Use of Models and Facility-Level Data in Greenhouse Gas Inventories

Use of Models and Facility-Level Data in Greenhouse Gas Inventories
1 Introduction
This report is the background paper to accompany the presentation on the comparison of the UK inventory and other EU
inventories with the EUETS combustion CO 2 data.
The paper is split into 2 parts: an analysis of the EUETS data used in the UK inventory and the limitations ands lessons
learned from this, and then followed by general comments on the use of ETS data in the EU inventory, including a more
detailed analysis of ETS data use in selected countries in the EU inventory. It presents some questions for discussion
about the ways to make best use of ETS data in GHG inventories.
1.1 The EUETS
The EU 2010 National Inventory Report (NIR) 8 provides a good summary of the implementation and operation of the
EUETS. The text below is taken from that report.
1.1.1 Description
In January 2005 the European Union Greenhouse Gas Emission Trading System (EUETS) commenced operation as the
largest multi-country, multi-sector Greenhouse Gas Emission Trading System world-wide. The scheme is based on
Directive 2003/87/EC, which entered into force on 25 October 2003. The European emissions trading system (ETS)
covers around 10,500 installations across the 27 Member States of the European Union.
The EUETS operates by the allocation and trading of greenhouse gas emissions allowances throughout the EU; one
allowance represents one tonne of carbon dioxide equivalent. An overall limit, or 'cap', is set by Member State's
Governments on the total amount of emissions allowed from all the installations covered by the scheme. The
allowances are then distributed to the installations in the scheme. At the end of each year, operators are required to
ensure they have enough allowances to cover their installation's emissions. They have the flexibility to buy additional
allowances (on top of their free allocation), or to sell any surplus allowances generated from reducing their emissions.
These options create a flexible compliance regime for operators and also ensures emissions are effectively capped
across the EU.
Installations covered by the EU ETS are those which carry out activities listed in Annex I of the EU ETS Directive. These
include energy activities, production and processing of ferrous metals, mineral industries and pulp and paper industries.
The scheme currently has two operating phases:
• Phase 1 from 1 January 2005 to 31 December 2007
• Phase 2 from 1 January 2008 to 31 December 2012
1.1.2 Monitoring, Reporting and Verification
Article 14 of the Emission Trading (ET) Directive requires Member States to ensure that emissions are monitored in
accordance with specific monitoring and reporting guidelines (MRG) 9 , which are legally binding. Since 1 January 2005,
all installations covered by the ETS have been required to estimate and report their emissions. Data for the installations
covered by the ETS are reported by plant operators to competent authorities since 2005 based on a monitoring plan
elaborated by the company and agreed by the competent authority in accordance with the methodologies established in
the monitoring and reporting guidelines. The monitoring plan covers the following elements:
a) the description of the installation and activities carried out by the installation to be monitored;
b) information on responsibilities for monitoring and reporting within the installation;
c) a list of emissions sources and source streams to be monitored for each activity carried out within the installation;
d) a description of the calculation based methodology or measurement based methodology to be used;
8 http://unfccc.int/national_reports/annex_i_ghg_inventories/national_inventories_submissions/items/5270.php
9 Commission Decision 2007/589/EC of 18 July 2007 establishing guidelines for the monitoring and reporting of greenhouse
gas emissions pursuant to Directive 2003/87/EC of the European Parliament and of the Council. OJ L 229, 31.8.2007, p.1ff
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