Abstract
ABSTRACTAn effective system for monitoring, reporting and verification (MRV) is the cornerstone of any carbon emissions trading market. This paper analyses existing MRV frameworks in China, including under the seven emission trading pilot schemes, to identify four key challenges for the establishment of an effective MRV system for China’s forthcoming national carbon emissions trading market: (1) ambiguity in the legal status of relevant policies and regulations, (2) unclear requirements for the content of monitoring plans, (3) lack of consistency and harmonization in accounting and reporting guidelines, and (4) lack of information technology (IT). The paper then considers the experiences and lessons of the European Union Emissions Trading Scheme (EU-ETS) and the MRV systems in the seven carbon emissions trading pilots, and puts forward suggestions for tackling the four key challenges.Key policy insightsIt is crucial to create general framework legislation that is legally binding and of a sufficiently high legal status to facilitate legal enforcement of the MRV requirements and increase the compliance levels of MRV activities.Clear rules on the content of the monitoring plan and development of templates would harmonize approaches across regions and between reporting entities.It is important for implementing regulations to include specific requirements on monitoring and reporting in order to ensure compliance with the main monitoring and reporting principles.Use of IT should gradually evolve towards an integrated system that covers the whole compliance cycle, including monitoring plans, emission reports, verification and verification management, as well as multiple stakeholder access.
Highlights
Since 2013, Beijing, Shanghai, Tianjin, Chongqing, Guangdong, Hubei and Shenzhen have started pilot emission trading schemes (ETS), which have become a key topic of interest for many national and international researchers (Luo, Qin, & Wen, 2016; Zheng, Liu, & Wang, 2015)
Whereas some researchers focus more on the prospects of the pilot schemes (Zhang, Karplus, Cassisa, & Zhang, 2014), the ETS schemes in general (Duan, Pang, & Zhang, 2014; Qi & Wang, 2013) and the experiences and lessons learnt in these seven Chinese ETS pilots (Jotzo & Löschel, 2014; Deng, Li, Pang, & Duan, 2018), others pay more attention to certain specific aspects of the ETS schemes, such as the allocation of emission allowances (Pang & Duan, 2016; Ye, Jiang, Miao, & Xie, 2017) or
A crucial part of a well-functioning emissions trading system is the process of monitoring, reporting and verification (MRV) of emissions, which is key to gaining accurate information on emissions and ensuring the environmental integrity of the carbon emissions trading market (Dekkers & Oudenes, 2007; Fleurke & Verschuuren, 2015; Peeters, 2006)
Summary
S107 the cost of trading (Duan & Pang, 2013; Heindl, 2012) or alternatively a certain ETS pilot, such as Shanghai (Wu, Qian, & Li, 2014), Shenzhen (Jiang, Ye, & Ma, 2014; Jiang, Ye, Ma, & Miao, 2016), Hubei (Qi, Wang, & Zhang, 2014), or Guangdong and Shenzhen in a comparative study (Wang, Luo, Xie, Luo, & Zhao, 2016). Other challenges As in any emission trading scheme that is at its initial stages there are other challenges concerned when designing and implementing the scheme This includes, for example, the difficulties in coordinating between the different authorities as well as the problems related to timely submission of required documents and the review of verified emission reports by authorities to monitor the quality of reporting and verification. These aspects are either being picked up while the scheme is continually improving in its design, or have less priority than the four key challenges mentioned in this paper because these take place later in the annual cycle of MRV
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