issue – national system Legal aspects –Act on Kyoto Protocol Govt. decree on national system and data collection –Basis for electronic data collection –Provide enhanced availability of statistical data for GHG inventory Internal procedures for the national system Will include projection updates as regular task –Govt. decree on f-gases enhanced reporting

6. The challenging issue – national system Institutional arrangements –Hungarian Met. Service – core team of four experts –External experts for sectoral work –QA – small country, little „redundant” experience –QC: ISO 9000 for the Met. Service, internal inventory protocol –Budget: revenue from the sales of EU ETS allowances on auctions - allowed by the Act on State Budget and govt. decree on the management of EU ETS allowances as treasury assets –LULUCF: State Forestry Service – enhanced data collection and processing – commissioned by the Ministry of Environment and Water

7. The challenging issue – national system Institutional arrangements - data access The electronic „Database”: –will contain data collected for EU ETS (emission report data) Data collected for GHG inventory Data collected for air pollution statistics Cross-checks of various datasets References of the origin of data –Will be connected to the environmental information meta-database

8. The challenging issue – national system Procedural arrangements –Data collection and processing + - –Method and emission factor selection + - –Preparation of emission estimates + - –Uncertainty assessment - - –Key source categories + –Recalculations + + –Reporting + –Review - –Archiving - –Verification and review -

9. Needs and challenges Expansion and permanence of staff (transfer of know-how) Better data earlier QA/QC Financial means At least two experts per sector (in a small country?) More sophisticated projections (not nat. sys. by default but essential) Complex system (black box) to plan and to „sell” to decision-makers

10. Needs and challenges 2 Management of JI projects – domestic verification/monitoring Legal nature of Kyoto units – if you want to use mechanisms and if you are within the EU ETS Ambiguity on how EU ETS will fit to Kyoto system Management of the assigned amount – treasury assets –Carbon budget accounting? Long march for green investment scheme (suboptimal to JI, but forced by „linking directive ”)

11. Lessons learned Things are decided in the last minute – put the timing Should show the „money” angle to decision- makers – try to create revenue streams Build up connections with other ministries and make them interested (Ministry of Agriculture, Ministry of Finance, Ministry of Economy) When the system is designated, continued support for skill improvement and provide resources/oversight