REPUBLIC OF SERBIA Negotiating Group for the Chapter 27 Environment and Climate Change

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1 REPUBLIC OF SERBIA Negotiating Group for the Chapter 27 Environment and Climate Change Bilateral screening: Chapter 27 PRESENTATION OF THE REPUBLIC OF SERBIA Greenhouse Gas Monitoring Mechanism Regulation EU Emission Trading System (EU ETS) EU ETS aviation inclusion Effort Sharing Decision Climate Change Division Ministry of Agriculture and Environmental Protection Brussels, November 2014

2 Greenhouse Gas Monitoring Mechanism Regulation (MMR)

3 Projections No legally defined responsibility First preliminary projections - the Copenhagen Accord (2020), INC (2012, 2015) Modeling - SNC,FBUR, Climate change strategy, with Action plan (2020, 2030, framework 2050) National external experts, supervised by MAEP IPA 2013 project: Establishment of mechanism for the implementation of MMR the end 2014/beginning 2015.

4 SNC/BUR On-going GHG inventories prepared for the period (2014) Projections and mitigation programme till 2020, 2030 Adaptation programme for 3 sectors (hydrology and water resources, agriculture, forestry) FBUR submitted 2015, SNC submitted 2016

5 CDM Letters of Approval - 7 issued Registered till the end 2012 Should start implementation The Project of Strengthening Capacity for the Preparation of Nationally Appropriate Mitigation Actions (NАМАs) 16 priority actions identified, the 6 of them submitted to the NAMAs Registry

6 PAMs Establishment of mechanism for the implementation of MMR - requirements, procedures and responsibilities for development and monitoring on effects of climate change INC, early warning system for extreme weather conditions

7 EU Emission Trading System (EU ETS)

8 Institutional framework IPA 2012: Creation of a monitoring, reporting and verification system for the successful implementation of the EU Emissions Trading System Component 1: Necessary legal framework in place for the alignment with and implementation of the MRV aspects of the EU ETS Directive, including the M&R and A&V regulations; Component 2: Institutional and procedural arrangements in place for the establishment and operation of MRV system for a future implementation of EU ETS; Component 3: Strengthening of administrative and institutional capacity. Report on establishment of institutional structure for the implementation of monitoring, reporting and verification (MRV) for the implementation of ETS adopted by the Government (September 2014)

9 Website

10 Institutional setup CA MAEP/ Climate change division Serbian Environmental Protection Agency (SEPA) is providing technical support to the CCD in regard of the assessment of monitoring plans, of verified emission reports and of free allocation requests of stationary installations. Civil Aviation Directorate (CAD) is providing technical support to the CCD in regard of the assessment of monitoring plans, of verified emission reports and of free allocation requests of aircraft operators. Currently, Competent authority for aircraft operators is German DEHSt; Sector for surveillance and control MAEP on request; Accreditation Body of Serbia (ABS) - as a national accreditation body, should be responsible for the accreditation of EU ETS verifiers; Ministry of Energy and Mining (Division for sustainable development and climate change in energy sector) - should provide support to the operators in the energy sector

11 Administrative capacity CCD 5 employees CC issues (+2 full time jobs EU ETS) SEPA - 1 employee GHG inventory (+3 full time job EU ETS) CAD 1 full time job employee (+1 full time job EU ETS) DSDCCES - 3 employees environmental&cc ATS fully staffed RHMSS/Department of National Climate Change Centre - 10 employees National Climate Change Committee (NCCC) till the end 2014

12 Administrative burden (1/2) Institution MAE/Climate change division Estimated number of additional mandays Estimated number of additional full time job equivalent Comments Estimation does not include time need for the establishment of NIMs ( 80 man-days), a one-shot exercise necessary for free allocation SEPA CAD 42 < 1 MAE/Department for prevention and control Involvement of environmental inspectors may be higher when starting the system, but should decrease over time. ATS 70 < 1 National administrator of the EU registry - Min. 3 Administration of the EU registry requires permanent availability of staff. Therefore, a minimum of 7 persons involved part-time on the registry is recommended Auctioneer 81 < 1

13 Administrative burden (2/2) Cost for public authorities can be covered by auctioning revenues For operators, a maximum of 1 full-time job may be required for larger installations Strengthening of administrative and institutional capacity related activities

14 Legal framework - MRV First draft of legislation is prepared (under MAEP consideration), at least: 1) Greenhouse Emission Trading Act and two by-laws: 1) Ordinance on monitoring and reporting and 2) Ordinance on the verification of greenhouse gas emission reports and tonne-kilometre reports and the accreditation of verifiers. Approach: 1. Monitoring and reporting of GHG emissions (2017 at the latest) 2. Implementation of the full system (3 different options, for now)

15 Legal framework full EU ETS Subject of the negotiation and future assessment Under consideration: 1) To implement the EU ETS at the date of accession, i.e. more likely from 2021 onwards; 2) To implement a domestic ETS/equivalent measures prior its accession, i.e. by 2016 at the earliest, in order to get prepared to join the EU ETS for the 4th trading period starting in 2021; 3) To implement a domestic ETS/equivalent measures prior its accession, i.e. by 2016 at the earliest, in order to get prepared to join the EU ETS for the 5th trading period starting in 2028.

16 Installations Preliminary installations Energy sector (combustion of fuels for electricity and heat production), production and processing of ferrous metal, mineral industry, and other activities (production of paper, pulp ) Emissions - not available

17 GHG emissions levels Total GHG emission level in Gg CO2eq Total GHG emission level in Gg CO2eq Total GHG emission level (2014) - SNC and FBUR

18 MRV infrastructure ETS - Report on establishment of institutional structure for the implementation of monitoring, reporting and verification (MRV) for the implementation of ETS adopted in September 2014 Draft by-laws - been developed, enter into force not later than 2017 Strengthening of administrative and institutional capacity MRV in general: Establishment of mechanism for the implementation of MMR

19 Independent verification No legal obligation ETS - enter into force not later than 2017 In general: Establishment of mechanism for the implementation of MMR

20 Emission sectors IPCC source categories 1990: energy 77,69 %, agriculture 14, 64 %, industrial processes 5, 28 % and waste 2,39 % 1998: energy 76,19 %, agriculture 14,32 %, industrial processes 5,46 % and waste 4,04% Energy: energy industries 46, 67 %, manufacturing industries and construction 7, 84 %, transport 7,07 % and other sector (public/commercial, residential..) 12, 36 %, 3, 74 % fugitive emissions from exploitation processes of the fossil fuels

21 Steps for alignment Institutional set up identified The first draft of legal acts prepared, to enter into force not later than 2017 Action plan for governmental approval of legislation - developed Options for full EU ETS future assessment and negotiate

22 EU ETS aviation inclusion

23 Current activities IPA 2012: Creation of a monitoring, reporting and verification system for the successful implementation of the EU Emissions Trading System, IPA 2012/lead MAEP Including Directive 2008/101/EC 4 aircraft operators 1 under the EU ETS Civil Aviation Directorate (CAD) - provide technical support to the CCD in regard of the assessment of monitoring plans, of verified emission reports and of free allocation requests of aircraft operators

24 Administrative burden (1/2) Institution Estimated number of additional mandays Estimated number of additional full time job equivalent Comments MAE/Climate change Estimation does not include time need for the establishment of NIMs division ( 80 man-days), a one-shot exercise necessary for free allocation SEPA CAD 42 < 1 MAE/Department for prevention and control Involvement of environmental inspectors may be higher when starting the system, but should decrease over time. ATS 70 < 1 National administrator of the EU registry Auctioneer 81 < 1 - Min. 3 Administration of the EU registry requires permanent availability of staff. Therefore, a minimum of 7 persons involved part-time on the registry is recommended

25 Aviation CA for JAT Airways and now Air Serbia is Germany, DEHSt. 1. A Benchmarking Plan, which was to be used for JAT s Tonne/Kilometre (TKM) data during submitted TKM Monitoring Plan in Approved by DEHSt. 2. An Emissions Monitoring Plans - submitted to the DEHST AE Monitoring Plan in Currently mandatory is Air Serbia AE Monitoring Plan Version 04 from 24 th February, Approved by DEHSt. 3. In 2013: in accordance with `stop the clock` submit and return required amount of allowances in EU Registry AE Report 2013: Air Serbia will submit allowances, corresponding to verified 2013 emissions by 30 April 2015 instead of 30 April 2014, and verified 2013 emissions for those flights will be reported by 31 March 2015 instead of 31 March 2014.

26 Further steps Way of implementation - further assessment and negotiation

27 Effort Sharing Decision

28 2015 Agreement INDCs under identification FBUR, SNC Climate change strategy with an Action plan targets for 2020, 2030 and long term framework for 2050, incl. ESD sectors A comprehensive cross-sectoral climate strategy and action plan with respective targets that will serve as a basis for setting a robust climate policy Mid 2015 mid 2017

29 Institutional and legal framework Establishment of mechanism for the implementation of MMR - preparation for implementation, incl. responsibilities Development of a Climate Change Strategy and its Action Plan incl. specific actions and responsibility for their implementation

30 Thank you for attention!