Preparation of the EU Biennial Report and EU 6th National Communication under the UNFCCC

Transcription

1 Preparation of the EU Biennial Report and EU 6th National Communication under the UNFCCC Best practice report (Annex II to the 1 st Interim Report) Service Contract No /2012/634210/SER/CLIMA.A3 Authors: 28 February 2013 Anke Herold (Öko-Institut) Dr. Hannah Förster (Öko-Institut) Sabine Gores (Öko-Institut) Verena Graichen (Öko-Institut) Wolfram Jörß (Öko-Institut) Dr. Katja Schumacher (Öko-Institut) Gonçalo Cavalheiro (CAOS) Inês Mourão (CAOS) Dr. Elisabeth Rigler (Umweltbundesamt) Bernd Gugele (Umweltbundesamt) Elisabeth Kampel (Umweltbundesamt) Nicole Mandl (Umweltbundesamt) Sabine McCallum (Umweltbundesamt) Andrea Prutsch (Umweltbundesamt) Öko-Institut e.v. Büro Berlin Schicklerstr. 5-7 D Berlin Tel.: +49-(0) Fax: +49-(0) Geschäftsstelle Freiburg Postfach 1771 D Freiburg i.br. Tel.: +49-(0) Fax: +49-(0) Büro Darmstadt Rheinstraße 95 D Darmstadt Tel.: +49-(0) Fax: +49-(0)

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4 The views expressed in this study represent only the views of the authors and not those of DG CLIMA or any other organization. 4

5 Contents 1 Introduction National Circumstances Relevant To Greenhouse Gases (chapter 3 in EU NC5) Legal requirements UNFCCC Guidelines on Reporting and Review UNFCCC reporting Guidelines for Annex I biennial reports and CTF for biennial reports UNFCCC reporting guidelines under Article 7 of the Kyoto protocol Analysis of Other Documents Analysis of the UNFCCC 2011a: Synthesis and Compilation Report under UNFCCC Analysis of the UNFCCC 2011b: Synthesis and Compilation Report under the Kyoto Protocol Analysis of the UNFCCC review of the EU s Fifth National Communication Annotated Outline for Fifth National Communications of Annex I Parties under the UNFCCC, including Reporting Elements under the Kyoto Protocol Analysis of Parties National Communications Best practice Implications for the EU 6 th national communication and 1 st biennial report Proposed annotated outline of the National Circumstances Chapter of the 6 th National Communication Content of proposed graphs and tables of the National Circumstances Chapter of the 6 th National Communication Greenhouse Gas Inventory Information (chapter 4 in EU NC5) Legal requirements UNFCCC Guidelines on Reporting and Review UNFCCC reporting Guidelines for Annex I biennial reports and CTF for biennial reports UNFCCC reporting guidelines under Article 7 of the Kyoto protocol Analysis of Other Documents Analysis of the UNFCCC 2011a: Synthesis and Compilation Report under UNFCCC Analysis of the UNFCCC 2011b: Synthesis and Compilation Report under the Kyoto Protocol Analysis of the UNFCCC review of the EU s Fifth National Communication Annotated Outline for Fifth National Communications of Annex I Parties under the UNFCCC, including Reporting Elements under the Kyoto Protocol Analysis of Parties National Communications Best practice Implications for the EU 6 th national communication and 1 st biennial report Proposed annotated outline of the GHG Inventory Information Chapter of the 6 th National Communication Content of proposed graphs and tables of the GHG Inventory Information Chapter of the 6 th National Communication

6 4 Policies and Measures (PaMs): Policy Making Process, Additional Info required under Art. 7(2) KP & Cross-Cutting PaMs (chapters in EU NC5) Legal requirements UNFCCC Guidelines on Reporting and Review UNFCCC reporting Guidelines for Annex I biennial reports and CTF for biennial reports UNFCCC reporting guidelines under Article 7 of the Kyoto protocol Regulation of the European Parliament and of the Council on a mechanism for monitoring and reporting greenhouse gas emissions and for reporting other information at national and Union level relevant to climate change (concerning ETS, FlexMechs, supplementarity) Analysis of Other Documents Analysis of the UNFCCC 2011a: Synthesis and Compilation Report under UNFCCC Analysis of the UNFCCC 2011b: Synthesis and Compilation Report under the Kyoto Protocol Analysis of the UNFCCC review of the EU s Fifth National Communication Annotated Outline for Fifth National Communications of Annex I Parties under the UNFCCC, including Reporting Elements under the Kyoto Protocol Analysis of Parties National Communications Best practice Implications for the EU 6 th national communication and 1 st biennial report Proposed annotated outline of the Projections Chapter of the 6 th National Communication Content of proposed graphs and tables of the Projections Chapter of the 6 th National Communication Sectoral Policies and Measures: Energy, Transport, Industry, Agriculture, Forestry, Waste (chapters in EU NC5) All sectors UNFCCC Guidelines on Reporting and Review UNFCCC reporting Guidelines for Annex I biennial reports and CTF for biennial reports Analysis of the UNFCCC review of the EU s Fifth National Communication Energy Analysis of the UNFCCC 2011a: Synthesis and Compilation Report under UNFCCC Analysis of Parties National Communications Transport UNFCCC Guidelines on Reporting and Review UNFCCC reporting guidelines under Article 7 of the Kyoto protocol Analysis of the UNFCCC 2011a: Synthesis and Compilation Report under UNFCCC Analysis of Parties National Communications Industry/Industrial processes and product use Agriculture

7 5.6 Forestry Waste Analysis of Parties National Communications Best practice Implications for the EU 6 th national communication and 1 st biennial report Proposed annotated outline of the Sectoral PaMs Chapter of the 6 th National Communication Content of proposed graphs and tables of the Sectoral PaMs Chapter of the 6 th National Communication Projections and the total Effects of Policies and Measures (chapter 6 in EU NC5) Legal requirements UNFCCC Guidelines on Reporting and Review UNFCCC reporting Guidelines for Annex I biennial reports and CTF for biennial reports UNFCCC reporting guidelines under Article 7 of the Kyoto protocol Draft Regulation of the European Parliament and of the Council on a mechanism for monitoring and reporting greenhouse gas emissions and for reporting other information at national and Union level relevant to climate change (MMR) Summary of legal requirements and results of analysis Analysis of Documents Analysis of the UNFCCC 2011a: Synthesis and Compilation Report under UNFCCC, FCCC/SBI/2011/INF.1, Source: (UNFCCC 2011a) Analysis of the UNFCCC 2011b: Synthesis and Compilation Report under the Kyoto Protocol Analysis of the UNFCCC review of the EU s Fifth National Communication Annotated Outline for Fifth National Communications of Annex I Parties under the UNFCCC, including Reporting Elements under the Kyoto Protocol Analysis of Parties National Communications with respect to projections Best practice Implications for the EU 6th national communication and 1st biennial report Proposed annotated outline of the Projections Chapter of the 6 th National Communication Content of proposed graphs and tables of the Projections Chapter of the 6 th National Communication Vulnerability Assessment, Climate Change Impacts And Adaptation Measures (chapters in EU NC5) Legal requirements UNFCCC Guidelines on Reporting and Review UNFCCC reporting Guidelines for Annex I biennial reports and CTF for biennial reports UNFCCC reporting guidelines under Article 7 of the Kyoto protocol Analysis of Other Documents Analysis of the UNFCCC 2011a: Compilation and synthesis report under UNFCCC,

8 7.2.2 Analysis of the UNFCCC 2011b: Synthesis and Compilation Report under the Kyoto Protocol Analysis of the UNFCCC review of the EU s Fifth National Communication Annotated Outline for Fifth National Communications of Annex I Parties under the UNFCCC, including Reporting Elements under the Kyoto Protocol Other documents with relevance for climate change impacts, vulnerability and adaptation Analysis of Parties National Communications Best practice Implications for the EU 6 th national communication and 1 st biennial report Proposed annotated outline of the Vulnerability Assessment, Climate Change Impacts and Adaptation Measures Chapter of the 6 th National Communication Content of proposed graphs and tables of the Vulnerability Assessment, Climate Change Impacts and Adaptation Measures Chapter of the 6 th National Communication Financial Resources And Transfer Of Technology (including EU International Cooperation on Climate Change Impacts and Adaptation) (chapters 8 and 7.4 in EU NC5) Legal requirements Financial resources, technology transfer, vulnerability, adaptation and other issues relating to the implementation of the Convention by Parties included in Annex I to the Convention including EU International Cooperation on Climate Change Impacts and Adaptation UNFCCC Guidelines on Reporting and Review UNFCCC reporting Guidelines for Annex I biennial reports and CTF for biennial reports Financial resources, technology transfer, vulnerability, adaptation and other issues relating to the implementation of the Convention by Parties included in Annex I to the Convention including EU International Cooperation on Climate Change Impacts and Adaptation UNFCCC reporting guidelines under Article 7 of the Kyoto protocol Financial resources, technology transfer, vulnerability, adaptation and other issues relating to the implementation of the Convention by Parties included in Annex I to the Convention including EU International Cooperation on Climate Change Impacts and Adaptation Analysis of Other Documents Analysis of the UNFCCC 2011a: Synthesis and Compilation Report under UNFCCC Analysis of the UNFCCC 2011b: Synthesis and Compilation Report under the Kyoto Protocol - Financial resources, technology transfer, vulnerability, adaptation and other issues relating to the implementation of the Convention by Parties included in Annex I to the Convention including EU International Cooperation on Climate Change Impacts and Adaptation Analysis of the UNFCCC review of the EU s Fifth National Communication Financial resources, technology transfer, vulnerability, adaptation and other issues relating to the implementation of the Convention by Parties included in Annex I to the Convention including EU International Cooperation on Climate Change Impacts and Adaptation

9 8.2.4 Annotated Outline for Fifth National Communications of Annex I Parties under the UNFCCC, including Reporting Elements under the Kyoto Protocol Analysis of Parties National Communications Best practice Implications for the EU 6th national communication and 1 st biennial report Proposed annotated outline of the Chapter on Financial Resources and Transfer of Technology of the 6 th National Communication Research And Systematic Observation (chapter 9 in EU NC5) Legal requirements UNFCCC Guidelines on Reporting and Review UNFCCC reporting Guidelines for Annex I biennial reports and CTF for biennial reports UNFCCC reporting guidelines under Article 7 of the Kyoto protocol Analysis of Other Documents Analysis of the UNFCCC 2011a: Synthesis and Compilation Report under UNFCCC Analysis of the UNFCCC 2011b: Synthesis and Compilation Report under the Kyoto Protocol Analysis of the UNFCCC review of the EU s Fifth National Communication Annotated Outline for Fifth National Communications of Annex I Parties under the UNFCCC, including Reporting Elements under the Kyoto Protocol Analysis of Parties National Communications Best practice Implications for the EU 6 th national communication and 1 st biennial report Proposed annotated outline of the RSO of the 6 th National Communication Content of proposed graphs and tables of the Projections Chapter of the 6 th National Communication Education, Training and Public Awareness (chapter 10 in EU NC5) Legal requirements UNFCCC Guidelines on Reporting and Review UNFCCC reporting Guidelines for Annex I biennial reports and CTF for biennial reports UNFCCC reporting guidelines under Article 7 of the Kyoto protocol Analysis of Other Documents Analysis of the UNFCCC 2011a: Synthesis and Compilation Report under UNFCCC Addendum - Financial resources, technology transfer, vulnerability, adaptation and other issues relating to the implementation of the Convention by Parties included in Annex I to the Convention Analysis of the UNFCCC review of the EU s Fifth National Communication Annotated Outline for Fifth National Communications of Annex I Parties under the UNFCCC, including Reporting Elements under the Kyoto Protocol Analysis of Parties National Communications Best practice Implications for the EU 6 th national communication and 1 st biennial report

10 Proposed annotated outline of the Projections Chapter of the 6 th National Communication References

11 List of figures Figure 4.1 Institutional arrangements concerning climate policy and its implementation Figure 4.2 EU-ETS by sector Figure 4.3 Emissions in and outside the trading scheme Figure 4.4 Best-practice example of presentation of the use of flexible mechanisms Figure 6-1 Best-practice example of presentation of projections Figure 6-2 Figure 6-3 Best-practice example of presentation of aggregate effects of policies and measures Best-practice example of documentation of key assumptions & parameters an MS level Figure 6-4 Example figure for presenting GHG projections relative to Figure 6-5 Example table to represent projection data List of tables Table 4.1 Issues from EU NC5 review concerning policies and measures Table 4.2 Summary of policies and measure by sector a Table 4.3 Planned use of Kyoto Mechanisms by Member States Table 4.4 Supplementarity: Use of flexible mechanisms (preliminary results) Table 4.5 Summary of cross-sectoral policies and measures Table 5.1 Summary of policies and measures per sector Table 6-1 Table 6-2 Table 6-3 Table 6-4 Minimum requirements based on shall requirements by guidelines from above for projection chapter of the 6 th National Communication Should requirements by guidelines from above for projection chapter of the 6 th National Communication May requirements by guidelines from above for projection chapter of the 6 th National Communication Results of the in-depth review if the Fifth National Communication of the European Union Table 8-1 Recommendations from the in-depth review of the NC Table 9-1 Recommendations from the in-depth review of the NC

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13 List of abbreviations AAU Art BR BR1 CB CCC CCS CDM CER CIF CITL CION CO CO2 CO2eq COP CP CRF CTF DCs DG DG CLIMA DRR EEA EIT ERT ERU ESD ETC/ACM ETS EU ETS EU EUR EU15 EU27 Assigned Amount Unit Article Biennial report 1st Biennial report Capacity building Climate Change Committee (under the Monitoring Mechanism Decision) Carbon Capture and storage Clean Development Mechanism Certified Emission Reduction Climate Investment Funds Community Independent Transaction Log European Commission Carbon monoxide Carbon dioxide Carbon dioxide equivalents Conference of Parties Commitment Period Common Reporting Format Common Tabular Format Developing countries Directorate General Directorate General on Climate Action Disaster Risk Management European Environment Agency Economy in transition Expert Review Team Emission Reduction Unit Effort Sharing Decision European Topic Centre on Air Pollution and Climate Change Mitigation Emission trading system The European Union s emission trading system European Union Euro Austria, Belgium, Denmark, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, Netherlands, Portugal, Spain, Sweden and United Kingdom EU15 plus Bulgaria, Cyprus, Czech Republic, Estonia, Hungary, Latvia, Lithuania, Malta, Poland, Romania, Slovakia and Slovenia, 13

14 EU28 FlexMechs FP FSF GCOS GEF GHG GIS HFCs IDR IET IPCC JI JRC KP lcer LDCF LDCs LULUCF MMD MMR MS Mt NC NC4 NC5 NC6 NEC NER NIR NMVOC NOx N2O ODA PaMs PFCs RMU RSO EU27 plus Croatia Flexible Mechanisms under the Kyoto Protocol Framework Programme Fast Start Financing Global Climate Observing System Global Environment Facility Greenhouse Gases Geographical Information Systems Hydrofluorocarbons In Depth Review International Emissions Trading Intergovernmental panel on climate change Joint Implementation Joint Research Center Kyoto Protocol Long-term Certified Emission Reduction Least Developed Countries Fund Least developed countries Land use, land use Change and Forestry Monitoring Mechanism Decision Monitoring Mechanism Regulation EU Member State Megatonnes National Communication 4th National Communication 5th National Communication 6th National Communication National Emissions Ceiling New Entrant Reserve National Inventory Report Non-methane volatile organic compounds Nitrogen oxides Nitrous Oxide Official Development Assistance Policies and measures Perfluorocarbons Removal Unit Research and Systematic Observation 14

15 SBI SBSTA SCCF SDS SF6 SO2 tcer TT UNFCCC USD VE WAM WEM WG I WG II WOM Subsidiary Body for Implementation Subsidiary Body for Scientific and Technological Advice Special Climate Change Fund Sustainable Development Strategy Sulphur Hexafluoride Sulphur Dioxide Temporary Certified Emission Reduction Technology transfer United Nations framework convention on climate change United States of America Dollars Verified emissions With additional measures scenario With existing measures scenario Working Group I under the CCC Working Group II under the CCC Without measures scenario 15

16 1 Introduction The term best practices is used in this report to describe the implementation of the legal reporting guidelines in a way that fully complies with the existing legal requirements and in addition is considered as a good example for the provision of consistent, transparent, comparable, accurate and complete information that provides the reader of the information with a thorough understanding of the issues described. In the best practice examples ways of reporting are presented that at the same time are sufficiently detailed for a transparent description and concise in terms of the length of the report. The best practice analysis is done for each chapter of the National Communication (following the structure of the EU NC5). In the beginning, legal requirements are summed up for each chapter, followed by an analysis of different documents which elaborated on good practice examples and on the differences how the reporting requirements have been considered across parties. The project team also considered recommendations from the In-depth Review of the EU 5 th National Communication and reviewed other Parties 5 th National Communications to identify best reporting practices that could be useful for the preparation of the EU s 6 th National Communication and EU s 1 st Biennial Report (NC6/BR1). Using the above mentioned materials, a set of best reporting practices for each sector has been derived and shall serve as a base for the EU s NC6/BR1. This might also be used as guidance to Member States for the preparation of their respective national NC6/BR1 reports. 16

17 2 National Circumstances Relevant To Greenhouse Gases (chapter 3 in EU NC5) 2.1 Legal requirements The following sections analyse the legal requirements with respect to the reporting of national circumstances. The analysis follows along the lines of the types of requirements (shall, should, may) UNFCCC Guidelines on Reporting and Review Source: (UNFCCC 2000) (UNFCCC 2000) contains detailed guidelines on how to address national circumstances in National Communications. This section summarises the requirements according to type, Shall as the strongest, then should and may National Circumstances relevant to Greenhouse Gas Emissions and Removals Shall requirements para. 8: Parties shall provide a description of their national circumstances, how national circumstances affect greenhouse gas (GHG) emissions and removals, and how national circumstances and changes in national circumstances affect greenhouse gas emissions and removals over time. Should requirements para. 8: Parties should provide information about how their national circumstances are relevant to factors affecting greenhouse gas emissions and removals, including disaggregated indicators, to explain the relationship between national circumstances and emissions or removals. May requirements para. 8: Parties may provide whatever information best describes their own national circumstances and historic trends. However, to improve comparability of national communications, the following headings are recommended: o (a) Government structure o (b) Population profile o (c) Geographic profile o (d) Climate profile o (e) Economic profile o (f) Energy (by fuel types where appropriate) o (g) Transportation o (h) Industry o (i) Waste o (j) Building stock and urban structure o (k) Agriculture o (l) Forest 17

18 o (m) Other circumstances Flexibility in accordance with Article 4.6 and 4.10 Shall requirements para 9: Parties requesting flexibility or consideration, in accordance with Article 4.6 and 4.10 of the Convention, shall state the type of special consideration they are seeking and provide a full explanation of their circumstances UNFCCC reporting Guidelines for Annex I biennial reports and CTF for biennial reports Source: (UNFCCC 2012b) No additional information available for best practice guidance for national circumstances UNFCCC reporting guidelines under Article 7 of the Kyoto protocol Source: (UNFCCC 2006) No additional information available for best practice guidance for national circumstances. 2.2 Analysis of Other Documents Analysis of the UNFCCC 2011a: Synthesis and Compilation Report under UNFCCC Source: (UNFCCC 2011a): FCCC/SBI/2011/INF Executive Summary FCCC/SBI/2011/INF.1 No additional information available for best practice guidance for national circumstances Analysis of the UNFCCC 2011b: Synthesis and Compilation Report under the Kyoto Protocol Source: UNFCCC 2011b No additional information available for best practice guidance for national circumstances. 18

19 2.2.3 Analysis of the UNFCCC review of the EU s Fifth National Communication Source: UNFCCC Report of the In-depth Review of the Fifth National Communication of the European Union. Table 1 Proposed action for the chapter related to national circumstances Chapter NC5 Action proposed Source of improvement 3.2 Government Structure Report in more detail on legislative Encouragement review arrangements and administrative procedures report (see annex II, improvement No.1) [NC5 includes limited information on government structure] Changes in Overall Gross Domestic Product (GDP) + sectoral chapters in chapter 3 where relevant Report in more detail on impact of the global economic downturn Encouragement review report (see annex II, improvement No.1) Annotated Outline for Fifth National Communications of Annex I Parties under the UNFCCC, including Reporting Elements under the Kyoto Protocol Source: UNFCCC Annotated Outline for Fifth National Communications of Annex I Parties under the UNFCCC, including Reporting Elements under the Kyoto Protocol. This is an informal document; however, it strives to combine the UNFCCC & KP related guidelines (6.1.1 & 6.1.3) for NC5 ((which was due to submitted 1 st January 2010). Proposed Structure of this chapter: National Circumstances relevant to greenhouse gas emissions and removals Flexibility in accordance with Article 4, paragraphs 6 and 10 The reporting requirements for this chapter 19

20 2.2.5 Analysis of Parties National Communications In this section some examples for good practice from Parties National Communications are presented. It depends largely on data availability if they can also be transferred to the EUs national communication Introduction 5 th NC Luxembourg Figure showing the trends of population data, GDP at constant prizes, building stock, final energy consumption (excl. kerosene), passenger cars & commercial vehicles and total GHG emissions from 1990 onwards. 20

21 Building Stock and Urban Structure 5 th NC Belgium Figure showing the breakdown of types of housing. Figure showing the share of different energy sources or fuels used primarily for heating. 2.3 Best practice Implications for the EU 6 th national communication and 1 st biennial report Proposed annotated outline of the National Circumstances Chapter of the 6 th National Communication Table 2 Proposed structure of chapters on national circumstances derived from and very short summary of proposed improvements Chapters NC6 Proposed improvements 3.1 Introduction Include figure presenting the underlying key trends (e.g. population data, GDP, final energy consumption, building stock, passenger cars,...) 3.2 Government Structure Report in more detail on legislative arrangements and administrative procedures [NC5 includes limited information on government structure] Add some more information on roles and responsibilities (e.g. as in NC3) 3.3. Population profile Map with population density would be useful 3.4 Geographic profile 21

22 Chapters NC6 Proposed improvements 3.5. Climate profile Include information on precipitation distribution and extreme weather events unless it is included in chapter Economic profile Changes in Overall Gross Domestic Product (GDP) Replace illustration 3-7 (GDP PPS) with GDP PPS/capita [GDP/capita is currently not included; this is interesting in order to see economic development across countries] Report in more detail on impact of the global economic downturn Development of economic sectors Trade patterns 3.7 Energy profile Energy Supply Energy consumption in different sectors Liberalisation and privatisation of energy markets Energy prices 3.8 Transport profile Freight Transport Passenger Transport Taxes on and prices of transport fuels 3.9 Industry Include production data of energy intensive industries such as iron and steel production and cement production 3.10 Waste Include information on the development in time of waste generation and treatment. In addition, a time series of CH4 recovery from landfills could be added Building stock and urban structure 3.12 Agriculture 3.13 Forest Include figure showing the breakdown of types of housing. Figure showing the share of different energy sources of fuels used primarily for heating. Include figure presenting the share of different energy sources or fuels used primarily for heating Content of proposed graphs and tables of the National Circumstances Chapter of the 6 th National Communication Most graphs and tables included in this chapter in the 5 th National Communication will be updated for the 6 th National Communication. In the following some new illustrations are proposed to be included in different sections of the national circumstances chapter of the 6 th National Communication. The implementation of these new illustrations depends largely on data availability. Introduction Include an illustration showing the development of key variables, such as population data, GDP at constant prizes, building stock, final energy consumption passenger cars & commercial vehicles and total GHG emissions from 1990 onwards. 22

23 Population profile Include a map with population density data. Economic profile Replace illustration 3-7 (GDP PPS) of the 5 th national communication with GDP PPS/capita. GDP PPS/ capita better reflects the economic development across countries. Building Stock and Urban Structure Include an illustration showing the breakdown of types of housing (e.g. flats, single family houses and other). Include an illustration showing the share of different energy sources or fuels used primarily for heating (e.g. coal, wood, electricity, gas, ) for 2011 and one or two other historic years (depending on data availability). 23

24 3 Greenhouse Gas Inventory Information (chapter 4 in EU NC5) 3.1 Legal requirements The following sections analyse the legal requirements with respect to the reporting of greenhouse gas inventories. The analysis follows along the lines of the types of requirements (shall, should, may) UNFCCC Guidelines on Reporting and Review Source: (UNFCCC 2000) (UNFCCC 2000) contains detailed guidelines on summary information from the national inventory in National Communications. The document is organised in two chapters, and lays out detailed guidelines for each of them. This section is organised along these chapters and summarises the requirements according to type; shall as the strongest, then should and may Greenhouse Gas Inventory Information Summary tables Shall requirements para. 10: Summary information from the national greenhouse gas inventory prepared according to part I of these guidelines shall be provided for the period from 1990 (or other base year) to the last but one year prior to the year of submission of the national communication (e.g. inventory information up to the year 1999 shall be provided in the third national communication to be submitted by 30 November 2001). para. 11: For the purpose of the national communication, complete inventory information need not be provided. However, at a minimum, Parties shall report the summary, including carbon dioxide (CO2) equivalent and emissions trend tables given in the common reporting format contained in the above-mentioned guidelines. Should requirements para. 10: The information provided in the national communication should be consistent with that provided in the annual inventory information submission of the year in which the national communication is submitted, and any differences should be fully explained. May requirements para. 11: The summary tables may be provided as an annex, as part of the national communication rather than in the main text. 24

25 Greenhouse Gas Inventory Information - Descriptive summary Should requirements para.12: In the main text of the national communication, Parties should provide a descriptive summary and should provide diagrams for the GHGs reported in the summary tables, in accordance with paragraph 11(see above). Parties should provide a description of the factors underlying emission trends UNFCCC reporting Guidelines for Annex I biennial reports and CTF for biennial reports Source: (UNFCCC 2012b) No additional information available for best practice GHG inventory information and information on national systems and national registries UNFCCC reporting guidelines under Article 7 of the Kyoto protocol Source: (UNFCCC 2006) National system Shall requirements para. 30: Each Party included in Annex I shall provide a description of how it is performing the general and specific functions defined in the guidelines for national systems under Article 5, paragraph 1. The description shall contain the following elements: (a) The name and contact information for the national entity and its designated representative with overall responsibility for the national inventory of the Party (b) The roles and responsibilities of various agencies and entities in relation to the inventory development process, as well as the institutional, legal and procedural arrangements made to prepare the inventory (c) A description of the process for collecting activity data, for selecting emission factors and methods, and for the development of emission estimates (d) A description of the process and the results of key source identification and, where relevant, archiving of test data (e) A description of the process for the recalculation of previously submitted inventory data (f) A description of the quality assurance and quality control plan, its implementation and the quality objectives established, and information on internal and external evaluation and review processes and their results in accordance with the guidelines for national systems (g) A description of the procedures for the official consideration and approval of the inventory. para. 31: Where the Party included in Annex I has not performed all functions, the Party shall provide an explanation of which functions were not performed or 25

26 were only partially performed and information on the action planned or taken to perform these functions in the future National registry Shall requirements para. 32: Each Party included in Annex I shall provide a description of how its national registry performs the functions defined in the annex to decision 13/CMP.1 and the annex to decision 5/CMP.1, and complies with the requirements of the technical standards for data exchange between registry systems as adopted by the COP/MOP. The description shall include the following information: (a) (b) (c) (d) (e) (f) (g) (h) (i) (j) The name and contact information of the registry administrator designated by the Party to maintain the national registry The names of the other Parties with which the Party cooperates by maintaining their national registries in a consolidated system A description of the database structure and capacity of the national registry A description of how the national registry conforms to the technical standards for data exchange between registry systems for the purpose of ensuring the accurate, transparent and efficient exchange of data between national registries, the clean development mechanism registry and the transaction log (decision 19/CP.7, paragraph 1) A description of the procedures employed in the national registry to minimize discrepancies in the issuance, transfer, acquisition, cancellation and retirement of ERUs, CERs, tcers, lcers, AAUs and/or RMUs, and replacement of tcers and lcers, and of the steps taken to terminate transactions where a discrepancy is notified and to correct problems in the event of a failure to terminate the transactions An overview of security measures employed in the national registry to prevent unauthorized manipulations and to prevent operator error and of how these measures are kept up to date A list of the information publicly accessible by means of the user interface to the national registry The Internet address of the interface to its national registry A description of measures taken to safeguard, maintain and recover data in order to ensure the integrity of data storage and the recovery of registry services in the event of a disaster The results of any test procedures that might be available or developed with the aim of testing the performance, procedures and security measures of the national registry undertaken pursuant to the provisions of decision 19/CP.7 relating to the technical standards for data exchange between registry systems. 26

27 3.2 Analysis of Other Documents Analysis of the UNFCCC 2011a: Synthesis and Compilation Report under UNFCCC Source: (UNFCCC 2011a): FCCC/SBI/2011/INF Executive Summary FCCC/SBI/2011/INF.1 No additional information available for best practice guidance for GHG inventory information Analysis of the UNFCCC 2011b: Synthesis and Compilation Report under the Kyoto Protocol Source: UNFCCC 2011b: Decision 10/CMP.6, The analysis of this section relates to (UNFCCC, 2011b) as this report contains a compilation and synthesis of supplementary information incorporated in the fifth national communications submitted to the secretariat by Parties included in Annex I to the Convention in accordance with Article 7, paragraph 2, of the Kyoto Protocol National systems and registries under the Kyoto Protocol para 97: Although national circumstances, such as the size of the country, dominant economic sectors, and tradition in inter-institutional cooperation, have predetermined the diversity in the arrangements for national systems, as a rule, the respective central governmental institution has overall responsibility for the national inventory and other governmental institutions, implementing agencies, organizations and consultants also contribute to the preparation of the inventory. For the multi-state Party of the European Union, the Directorate-General for the Environment of the European Commission is responsible for preparing the inventory on the basis of the inventories submitted by the member States. Arrangements established in Belgium are somewhat similar, as the three regions compile their own inventories and submit them to the federal governmental agency. Canada s single national authority, Environment Canada, has procedural arrangements (memorandums of understanding and data-sharing agreements) between federal departments. A few Parties (Liechtenstein, Luxembourg and Monaco), given the small size of their economies, have extensively involved experts from neighbouring Parties to assist them in the preparation of their annual submissions. para 100: In ensuring the functionality of their national systems in the area of LULUCF activities, the majority of the Parties have made significant efforts to identify land areas subject to afforestation, reforestation and deforestation and to estimate and report corresponding emissions and removals. Some Parties developed new specific legislation (Hungary), whereas others built upon existing legal acts regulating forest management. Some Parties set up a specialized database (Japan) and launched a dedicated project to estimate and monitor major carbon stocks and 27

28 carbon stock changes (Denmark). Most Parties provided a clear description of their national legislative arrangements and administrative procedures that seek to ensure that the implementation of activities under Article 3, paragraph 3, and elected activities under Article 3, paragraph 4, of the Kyoto Protocol also contributes to the conservation of biodiversity and the sustainable use of natural resources Analysis of the UNFCCC review of the EU s Fifth National Communication Source: UNFCCC Report of the In-depth Review of the Fifth National Communication of the European Union. The UNFCCC review team concluded that all reporting requirements have been met in this section of the EU s Fifth National Communication. No recommendations have been expressed to enhance the completeness and quality of this section Annotated Outline for Fifth National Communications of Annex I Parties under the UNFCCC, including Reporting Elements under the Kyoto Protocol Source: UNFCCC Annotated Outline for Fifth National Communications of Annex I Parties under the UNFCCC, including Reporting Elements under the Kyoto Protocol. This is an informal document; however, it strives to combine the UNFCCC & KP related guidelines (6.1.1 & 6.1.3) for NC5 ((which was due to submitted 1 st January 2010). Proposed Structure of this chapter: A. Summary tables B. Descriptive summary C. National systems in accordance with Article 5, paragraph 1, of the Kyoto Protocol D. National registry Analysis of Parties National Communications Inventory Information of Parties National Communication has not been analyzed as it is assumed that this chapter will be mostly copy and paste from the EU national inventory report. 28

29 3.3 Best practice Implications for the EU 6 th national communication and 1 st biennial report Proposed annotated outline of the GHG Inventory Information Chapter of the 6 th National Communication Table 2 Proposed structure of chapters on GHG inventory information derived from and very short summary of proposed improvements Chapters NC6 4.1.Introduction and Summary Tables 4.2.Descriptive Summary of EC GHG Emissions Trends Overall Greenhouse Gas Emissions Trends Emission Trends by Gas Emission Trends by Main Source Change in Emissions from Key Source Categories for EU Change in Emissions from Key Source Categories for EU Key Drivers Affecting Emission Trends Information on Indirect Greenhouse Gas Emissions for EU Information on Indirect Greenhouse Gas Emissions for EU Accuracy/Uncertainty of the Data Changes from the 5th National Communication 4.3.National System The EC Monitoring Mechanism and National Inventory System Quality Assurance/Quality Control (QA/QC) Procedures Further Improvement of QA/QC Procedures The EC Inventory Methodology and Data CRF Tables Data Gap Filling Procedure 4.4.National Registry Proposed improvement Include more detailed information on recalculations [Only limited information on recalculations is given in NC5] Include table on geographical coverage Content of proposed graphs and tables of the GHG Inventory Information Chapter of the 6 th National Communication The graphs and tables included in this chapter in the 5 th National Communication will be updated for the 6 th National Communication. 29

30 4 Policies and Measures (PaMs): Policy Making Process, Additional Info required under Art. 7(2) KP & Cross- Cutting PaMs (chapters in EU NC5) 4.1 Legal requirements UNFCCC Guidelines on Reporting and Review Source: (UNFCCC 2000) (UNFCCC 2000) contains detailed guidelines on the selection and structure of policies in measures in National Communications and on how to address their effects. The document is organised along several chapters, and lays out detailed guidelines for each of them. This section is organised along these chapters and summarises the requirements according to type. Shall as the strongest, then should and may Selection of policies and measures for the national communication Shall requirements para. 13: information on policies and measures adopted to implement commitments under Article 4.2(a) and (b) in accordance with article 12.2 Should requirements para. 14: Priority to policies and measures, or combinations of policies and measures with the most significant impact in affecting GHG emissions and removals para. 15: policies and measures planned, adopted and/or implemented by governments at national, state, provincial, regional 1 and local level para. 15: Policies and measures influencing international transport GHG emissions should be reported in the transport sector. para. 16: Parties should report on action taken to implement commitments under Article 4.2(e)(ii) of the Convention, which requires that Parties identify and periodically update their own policies and practices which encourage activities that lead to greater levels of anthropogenic GHG emissions than would otherwise occur. Parties should also provide the rationale for such actions in the context of their national communications. May requirements para. 14: adopted policies and measures and those in the planning stage with clear distinction from implemented ones 1 In this context, we understand the wording regional to be related to an administrative unit below the national level. This differs from our understanding of this wording used in the second sentence of para 15, cf. May requirements below. 30

31 para 14: indication of policies and measures which are innovative and/or effectively replicable by other Parties para. 15: adopted policies and measures in the context of regional 2 or international efforts Structure of the policies and measures section of the national communication Shall requirements para. 17: reporting of policies and measures by sectors, subdivided by greenhouse gas (CO 2, CH 4, N 2 O, PFCs, HFCs and SF 6 ) with own textual description of the principal policies and measures by sector, as set out in section Should requirements para. 17: The following sectors should be considered: energy, transport, industry, agriculture, forestry and waste management. para. 18: In cases where a policy or measure has been maintained over time and is thoroughly described in the Party s previous national communication, reference should be made to this and only a brief description contained in the latest national communication, focusing on any alterations to the policy or measure or effects achieved. May requirements para. 17: separate text and a table describing cross-sectoral policies and measures para. 19: presentation of some information such as the effect of policies and measures in aggregate for several complementary measures in a particular sector or affecting a particular gas Policy-making process Should requirements para. 20: The national communication should describe the overall policy context, including any national targets for greenhouse gas mitigation. para. 21: description of the way in which progress with policies and measures to mitigate GHG emissions is monitored and evaluated over time. 2 In this context, we understand the wording regional to be related to cooperation between neighbouring countries, i.e. above the national level. This differs from our understanding of this wording used in the first sentence of para 15, cf. Should requirements above. 31

32 para. 21: Institutional arrangements for monitoring of GHG mitigation policy May requirements para. 20: Strategies for sustainable development or other relevant policy objectives para. 20: Relevant inter-ministerial decision-making processes or bodies Policies and measures and their effects Shall requirements para. 22: Presentation of each policy and measure including information on o o o o o o (a) Name and short description of the policy or measure; (b): Objectives of the policy or measure; (c): The greenhouse gas or gases affected; (d): Type or types of policy or measure; (e): Status of implementation; (f): Implementing entity or entities para. 25: information on how parties believe their policies and measures are modifying longer-term trends in anthropogenic GHG emissions and removals consistent with the objective of the Convention. Should requirements para. 22: Concise presentation including information on the detail suggested after each subject heading: o o o o (b): Objectives of the policy or measure: focus on the key purposes and benefits of the policies and measures, including a description of activities and/or source and sink categories affected. Objectives should be described in quantitative terms, to the extent possible; (d): Type or types of policy or measure: Use of the following terms: economic, fiscal, voluntary/negotiated agreements, regulatory, information, education, research, other; (e): Status of implementation: planning stage/adopted/under implementation. (f): Implementing entity or entities: role of national, state, provincial, regional and local government and the involvement of any other entities. 32

33 May requirements para. 22e: For adopted and implemented measures, additional information may include the funds already provided, future budget allocated and the time-frame for implementation; para. 24: Information on: o o o (a) costs of policies and measures, accompanied by a brief definition of the term cost in this context; (b) non-ghg mitigation benefits of policies and measures (e.g. reduced emissions of other pollutants or health benefits) (c) Interaction with other policies and measures at the national level (e.g. how policies complement each other in order to enhance overall greenhouse gas mitigation) Policies and measures no longer in place May requirements para. 26: When policies and measures listed in previous national communications are no longer in place, Parties may explain why this is so UNFCCC reporting Guidelines for Annex I biennial reports and CTF for biennial reports Source: (UNFCCC 2012b) Shall requirements Para 6: provide information on its mitigation actions, including on the policies and measures it has implemented or plans to implement since its last national communication or biennial report to achieve its economy-wide emission reduction target. Para. 6: organize, to the extent appropriate, the reporting of mitigation actions by sector (energy, industrial processes and product use, agriculture, LULUCF, waste and other sectors) and by gas (carbon dioxide, methane, nitrous oxide, hydrofluorocarbons, perfluorocarbons and sulphur hexafluoride). Para. 7: provide information on changes in domestic institutional arrangements, including institutional, legal, administrative and procedural arrangements used for domestic compliance, monitoring, reporting, archiving of information and evaluation of the progress towards its economy-wide emission reduction target. Encouragement Para. 8: provide, to the extent possible, detailed information on the assessment of the economic and social consequences of response measures. 33

34 Draft decision -/CP.18 Common tabular format for UNFCCC biennial reporting guidelines for developed country Parties Shall requirement Para. 4: use the electronic reporting application taking into account their national circumstances when preparing and submitting their biennial reports in accordance with decision 2/CP.17. Annex Table 3: provide information on mitigation actions and their effects in electronic form according to CTF table 3 year 2020 and optional for other years before UNFCCC reporting guidelines under Article 7 of the Kyoto protocol Source: (UNFCCC 2006) (UNFCCC 2006) contains guidelines for the preparation of the additional information required under Article 7 of the Kyoto Protocol (Decision 15/CMP.1). Guidelines for supplementary reporting relating to the flexible mechanisms, to policies and measures and to domestic and regional programmes and/or legislative arrangements and enforcement and administrative procedures are included in Section II Reporting of supplementary information under Article 7, paragraph Supplementarity relating to the mechanisms pursuant to Articles 6, 12 and 17 This section reflects on supplementary information required in line with the use of flexible mechanisms under the Kyoto Protocol. Specifically, it states that Shall requirement Para 33. provide information on how the use of the mechanisms is supplemental to domestic action, and how domestic action thus constitutes a significant element of the effort made to meet its quantified limitation and reduction commitments under Article 3, paragraph 1, in accordance with the provisions of decision 5/CP Policies and measures in accordance with Art 2 (KP) Shall requirements Para. 34: specifically address policies and measures implemented and/or further elaborated as well as cooperation with other such Parties in achieving its quantified emission limitation and reduction commitment under Article 3, in order to promote sustainable development. 34

35 Para. 34: Such reporting shall take into account any relevant decision by the COP and the COP/MOP resulting from the process for further consideration of the issue of policies and measures (decision 13/CP.7). Para. 35: identify the steps taken to promote and/or implement any decisions by the International Civil Aviation Organization and the International Maritime Organization in order to limit or reduce emissions of GHG (aviation and marine bunker fuels) Para. 36. provide information on how it strives to implement policies and measures under Article 2 of the Kyoto Protocol in such a way as to minimize adverse effects, including the adverse effects of climate change, effects on international trade, and social, environmental and economic impacts on other Parties, especially developing country Parties and in particular those identified in Article 4, paragraphs 8 and 9, of the Convention Domestic and regional programmes and/or legislative arrangements and enforcement and administrative procedures Shall requirements Para. 37: report any relevant information on its domestic and regional legislative arrangements and enforcement and administrative procedures, established pursuant to the implementation of the Kyoto Protocol, according to its national circumstances. Para. 37 (contd.): describe domestic and regional programmes and/or legislative arrangements and enforcement and administrative procedures including institutional arrangements for monitoring of GHG mitigation policy, procedures for addressing cases of non-compliance under domestic law, institutional arrangements and decision-making procedures that it has in place to coordinate activities relating to participation in the mechanisms under Articles 6, 12 and 17, including the participation of legal entities. Para. 38: provide a description of any national legislative arrangements and administrative procedures that seek to ensure that the implementation of activities FCCC/KP/CMP/2005/8/Add.2 Page 66 under Article 3, paragraph 3, and any elected activities under Article 3, paragraph 4, also contribute to the conservation of biodiversity and sustainable use of natural resources. 35

36 4.1.4 Regulation of the European Parliament and of the Council on a mechanism for monitoring and reporting greenhouse gas emissions and for reporting other information at national and Union level relevant to climate change (concerning ETS, FlexMechs, supplementarity) Source: European Parliament & Council of the European Union 2012 Shall-Requirements: Article 14 (f): Member States shall provide the Commission by 15 March every two years, starting in 2015, information on the extent to which the Member State s action constitutes a significant element of the efforts undertaken at national level as well as the extent to which the projected use of joint implementation, the clean development mechanism and international emissions trading is supplemental to domestic action in accordance with the relevant provisions of the Kyoto Protocol and the decisions adopted there under. 4.2 Analysis of Other Documents Analysis of the UNFCCC 2011a: Synthesis and Compilation Report under UNFCCC Source: (UNFCCC 2011a): FCCC/SBI/2011/INF Executive Summary FCCC/SBI/2011/INF.1 no recommendation for improvement or best practice is given in the summary Addendum - Policies, measures, and past and projected future greenhouse gas emission trends of Parties included in Annex I to the Convention FCCC/SBI/2011/INF.1/Add.1 A Overview Para. 88: The presentation is primarily qualitative, because the reported quantitative estimates of the individual PaMs mitigation effects are not necessarily consistent among Parties in terms of categorization, baseline assumptions, modelling procedures and methodological approaches. B Sector Emissions Para. 94: Insufficient information was reported in the NC5s to distinguish the extent to which these changes in sectoral emissions were due to structural change, autonomous (i.e. not related to PaMs) efficiency improvements and PaMs. 36

37 D Implementation of policies and measures by sector Para. 121 (3. Cross-cutting ETS): No estimates of the global mitigation impact of the EU ETS in are reported in the NC5s. However, the EU ETS registry shows changes in the verified emissions over time (European Energy Agency (EEA), 2011). The extent to which these emission reductions were due to mitigation actions versus the global economic slowdown is not explicitly mentioned in the NC5s Addendum - Financial resources, technology transfer, vulnerability, adaptation and other issues relating to the implementation of the Convention by Parties included in Annex I to the Convention FCCC/SBI/2011/INF.1/Add.2 No information was given for best practice guidance for polices and measures Analysis of the UNFCCC 2011b: Synthesis and Compilation Report under the Kyoto Protocol Source: UNFCCC 2011b: Decision 10/CMP.6, I. Executive Summary - D. Domestic and regional legislative arrangements and enforcement and administrative procedures to meet commitments under the Kyoto Protocol Para. 22: supplementarity of the use of Kyoto mechanisms is defined differently from Party to Party, mostly because of the use of different baseline assumptions to estimate the total effect of domestic action...final determination of the Kyoto units used will be reported in the true-up period report in B Implementation of polices and measures by sector same as in section (D Implementation of policies and measures by sector) Analysis of the UNFCCC review of the EU s Fifth National Communication Source: UNFCCC Report of the In-depth Review of the Fifth National Communication of the European Union. The in-depth review includes recommendations and encouragements. These are summarized in Table 4.1, sorted regarding the type of advice (recommendation / encouragement) and supplemented by the proposed action from the improvement plan. 37

38 Table 4.1 Issues from EU NC5 review concerning policies and measures No Action to be taken report in more detail on the impact of implemented PaMs on the GHG emission levels report on ex ante and, where available, ex post estimates of the impacts of individual PaMs, address the implementation costs and fiscal effects of implemented PaMs enhancement of reporting on the methods for monitoring and evaluation of EU-level PaMs across member State continue to report on its work with member States to improve the estimation of the total effect of PaMs. elaborate further on PaMs no longer in place assessment of how key individual PaMs may contribute towards the achievement of EU-wide goals Provision of the estimate of the total effect of PaMs by sector for 1995, 2000 and 2005 indicate the PaMs which could potentially increase emissions in the next national communication. In addition 3 14 Status of ERT suggestion Encouragement Encouragement may wish to Encouragement Encouragement Encouragement Encouragement Need to check whether there are PAMs that are no longer in place Quantitative assessment of key policies was provided in NC5. This encouragement was also provided in the indepth review of the NC4. No further information available. There is no requirement in the NC guidelines to report aggregate effects of PAMs by sector. Given the split between ESD and ETS target that determines the emission reduction pathway after 2012 in the EU, it seems relatively irrelevant to aggregate the effects of individual PAMs. no study or report has been conducted that aggregates ex-post effects across MS and PAMs DG CLIMA prefers that rather no quantification should be given than outdated estimates which cannot be considered valid anymore Recommendation Encouragement Note reporting could better explain the relationship and any interaction between the underlying PaMs in each sector with the overarching, cross cutting policies further enhancement of reporting on the methods for monitoring and evaluation of EU-level PaMs across member States to improve transparency Consideration consultants' recommendation on priority Include to the extent that recent estimates are available Include to the extent that recent estimates are available Include to the extent that recent estimates are available include include include ignore ignore ignore Include to the extent that recent estimates are available include Comment no study or report has been conducted that aggregates ex-post effects across MS and PAMs DG CLIMA prefers that rather no quantification should be given than outdated estimates which cannot be considered valid anymore Need to check: what recent information and studies should be used / are available on the ex-post and exante impact of EU level PaMs on emission level, rather no quantification should be given than outdated ones no information and studies in relation to cost estimates are available add info on monitoring & evaluation of EU level PaMs add info on monitoring & evaluation of EU level PaMs Ignore encouragement related to PaMs that potentially increase emissions. Source: own representation The proposed outline of the 6 th NC takes these considerations into account (cf. Section 4.3 ). 38

39 4.2.4 Annotated Outline for Fifth National Communications of Annex I Parties under the UNFCCC, including Reporting Elements under the Kyoto Protocol Source: UNFCCC Annotated Outline for Fifth National Communications of Annex I Parties under the UNFCCC, including Reporting Elements under the Kyoto Protocol. This is an informal document; however, it strives to combine the UNFCCC & KP related guidelines (4.1.1 & 4.1.3) for NC5 (which was due to be submitted 1 st January 2010). The proposed chapter is titled and structured as follows. IV. Policies and measures, including those in accordance with Article 2 of the Kyoto Protocol, and domestic and regional programmes and/or legislative arrangements and enforcement and administrative procedures A. Policy-making process B. Domestic and regional programmes and/or legislative arrangements and enforcement and administrative procedures C. Policies and measures and their effects D. Policies and measures no longer in place For each subsection, the annotation contains, and to some extent explains, the guidelines and provides a few additional points that parties may wish to address. A. Policy-making process: Parties may wish to provide a brief description on the responsibilities on climate change related policies in the national government. Who is in charge of coordination of climate change related policies and measures among different institutions? Which are the most important implementing agencies, financial aspects and how climate related funds were allocated? provide key information on the transposition of common and coordinated policies and measures, including the EU emissions trading scheme and national allocation plans. C. Policies and measures and their effects A table is provided for summarizing policies and measures by sector which is modified compared to the table shown in the guidelines to allow to present the link between reporting on policies and measures and projections in a transparent way. 39

40 Table 4.2 Summary of policies and measure by sector a To avoid repetition, Parties may choose not to include all information provided in the table in the textual description. However, the textual description should include the name, objective and specific information on policies and measures not included in the table (such as for example: legal framework, development, implementation, lessons learned). Parties may wish to present the aggregated effect of policies and measures for several complementary measures in case that individual effects are difficult to be estimated. Parties may wish to report on cost-effectiveness by clearly distinguishing between administrative/transaction costs and overall economic costs to the society when calculating the ratio between mitigation impact and costs of policies and measures. With respect to the subsection on policies and measures in accordance with Art 2 (KP) (compare ) o Parties may wish to elaborate on any relationship between policies and measures implemented under the Convention and those implemented under Article 2 of the Kyoto Protocol Analysis of Parties National Communications Some examples for good practice: Policy-making process/cross-cutting policies The Swedish National Communication has a an elaborate section on the costeffectiveness of policies and measures in the Swedish climate strategy (Chapter 4.4) reflecting on general considerations of cost-effectiveness of climate policies and providing an estimated mitigation cost curve for measures over the period

41 The Finish National Communication provides an insightful overview diagram showing the institutional arrangements concerning climate policy and its implementation (compare Figure 4.1). Figure 4.1 Institutional arrangements concerning climate policy and its implementation Source: 5 th NC of Finland 41

42 EU Emission Trading System In most 5 th NC, Parties reported by text on EU-ETS, a graphical solution for the differentiation in sectors can be found in the 5 th NC of Czech Republic: Figure 4.2 EU-ETS by sector Source: 5 th NC of Czech Republic 42

43 A comprehensive aggregation of emissions in- and outside the EU-ETS of each sector can be found in 5 th NC of Sweden: Figure 4.3 Emissions in and outside the trading scheme Source: 5 th NC of Sweden Such a detailed view on the EU-ETS sector would be very interesting, but the data seems not to available for EU Member State use of Flexible Mechanisms In 5 th NCs of other Parties this information is only consisting of a small amount of numbers and some explanatory text. 43

44 Supplementarity Only in some 5 th NC s there is a single chapter on supplementarity (e.g. Germany, New Zealand and Slovenia). In Finland s NC there is a comprehensive table, showing the most important absolute numbers of emissions and units for compliance (Figure 4.4). Figure 4.4 Best-practice example of presentation of the use of flexible mechanisms Source: 5 th NC of Finland This table could be enhanced by the sum of the use of flexible mechanisms and percentages showing the relation between the reduction of emissions as domestic effect and the actual use of flexible mechanisms. 4.3 Best practice Implications for the EU 6 th national communication and 1 st biennial report Proposed annotated outline of the Projections Chapter of the 6 th National Communication The following structure is proposed for the policies and measure chapter relating to the policy making process, additional information required under the Kyoto Protocol and cross-cutting polices. The outline is annotated to provide a preview of the planned contents for each section. 44

45 X. Policies And Measures X.1. X.2. The Policy Making Process Describes the policy making process, update is foreseen depending on how projections are to be assessed. X.1.1. Monitoring and Evaluation Will reflect the current status concerning status concerning the adoption of the revised Monitoring Mechanism Regulation. It is expected that the new MMR will be adopted in early 2013 and can therefore be described in this section together with its implementing/delegated acts. This was also encouraged by the review team of the NC5. X.1.2. Overall Policy Context This chapter will be updated to reflect the current status on policies. The following policies will be included: 1. Europe 2020 with reference to the Lisbon Strategy and the Economic Recovery Plan 2. European Climate Change Programme 3. Energy and Climate Package 4. Energy 2020 with reference to Second Strategic Energy Review - Securing our Energy Future 5. Roadmap th Environmental Action Program All programmes will be drafted only as introduction of policy packages: details will be presented in specific PAMs sections Text on all policies will be updated or changed to reflect current developments. X.1.3. Assessment of the economic and social consequences of response measures Optional new chapter related to BR encouragement Para. 8: BR encouragement differs from KP requirement (minimisation of adverse effects) as the BR encouragement is not explicitly directed to developing countries and concerns rather the assessment than the minimisation of effects. This overview chapter might contain information on general impact assessment process in the EU legislation process, while specific sections on assessment results might be included in the sections on the single PaMs. Changes in institutional arrangements new chapter related to BR requirement Para. 7: provide information on changes in domestic institutional arrangements, including institutional, legal, administrative and procedural arrangements used for domestic compliance, monitoring, reporting, archiving of infor- 45

46 X.3. mation and evaluation of the progress towards its economy-wide emission reduction target Additional Information Required Under the Kyoto Protocol X.3.1. Member State Use of Kyoto Mechanisms The planned use of Kyoto mechanisms in the first commitment period will be provided in a table (see Table 4.3) showing per Member State, per EU- 15 and EU-27, Achievement of Kyoto target planned through domestic action only Planned use of Flexible Mechanisms at government level Type of Flexible Mechanisms (IET, CDM, JI) Projected emission reduction through the use of Kyoto Mechanisms [Mt CO 2 eq. per year] Allocated Budget at government level [Mio ] Projected use of flexible mechanisms in total emission target compared to Kyoto base year Projected use of reductions from sinks under Art. 3.3 and 3.4 [Mt CO 2 eq. per year] Total reduction from Kyoto mechanisms and sinks For this, the results of the Trends and Projections report 2013 prepared by Öko-Institut will be used. The actual use of flexible mechanisms as observed in registries will be compared to the information in MMD questionnaires on the expected use of carbon sinks and flexible mechanisms provided by Member States in Information about expected use will be cross checked and confirmed with Member States in case of incomplete, inconsistent or unclear information (including on financial aspects).. For , the use of Kyoto Mechanisms as it will be reported in the spring of 2013 by MS to fulfil the ESD targets will be presented in a table. If additional information will be available on the use of sinks, it will be incorporated as well. X.3.2. Supplementarity relating to the mechanisms pursuant to Articles 6, 12 and 17 This section will explain how supplementarity is ensured in the EU. In addition numbers will be provided in how far the use of KP mechanisms as shown in the section above is supplementary to domestic emissions abatement, based on inventory data and proxy data for Resulting from the analysis of other documents as described in 4.2.5, a table similar to Figure 4.4 will be added for EU-15, EU-10 and EU-25, showing total Initial Assigned Amounts, actual emissions (ETS and Non-ETS), IET, JI, CDM in absolute numbers and percentages of target reduction for the first CP, as a first estimate (since final results will only be available in 2015 at the end of the true-up period) (see example in Table 4.4). 46

47 X.4. X.3.3. Policies and measures in accordance with Art 2 (KP) It is proposed to include a new sub-heading to provide more transparency with respect to the Art. 2 KP reporting requirements. X Policies and Measures Promoting Sustainable Development (KP Art. 2 (1)) This section will describe the EU Sustainable Development Strategy (SDS) and will reflect the 2011 monitoring report of the strategy. X Policies and Measures Related to Bunker Fuels (KP Art. 2 (2)) Policies and measures relating to bunker fuels will be described in the transport section of the sectoral policies and measures chapter. X Minimisation of adverse impacts (KP Art. 2 (3)) This chapter will be coordinated through the National Inventory Report task in the ETC/ACM. Text may be identical, thus NIR efforts will enter the NC. It needs to be checked with NIR task force on the topic of timber import and tropical deforestation which were not included in the previous NIR but were included in the previous NC. At the same time, a number of topics were included in the previous NIR that were not included in the previous NC, thus the NC could be extended by adding a discussion of the impacts of these topics. In particular those were Impact assessment of EU policies Directive on the promotion of the use of renewable energy - Promotion of bio-mass and biofuels Inclusion of aviation in the EU emission trading scheme A roadmap for moving to a competitive low carbon economy in 2050 Resource Efficient Europe flagship initiative X.3.4. Legislative Arrangements and Enforcement /Administrative Procedures Relevant to Kyoto Protocol Implementation. This section will show the legislative arrangements and enforcement / administrative procedures relevant to the Kyoto Protocol implementation as in the 5 th NC. No changes have been reported since. Cross-sector Policies and Measures The following cross-sector policies will be covered in this section: EU Emissions Trading Scheme Effort Sharing Decision Taxation of Energy Products and Electricity Research and Innovation in Climate and Energy Structural and Cohesion Funds National Emissions Ceiling Directive 47

48 CCS Directive Still in preparation are policies on short-lived climate forces (black carbon) and shale gas which may possibly be covered here. For the shale gas policies it is still to be decided whether it is to be covered in the cross-cutting section or in the energy section. A cross-sector policy table (compare Table 4.5) will be provided in the first part or at the end of this chapter, showing information on Name of policy or measure Objective and/or activity affected GHG affected Type of instrument Status Implementing entity or entities To the extent possible: Estimate of mitigation impact, by gas (for 2005, 2010, 2015, 2020, not cumulative, in Mt CO 2 equivalents) X.4.1. EU Emissions Trading Scheme Targets, general integration Description of Phase I + II Scope, participants, GHG included, allocation methodology, decision on cap and free allocation, compliance, penalties, verified emissions , types of units surrendered, auctioning, New Entrance Reserve (NER), inclusion of aviation (Stop the clock), use of national revenues, description of monitoring and evaluation provisions. Table with VE, free allowances and surrendered units by MS and by sector. Table with number of installations, auctions and NER by MS. Graph with EU-ETS emissions in comparison to Non-ETS emissions by MS Description of Phase III Cap-setting, NER + NER3000, free allocated allowances, auctioning and backloading, Transfer of credits between trading periods, on-going process for the integration of shipping EUA market: prices and volumes Figures with historic EUA trading volumes and prices Linking the EU ETS to the international carbon market Explanation of the use of flexible mechanisms period II and III Linking with external emission trading schemes 48

49 To the extent, information is available: Interaction with other PaM Information on this issue will be gathered from different studies. X.4.2 Effort Sharing Decision Description of the Decision and its targets, general integration and implementation X.4.X further individual chapters on each of the cross-cutting policies will be included here briefly describing the policy and elaborating more on the information provided in the table as well the potential limits to providing information required in the table. Taxation of Energy Products and Electricity Research and Innovation in Climate and Energy Structural and Cohesion Funds National Emissions Ceiling Directive CCS Directive Content of proposed graphs and tables of the Projections Chapter of the 6 th National Communication Table 4.3 Planned use of Kyoto Mechanisms by Member States Member State Achievement of Kyoto target planned through domestic action only Planned use of Flexible Mechanisms at government level Type of Flexible Mechanisms (IET, CDM, JI)* Projected emission reduction through the use of Kyoto Mechanisms [Mt CO 2 eq per year] Allocated Budget at government level [Mio ] Projected use of flexible mechanisms in total emission target compared to Kyoto base year Projected use of reductions from sinks under Art. 3.3 and 3.4 [Mt CO 2 eq per year] Total reduction from Kyoto mechanisms and sinks Notes 49

50 Table 4.4 Supplementarity: Use of flexible mechanisms (preliminary results) Reduction target in absolute numbers ( ) Initial assigned Amounts ( ) Actual Emissions ( , 2012=proxy) of which ETS of which Non-ETS Mt CO2 eq. Preliminary difference to target % EU-15 EU-10* EU-25* Actual governmental use of flexible mechanisms IET CDM JI Additionally planned governmental use of flexible mechanisms IET CDM JI Use of flexible mechanisms in EU ETS CDM JI Planned total use of flexible mechanisms IET CDM JI Percentage of emission reduction by flexible mechanisms (compared to target) Mt CO2 eq. Mt CO2 eq. % Table 4.5 Summary of cross-sectoral policies and measures Name of policy or measure Objective and/or activity affected GHG affected Type of instrument Status Implementing entity or entities Estimate of mitigation impact, by gas (for a particular year, not cumulative, in Mt CO 2 equivalents)

51 5 Sectoral Policies and Measures: Energy, Transport, Industry, Agriculture, Forestry, Waste (chapters in EU NC5) Most paragraphs on best practice for the reporting of general Policies and Measures (PaMs) listed in chapter 4 are also valid for the reporting of sectoral PaMs. In the following, paragraphs referring to sectoral PaMs only are described. 5.1 All sectors UNFCCC Guidelines on Reporting and Review Source: (UNFCCC 2000) Structure of the policies and measures section of the national communication Shall requirements para. 17: reporting of policies and measures by sectors, subdivided by greenhouse gas (CO 2, CH 4, N 2 O, PFCs, HFCs and SF 6 ) with own textual description of the principal policies and measures by sector, as set out in section Should requirements para. 17: The following sectors should be considered: energy, transport, industry, agriculture, forestry and waste management. May requirements para. 19: presentation of some information such as the effect of policies and measures in aggregate for several complementary measures in a particular sector or affecting a particular gas UNFCCC reporting Guidelines for Annex I biennial reports and CTF for biennial reports Source: (UNFCCC 2012b) Shall requirements Para. 6: organize, to the extent appropriate, the reporting of mitigation actions by sector (energy, industrial processes and product use, agriculture, LULUCF, waste and other sectors) and by gas (CO 2, CH 4, N 2 O, PFCs, HFCs and SF 6 ). 51

52 5.1.3 Analysis of the UNFCCC review of the EU s Fifth National Communication Source: UNFCCC Report of the In-depth Review of the Fifth National Communication of the European Union. No 17 Action to be taken Provision of the estimate of the total effect of PaMs by sector for 1995, 2000 and 2005 Status of ERT suggestion Recommendation consultants' recommendation on priority ignore Comment There is no requirement in the NC guidelines to report aggregate effects of PAMs by sector. Given the split between ESD and ETS target that determines the emission reduction pathway after 2012 in the EU, it seems relatively irrelevant to aggregate the effects of individual PAMs. No study or report has been conducted that aggregates ex-post effects across MS and PAMs DG CLIMA prefers that rather no quantification should be given than outdated estimates which cannot be considered valid anymore 52

53 5.2 Energy Analysis of the UNFCCC 2011a: Synthesis and Compilation Report under UNFCCC Source: (UNFCCC 2011a): FCCC/SBI/2011/INF Addendum - Policies, measures, and past and projected future greenhouse gas emission trends of Parties included in Annex I to the Convention FCCC/SBI/2011/INF.1/Add.1 Para. 94: Insufficient information was reported in the NC5s to distinguish the extent to which these changes in sectoral emissions were due to structural change, autonomous (i.e. not related to PaMs) efficiency improvements and PaMs Analysis of Parties National Communications Most Parties presented their sectoral PaMs chapter by a description of the policies and measures per sector and in a few cases also per gas, accompanied by Table 4.5. Most parties did not provide any additional analyses or graphs. Some Parties provided indicators to illustrate progress in the implementation of policies and measures (ex-post analysis). One example in energy is Austria. Austria presented the increasing trend of wind energy In order to show progress in the implementation of policies and measures related to the promotion of renewable energies: 53

54 Spain shows the share of renewable energy in primary energy consumption, The following figure presents the change of gross electricity generation by fuel in the EU , as reported in the EEA report Greenhouse gas emissions in Europe: a retrospective trend analysis for the period (EEA, 2011). The right hand side of the graph shows the progress in increasing the share of renewable electricity production. 54

55 5.3 Transport UNFCCC Guidelines on Reporting and Review Source: (UNFCCC 2000) Selection of policies and measures for the national communication Should requirements: para. 15: Policies and measures influencing international transport GHG emissions should be reported in the transport sector UNFCCC reporting guidelines under Article 7 of the Kyoto protocol Source: (UNFCCC 2006) Policies and measures in accordance with Art 2 (KP) Shall requirements Para. 35: identify the steps taken to promote and/or implement any decisions by the International Civil Aviation Organization and the International Maritime Organization in order to limit or reduce emissions of GHG (aviation and marine bunker fuels) Analysis of the UNFCCC 2011a: Synthesis and Compilation Report under UNFCCC Source: (UNFCCC 2011a): FCCC/SBI/2011/INF Addendum - Policies, measures, and past and projected future greenhouse gas emission trends of Parties included in Annex I to the Convention FCCC/SBI/2011/INF.1/Add.1 Para. 94: Insufficient information was reported in the NC5s to distinguish the extent to which these changes in sectoral emissions were due to structural change, autonomous (i.e. not related to PaMs) efficiency improvements and PaMs. 55

56 5.3.4 Analysis of Parties National Communications Most Parties presented their sectoral PaMs chapter by a description of the policies and measures per sector and in a few cases also per gas, accompanied by Table 4.5. Most parties did not provide any additional analyses or graphs. Some Parties provided indicators to illustrate progress in the implementation of policies and measures (ex-post analysis). One example in transport is Sweden. Sweden presents in its 5 th NC the average fuel consumption of new cars in Sweden. Starting from 2012, a specific binding CO2 target is calculated for each manufacturer every year based on the average mass of its fleet. For evaluating the progress of manufacturers towards their targets, the EEA is collecting and quality checking data on CO2 emissions from passenger cars registered in all Member States of the European Union since Using the Member State data, this note provides an overview of the performance of cars manufacturers in meeting their CO2 emissions targets. A similar graph can therefore been presented for the EU to show the effect of the Regulation (EC) No 443/2009 (CO2 from cars). 56

57 In the following figure, Sweden presents the change of renewable energy supply for vehicles Norway shows CO 2 emissions from new cars

58 The following figure shows the drivers of CO 2 emissions from passenger cars , as reported in EEA,

59 5.4 Industry/Industrial processes and product use No guidelines referring to the industry chapter only and no best practise examples in any 5 th NC found. 5.5 Agriculture No guidelines referring to the agriculture chapter only and no best practise examples in any 5 th NC found. The following figure shows the drivers of CH 4 emissions from enteric fermentation , as reported in EEA, Forestry No guidelines referring to the LULUCF/forestry chapter only and no best practise examples in any 5 th NC found. 59

60 5.7 Waste There are no guidelines referring to the waste chapter only Analysis of Parties National Communications Most Parties presented their sectoral PaMs chapter by a description of the policies and measures per sector and in a few cases also per gas, accompanied by Table 4.5. Most parties did not provide any additional analyses or graphs. Some Parties provided indicators to illustrate progress in the implementation of policies and measures (ex-post analysis). One example in waste is Austria. Austria demonstrated the overall effect of implemented policies and measures in the waste sector by the following figure. Single effects of the PaMs could not be determined. 60

61 The following figure shows the drivers of CH 4 emissions from municipal waste in the EU, , as reported in EEA,

62 5.8 Best practice Implications for the EU 6 th national communication and 1 st biennial report Proposed annotated outline of the Sectoral PaMs Chapter of the 6 th National Communication The sectoral chapters on policies and measures will be structured along the following outline. The sector industry provides an example for the structure of each chapter. Each sector chapter starts with a tabular overview of the policies and measures in this sector including information on quantitative effects of the policies, if available. Then the specific policies and measures are described. Finally interlinkages of PAMs and PAMs no longer in place will be addressed. X X.1. X.2. X.3. X.4. X.4.1. X.4.2. X.4.3. X.4.4. X.4.5. X.4.6. X.5. X.6. X.7. X.8. Sectoral policies and measures General Energy Transport (belongs to energy section in BR structure. However, a more disaggregated structure than required may be maintained.) Industrial processes and product use Agriculture Tabular overview of policies and measures F gas regulation MAC regulation Industrial emissions directive (IED) Interlinkages of policies and measures in the industry sector Policies and measures no longer in place Land use, land use change and forestry Waste Conclusions 62

63 5.8.2 Content of proposed graphs and tables of the Sectoral PaMs Chapter of the 6 th National Communication The table below will be presented for each sector. Table 5.1 Summary of policies and measures per sector The information provided in these tables will be consistent with the Table 3 of the Common tabular format. In addition, the project team aims at providing information on indicators which illustrate progress in the implementation of policies and measures (ex-post analysis). The chapters above include examples for such indicators. The indicators will be provided for the most important policies and measures (depending on the data availability). However, some of these indicators mentioned above may overlap with information provided in the chapter on national circumstances. 63

64 6 Projections and the total Effects of Policies and Measures (chapter 6 in EU NC5) 6.1 Legal requirements The following sections analyse the legal requirements with respect to the reporting of projections of GHG emissions. The analysis follows along the lines of the types of requirements (shall, should, may). Under each headline the source of the information is provided for easy reference to the full titles as listed in Section UNFCCC Guidelines on Reporting and Review Source: (UNFCCC 2000) (UNFCCC 2000) contains detailed guidelines on how to address projections and the total effect of policies in measures in National Communications. The document is organised along several chapters, and lays out detailed guidelines for each of them. This section is organised along these chapters and summarises the requirements according to type. Shall as the strongest, then should and may Projections Shall requirements para. 28: WEM projection in accordance with para. 29 para. 29: WEM projection shall encompass currently implemented and adopted policies and measures May requirements para. 28: WAM and WOM projection para. 28: In reporting, Parties may entitle their WOM projection as a baseline or reference projection, for example, if preferred, but should explain the nature of this projection. para. 30: may report sensitivity analyses for any of the projections, but should limit the number of scenarios presented Presentation of projections relative to actual data Shall requirements para. 31: Presentation of projections relative to actual inventory data for preceding years para. 33: If inventory data has been adjusted, nature of adjustments needs to be explained. Should requirements para. 32: Starting point of WEM and WAM last year of inventory data available in national communication para. 33: Present projections relative to unadjusted inventory data for preceding years 64

65 May requirements para. 32: Staring point for WOM 1995 or earlier year, such as 1990 or another base year, if appropriate para. 33: use of normalised data for projections. para. 33: only in addition to should requirement of para. 33 presentation of projections relative to adjusted inventory data Coverage and presentation Shall requirements para. 34: Presentation of projections on sectoral data to extent possible, using same sectoral categories as in policies and measures section para. 35: Presentation of projections by gas for CO2, CH4, N2O, PFCs, HFCs and SF6 (treating PFCs and HFCs collectively in each case) para. 35: Projections in an aggregated format for each sector as well as for a national total, using global warming potential (GWP- AR2) values agreed upon by the Conference of the Parties. para. 36: projections related to fuel sold to ships and aircraft engaged in international transport shall, to the extent possible, be reported separately and not included in the totals. para. 37: If base year for inventory is different from 1990, actual data for that year needs to be provided Should requirements para. 37: Inclusion of projections on quantitative bases for 2005, 2010, 2015 and 2020 para. 37: Presentation in a tabular format by sector and gas for each of the years, together with actual data for the period 1990 to 2000 or the latest year available para. 38: Diagrams should be presented showing unadjusted inventory data and a with measures projection, for the period 1990 (or another base year, as appropriate) to May requirements para. 35: Projections for indirect greenhouse gases carbon monoxide, nitrogen oxides and non-methane volatile organic compounds, as well as sulphur oxides para. 38: Additional diagrams may also be presented Assessment of aggregate effects of policies and measures Shall requirements para. 39: estimated and expected total effect of implemented and adopted policies and measures para. 40: provide an estimate of the total effect of their policies and measures, in accordance with the with measures definition, compared to a situation without such policies and measures. 65

66 para. 40: This effect shall be presented in terms of GHG emissions avoided or sequestered, by gas (on a CO 2 equivalent basis), in 1995 and 2000, and should also be presented for 2005, 2010, 2015 and 2020 (not cumulative savings). Should requirements para. 41: clearly present from which year onward PaMs are implemented or not for calculations referring to para. 41 May requirements para. 39: total expected effect of planned policies and measures para. 40: information from para. 40 may be presented in tabular format. para. 41: total effect of PaMs as difference between WEM and WOM para. 41: total effect of PaMs based on another methodology (e.g. bottom up) Methodology Shall requirements Should requirements para. 42: Sufficient information to obtain basic understanding of models and approaches used para. 43: should briefly: o (a) Explain for which gases and/or sectors the model or approach was used; o (b) Describe the type of model or approach used and its characteristics (for example, top-down model, bottom-up model, accounting model, expert judgement); o (c) Describe the original purpose the model or approach was designed for and, if applicable, how it has been modified for climate change purposes; o (d) Summarize the strengths and weaknesses of the model or approach used; o (e) Explain how the model or approach used accounts for any overlap or synergies that may exist between different policies and measures. para. 44: references to more detailed information for (a)-(e) para. 45: report the main differences in the assumptions, methods employed, and results between projections in the current national communication and those in earlier national communications. para. 46: qualitative discussion of sensitivity of the projections to underlying assumptions para. 47: information on key underlying assumptions and values of variables (e.g. GDP, energy prices) para. 47: limit information to data not covered under sector-specific data (para. 48) para. 48: present relevant information on factors and activities for each sector May requirements Information for para. 48 may be presented in tabular format 66

67 6.1.2 UNFCCC reporting Guidelines for Annex I biennial reports and CTF for biennial reports Source: (UNFCCC 2012b) Shall requirements para. 11: updated projections for 2020 and 2030 consistent with UNFCCC Reporting Guidelines for Annex I National Communications. Should requirements para. 12: report on changes of model/methodologies used in the most recent national communication. (UNFCCC 2012a) contains a draft decision on the CTF for biennial reports UNFCCC reporting guidelines under Article 7 of the Kyoto protocol Source: (UNFCCC 2006) Nothing related to projections Draft Regulation of the European Parliament and of the Council on a mechanism for monitoring and reporting greenhouse gas emissions and for reporting other information at national and Union level relevant to climate change (MMR) Source: (European Parliament & Council of the European Union 2012) This source is only used for optional and additional information, because it is no legal requirement for the preparation of 6 th National Communications. Shall requirements Art 13, 1: two years after Regulation came in force set up, operate and continuously improve reporting systems. Art 13, 1: Include relevant arrangements for making projections of GHG emissions by source and removals by sinks Art 13, 2: Aim to ensure the timeliness, transparency, accuracy, consistency, comparability and completeness of the information reported. Art 13, 2: Include, where relevant the use and application of data, methods and models, and the implementation of quality assurance and quality control activities and sensitivity analysis. Art 15, 1: Report to Commission by 15 March every two years (starting 2015) Art 15, 1: Report by GHG emissions by sources and removals by sinks organised by gas or group of gases and by sector 67

68 Art 15, 1: shall include quantitative estimates for a sequence of 4 future years ending with 0 or 5 immediately following the reporting year Art 15,1: shall take into consideration any policies and measures adopted at Union level and include: WOM if available WEM WAM if available Total GHG projections and estimates for projected GHG emission for emission sources covered by Directive 2003/87/EC and by Decision No 406/2009/EC Impact of policies and measures, if not included this shall be explained and stated Results of sensitivity analysis on projection References to assessment and technical reports Art 15, 1a: In case of substantial changes to the information reported pursuant to this Article during the first year of the reporting period, communicate those changes to the Commission by 15 March of the year following the previous report. Art 15, 2: report most up-to-date projections available Art 15,3: provide national projections to the public in electronic form Should requirements Art 15,3: documents made available to the public should include model and method descriptions, definition and assumptions May requirements None. 68

69 6.1.5 Summary of legal requirements and results of analysis The following tables list the various requirements for National Communications, providing a kind of checklist. Potential future requirements as formulated by the draft MMR have been included in these tables. The tables are organized along the lines of 1. Minimum content based on the shall requirements of guidelines. 2. Additional, but not required, content based on the should requirements of guidelines. o If 1 and 2 would be considered together, the National Communication would go beyond the shall requirements and fulfil the minimal requirements plus the chosen should requirements. 3. Additional, but not required content based on may requirements of the guidelines. o If 1, 2 and 3 would be considered together, this would refer to a National Communication providing much information beyond what is posed by the shall requirements. Table 6-1 Minimum requirements based on shall requirements by guidelines from above for projection chapter of the 6 th National Communication UNFCCC Guidelines for NatCOM WEM Projection including implemented and adopted policies ( 28,29) Presentation relative to actual inventory data for preceding years ( 31) Documentation of adjustments of inventory data ( 33) Disaggregation as deep as possible to UNFCCC Guidelines for biennial UNFCCC Guidelines reports and CTF under Article 7 Projections Updated projections for 2020 and 2030 consistent with UNFCCC reporting guidelines ( 11) Presentation relative to actual data Coverage and presentation Draft MMR Quantitative estimates for a sequence of 4 future years ending with 0 or 5 following the reporting year (Art 15,1) Results of sensitivity analysis on projection (Art 15,1) Report most up-to-date projections available (Art 15,2) Report GHG emissions by sources and removals by 69

70 UNFCCC Guidelines for NatCOM sectoral categories ( 34) Presentation by gas for CO2, CH4, N2O, PFCs, HFCs, SF6 (PFC and HFC to be treated collectively in each case) ( 35) Projections in aggregated format for each sector and as national total based on GWP values agreed by COP ( 35) Projections related to bunker fuels (maritime, aircraft) reported as possible, and separately, not included in totals ( 36) If inventory base-year not 1990, actual data for that year must be presented ( 37) Estimated and expected total effect of implemented and adopted PaMs ( 39) Estimate of total effect of PaMs in accordance with WEM definition, compared to situation without these PaMs ( 40) Effect of PaMs presented as avoided GHG emissions (or sequestered), by gas (CO2eq) for 1995 and 2000 and should also be presented for 2005,2010,2015,2020 (not as cumulative savings) ( 40) UNFCCC Guidelines for biennial reports and CTF Assessment of PaMs Methodology General UNFCCC Guidelines under Article 7 Draft MMR sinks organised by gas or group of gases and by sector (Art 15,1) Total GHG projections and estimates for emission sources covered by Directive 2003/87/EC and by Decision No. 406/2009/EC (Art 15,1) Impact of PaMs (Art 15,1) Report on use and application of data, methods and models, implementation of QA/QC, sensitivity analysis (Art 15,1) References to assessment and technical reports (Art 15,1) Report to Commission by 15 March in case substantial changes to information during the first reporting period came up (Art 15, 1a) Provide national projections to public in electronic form (Art 15,3) 70

71 Table 6-2 Should requirements by guidelines from above for projection chapter of the 6 th National Communication UNFCCC Guidelines for NatCOM Starting point of WEM and WAM last year of inventory data Present projections relative to unadjusted inventory data for preceding years. Inclusion of projections on quantitative bases for 2005, 2010, 2015 and 2020 Presentation in a tabular format by sector and gas for each of the years, together with actual data for the period 1990 to 2000 or the latest year available Diagrams should be presented showing unadjusted inventory data and a with measures projection, for the period 1990 (or another base year, as appropriate) to clearly present from which year onward PaMs are implemented or not for calculations referring to para. 41 Sufficient information to obtain basic understanding of models and approaches used o (a) Explain for which gases and/or sectors the model or approach was used; o (b) Describe the type of model or approach used and its characteristics (for example, top-down model, bottom-up model, accounting model, expert judgement); o (c) Describe the original purpose the model or approach was designed for UNFCCC Guidelines for biennial UNFCCC Guidelines reports and CTF under Article 7 Presentation relative to actual data Coverage and presentation Assessment of PaMs Methodology report on changes of model/methodologies used in the most recent national communication Draft MMR documents made available to the public should include model and method descriptions, definition and assumptions 71

72 UNFCCC Guidelines for NatCOM and, if applicable, how it has been modified for climate change purposes; o (d) Summarize the strengths and weaknesses of the model or approach used; o (e) Explain how the model or approach used accounts for any overlap or synergies that may exist between different policies and measures references to more detailed information for (a)-(e) report the main differences in the assumptions, methods employed, and results between projections in the current national communication and those in earlier national communications. qualitative discussion of sensitivity of the projections to underlying assumptions information on key underlying assumptions and values of variables (e.g. GDP, energy prices) limit information to data not covered under sector-specific data (para. 48) present relevant information on factors and activities for each sector UNFCCC Guidelines for biennial reports and CTF UNFCCC Guidelines under Article 7 Draft MMR 72

73 Table 6-3 May requirements by guidelines from above for projection chapter of the 6 th National Communication UNFCCC Guidelines for NatCOM WAM and WOM (as baseline or reference) projections Sensitivity analyses (limit number of scenarios presented) Starting point for WOM 1995 or earlier year, such as 1990 or another base year, if appropriate use of normalised data for projections only in addition to should requirement of para. 33 presentation of projections relative to adjusted inventory data Projections for indirect greenhouse gases carbon monoxide, nitrogen oxides and non-methane volatile organic compounds, as well as sulphur oxides Additional diagrams may also be presented total expected effect of planned policies and measures effect of planned policies and measures in terms of GHG emissions avoided or sequestered may be presented in tabular format. total effect of PaMs as difference between WEM and WOM total effect of PaMs based on another methodology (e.g. bottom up) Information for factors and activities per sector may be presented in tabular format UNFCCC Guidelines for biennial UNFCCC Guidelines reports and CTF under Article 7 Projections Presentation relative to actual data Coverage and presentation Assessment of PaMs Methodology Draft MMR 73

74 6.2 Analysis of Documents Analysis of the UNFCCC 2011a: Synthesis and Compilation Report under UNFCCC, FCCC/SBI/2011/INF.1, Source: (UNFCCC 2011a) Executive Summary FCCC/SBI/2011/INF.1 No additional information available for best practice guidance for projections Addendum - Policies, measures, and past and projected future greenhouse gas emission trends of Parties included in Annex I to the Convention FCCC/SBI/2011/INF.1/Add.1 The secretariat conducted additional analyses on which data has been reported by Parties and summarizes on how many Parties provided which kind of information. Some key issues for best practice implications are highlighted below: 36 of 40 Parties reported data for Parties provided WAM projections, 18 Parties provided WOM projections Most parties provided detailed information on models and approaches used to project energy-related emissions. Documentation on how emissions and removals were projected for non-energy sectors was accomplished by most Parties, but in a less detailed manner. Most Parties documented three key drivers: average GDP growth, average population growth, assumed price of crude oil on world market. Some countries reported besides these key drivers also other drivers of GHG as e.g.: the expected development of GDP components; the technological evolution and changes, in particular for energy supply and use, and for existing and future technologies; the expected rate of use of renewable energy supply and cogeneration of electricity and heat; the level of imported and/or exported, energy resources; expected revenues from exports; international CO2 certificate prices; international gas and coal prices; and activity levels for some typical emission drivers (such as cattle numbers for agriculture or household numbers for energy use in the residential sector). Some countries assessed the impact of main drivers through a sensitivity analysis. Explanation of future trends and matching to historical trends should be given. Reporting of international bunkers has been accomplished by 14 Parties. Reporting of GHG emissions including LULUCF has been accomplished by 23 Annex I Parties Addendum - Financial resources, technology transfer, vulnerability, adaptation and other issues relating to the implementation of the Convention by Parties included in Annex I to the Convention FCCC/SBI/2011/INF.1/Add.2 74

75 No useful information was given for best practice guidance for projections Analysis of the UNFCCC 2011b: Synthesis and Compilation Report under the Kyoto Protocol Decision 10/CMP.6, Source: UNFCCC 2011b The analysis of this section relates to (UNFCCC, 2011b) as this report contains a compilation and synthesis of supplementary information incorporated in the fifth national communications submitted to the secretariat by Parties included in Annex I to the Convention in accordance with Article 7, paragraph 2, of the Kyoto Protocol. This section pays close attention to this report as it provides insights into the differences of reporting across Parties and especially about the points which have been checked by the UNFCCC secretariat. Some key issues for best practice implications are highlighted below: Scenarios (WOM, WEM, WAM) Expected use of RMU has been reported by 15 Parties (incl. EU and seven of its MS) Expected use of flexible mechanisms has been reported by 17 Parties Explanation of methods and approaches has been accomplished by most Parties Assumptions of key parameters (average growth in gross domestic product, average population growth and the assumed price of crude oil on the international market) has been accomplished by most parties Sector projections: Estimated and expected total effect of implemented and adopted PaMs in the form of GHG emissions sequestered or avoided for 2010 and 2020: 11 Parties provided detailed projections data by sector for which total effect of PaMs was calculated by taking the difference between estimated GHG emissions under the WEM scenario and the WOM scenario. Effects of measures by sectors: calculated as sums of PaMs by 21 Annex I Parties Analysis of the UNFCCC review of the EU s Fifth National Communication Source: (UNFCCC 2012c) The in-depth review includes recommendations and encouragements. These are summarized in Table 6-4, sorted regarding the type of advice (recommendation / encouragement) and supplemented by the proposed action from the improvement plan. Table 6-4 Results of the in-depth review if the Fifth National Communication of the European Union Topic Recommendation / Encouragement Note / Proposed Action Encouragements 75

76 Topic Recommendation / Encouragement Note / Proposed Action Effects of PaMs Aggregation, gap-filling Key assumptions and changes since previous NC Consistency of assumptions Sensitivity analysis Sectoral projections Sectoral projections ( ) the ERT encourages the EU to report expected impacts for all PaMs, where possible, in order to provide further transparency, and to report aggregated impacts of PaMs by sector. ( )The ERT noted this additional information and encourages the EU to improve the transparency of the next national communication by including in it these elements. The NC5 presented limited information on assumptions used in the projections and did not include a discussion on how the key assumptions have changed since the NC4. The ERT encourages the EU to provide this information in the next national communication ( ) encourages the EU to continue to improve the consistency and accuracy of assumptions in member States' projections and include a summary of this analysis in its next national communication. The ERT considers that a sensitivity analysis of key assumptions is an important aspect of transparency of the projection and encourages the EU to include this analysis in its next national communication. The ERT noted the limited discussion of sectoral projections presented in the NC5 and encourages the EU to provide this information in its next national communication. ( ) undertake a number of improvements regarding transparency and completeness of reporting; the most important of these are that the Party: (h) Elaborate on drivers for sectoral GHG projections; Include a presentation of aggregate MS projections by sector (with measures projection). Discuss on whether to include or to refer to EEA QA/QC in the NC. Implement for the key assumptions that are harmonized in WG2 (fuel prices and CO 2 prices) and potentially GDP at EU level. Report on activities under WG2 in this respect Provide EUCLIMIT projection as a sensitivity. Use sectoral data compiled by ETC/ACM in 2013 See row above Source: own representation The proposed outline of the 6 th NC takes these considerations into account (cf. Section ). 76

77 6.2.4 Annotated Outline for Fifth National Communications of Annex I Parties under the UNFCCC, including Reporting Elements under the Kyoto Protocol Source: (UNFCCC 2009) This is an informal document; however, it strives to combine the UNFCCC & KP related guidelines (6.1.1 & 6.1.3) for NC5 ((which was due to submitted 1 st January 2010). Proposed Structure of this chapter: E. Projections F. Assessment of aggregate effects of policies and measures G. Supplementarity relating to mechanisms under Articles 6,12 and 17 of the KP H. Methodology Regarding the reporting of projections, assessment of aggregate effects of PaMs, Supplementarity and Methodology mainly the Guidelines are explained, and an example for a figure and table has been provided Analysis of Parties National Communications with respect to projections This section contains the main findings from a screening of other Parties 5 th National communication. It focusses on identifying best-practice examples, related to structure, presentation of information with graphs and tables. This screening has been conducted to consider three crucial aspects with respect to addressing projections in the 6 th National Communication: the documentation of methods & assumptions the presentation of the projections the assessment of aggregate effects of policies and measures From the analysis of these aspects and under consideration of the guidelines and the in-depth review we derive an annotated structure of the projection chapter itself (see Section 6.3.1) Reporting of Projections by sector The 5 th NC Slovakia contains an example on how to address the presentation of projections in a concise way. Its presentation includes not only a figure that projects emissions for all scenarios, but accompanies this figure with a table that includes historical emissions, projected emissions. This information is presented for all scenarios and subsectors. Table and figure contain units and the figure is presented relative to

78 Figure 6-1 Best-practice example of presentation of projections Source: 5 th National Communication, Slovakia Assessment of aggregate effects of PaMs The assessment of aggregate effects of policies and measures is captured well in the example below (Figure 6-2): Figure and table are used in combination to present the effects. Both of them include several years; the table further distinguishes sectors and total effects of implemented measures (WEM scenario). The figure, presented in absolute terms, provides an indication on how the aggregate effect of policies and measures develops over time: for this purpose one can focus on either the gap between WOM and WEM (existing measures) or by focussing on the gap between WEM and WAM. The table then quantifies the data for the effect of existing measures with some sectoral detail. 78

79 Figure 6-2 Best-practice example of presentation of aggregate effects of policies and measures Source: 5 th National Communication, Sweden Documentation of methods and assumptions The following examples (Figure 6-3) provide a clear documentation of key assumptions that underlie the resulting projection. All tables includes years, units of measurement are given, so as additional information (i.e. that the economic downturn has not been considered). The information provided in Figure 6-3 is preceded by a section on the methodology which describes the models used for the various projections. Taken together, the methodology, supplemented by the documentation of key assumptions provides the means to understand how projections have been derived. While this approach to documenting key assumptions and parameters can be viewed as bestpractice for projections of individual countries, for the EU s National Communication the documentation of key assumptions will need to follow a different route. The EU projection of GHG emissions will be based on an aggregation of individual MS GHG projections, thus the documentation of key 79

80 assumptions and parameters will need to differ from those of individual projections and documentation will need to be derived in a meaningful way. Figure 6-3 Best-practice example of documentation of key assumptions & parameters an MS level Source: 5 th National Communication, Sweden 6.3 Best practice Implications for the EU 6th national communication and 1st biennial report Taking into account the requirements set out in the various guidelines, the in-depth review of the EU s 5 th National Communication and the screening of other Parties 5 th National Communication, with respect to the projection chapter, best practice can be summarized as: Presentation of at least all shall requirements Presentation of information in an efficient way Presentation of information in a user-friendly way Provision of visual and quantitative means (figures, tables and text). The proposed outline below is based on the assumption that the 6 th National Communication will be a stand-alone product that includes, in the presentation of the projections, the shall require- 80

81 ments as laid out in the UNFCCC Guidelines for biennial reports and CTF. Where this information on projections will finally be addressed, still needs to be decided Proposed annotated outline of the Projections Chapter of the 6 th National Communication In view of the analysis from the preceding sections, considering the best practice implications laid out in Section 6.3, we propose the following outline of the projection chapter of the 6 th National Communication of the EU. Each section presented below is accompanied with an annotation that captures the main elements to be considered in this section. a. Projections a.1. Introduction a.1.1. Context Briefly set the context of the 6 th National Communications projection chapter. a.1.2. Scenarios Short introduction (floating text) of each of the scenarios that will be presented. a.1.3. Key parameters & assumptions Introduction to key parameters & assumptions that underlie each of the scenarios described in the above section. Includes a table with parameters (to the extent possible for an aggregated GHG emission projection) and explanatory text. a.2. Projections a.2.1. Total aggregate GHG emission projections a Total aggregate GHG emission projections per sector Presentation of aggregate GHG emission projection per sector (level 1) for all scenarios. a Total aggregate GHG emission projections per gas Presentation of aggregate GHG emission projections per gas for each scenario a.2.2. GHG emission projections per sector (level 1) and separately for bunker fuels For each sector (level 1) a subsection includes GHG emission projections for each scenario, including: Figures with relative data for total GHG emissions for all scenarios including historical values starting 1990 and projections until 2030, Tables presenting total GHG for all scenarios, all years (1990, latest inventory, 2010,2015,2020,2025,2030), including information by gas (& sub-sector) Explanatory text 3 The shall issues covered in the guidelines for biennial reports are highlighted in bold green below. 81

82 a.2.3. GHG emission projections by ETS and non-ets sectors Presentation analogous to a.2.2. a.2.4. Projections of indirect GHG Presentation to extent possible. a.3. Assessment of aggregate effects of policies and measures Presentation of a figure (total GHG emissions per scenario) and presentation of table including effects of additional policies & measures (WAM), effects of existing policies & measures (WEM), total effect of policies & measures. Data is presented per year and in absolute terms (Mt CO 2 -eq). Explanatory text accompanies information presented in figure and table. Aggregated effects will be given separately calculated top-down between WAM and WEM and bottom up for existing measures (calculated as the sum of effects of PaMs reflecting the maximum possible effect of these). a.4. Sensitivity Analysis As the EU projection will be an aggregation of individual MS projections which all provide their own sensitivities, this is a different topic for the EU than for individual MS and no own sensitivity in the original sense can be calculated. a.4.1. Considering EUCLIMIT results Results of EUCLIMIT will be presented in comparison to aggregated national projections as a kind of sensitivity analysis. An analysis of key differences of input parameters between EUCLIMIT and aggregated or average MS parameters (GDP, fuel prices, CO2 price etc.) will be added and discussed. a Total aggregate GHG emission projections Presentation of aggregate GHG emission projection for all scenarios. a Total aggregate GHG emission projections per gas Presentation of aggregate GHG emission projections per gas for each scenario. a Effects of PaMs Presentation of effects of PaMs between reference and baseline scenario and short discussion and comparison to effects aggregated from MS projections. a.4.2. Considering MS sensitivities Sensitivity analysis of MS will be mentioned and discussed in an appropriate level of detail, depending on the results of the comparison between aggregated MS and EUCLIMIT projections. 82

83 a.5. Supplementarity The intended use of flexible mechanisms by governments to fulfil ESD targets in the second commitment period (as reported by MS in spring 2013) will be presented compared to the total effects of PaMs reported above. The effect of the EU-ETS and the projected use of flexible mechanisms by operators will also be taken into account, if information will be available. a.6. Methodology a.6.1. Methodology for projections a General methodology Explanation on how EU aggregate projection has been compiled, including explanation of gap-filling and/or adjustments in the aggregation process (as applied by EEA). a Models used for sensitivity analysis Short explanation that information on MS methodologies for projections will not be repeated here. This chapter therefore will mainly focus on describing the EUCLIMIT methodology which serves as a sensitivity (thus the chapter on sensitivity (see below) will not be needed). a Introduction on EUCLIMIT methodology that serves as a sensitivity case. Brief introduction (approx. one paragraph) for each of the models used for the EU GHG projection as provided by EUCLIMIT. Key parameters and assumptions Brief documentation of key parameters and assumptions in tabular form with explanatory text, where possible compared to EUCLIMIT parameters and assumptions. a QA/QC procedure A reference to QA/QC procedure will be given (=> ETC/ACCM task) which has been applied for the aggregation of MS projections. In addition it will be explained that the comparison with EUCLIMIT results is also used for QA/QC. a Changes in projection methodologies (BR should requirement) Brief explanation of methodological differences to the calculation of projections in the 5 th National Communication to the extent possible. a.6.2. Methodology for assessing aggregate effects of policies and measures a General methodology Short description of how the aggregate effects of policies and measures have been determined. 83

84 a Gap-filling procedure Documentation of the gap-filling procedures (if it has been necessary) to obtain the aggregate effects of policies and measures. a.6.3. Methodology for sensitivity analysis a and a will not to be necessary for the EU-NC/BR but for national reports, refer to a instead. a General methodology Description of the general methodology for sensitivity analysis. a Key parameters & assumptions Tabular presentation of key parameters and assumptions underlying the sensitivity projection. a.6.4. Methodology for determination of ETS and non-ets GHG emissions per sector Documentation on which basis a distinction between ETS and non-ets sectors has been accomplished. a.7. References for the projection chapter Provision of all references related to the projection chapter a.8. Appendix to the projection chapter Provision of all tables from above for quick reference 84

85 6.3.2 Content of proposed graphs and tables of the Projections Chapter of the 6 th National Communication Derived from the analyses above, a suggestion on the general layout and content on figures and tables is given here. Depending on the nature of each subsection, these figures and graphs will need to be adjusted according to the content (e.g. presentation by sector or gas) and level of detail (table to be adjusted to include either subsectors or gases). In this sense, Figure 6-4 and Figure 6-5 serve as suggested templates, which will need to be adjusted according to the respective subsection. Figure 6-4 Example figure for presenting GHG projections relative to Total GHG emissions (1990 =1) WEM WAM WOM Inventory Source: Own representation with dummy data for aggregate GHG emissions. The figure takes 1990 emissions as 100% and presents all projections relative to that date. The inventory data is also taken into account. Note: depending on the section of the projection chapter, this figure will need to be adjusted to account for sectors/gases. 85

86 Figure 6-5 Example table to represent projection data Total GHG emissions (1990 =1) Inventory 1,00 1,05 1,1 1,13 WEM 1,00 1,05 1,10 1,13 1,14 1,14 1,10 1,09 WAM 1,00 1,05 1,10 1,13 1,12 1,11 1,00 0,90 WOM 1,00 1,05 1,10 1,13 1,20 1,25 1,30 1,34 Total GHG emissions (Mt CO 2 eq) WEM Sum sectors Sector 1 Sector 2 Sector 3 Sector 4 Sector 5 Sector 6 Sector 7 WAM Sum sectors Sector 1 Sector 2 Sector 3 Sector 4 Sector 5 Sector 6 Sector 7 Source: own representation. Table includes dummy data on aggregate GHG emissions. The aggregate data is included as relative data (as in figure), sectoral projections as absolute values, the sums of the sectors, and all scenarios that are presented. Historical data is highlighted. Note: depending on the section of the projection chapter, the nature of table will need to be adjusted. 86

87 7 Vulnerability Assessment, Climate Change Impacts And Adaptation Measures (chapters in EU NC5) 7.1 Legal requirements UNFCCC Guidelines on Reporting and Review According to the UNFCCC reporting guidelines (para 49), the following requirements are requested: Shall requirements: A NC shall include information on the expected impacts of climate change and an outline of the action taken to implement Article 4.1(b) and (e) with regard to adaptation. According to Article 4.1(b) and (e) of the Convention, all Parties shall formulate and implement programmes containing measures to facilitate adaptation to climate change; and cooperate in preparing for adaptation. The NC shall report on the following three elements: A. Expected impacts of climate change B. Vulnerability Assessment C. Adaptation measures May requirements: Parties are encouraged to use the Intergovernmental Panel on Climate Change (IPCC) Technical Guidelines for Assessing Climate Change Impacts and Adaptations and the United Nations Environment Programme (UNEP) Handbook on Methods for Climate Change Impacts Assessment and Adaptation Strategies. Parties may also report on specific results of scientific research in the field of vulnerability assessment and adaptation. Parties may refer, inter alia, to integrated plans for coastal zone management, water resources and agriculture UNFCCC reporting Guidelines for Annex I biennial reports and CTF for biennial reports No information related to climate change impacts, vulnerability and adaptation UNFCCC reporting guidelines under Article 7 of the Kyoto protocol No information related to climate change impacts, vulnerability and adaptation. 87

88 7.2 Analysis of Other Documents Analysis of the UNFCCC 2011a: Compilation and synthesis report under UNFCCC, Executive Summary In chapter D (para 23) of the executive summary, the progress in reporting on climate change impacts, vulnerability and adaptation measures when comparing NC4 and NC5 is presented. When assessing the information, the UNFCCC concludes that climate change impacts, vulnerability and adaptation received more attention in the overall climate change policy. The NC5 showed that the following areas and sectors seem to be most vulnerable to climate change: water resources, coastal zones, agriculture and food security, human health, forestry, biodiversity and natural ecosystems, and infrastructure and economy. Key climate change impacts of concern reported by Parties in the NC5 included sea level rise, floods, heat waves and water stress. In addition, some Parties expressed concerns about glacier retreat, permafrost thawing and wildfires. The document does not conclude with recommendations for the NC Addendum - Policies, measures, and past and projected future greenhouse gas emission trends of Parties included in Annex I to the Convention No information on climate change impacts, vulnerability and adaptation Addendum - Financial resources, technology transfer, vulnerability, adaptation and other issues relating to the implementation of the Convention by Parties included in Annex I to the Convention Part II of the report focuses on climate change impacts, vulnerability and adaptation. In the overview chapter A, the general state of art on impacts, vulnerability and adaptation as reported in the NC5 is presented (see also for ). Chapter B presents the information reported on climate change impacts and climate change models for the future. In addition, it highlights a number of adaptation measures in order to cope with these impacts. The document does not provide any recommendations to be addressed in the NC Analysis of the UNFCCC 2011b: Synthesis and Compilation Report under the Kyoto Protocol No information related to climate change impacts, vulnerability and adaptation. 88

89 7.2.3 Analysis of the UNFCCC review of the EU s Fifth National Communication The report summarises the main conclusions as presented in the NC5 in regard to expected impacts of climate change, vulnerability assessment and adaptation measures. Overall, the accounts in the NC5 reflect the considerable progress has been made since the NC4. However, it has been noted that the NC5 did not provide (sufficient) information on the following issues: on the vulnerability to climate change and the impacts of climate change on the economy, urban areas and infrastructure on its vulnerability and adaptation to climate change with regard to its food security, infrastructure and economy on the methods and indicators used to determine vulnerability and adaptation on the progress of support programmes and projects in its cooperation with developing countries Annotated Outline for Fifth National Communications of Annex I Parties under the UNFCCC, including Reporting Elements under the Kyoto Protocol Proposed structure of this chapter: A. Expected impacts of climate change B. Vulnerability assessment C. Adaptation measures According to the UNFCCC reporting guidelines (para 49), a NC shall include information on the expected impacts of climate change and an outline of the action taken to implement Article 4.1(b) and (e) with regard to adaptation. May requirement: focus reporting on the following three elements: assessments, action and cooperation in the area of vulnerability, impacts and adaptation focus reporting to specific results of scientific climate impact research use the Intergovernmental Panel on Climate Change (IPCC) Technical Guidelines for Assessing Climate Change Impacts and Adaptations and the United Nations Environment Programme (UNEP) Handbook on Methods for Climate Change Impacts Assessment and Adaptation Strategies focus reporting to specific results of vulnerability assessments for certain sectors refer, inter alia, to integrated plans for coastal zone management, water resources and agriculture 89

90 use the table 2bis (below). To summarize information on impacts, vulnerability and adaptation Other documents with relevance for climate change impacts, vulnerability and adaptation Report of the Conference of the Parties serving as the meeting of the Parties to the Kyoto Protocol on its sixth session, held in Cancun from 29 November to 10 December 2010 Addendum Part Two: Action taken by the Conference of the Parties serving as the meeting of the Parties to the Kyoto Protocol at its sixth session Information on the adaptation fund and its review Report of the Conference of the Parties on its seventeenth session, held in Durban from 28 November to 11 December 2011 Addendum Part Two: Action taken by the Conference of the Parties at its seventeenth session Ad hoc Working Group on long-term cooperative action Decides to extend the Ad Hoc Working Group on Long-term Cooperative Action under the Convention (with focus on work in the first half of 2012, including, inter alia, on mitigation, adaptation, finance, technology development and transfer, transparency of action and support, and capacity-building) for one year in order for it to continue its work and reach the agreed outcome pursuant to decision 1/CP.13 (Bali Action Plan) through decisions adopted by the sixteenth, seventeenth and eighteenth sessions of the Conference of the Parties, at which time the Ad Hoc Working Group on Long-term Cooperative Action under the Convention shall be terminated; Also decides to launch a process to develop a protocol, another legal instrument or an agreed outcome with legal force under the Convention applicable to all Parties, through a subsidiary body under the Convention hereby established and to be known as the Ad Hoc Working Group on the Durban Platform for Enhanced Action. 90

91 Enhanced action on adaptation Adaptation Committee shall be the overall advisory body to the Conference of the Parties on adaptation to the adverse effects of climate change Decision 5/CP.17 on national adaptation plans agrees that the objectives of the national adaptation plan process are as follows: (a) To reduce vulnerability to the impacts of climate change, by building adaptive capacity and resilience; (b) To facilitate the integration of climate change adaptation, in a coherent manner, into relevant new and existing policies, programmes and activities, in particular development planning processes and strategies, within all relevant sectors and at different levels, as appropriate; planning for adaptation at the national level is a continuous, progressive and iterative process, the implementation of which should be based on nationally identified priorities, including those reflected in the relevant national documents, plans and strategies, and coordinated with national sustainable development objectives, plans, policies and programmes; enhanced action on adaptation should be undertaken in accordance with the Convention, should follow a country-driven, gender-sensitive, participatory and fully transparent approach, taking into consideration vulnerable groups, communities and ecosystems, and should be based on and guided by the best available science and, as appropriate, traditional and indigenous knowledge, and by gender-sensitive approaches, with a view to integrating adaptation into relevant social, economic and environmental policies and actions, where appropriate; Agrees that the national adaptation plan process should not be prescriptive, nor result in the duplication of efforts undertaken in-country, but should rather facilitate country-owned, country-driven action; A process to enable least developed country Parties to formulate and implement national adaptation plans Present a guideline for formulation and implementation of adaptation national plans; Decides on modalities to support and enable least developed country in adaptation planning; Suggests financial arrangements for the formulation and implementation of national adaptation plans in least developed countries Invitation to developing country Parties that are not least developed country Parties to employ the modalities for national adaptation plans Suggests/requests on reporting, monitoring and evaluation 91

92 7.2.6 Analysis of Parties National Communications The main findings of the screening of Parties National communication on climate change impacts, vulnerability and adaptation related to good practice in structure, graphs and tables are presented in the following: Australia s Fifth National Communication on Climate Change Highlighting key issues and development in a box prior to each chapter: Belgium`s Fifth National Communication on Climate Change Clear structure of impacts and vulnerabilities along key sectors such as ecosystems and biodiversity, agriculture and forestry, floods, water resources, coastal regions, infrastructure/energy & industry, human health, tourism. Overview tables for each sector to highlight climate change impacts, vulnerability and adaptation including further needs 92

93 Estonia`s Fifth National Communication on Climate Change Additional information on training and public awareness in the Annex Finnish`s Fifth National Communication on Climate Change Overview table on climate change Examples highlighting specific issues 93

94 Summary on adaptation measures and state of progress New Zealand`s Fifth National Communication on Climate Change Overview box on key developments since the 4NC 94

95 UK`s Fifth National Communication on Climate Change Boxes with practical examples 95

96 7.3 Best practice Implications for the EU 6 th national communication and 1 st biennial report Proposed annotated outline of the Vulnerability Assessment, Climate Change Impacts and Adaptation Measures Chapter of the 6 th National Communication The chapter 7 of the NC5 was structured as followed: 7.1. Overview 7.2. Expected Impacts of Climate Change in Europe and Vulnerability Assessment Observed and Projected Patterns of Climate Change across the EU Impacts of Climate Change in the EU 7.3. Adaptation Measures and EC Level Actions on Adaptation Towards an EU Framework for Action: Climate Change Adaptation White Paper Mainstreaming Adaptation through the Cohesion Policy Mainstreaming Climate Change Adaptation in Sectoral Policy Integrating Adaptation into Environment Impact and Strategic Environmental Assessment Evidence Base for Policy Making We propose a new structure for chapter 7 in order to reflect better the latest developments across Europe and the recommendations made by the UNFCCC and others. In chapter 7.2, information on vulnerabilities needs to be included in addition to observed climate change patterns and climate change impacts. Comprehensive information on vulnerabilities can be found e.g. in the indicator report of the EEA 2012 as well as in the background report to the Impact Assessment accompanying the development of the EU Adaptation Strategy expected in spring The aim is also to present information on impacts and vulnerabilities for economy, urban areas, infrastructure and food security (as recommended by the UNFCCC review). An extensive revision is required in chapter as the EU policy framework on adaptation has been progressed significantly since the NC5. The COM has implemented the work programme established under the White Paper for Climate change adaptation Thus, more than 30 activities have been carried out 4 and the European Adaptation Strategy has been developed. It can be expected that the strategy will be published in the first half of Therefore, the NC6 should contain the latest developments as well as the objectives of the strategy and the next steps planned for implementation. In addition, information on the relation of EU level actions to Member States activities will be presented. 4 For a full list see: Report from the Commission to the European Parliament and the Council; Progress towards achieving the Kyoto objectives, Table 15. Available at: 96

97 Also chapter on the evidence base for policy makers needs to be updated for the NC6. Many research projects have been funded to improve our understanding of climate change impacts and adaptation (cf. projects funded under FP7, Interreg, Life+, etc.). In addition, policy relevant information on cost of impacts and cost of adaptation has been gained in the last couple of years (cf. projects such as PESETA, ClimateCost). Nevertheless, knowledge gaps in relation to methodological approaches for cost estimates as well as vulnerability assessments, etc. have become obvious and needs to be included in the NC6. As recommended by the UNFCCC review, additional information on the support and cooperation with developing countries should be included for the NC6. Based on the latest developments and the recommendations by UNFCCC, we suggest the following structure for the NC6, chapter 7.1, 7.2 and 7.3 (note: additional or adjusted chapters are highlighted in yellow): Box with key developments 7.1. Overview 7.2. Expected Impacts of Climate Change in Europe and Vulnerability Assessment Observed and Projected Patterns of Climate Change across the EU Impacts of Climate Change in the EU Vulnerability to Climate Change across the EU (including information on indicators) 7.3. EU Level Actions on Adaptation Towards an EU Framework for Action: EU Strategy for Adaptation to Climate Change (NOTE: objectives of the final strategy will be included in spring 2013 and provide the structure of this sub-chapter) Evidence Base for Policy Making Support and cooperation with developing countries A first bilateral meeting between Alfonso Gutierrez-Teira from DG CLIMA and Sabine McCallum from the project team was held on the 17 th of January Mr Gutierrez-Teira agreed on the suggested structure. 97

98 7.3.2 Content of proposed graphs and tables of the Vulnerability Assessment, Climate Change Impacts and Adaptation Measures Chapter of the 6 th National Communication The main information source to be used for chapter 7 on impacts, vulnerabilities and adaptation will be the Background Report to the Impact Assessment for the EU Adaptation Strategy (prepared under the lead of EAA within a DG CLIMA support contract) which contains all relevant and up-todate information. As presented in chapter on good practice, we aim to work on the following graphs and tables to increase the readability of the 6NC: Start the chapter 7 on impacts, vulnerabilities and adaptation with a box presenting the key developments since the 5NC; Present an overview table or a graph on projected changes for Europe; Include boxes presenting concrete examples of adaptation actions taken at the European level. 98

99 8 Financial Resources And Transfer Of Technology (including EU International Co-operation on Climate Change Impacts and Adaptation) (chapters 8 and 7.4 in EU NC5) 8.1 Legal requirements Financial resources, technology transfer, vulnerability, adaptation and other issues relating to the implementation of the Convention by Parties included in Annex I to the Convention including EU International Cooperation on Climate Change Impacts and Adaptation The following sections analyse the legal requirements with respect to the reporting of the EU International Cooperation on Climate Change Impacts and Adaptation. The analysis follows along the lines of the types of requirements (shall, should, may) UNFCCC Guidelines on Reporting and Review Source: (UNFCCC 2000) (UNFCCC 2000) contains detailed guidelines on how to address Financial Resources and Transfer of Technology. The document is organised along several chapters, and lays out detailed guidelines for each of them. This section is organised along these chapters and summarises the requirements according to type by paragraph. Shall requirements Paragraph 51: definition of new and additional Paragraph 52: Support related to vulnerability and adaptation Paragraph 53: Channels of support Paragraph 54: Transfer of Technology (some requirements with the paragraph are not mandatory) Paragraph 55: Technology Transfer success and failure stories (using table 6) (some requirements with the paragraph are not mandatory) Paragraph 56: Transfer of technology: steps taken to promote the development of endogenous technologies and capacities of developing countries UNFCCC reporting Guidelines for Annex I biennial reports and CTF for biennial reports Financial resources, technology transfer, vulnerability, adaptation and other issues relating to the implementation of the Convention by Parties included in Annex I to the Convention including EU International Cooperation on Climate Change Impacts and Adaptation Source: (UNFCCC 2012b) Shall requirements Paragraph 13: Provision of financial technological and capacity building support (some requirements with the paragraph are not mandatory) Paragraph 14: National approach to tracking provision of support 99

100 Paragraph 15: Methodologies for reporting Paragraph 16: Addressing needs of DCs (shall, to the extent possible) Paragraph 17: Provision of financial support (using table 7) Paragraph 18: Additional information on provision of financial support (using tables 7a and 7b) Paragraph 21: Transfer of Technology s Success and Failure Stories Paragraph 22: Transfer of Technology (suing table 8) Paragraph 23: Capacity building (shall, to the extent possible) (using table 9) Should requirements Paragraph 19: Private sector financial resources (should, to the extent possible) (using tables 7a and 7b) Paragraph 20: Types of financial instruments (using tables 7a and 7b) UNFCCC reporting guidelines under Article 7 of the Kyoto protocol Financial resources, technology transfer, vulnerability, adaptation and other issues relating to the implementation of the Convention by Parties included in Annex I to the Convention including EU International Cooperation on Climate Change Impacts and Adaptation Source: (UNFCCC 2006) FCCC/KP/CMP/2005/8/Add.2 Shall requirements Paragraph 39: Implementation of Article 10 Paragraph 40: Implementation of Article 10 Technology Transfer Paragraph 41: Implementation of Article 11, Definition of New and Additional Paragraph 42: Contributions to the GEF Paragraph 43: Funds provided to the Adaptation Fund (mandatory for those Parties that provided funds) 100

101 8.2 Analysis of Other Documents Analysis of the UNFCCC 2011a: Synthesis and Compilation Report under UNFCCC Executive Summary FCCC/SBI/2011/INF Some Parties reported on new multilateral, bilateral and development cooperation initiatives with developing country Parties, intended to enable the latter Parties to address and undertake research on the impacts of climate change and the required adaptation processes. 29. In the context of the clean development mechanism, nearly all of the Annex II Parties reported information on how they have encouraged private-sector activities and public private partnerships, and most Annex II Parties reported their pioneering use of carbon finance through the establishment of carbon funds as a means of transferring financial resources to support mitigation activities in developing country Parties. 34. Although many Annex II Parties reported financial data, the detail and level of aggregation of these data vary significantly. The main challenges when comparing data across Annex II Parties, in terms of carrying out a robust aggregation of the data in order to establish the overall trends, relate to the significant differences in the approaches and methodologies applied by the Parties. These refer to, inter alia, the sectoral categories used by Annex II Parties to aggregate their financial data, the reporting periods/years and currency used by Annex II Parties, as well as the tabular and textual formats used, which are not always consistent with the format recommended in the UNFCCC reporting guidelines Addendum - Financial resources, technology transfer, vulnerability, adaptation and other issues relating to the implementation of the Convention by Parties included in Annex I to the Convention including EU International Cooperation on Climate Change Impacts and Adaptation FCCC/SBI/2011/INF.1/Add.2 9. Some Parties reported on new multilateral, bilateral and development cooperation initiatives with developing country Parties, intended to enable those Parties to address and undertake research on the impacts of climate change and the required adaptation processes. These initiatives include cooperation in the water management, agriculture and health sectors. 37 (d) Owing to significant differences in reporting approaches between Annex II Parties as well as in reporting periods, especially in relation to a major contributor, it is difficult to assess the overall trend in total bilateral contributions to mitigation-related activities. 37 f. In addition to contributions to the GEF (Global Environment Facility) Trust Fund, Annex II Parties reported contributions to SCCF (The Special Climate Change Fund) and LDCF (The Least Developed Countries Fun), as well as contributions to the Adaptation Fund under the Kyoto Protocol, in particular for the purpose of the operationalization of that fund. (g) Nearly all of the Annex II Parties reported information on how they have encouraged privatesector activities and public private partnerships, including providing examples of initiatives to 101

102 stimulate private-sector participation in climate change action, particularly in the context of the clean development mechanism (CDM), as part of their contributions of financial resources for climate change action. However, such references and figures are difficult to aggregate in a meaningful manner on the basis of the reported figures; (h) Most Annex II Parties reported their pioneering use of carbon finance through the establishment of carbon funds, particularly under the CDM, as a means of transferring financial resources to support mitigation activities in developing country Parties. [ ] Funding related to carbon finance has not been limited to direct investments in projects generating emission reduction units, as Annex II Parties also reported contributions to complementary activities, such as capacity-building for the use of the CDM and transfer of clean technologies; 37 i. The Climate Investment Funds (CIF) were highlighted and identified by several Annex II Parties as one of the main emerging channels for providing climate finance. CIF are two funds to help developing countries pilot low-emission (mitigation) and climate-resilient (adaptation) development. With CIF support, many developing countries are piloting transformations in relation to clean technology, sustainable management of forests, increased access to energy through renewable energy, and climate-resilient development. Some Annex II Parties indicated that these funds aim to address the short term financing gap between now and 2012 and to pilot approaches for the longer term; 37 j. Several Annex II Parties reported the development of risk management instruments against adverse effects of climate change in developing country Parties. Key areas for which pilot experiences were reported include insurance products developed according to pre-disaster analysis, and the development of indices as a reference or baseline against extreme weather fluctuations (drought and floods); 40. Annex II Parties reported their financial contributions made to the GEF Trust Fund, SCCF, LDCF and Adaptation Fund under the Kyoto Protocol, as well as through multilateral and bilateral channels. Also, Annex II Parties indicated how they have engaged the private sector in mobilizing additional resources, particularly for mitigation. 41. Annex II Parties reported information on their contributions to the GEF Trust Fund either for a multi-year period, for a replenishment cycle or for several years over a period. Some Annex II Parties reported their contribution as a total contribution to the GEF, while other Annex II Parties reported only the estimated portion that was allocated to support the climate change focal area, and others did not specify the category of their contribution. In addition to providing information on their contributions to the GEF Trust Fund, Annex II Parties reported their contributions to LDCF and SCCF. 43. Annex II Parties reported these data using differing timescales and currencies, as well as in various tabular and textual formats, which poses significant challenges in terms of carrying out a robust aggregation of the data in order to gain an understanding of the overall trends. Some Annex II Parties did not use the categories provided in the tabular format recommended in the UNFCCC reporting guidelines. 44. Key reporting issues: (a) Around seventy per cent of the Annex II Parties reported on their contributions to multilateral institutions and programmes. Some Annex II Parties acknowledged difficulties in identifying the 102

103 share of their contributions made to multilateral organizations targeting the implementation of the Convention and related activities, and only a few of them provided explicit details on such shares, also by using the Rio markers. Annex II Parties listed a wide range of multilateral institutions, including those specified in the UNFCCC reporting guidelines and other multilateral institutions; (b) Nearly all Annex II Parties provided extensive and detailed information on how bilateral and regional financial contributions for mitigation and adaptation were provided. Most Annex II Parties indicated the subsectors that were targeted by such funding, using textual and/or tabular formats; (c) Annex II Parties provided both quantitative and qualitative information on financial resources. On the qualitative side, many Annex II Parties provided descriptions of the programmes and projects that they support in the area of climate change. On the quantitative side, many Annex II Parties reported on financial resources in the tabular formats provided in the UNFCCC reporting guidelines. However, some Annex II Parties did not provide the three key tables on the GEF and multilateral and bilateral contributions; (d) Although many Annex II Parties reported financial data, the detail and level of aggregation of these data vary significantly. The main challenges when comparing data across Parties relate to the differences in the sectoral categories used by Annex II Parties to aggregate their financial data, and in the reporting periods/years and currency used by Annex II Parties; (e) Although not prevented by the existing UNFCCC reporting guidelines, the use of different time bases makes any comparison or aggregation of data significantly difficult. Many Annex II Parties provided information on their financial contributions by year, multi-year period or GEF replenishment cycle, or for several years over a period. Reporting periods vary across Annex II Parties. Several Annex II Parties reported for a multi-year period without annual breakdown or provided information on their contributions over a GEF replenishment cycle; (f) With regard to the base currency used by Annex II Parties for their reporting, the UNFCCC reporting guidelines indicate that Annex II Parties have to report information on their financial contributions following a specific tabular format in USD. This, however, is not a mandatory requirement for reporting on their multilateral, bilateral and regional financial contributions. More than half of the Annex II Parties provided financial data in their national currencies, including most EU member States, Canada, Japan, New Zealand, Norway and United Kingdom. The selection of rates for the conversion of the data into a single currency is highly sensitive and may have significant implications for the trends and conclusions suggested by the reported figures. For the purposes of this document, the exchange rates used were taken from the data set of financial indicators of the Organisation for Economic Co-operation and Development for the relevant years (The relevant exchange rates were obtained from < 45. More than half of the Annex II Parties reported that they provided new and additional financial resources pursuant to Article 4, paragraph 3, of the Convention. [ ] However, in the absence of a common and official definition of the concept of new and additional, the understanding of the nature of new and additional resources provided remains divergent and depends on the individual approach taken by each Party. 46. Five Annex II Parties defined their contributions as new and additional in relation to the pledges made in the Bonn Agreements on the implementation of the Buenos Aires Plan of Action. A few other Annex II Parties, including the United Kingdom, suggested that the new and additional na- 103

104 ture of their contributions should be measured against the target of providing 0.7 per cent of their gross national income in official development assistance (ODA) by Norway and Switzerland explicitly defined an individual baseline against which to measure the new and additional nature of their financial contributions. 49. Eight Annex II Parties, all European, applied the Rio markers for reporting on climate-relevant ODA. 71. Eight Annex II Parties made explicit reference to hard and soft technologies. However, most of the Annex II Parties implicitly referred to both types of technologies, by providing information on hard technologies being transferred, as well as information on activities relating to soft technologies, such as local capacity-building, training programmes and information networks, such as the Livestock Emissions and Abatement Research Network, established by New Zealand. 75. Many Annex II Parties reported on their provision of support for the development and enhancement of endogenous capacities and technologies in developing countries. Capacity-building activities reported by Annex II Parties include education and training to enhance skills in the design, installation, operation and maintenance of specific technologies, and project development skills, and the strengthening of the capacities of national institutions relevant to technology transfer. Capacity-building forms an integral part of many of the technology transfer programmes and projects reported by Annex II Parties, at both the individual and the institutional level. 76. Ten Annex II Parties included in their NC5 a separate section on the prominent role of the private sector in enhancing the transfer of technologies, while ten other Annex II Parties included information on the private sector s major role in the description of their activities related to technology transfer. 80. Almost all Annex II Parties highlighted activities relevant to supporting the development and enhancement of endogenous capacities in developing countries. Eleven of them included a separate section on capacity-building in their NC5 and other Annex II Parties reported on capacitybuilding under their bilateral projects or by completing the relevant table with respect to adaptation. 82. While capacity-building was recognized as a cross-cutting issue by most Annex II Parties, eight Annex II Parties included a separate section on capacity-building in their NC5. Two of these Annex II Parties, Italy and Netherlands, additionally made a distinction between their support to capacitybuilding activities for mitigation and their support to those for adaptation. Other Annex II Parties reported on their capacity-building activities within the sections of their NC5 on: multilateral and bilateral projects under financial resources and transfer of technology; adaptation; research and systematic observation; and education, training and public awareness. 84. Parties reported on their support provided to developing countries and EIT Parties across the priority areas of needs identified in the framework for capacity-building in developing countries established under decision 2/CP.7 and the framework for capacity building in countries with economies in transition established under decision 3/CP.7, but they did not make direct reference to those frameworks. 104

105 8.2.2 Analysis of the UNFCCC 2011b: Synthesis and Compilation Report under the Kyoto Protocol - Financial resources, technology transfer, vulnerability, adaptation and other issues relating to the implementation of the Convention by Parties included in Annex I to the Convention including EU International Cooperation on Climate Change Impacts and Adaptation Source: UNFCCC 2011b 27. Several Parties specifically reported on the use of mechanisms and institutions under the Kyoto Protocol for the provision of financial support. Most of the examples and cases provided refer to the development of emission reduction projects in developing countries in the context of the CDM. Nearly all Parties reported information on how they have encouraged private-sector activities and public private partnerships, including examples of initiatives to stimulate private-sector participation in climate change action Many Parties did not necessarily make a clear distinction between the financial support provided under the Convention and under the Kyoto Protocol; however, several Parties provided examples of how they are making use of the Kyoto Protocol s flexibility mechanisms (the CDM, JI and emissions trading) to mobilize financial resources for developing countries Analysis of the UNFCCC review of the EU s Fifth National Communication Financial resources, technology transfer, vulnerability, adaptation and other issues relating to the implementation of the Convention by Parties included in Annex I to the Convention including EU International Cooperation on Climate Change Impacts and Adaptation Source: UNFCCC Report of the In-depth Review of the Fifth National Communication of the European Union. The next table resumes the actions to be taken on the EU International Cooperation on Climate Change Impacts and Adaptation based on the paragraph of the IDR. Table 8-1 Action to be taken improve structure of financial reporting Recommendations from the in-depth review of the NC5 Reference /para IDR 122 / 164 Quotation IDR (122) The ERT encourages the EU to improve the structure of the section on financial resources by providing more information in tabular and graphical format and focusing on the climate-oriented actions The ERT encourages the EU to undertake a number of improvements regarding transparency and completeness of reporting; the most important of these are that the Party: (k) Improve the structure of the section on financial resources by providing more information in tabular and graphical format and focusing on the climate-oriented actions; 105

106 Action to be taken Provide more detailed information on support for LDCs information on the progress of support programmes and projects in its cooperation with developing countries increase transparency of financial reporting by a) presenting the data on finance by clearly identifying the funds allocated to mitigation, adaptation, capacity-building and technology transfer; b) specifying the allocated and disbursed financial resources c) identifying clearly the funds for development assistance that is complimentary to climate activities d) reporting on the effectiveness of the use of its financial resources and the efficiency of the delivery Clarification on the definition of new and additional financial resources; Reference /para IDR 164 / / Quotation IDR 164. The ERT encourages the EU to undertake a number of improvements regarding transparency and completeness of reporting; the most important of these are that the Party: (j) Provide more detailed information on support for LDCs; 118. The NC5 reports financial resources to a number of non-annex I Parties and indicates that its policies and programmes for climate change are designed to give particular priority to least developed countries (LDCs). The NC5, however, did not provide detailed information on the funds allocated or disbursed to LDCs or specific measures or programmes to assist these countries to meet their cost for adaptation. The NC5 did indicate, though, that to assist the EU in meeting this reporting requirement a study is being conducted to better understand adaptation cost in developing countries and how the EU can best direct its resources. The ERT encourages the EU to provide more detailed information on support for LDCs in its next national communication The NC5 provided a comprehensive report on the cooperation of the EU with developing countries and its contribution to the Nairobi work programme on impacts, vulnerability and adaptation to climate change. During the review, the EU provided further information on its cooperation with developing countries. These include policy documents (for example, Agenda for Change (2009) and Environment Integration Strategy (2009)). The cooperation of the EU with developing countries on adaptation covers a wide scope in terms of sectors and number of developing countries. The EU may wish to include in the next national communication information on the progress of support programmes and projects in its cooperation with developing countries Also, the EU may wish to consider in the next national communication: (a) presenting the data on finance by clearly identifying the funds allocated to mitigation, adaptation, capacity-building and technology transfer; (b) specifying the allocated and disbursed financial resources; and (c) identifying clearly the funds for development assistance that is complimentary to climate activities. Also, the EU may wish to consider reporting on the effectiveness of the use of its financial resources and the efficiency of the delivery (percentage of the funds that reach the recipient countries and impacts of the financial resources). In particular, an assessment of the impacts of financial resources provided may be conducted using the methods of other international processes such as the Global Environment Facility. 163: The key recommendations are that the EU: (a) Improve completeness and transparency of reporting by including in the next national communication the following information: (ii) Clarification on the definition of new and additional financial resources; 115. The information provided in the NC5 on the provision of financial resources includes most of the information required by the UNFCCC reporting guidelines and decision 15/CMP.1. The ERT noted that the EU did not define explicitly which financial resources are defined as "new and additional". During the review week, the EU clarified that financial resources provided since publication of the NC4 are considered to be "new and additional". The ERT recommends that the EU include a clear indication of what "new and additional" financial resources it has provided in its next national communication.

107 Action to be taken streamlining the chapter on financial resources by emphasizing specific climate finance instead of ODA highlighting key channels and programmes in chapter on financial resources clarify the scope of the source of financial resources (EU budget or member States budget) clarify the share of technology transfer in financial resources clarify the extent of climate elements within the pre-accession funds clarify the institutional arrangements for channelling of climate financial resources Reference /para IDR Quotation IDR 122. The ERT recommends that the EU enhance the transparency of its reporting on financial resources through: (a) streamlining the chapter by emphasizing specific climate finance instead of ODA; (b) highlighting key channels and programmes; and (c) clarifying the following: the scope of the source of financial resources (EU budget or member States budget), the share of technology transfer in financial resources, the extent of climate elements within the pre-accession funds, and the institutional arrangements for channelling of climate financial resources The ERT recommends that the EU enhance the transparency of its reporting on financial resources through: (a) streamlining the chapter by emphasizing specific climate finance instead of ODA; (b) highlighting key channels and programmes; and (c) clarifying the following: the scope of the source of financial resources (EU budget or member States budget), the share of technology transfer in financial resources, the extent of climate elements within the pre-accession funds, and the institutional arrangements for channelling of climate financial resources The ERT recommends that the EU enhance the transparency of its reporting on financial resources through: (a) streamlining the chapter by emphasizing specific climate finance instead of ODA; (b) highlighting key channels and programmes; and (c) clarifying the following: the scope of the source of financial resources (EU budget or member States budget), the share of technology transfer in financial resources, the extent of climate elements within the pre-accession funds, and the institutional arrangements for channelling of climate financial resources The ERT recommends that the EU enhance the transparency of its reporting on financial resources through: (a) streamlining the chapter by emphasizing specific climate finance instead of ODA; (b) highlighting key channels and programmes; and (c) clarifying the following: the scope of the source of financial resources (EU budget or member States budget), the share of technology transfer in financial resources, the extent of climate elements within the pre-accession funds, and the institutional arrangements for channelling of climate financial resources The ERT recommends that the EU enhance the transparency of its reporting on financial resources through: (a) streamlining the chapter by emphasizing specific climate finance instead of ODA; (b) highlighting key channels and programmes; and (c) clarifying the following: the scope of the source of financial resources (EU budget or member States budget), the share of technology transfer in financial resources, the extent of climate elements within the pre-accession funds, and the institutional arrangements for channelling of climate financial resources The ERT recommends that the EU enhance the transparency of its reporting on financial resources through: (a) streamlining the chapter by emphasizing specific climate finance instead of ODA; (b) highlighting key channels and programmes; and (c) clarifying the following: the scope of the source of financial resources (EU budget or member States budget), the share of technology transfer in financial resources, the extent of climate elements within the pre-accession funds, and the institutional arrangements for channelling of climate financial resources Annotated Outline for Fifth National Communications of Annex I Parties under the UNFCCC, including Reporting Elements under the Kyoto Protocol The NC guidelines, including the annotated outline prepared by the UNFCCC secretariat call for reporting on cooperation with developing countries in relation to vulnerability and adaptation in two chapters: Chapter VI on Vulnerability assessment, climate change impacts and adaptation measures, where Parties may focus their reporting on, inter alia, cooperation in preparing for adaptation (in the scope of the Party s implementation of Article 4.1 (b) and (e)); and Chapter VII on Financial resources and transfer of technology, including information under articles 10 and 11 of the Kyoto Protocol, where detailed information on the assistance provided for the purpose of assisting developing countries that are particularly vulnerable to the 107

108 adverse effects of climate change in meeting the costs of adaptation to those adverse effects. The proposed outline for chapter VII (not including any new guidance from the Biennial Report Guidelines) is as follows: VII. Financial resources and transfer of technology, including information under Articles 10 and 11, of the Kyoto Protocol o VII.A. Provision of new and additional resources o VII.B. Assistance to developing country Parties that are particularly vulnerable to climate change o VII.C. Provision of financial resources Financial resources, including under Article 11 of the Kyoto Protocol o VII.D. Activities related to transfer of technology o VII.E. Information under Article 10 of the Kyoto Protocol Analysis of Parties National Communications The following are elements of national communication from different Parties which may be highlighted as good practices in reporting. Australia presents its values in USD, as well as the exchange rates (estimated as an average exchange rate) and the source for the exchange rate. Belgium presents and overview of its cooperation policy and official development assistance (ODA), which facilitates framing and understanding its climate change cooperation. It provides figures for its overall ODA and the climate-related parts, further classified as mitigation and adaptation. It provides charts (in addition to the required tables), which facilitate the reading of the textual information and allow for a clear overview of the evolution in Belgium s climate support. It reports on technology transfer and capacity building in the same chapter, thus following more closely the concept of hard and soft technology. Czech Republic provides, in part, its financial support figures in its national currency and in USD (including the exchange rate). As Belgium, Denmark provides a description of its overall development and cooperation policy. Denmark also presents an overview of how it promotes and facilitates private sector climate change related investments in developing countries, which is in line with the requirements of the Biennial Reports. Likewise, France also reports how its bilateral relations with developing countries are facilitating and promoting private sector investment, including technology transfer. Several countries (France, Denmark, Luxembourg, Netherlands, Switzerland) refer to other sections of its NC where it reports on the implementation of its Kyoto Protocol article 10 commitments, thus avoiding duplication of information. Germany provides information on private sector projects with public financing. 108

109 New Zealand provides the range of fluctuation of national currency in relation to the USD during the reporting period (report is in national currency, though). Norway reports its definition of new and additional, while noting that there is no such agreed definition. Portugal reports that the exchange rate used is the rate of the day of transfer of funds (although it refers to one specific rate). Sweden uses exchange rates as per December 11 each year. It also devotes one specific section to cooperation with least developed countries (LDCs). Switzerland reports on the importance of the private sector and on the role of the public sector in technology transfer. The UK approach to reporting is reader friendly and promotes understanding: instead of reporting on a long list of projects and initiatives, the UK provides a description of its cooperation programs, goals and key partners, complemented by the required tables. 8.3 Best practice Implications for the EU 6th national communication and 1 st biennial report Reporting on financial resources and transfer is rather complex and has become more challenging with the requirements under the Biennial Reports. Information needs now to be tracked with a much higher level of detail then before and that will result in more transparent information. From the information above, the following best practice recommendations can be made: Headings of chapters should be strictly followed as per the UNFCCC guidelines and the outline prepared by the UNFCCC secretariat Tables (names, columns, rows and headings) should be exactly as agreed in the UNFCCC guidelines Figures for financial support should be reported in USD and, if feasible, in national currency o The exchange rate should always be given, including the source of the exchange rate o The exchange rate can be: An average exchange rate for the reported year A specific exchange rate in a given day (day of disbursement or any other clearly fixed date, such as the last day of the calendar year or financial year). Reporting on cooperation on adaptation should be made in this chapter. references to the information provided in this chapter can be made in other chapters, namely the chapter on vulnerability and adaptation If any support is specifically made available under article 11 of the Kyoto Protocol, than such distinction shall be made; otherwise, report on financial support shall make reference to both the commitments under the convention and the protocol References to the relevant section of the NC on the implementation of article 10 of the Kyoto Protocol shall, where relevant, be made in this chapter. 109

110 8.3.1 Proposed annotated outline of the Chapter on Financial Resources and Transfer of Technology of the 6 th National Communication National Communication VII. Financial resources and transfer of technology, including information under Articles 10 and 11, of the Kyoto Protocol VII.A. Provision of new and additional resources Similar requirement in the BR. This could either be copied in both places or cross-reference. Clarification how new and additional was determined (similar requirement in BR). This could either be copied in both places or cross-reference. Report table 3. Financial contribution to GEF. The financial contribution to GEF is included in table 7(a) of the CTF for BR. Table 7(a) is more detailed than table 3 and therefore it is recommended to refer to this table in the NC. VII.B. Assistance to developing country Parties that are particularly vulnerable to climate change Detailed information to developing countries for adaptation (table 5). In the UNFCCC NC guidelines information in textual format is required here in addition to quantitative information. Table 5 is partly integrated in Table 7(b) of the BR, however the subdivision of adaptation into capacity-building, coastal zone management and other vulnerability assessments as required for the NC is not included in table 7(b) and the entry lines of table 7(b) could also be organized by project/ programme and not be recipient country/ region as required in the NC. However, countries could include additional sectors capacity-building, coastal zone management and other vulnerability assessments under other sectors in table 7(b) of the CTF and organize the information by region or by recipient country. Then they could use this table for both reports, the NC and the BR and would only need to compile one table related to the information on adaptation finance. VII.C. Provision of financial resources Bilateral and Multilateral Financial resources, including under Article 11 of the Kyoto Protocol Table 4 (Financial contributions to multilateral institutions and programmes) is incorporated in table 7(a) (Provision of public financial support: contribution through multilateral channels) of the CTF, therefore it could be replaced with a reference to table 7(a) in the Annex with the CTF instead of using table 4 in the NC. The CTF tables are more detailed, and offer additional options for disaggregation, therefore they seem to be preferable compared to the tables included in the NC. Table 5 (Bilateral and regional financial contributions related to the implementation of the Convention) is embedded in table 7(b) (Provision of public financial support: contribution through bilateral, regional and other channels) of the CTF, therefore it could be replaced with a reference to table 7(b) in the Annex with the CTF instead of using table 5 in the NC. The CTF tables are more detailed, and offer additional options for disaggregation, therefore they seem to be preferable compared to the tables included in the NC. 110

111 VII.D. Activities related to transfer of technology Steps taken by governments to promote, facilitate and finance transfer of technology, and to support development and enhancement of endogenous capacities and technologies of developing countries: Some general description could be prepared related to the overarching activities for technology transfer and capacity building and included in both parts (NC and BR). This para is relevant for both the Convention and the KP reporting, for the KP reporting a reference to Article 10 KP should be made in the report. Activities related to technology transfer: report success and failure stories in Table 6 Distinguish between activities of the public and the private sector Report on encouragement of private activities in textual format In textual format: steps taken to promote, facilitate and finance transfer of technologies and enhancement of capacities. The success and failure stories are a non-mandatory element of the BRs. It is suggested to keep this in the NCs. Some general descriptive information on support for technology transfer should be prepared (including how private activities are encouraged) and included in both parts (NC and BR) or only in BR and NC could refer to these sections. VII.E. Information under Article 10 of the Kyoto Protocol Refer to relevant section of the NC on implementation of article Biennial Report 12. Provision of financial, technological and capacity building support to developing countries a. General information i. Information how the support is new and additional: Same requirement for NC, should be explained in BR. ii. Description of methodology/ assumptions used/ national approach to track the provision of finance, technology and capacity-building support, include information on indicators and delivery mechanisms used and allocation channels tracked. If this info is reported in NC only report on changes b. Finance i. Description, to the extent possible, how country seeks to ensure that the resources it provides effectively address the needs of non-annex I Parties with regard to climate change adaptation and mitigation. This requirement is specific to the BR and difficult to implement. Could address generally the needs of countries are assessed for development assistance and how effectiveness of assistance is evaluated. ii. Table 7: summary information on provision of support. BR guidelines require information in tabular and textual form. Summary of table 7 should be provided highlighting: amounts for mitigation and adaptation, allocation channels and annual contributions. 111

112 iii. Table 7(a): multilateral support BR guidelines require information in tabular and textual form. Summary of table 7(a) should be provided iv. Table 7(b): bilateral and regional support: BR guidelines require information in tabular and textual form. Summary of table 7(b) should be provided v. report, to the extent possible, on private financial flows leveraged by bilateral climate finance towards mitigation and adaptation activities in non-annex I Parties, vi. report on policies and measures that promote the scaling up of private investment in mitigation and adaptation activities in developing country Parties c. Technology development and transfer i. Table 8: Provision of technology development and transfer support. BR guidelines require information in tabular and textual form. The guidelines request in particular measures and activities related to technology transfer implemented or planned since its last national communication or biennial report. d. Capacity-building i. Table 9: Provision of capacity building support. BR guidelines require information in tabular and textual form, the latter as a description of selected individual measures and activities. 112

113 9 Research And Systematic Observation (chapter 9 in EU NC5) 9.1 Legal requirements The following sections analyse the legal requirements with respect to the reporting Research and Systematic Observation (RSO). The analysis follows along the lines of the types of requirements (shall, should, may) UNFCCC Guidelines on Reporting and Review Source: (UNFCCC 2000) (UNFCCC 2000) contains detailed guidelines on how to address RSO in National Communications. The document is organised along several chapters, and lays out detailed guidelines for each of them. This section is organised along these chapters and summarises the requirements according to type by paragraph. Shall requirements 57: Parties shall communicate information on their actions relating to research and systematic observation. 58: address both domestic and international activities (for example, the World Climate Programme, the International Geosphere-Biosphere Programme, the Global Climate Observing System, and the IPCC). They shall also reflect action taken to support related capacity-building in developing countries 59: provide summary information on global climate observing system activities in accordance with paragraph 64 Should requirements 59: to guide reporting under section IX, parts A and C, Parties should refer to the detailed guidance provided in the UNFCCC reporting guidelines on global climate observing systems (contained herein, see pages ). 60: report, in summary form, on action taken. For example, the results of research studies or model runs or data analysis should not be included in this section General policy on and funding of research as systematic information Should requirements 61: provide information about general policy on and funding of research and systematic observation 62: identify the opportunities for and barriers to free and open international exchange of data and information and report on action taken to overcome barriers 113

114 Research Should requirements 63: provide, inter alia, information on highlights, innovations and significant efforts made with regard to: a) Climate process and climate system studies, including paleoclimate studies; b) Modelling and prediction, including general circulation models; c) Research on the impacts of climate change; d) Socio-economic analysis, including analysis of both the impacts of climate change and response options; e) Research and development on mitigation and adaptation technologies Systematic observation Should requirements 64: provide summary information on the current status of national plans, programmes and support for ground- and space-based climate observing systems, including longterm continuity of data, data quality control and availability, and exchange and archiving of data in the following areas: a) Atmospheric climate observing systems, including those measuring atmospheric constituents; b) Ocean climate observing systems; c) Terrestrial climate observing systems; d) Support for developing countries to establish and maintain observing systems, and related data and monitoring systems UNFCCC reporting Guidelines for Annex I biennial reports and CTF for biennial reports Source: (UNFCCC 2012b) Not applicable UNFCCC reporting guidelines under Article 7 of the Kyoto protocol Source: (UNFCCC 2006) FCCC/KP/CMP/2005/8/Add.2 I. Information under Article 10 of the Kyoto Protocol: 39: Each Party included in Annex I shall report its activities, actions and programmes undertaken in fulfilment of its commitments under Article : Each Party included in Annex I shall report on the steps it has taken to promote, facilitate and finance the transfer of technology to developing countries and to build their capacity, taking into account Article 4, paragraphs 3, 5 and 7, of the Convention, in order to facilitate the implementation of Article 10 According to Articles 10d and 10f, of the Kyoto Protocol, Annex I Parties shall report information on their programmes and activities undertaken to cooperate in scientific and technical research and promote the maintenance and the development of systematic observation systems and 114

115 development of data archives to reduce uncertainties related to the climate system, the adverse impacts of climate change and the economic and social consequences of various response strategies, and promote the development and strengthening of endogenous capacities and capabilities to participate in international and intergovernmental efforts, programmes and networks on research and systematic observation, taking into account Article 5 of the Convention. 9.2 Analysis of Other Documents Analysis of the UNFCCC 2011a: Synthesis and Compilation Report under UNFCCC Executive Summary Source: FCCC/SBI/2011/INF Many Parties are continuing their national research and systematic observation programmes and plans concerning climate change over the long term, and several Parties are enhancing their strategic focus on climate change research. Research on climate processes and the climate system continues to be a high priority for many Parties. Scientific information on climate change is increasingly connected to policy processes, the formulation of strategies to address climate change and the development of technological solutions in the context of sustainable development. 36. Many Parties reported on their continued efforts to reduce uncertainties associated with the physical science basis and the understanding of the climate system. In addition, interdisciplinary research activities, in particular relating to socio-economic aspects and adaptation to climate change were highlighted by many Parties. Climate change related research is increasingly incorporated into energy research and other sectoral research as well as into research and development in relation to innovative technologies for mitigation. In this regard, the energy, infrastructure and transport sectors were highlighted as priority areas for research by several Parties. 37. Parties generally engage actively in international research cooperation and programmes. As in previous national communications, several Parties reported in their NC5 on their active participation in the work of the Intergovernmental Panel on Climate Change and their contributions to its assessment reports and their participation in relevant international research programmes. Many Parties cooperate also in regional research activities. Polar research (e.g. in the context of the International Polar Year) emerged as a prominent area for international cooperation on research. 38. A variety of activities relevant to capacity-building for climate-related research and systematic observation in developing countries was highlighted by Parties. Such activities include collaboration on regional research networks and projects, enhanced partnerships with institutions and privatesector partners, and the provision of support to other relevant activities to build capacity, such as for gathering climate-related information and enhancing understanding of regional climate trends and vulnerabilities. 39. With regard to systematic observation, Parties reported on cooperation through networks for systematic observation and data exchange, in particular within the framework of the Global Climate Observing System and the World Meteorological Organization. While most Parties emphasized the 115

116 monitoring of atmospheric climate variables, several Parties highlighted also their contributions to terrestrial and oceanic observing systems. Advances reported by Parties relating to systematic climate observations include progress made in improving the coordination of activities relevant to observations, for example in the oceanic domain. In addition, information was provided on activities initiated in response to the actions identified in the Implementation Plan for the Global Observing System for Climate in Support of the UNFCCC Addendum - Financial resources, technology transfer, vulnerability, adaptation and other issues relating to the implementation of the Convention by Parties included in Annex I to the Convention Source FCCC/SBI/2011/INF.1/Add With regard to cooperation in the area of scientific and technical research and systematic observation, as referred to in Article 10(d) of the Kyoto Protocol, Parties generally reported related activities in the section of the NC5 on research and systematic observation under the Convention Analysis of the UNFCCC 2011b: Synthesis and Compilation Report under the Kyoto Protocol Not applicable 116

117 9.2.3 Analysis of the UNFCCC review of the EU s Fifth National Communication Source: UNFCCC Report of the In-depth Review of the Fifth National Communication of the European Union. The next table resumes the actions to be taken on RSO based on the paragraph of the IDR. Table 9-1 Recommendations from the in-depth review of the NC5 Action to be taken Report on the opportunities and challenges to free and open international exchange of data and information and report on actions taken to overcome identified barriers. Structure the extensive information on the research and systematic observation in a more effective fashion. Reference /para IDR 134 / Quotation IDR 134. During the review, the EU provided the ERT with additional information, namely on the Open Access Pilot in FP7 initiative carried out by the DG RTD, whereby there is open access to knowledge generated by FP7-funded projects under several themes, including environment and climate change. In addition to the standard public access to many project deliverables, the pilot aims to allow easy and free access to scientific information, in particular peer-reviewed scientific articles published in journals within an embargo period of no more than six months. The ERT encourages the EU to report in its next national communication on the opportunities and challenges to free and open international exchange of data and information and report on actions taken to overcome identified barriers. The ERT also encourages the EU to structure the extensive information on the research and systematic observation in a more effective fashion The ERT encourages the EU to undertake a number of improvements regarding transparency and completeness of reporting; the most important of these are that the Party: (l) Identify the opportunities for and barriers to free and open international exchange of data and information on research and systematic observation and reporting on action taken to overcome barriers During the review, the EU provided the ERT with additional information, namely on the Open Access Pilot in FP7 initiative carried out by the DG RTD, whereby there is open access to knowledge generated by FP7-funded projects under several themes, including environment and climate change. In addition to the standard public access to many project deliverables, the pilot aims to allow easy and free access to scientific information, in particular peer-reviewed scientific articles published in journals within an embargo period of no more than six months. The ERT encourages the EU to report in its next national communication on the opportunities and challenges to free and open international exchange of data and information and report on actions taken to overcome identified barriers. The ERT also encourages the EU to structure the extensive information on the research and systematic observation in a more effective fashion. These actions were discussed with representatives from the EC in the bilateral kick of meeting and it was decided the following: 1. On the contents and reporting approach it was agreed that: a. The chapter will be streamlined in order to be more reader friendly and the policies/programmes/projects will be presented in a objectives/aims/results 117

118 b. That the issue raised in the last review of reporting on the opportunities and challenges to free and open international exchange of data and information and report on actions taken to overcome identified barriers will be discussed in the EC internally, not being an immediate priority but further discussed later c. The focus of this report would be on the latest developments since NC5 focusing the period d. Regarding the RSO policy, an institutional mapping will be done including roles and responsibilities of each entity e. The results of the April evaluation of the FP7 will be included f. A description of Horizon 2020 (replacing what would be FP8) will be presented (most likely still as a proposal text) Annotated Outline for Fifth National Communications of Annex I Parties under the UNFCCC, including Reporting Elements under the Kyoto Protocol Parties shall communicate information on their actions relating to research and systematic observation. The NC shall address both domestic and international activities (for example, the World Climate Programme, the International Geosphere-Biosphere Programme, the Global Climate Observing System, and the IPCC). They shall also reflect action taken to support related capacity-building in developing countries (para 58). VIII.A. General policy on research and systematic observation According to the UNFCCC reporting guidelines (para 59), Parties shall provide summary information on GCOS activities (in accordance with paragraph 64 of the UNFCCC reporting guidelines (contained in FCCC/CP/1997/7, pages )). According to Articles 10d and 10f, of the Kyoto Protocol, Annex I Parties shall report information on their programmes and activities undertaken to cooperate in scientific and technical research and promote the maintenance and the development of systematic observation systems and development of data archives to reduce uncertainties related to the climate system, the adverse impacts of climate change and the economic and social consequences of various response strategies, and promote the development and strengthening of endogenous capacities and capabilities to participate in international and intergovernmental efforts, programmes and networks on research and systematic observation, taking into account Article 5 of the Convention. For the subchapters of Research and then on Systematic Observation the paragraphs of the 2000 UNFCCC guidelines are referred. 118

119 9.2.5 Analysis of Parties National Communications Australia and the UK start the chapter by highlighting the key developments since the last NC is a summarized and streamlined way. 119

120 Australia is also a good example of a simple structure. Their work was facilitated due to the existing of the technical report on climate change (below). 120

121 General policy on and funding of research and systematic observation On the institutional framework a diagram of the institutions and programmes can help understanding and summarizing the institutional mapping on RSO or R and SO independently. Example from the Irish NC5. 121

122 Tabular formats or graphs concerning the level of funding (if possible also including international cooperation) of the topic can help understanding the trend (examples from Portugal and New Zealand, respectively. 122

123 Research Romania shows some results of their modelling. 123

124 Spain represents its research percentages per areas Systematic information The mapping of the different Observation networks/grids can help to visualize the intensity of the data collection. Example from the NC5 of Italy. Spain presents a complete set of tables representing its participation on SO activities. 124