The importance of MRV [Measuring Reporting Verification] in climate change
Under the UNFCCC and Kyoto Protocol, monitoring reporting and review is fairly well developed for Annex 1 countries who have an obligation to report annually on inventories of GHG emissions. In contrast, non Annex 1 Countries report on a more irregular basis, thus the international community has currently has no official ‘snapshot’ of either global GHG emissions, or of actions being undertaken to mitigate climate change.
The Bali Action Plan refers to ‘measurable reportable and verifiable [MRV] as an important part of the international process intended to deliver concrete national actions to address climate change. MRV is required both on a macro level for GHG inventories and a micro level for programmes and projects within trading schemes.
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Both the ETS [Emissions Trading Scheme] and the CDM [Clean Development Mechanism] have faced abuse that requires the creation of robust MRV mechanisms to improve carbon governance.
THE ETS
The flagship of the EU’s 2008 climate and energy package is the ETS, a multi sector and multi country cap and trade scheme, that has been the EU’s primary instrument for regulating carbon emissions from large and industrial installations since 2005.
The Commission allowed a decentralised scheme that allowed member states to develop national allocation plans [NAPS] thereby giving latitude in how Kyoto emissions targets were distributed causing a collapse in allowance prices. Other concessions to certain sectors were abused, so the scheme was reviewed during Phase II (2008 – 12). 164 sectors have now been earmarked for free allowances in Phase III ( 2013 – 2020).
It is now recognised that monitoring and control of the market itself is now required due to various types of abuse including;
- Gaming Practices. [Strip and Swap and Fuel Switching
- Carousel Fraud [VAT missing trader ]
- Phishing Fraud [Identity Theft]
Originally posted 2013-01-08 00:00:00.
