1. Setting the scene World Resources Institute Overview of Registries Concepts, Lessons, and Guiding Design Principles Presented by: Pankaj Bhatia, Director, GHG Protocol Initiative World Resources Institute Western Regional Air Partnership July 17 2006, Denver, CO

2. Setting the scene World Resources Institute Summary of the Presentation Topics Part I – Background and Context –Emissions Registries – Key Concepts –Registry Types and Examples –US Registry Experience Part II – Key Design Principles Part III – Emissions Inventories – the Foundation

3. Setting the scene World Resources Institute Emissions Registries – Key Concepts GHG Registries: oAn electronic database with standardized formats for tracking transactions including receiving and storing a set of GHG data to serve specific policies or programs GHG Standards: oSet of commonly accepted concepts, terminologies, and framework to establish a true and fair account of GHG emissions GHG Policies and Programs: oInstruments that manage or affect GHG emissions oExamples: Public Reporting; Cap and Trade; Voluntary Agreements; Energy or Carbon Tax; Efficiency or Emissions Standards etc.

4. Setting the scene World Resources Institute Measurement Management GHG Registry GHG Programs Relationship between GHG Registry, Standards, and Policies or Program GHG RegistryGHG Standards

5. Setting the scene World Resources Institute Types of Registry Source Inventory Emissions Inventory Emission Reduction Projects Allowance Accounting Market Exchange All of the Above

6. Setting the scene World Resources Institute Registry Types and Examples Source InventoryAcid Rain Program (ARP), NOx Budget Program (NBP), DOE Licensed Power Plants Database, RGGI, EU-ETS Emissions Inventory ARP, NBP, Title V, TRI, CCAR, Revised 1605b, EPA Climate Leaders, CCX, ECR, RGGI, EU-ETS Emission Reduction Projects RGGI, CCAR, EPA Climate Leaders, Old 1605b, Revised 1605b, CDM Allowance Accounting ARP, NBP, RGGI, CCX, EU-ETS Market ExchangeCCX

7. Setting the scene World Resources Institute US Registry Experience – Lessons Learned Registry design should be capable of running multiple programs for multiple pollutants, e.g. –Acid rain program designed to work for one program and pollutant –State NOx program required re-design to accommodate multiple pollutants –Revised 1605b designed to support a specific policy objective - a national GHG emissions intensity target

8. Setting the scene World Resources Institute Lessons Learned Contd. Registry design should be capable to accommodate a range of policy developments without trying to anticipate the future program rules, e.g. –Connecticut (ECR): Direct emissions at unit level –New York (ECR): Direct and indirect emissions at facility level

9. Setting the scene World Resources Institute Lessons Learned Contd. A streamlined Registry Design that can serve as one stop interface for data input from an entity, e.g. –Title V reporting procedures widely different and confusing in different states: CT: Burden on sources can be significant OH: requirements quite lax; not much QA/QC SIMILAR DATA also submitted to EPA under TRI –Revised 1605b key elements complicated and unfamiliar to many companies

10. Setting the scene World Resources Institute Lessons Learned Contd. A Registry Design that follows best practices and international standards. e.g. –Revised 1605b procedures for accounting for reductions are not consistent with best practice

11. Setting the scene World Resources Institute Key Registry Design Principles Build with comprehensive data management capabilities –Increases flexibility and adaptability to future changes and future programs –Reduces development cost and administrative burden

12. Setting the scene World Resources Institute Design Principles (cont.) Promote reporting transparency –Builds confidence in the program –Demonstrates rules compliance –Improves market efficiency Integrate all systems and data –Eliminates duplication and reduces errors –Reduces administrative cost Automate whenever possible

13. Setting the scene World Resources Institute Design Principles (cont.) Link and draw from existing systems with high quality data –Leverages existing data collection efforts Conduct QA/QC in the right place –Enhances data quality –Reduces administrative cost

14. Setting the scene World Resources Institute Multi-State Registry Design – A Vision Provides emissions inventories framework that can: –Facilitate effective corporate GHG management strategies including baseline protection –Support emissions trading and other types of programs Based on the GHG Protocol Standards and other best practices keeping in view potential policy developments Addresses lessons learnt and follows design principles derived from the US Registry experience

15. Setting the scene World Resources Institute Comprehensive Emissions Inventories – Key Data Capabilities Data identifying sources including definition, list, and emissions Data identifying facilities including definition, list, and emissions Data identifying activities including list of fuel and material streams within a facility Data identifying quantification methodologies including list of tiers and emissions factors for each activity Data identifying parent company including definition, list of business units, and emissions Description of quality control procedures Description of third party verification data checks

16. Setting the scene World Resources Institute Emissions Trading System Emissions Inventories Emissions Inventories – A Core Building Block What you measure WELL, you can manage WELL What you measure WELL, you can market WELL Corporate GHG Management

17. Setting the scene World Resources Institute Questions? Contact Information: Pankaj Bhatia Manager, GHG Protocol Initiative (www.ghgprotocol.org)www.ghgprotocol.org World Resources Institute, Washington DC, USA pankaj@wri.org 1-202-729-7629