NEW ZEALAND. Submission to the APA on Article 13: Transparency September 2017

Transcription

1 NEW ZEALAND Submission to the APA on Article 13: Transparency September 2017 Context Regarding APA agenda item 5 on modalities, procedures and guidelines for the transparency framework for action and support referred to in Article 13 of the Paris Agreement, the conclusions of the third part of the first session of the Ad Hoc Working Group on the Paris Agreement (APA) invite Parties to make, by 30 September 2017, focused submissions taking into account the possible headings and subheadings contained in the annex to the informal note 1 prepared by the co-facilitators on this item. In submitting their views, Parties are also invited to elaborate, as appropriate, the specific operational details under the possible headings and subheadings. 2 The Co-facilitators informal note contains their reflections on the discussion in the informal consultations, and is their attempt to informally capture views expressed by Parties, including in their submissions. The informal note includes an annex containing possible headings and subheadings of the modalities, procedures and guidelines. We note that the informal note and its annex were prepared under the responsibility of the co-facilitators and are heavily caveated, they are explicitly non-exhaustive, neither represent agreed views, ideas or text nor attempting to draw any conclusions on possible areas of convergence or divergence; the Co-facilitators understand Parties may modify the headings and subheadings in their submissions, as appropriate, and the headings and sub-headings do not represent negotiation text. New Zealand thanks the co-facilitators for providing the informal note on this basis. We recognise it as a pragmatic way of capturing views and providing context for this next round of submissions. New Zealand s submission addresses elements of the note and its annex without in any way accepting the note and the annex as the base documents for future work. 3 New Zealand welcomes the opportunity to make a further submission on Article 13 This submission builds on New Zealand s previous submissions on Article 13, made in September 2016 and February Fundamental to our approach: 1

2 The modalities, procedures and guidelines must be developed with a clear line of sight to the overarching objectives of the transparency framework as per Article 13, paragraphs 5 and 6, as a lens through which to determine reporting requirements. The transparency framework is central to the integrity of the Paris Agreement, and requires full and effective participation by all Parties; The modalities, procedures and guidelines will need to reflect both the mandatory and non-mandatory aspects of Article 13 with appropriate wording for each whilst enabling and encouraging the provision of as much information as possible by all Parties; We need to acknowledge the lessons learnt from the existing MRV system; The modalities, procedures and guidelines will need to reflect the flexibility agreed i.e. flexibility in the implementation of the provisions of Article 13 is to be provided to those developing countries that need it in light of their capacities; Since the success of the Paris Agreement depends in large part upon full and effective participation in the transparency system New Zealand is committed to operationalising flexibility in a way that supports the effectiveness of the Agreement; As part of our approach to flexibility, we need to develop a framework that recognises both the different starting points (i.e. capacities) of Parties, and that recognises the importance of facilitating improved reporting and transparency over time as the capacities of developing countries improve; We need to design a practical and efficient system for transparency of action and support, that avoids placing an undue burden on Parties or the secretariat, otherwise we risk creating something that will collapse under its own weight; New Zealand would like to see maximum use of tabular formats for both reporting information and in the structure of review reports. Using such an approach helps ensure consistency and comparability of reporting, and also helps with development and implementation of efficient processes. The output of this work programme should enable Parties to provide others clarity about what they are doing, and any support needs, in order to meet their obligations under the Paris Agreement. Views on the headings and subheadings in the co-facilitators note 4 In New Zealand s view some of the headings/subheadings in the co-facilitators note are not within the scope of the development of modalities, procedures and guidelines for the transparency framework for action and support referred to in Article 13 of the Paris Agreement. In particular: Any reference to loss and damage in connection with the provision of information related to climate change impacts and adaptation under Article 7, as loss and damage is not part of Article 7. It has its own Article (Article 8) and is therefore out of scope regarding the provision of information under Article 7; Any references to definitions of climate finance. The objectives of the enhanced transparency framework will not be achieved by Parties being constrained by prescribing what support can and can t be reported on. Experience under the existing MRV system demonstrates giving Parties the ability to provide as much transparency

3 as possible about support, accompanied by information on the national approach to tracking such support and the underlying assumptions and methodologies used works well. This approach is fully consistent with the objectives of the enhanced transparency framework; References to information pursuant to Article 9.5 : Forward-looking information on finance to be provided and mobilised is not within the scope of Article 13 s ex post transparency framework. 5 In addition, New Zealand views the suggestion (included in the Co-facilitators informal note) that use, impact and estimated results thereof can be separated from information on support received is an inaccurate reflection of paragraph 94(d) of Decision 1/CP It is important that we don t reintroduce matters that were discarded in Paris, or spend time re-litigating what was agreed. Diffusion of our effort beyond the matters specified by the COP 21 outcome reduces the amount of time we have to spend working on the tasks we were mandated to deliver. Therefore, we should focus on elements clearly within the mandate as the basis for our urgent and important work over the coming year. Linkages 7 We will need modalities, procedures and guidelines that address what should be reported in relation to accounting and transfers of ITMOs generated under Article 6.2. However, it is important to ensure the discussions at the next APA session don t relitigate/waste time on what is being negotiated under SBSTA on the use of cooperative approaches under Articles 6.2 and 6.4, and under agenda item 3 of the APA on accounting. Similarly, while the completed output from this work programme will include MPGs for transparency of financial support provided and mobilised under Article 9, the APA should acknowledge that the modalities for the accounting of financial resources provided and mobilised are being developed by SBSTA. There is no need for the APA to duplicate this effort, though of course reviewing SBSTA s modalities for language and structural consistency with the remainder of the transparency MPGs will be necessary in due course. 8 In the draft guidelines annexed to this submission we have proposed placeholders to indicate that some of the technical work to complete the MPGs for transparency is being developed under SBSTA or agenda item 3 of the APA. When technical work is completed, it can either be directly incorporated into the reporting guidelines or the MPGs for transparency can provide a reference to the COP/CMA decision that has adopted the guidance on those matters. An example of this approach can be found in Annex 2 to this submission, under D of Section two, sub-paragraph (vi) regarding the use of cooperative approaches in relation to information necessary to track progress. 9 New Zealand acknowledges the need for due attention to both transparency of support and transparency of action and the need for the enhanced transparency framework on action and support to be agreed as a package. To this end, in the APA transparency of support discussions we need to address the provision of information on technology transfer and capacity building support provided to developing countries, as well as the provision of information on financial, technology transfer and capacity building support needed and

4 received and the use, impact and estimated results thereof. This need arises because these MPGs are not being developed anywhere else and the APA has to date spent little time on these MPGs. 10 New Zealand looks forward to engaging in detailed negotiations on these matters at the next APA session, drawing from Parties submissions. We will also continue to actively engage in the SBSTA agenda item on modalities for the accounting of financial support provided and mobilised through public interventions in accordance with Article 9.7, but do not see any merit in the APA duplicating SBSTA s efforts when it is clear that a range of other transparency of support MPGs must be developed by the APA. Views on structure of the MPGs 11 New Zealand considers there should be two parts to the outcome on the transparency framework: (i) guidelines for reporting, review and multilateral consideration of progress; and, (ii) a COP/CMA decision under which the guidelines are adopted, with the guidelines being annexed to the decision. 12 To set the context for its operational paragraphs, the COP/CMA decision would contain a preamble recalling the relevant articles of the Paris Agreement. These would, for example, include the provisions relating to flexibility under Article 13, linkages between Article 13 and other processes, for example the global stocktake (Article 14) and the mechanism to facilitate implementation and promote compliance (Article 15). The operational part of the decision would, at a minimum, adopt the guidelines (as set out in an annex to the decision), specify when Parties would start using the guidelines, when the guidelines would be reviewed, and by which UNFCCC body. A suggested skeleton outline of these operational paragraphs is contained in Annex 1 to this submission. New Zealand would see many of the concepts that are in the overarching considerations and guiding principles section of the annex to the co-facilitators note being included in the COP/CMA decision rather than within the guidelines for reporting, review and multilateral consideration of progress. National inventory report 13 Article 13.7(a) national inventory report: There is a wealth of experience and existing guidelines to draw from to develop the guidelines for reporting national greenhouse gas inventories under Article 13. In Annex 2 to this submission we propose a suggested structure for the guidelines for the national inventory report. Instead of detailed guidelines we have provided placeholders for a chapter outline of the national inventory report, and for guidance on national inventory arrangements as readily available material can be used to develop these aspects of the MPGs. 14 Flexibility provisions: For greenhouse gas inventories the Paris Agreement endorses application of methodologies accepted by the IPCC and agreed upon by the CMA. Flexibility is inherent in the approach to development of greenhouse gas inventories embedded in the

5 IPCC methodological guidelines. This inherent flexibility responds to constraints in both capacity and data availability and accessibility. Information necessary to track progress 15 Article 13.7(b) information necessary to track progress: The MPGs for reporting progress made in implementing and achieving NDCs under Article 4 are strongly linked to outcomes under both APA agenda item 3c on accounting for NDCs, and the SBSTA agenda item on guidance for cooperative approaches under Article 6.2. In Annex 2 to this submission we have indicated placeholders for both these outcomes. We note that the concepts of environmental integrity and avoiding double counting are a common thread amongst all these parts of the Paris outcome, including Article Flexibility provisions: Parties exercise flexibility in nationally determining their contribution under Article 4, and a Party s choice of NDC will determine the sort of information it reports in order to track the progress made in implementing and achieving its NDC. In the section on tracking progress in Annex 2 to this submission we have suggested that in the course of reporting on tracking progress towards achievement of NDCs, Parties could provide updated information on constraints and gaps and related financial, technical and capacity-building needs and explain how provision of capacity-building would, over time, improve the quality and transparency of the information to track progress towards implementing and achieving their NDC. Information related to climate change impacts and adaptation 17 Article 13.8: information related to climate change impacts and adaptation and the linkage to Article Noting the provisions in Article 13.8 that each Party should also provide information related to climate change impacts and adaptation under Article 7, as appropriate, New Zealand proposes that the guidance for providing information on climate change impacts and adaptation (as per annex 2 to this submission) is the same as the guidance developed for adaptation communications under Article 7 of the Paris Agreement (adaptation). Given that the updating and submission of an adaptation communication is not to create any additional burden on developing countries (Article 7.10), and that the transparency framework (under Article 13) is, inter alia, to avoid placing undue burden on Parties (Article 13.3) it is New Zealand s view that the best approach is to have one set of guidance for communicating information on impacts and adaptation that Parties can use no matter which channel/vehicle is used to communicate that information. See also New Zealand s submission on adaptation communications Flexibility provisions: By its nature, the information provided on climate change impacts and adaptation is nationally determined, and the reporting will reflect this. We note that the wording of Article 13.8 (Each Party should also provide information related to climate change impacts and adaptation under Article 7, as appropriate) already affords considerable flexibility, and in the impacts and adaptation section of our proposed structure and content of 2 New_Zealand_APA_submission_Adaptation_communications_FINAL_08_08_2017.pdf

6 the guidelines in Annex 2 to this submission we have used very open language to convey this. Information on financial, technology transfer and capacity-building support provided 19 Article 13.9: information on financial, technology transfer and capacity-building support provided under Articles 9, 10 and 11: As noted above, the modalities on financial resources provided and mobilised in accordance with Article 9.7 are being developed by SBSTA and will be forwarded to the APA for incorporation in these MPGs. In light of this, we have inserted placeholders for these modalities and their underlying assumptions and methodologies in Annex 2 to this submission. Once these modalities are forwarded to the APA, New Zealand suggests it would be useful for the APA to consider making provision for Parties to be able to identify where financial resources provided and mobilised are also directed towards technology transfer and capacity-building support (for example, through an additional column in the reporting table). This would enhance visibility of the broad range of outcomes that are being achieved by individual activities, without placing undue burden on Parties (Article 13.3). But as we have found through our experiences reporting under the current MRV system, additional information on each type of support will remain useful in the interests of providing as much transparency as possible. 20 Flexibility provisions: The requirement to provide information on support provided under Articles 9, 10 and 11 applies only to developed country Parties, with other Parties that provide support only subject to a should expectation. In consequence, no further flexibility is required in relation to the provision of this information. However, New Zealand notes the value of enabling and encouraging the provision of as much information as possible by all Parties, and encourages the development of modalities that facilitate improved reporting over time as the capacity of Parties improves. Other Parties that provide support could therefore provide information on capacity constraints and gaps and related financial, technical and capacity-building needs, and explain how provision of capacity-building support would improve their ability to provide information on support provided under Articles 9, 10 and 11. Information on financial, technology transfer and capacity building support needed and received 21 Article 13.10: information on financial, technology transfer and capacity building support needed and received, including the use, impact and estimated results thereof, under Articles 9, 10 and 11: It is vital that concentrated effort is put into this aspect of our work and unlike the work being undertaken by SBSTA to develop the modalities on financial resources provided and mobilised in accordance with Article 9.7, this is the responsibility of the APA. A concentrated effort is needed because there are no existing guidelines to draw from in this area. In light of this, and the fact that developing countries are only subject to a should obligation, New Zealand proposes that the guidance for this information should recognise the value of enabling and encouraging the provision of as much information as possible, and facilitate improved reporting over time as the capacity of Parties improves. In practical terms this might mean that qualitative information could be provided if a Party does not yet have the ability to accurately track support and then report support needed and received including the use, impact and estimated results thereof in a quantitative manner.

7 22 Flexibility provisions: As with the provision of information on support provided by other Parties, the fact that this is a should provision implies flexibility is already provided. However we consider that the information to be provided in accordance with Article will be useful for both the Party concerned, other developing country Parties, and for those Parties that provide financial, technology transfer and capacity building support. Providing as much transparency as possible on support needed and received, including the use, impact and estimated results thereof, will also form an invaluable input to the global stocktake - an important objective of the transparency framework. Therefore we need to ensure that the guidelines are worded to enable and encourage provision of this information. We suggest that developing tabular formats would be particularly useful in this regard, whilst also recognising that in some instances qualitative information may be all that a Party is able to provide but that such information would still be useful. Consistent with Article 13(14) and (15), recipient countries could also provide information on capacity constraints and gaps and related financial, technical and capacity-building needs, and explain how provision of capacity-building support would improve their ability to provide information on support needed and received, including the use, impact and estimated results thereof. Technical expert review under Article New Zealand notes that under Article information submitted by each Party under Articles 13.7 and 13.9 shall undergo a technical expert review. The scope of the technical expert review is well defined in Articles and 13.12, noting in particular that as well as reviewing the information reported for consistency with the guidelines, the review shall also identify areas for improvement for the Party, and that part of this review process shall include assistance in identifying capacity building needs for those developing country Parties that need it in light of their capacities. 24 In the current MRV system New Zealand s reporting has benefited from the regular cycle of reporting and review. Both the regularity of reporting and the review process have been instrumental in improving New Zealand s reporting over time. We consider that developing a review process with continuous improvement through time as a fundamental building block would serve the Paris Agreement well. Technical expert review should be rigorous, robust, transparent and implemented in a facilitative, non-intrusive, non-punitive manner, respectful of national sovereignty, while avoiding placing undue burden on Parties and the secretariat. The review process should build mutual trust and confidence and promote effective implementation. 25 In addition to the flexibility aspects described below, in New Zealand s view we need to be designing a practical system given the human and financial challenges already evident with the current MRV processes of expert review and technical analysis. Frequency of review is one aspect, but we should also be looking at simple/streamlined review report formats as part of the enhanced transparency framework. 26 Flexibility provisions: New Zealand s experiences as a Party being reviewed demonstrate the importance of retaining the flexibility of a range of review modalities (desk, centralised, in-country). In New Zealand s view there is huge value in having in-country

8 reviews as part of the portfolio (on an optional basis): in-country reviews are non-threatening and facilitative, and provide a great peer-to-peer learning environment. Other aspects of flexibility for technical expert review should be explored, noting that flexibilities in the frequency of reporting (as provided for in paragraph 90 of decision 1/CP.21) would necessarily flow through into frequency of review. Facilitative multilateral consideration of progress 27 Under Article 13.11, in addition to information submitted under Articles 13.7 and 13.9 being subject to technical expert review, each Party shall participate in a facilitative, multilateral consideration of progress with respect to efforts under Article 9 and implementation and achievement of its NDC. 28 In our submission earlier this year we noted that our experience with the current multilateral processes (the facilitative sharing of views (FSV) and the multilateral assessment (MA)) has reinforced that learning by doing works, and illustrated the principle and benefits of commitment to continuous improvement. We also noted that while the current multilateral processes have provided an opportunity for Parties to showcase what they are doing in response to the challenge of climate change, securing this benefit requires engagement in the process. By this we mean reading the BRs/BURs from other Parties and the accompanying review/technical analysis reports, formulating written questions where clarification or more information is desirable, and taking an active part in the MA and FSV sessions at SBI meetings. From the perspective of a small country we have found this quite challenging, but at the same time have appreciated other Parties efforts to engage, and have gained a much better understanding of the actions of other Parties through the exchanges in the MA and FSV sessions. 29 In New Zealand s view we need to learn from our collective experience to date in order to design an efficient process for the facilitative multilateral consideration of progress under the Paris Agreement. It must be fit for purpose and workable without creating an undue burden. This is a crucial part of the enhanced transparency framework and the success of the Paris Agreement depends in large part upon full and effective participation in the transparency system, including the facilitative multilateral consideration of progress. 30 Flexibility provisions: New Zealand is open to exploring flexibility in the facilitative multilateral consideration of progress for those developing country Parties that need it in light of their capacities. For example, this could include flexibility in frequency. However, given the importance of this process in the overall architecture of the enhanced transparency framework, New Zealand is of the view that we need to design a process that promotes and supports participation by all Parties regardless of capacity constraints. Conclusions 31 We have very limited time left before our work is expected to be completed, and New Zealand is concerned that we tend to spend a great deal of time at our sessions debating each next step in our work programme, or issues that are being addressed by SBSTA. We urgently need to progress and must explore and use all opportunities and avenues available to us to expedite the work.

9 32 With that in mind, New Zealand looks forward to making good progress at the APA session in November on the MPGs under Article 13 to bring the enhanced transparency framework closer to completion. We note that we now have a little over a year to conclude the task. Given this timeframe, and the urgency we need to bring to our work, we consider it would be useful to seek the preparation of a synthesis of proposals (containing options) for the guidelines for reporting, review and multilateral consideration to serve as the basis for discussions at the next session. Alternatively, the APA co-chairs might, based on Parties submissions, propose draft guidelines for reporting, review and multilateral consideration to serve as the basis for negotiation.

10 Annex 1 New Zealand s proposal for a skeleton outline for the COP/CMA decision that adopts the guidelines for reporting, review and multilateral consideration of progress under the transparency framework. Draft Decision X/CMA.1 Modalities, procedures and guidelines for the transparency framework under Article 13 of the Paris Agreement The Conference of the Parties serving as the meeting of the Parties to the Paris Agreement, Recalling [the relevant provisions of the Paris Agreement in particular Article 13] [others] Recalling [xxx] Noting the ongoing process of learning by doing and continuous improvement, Recognizing [xxx]; 1. Adopts the guidelines for reporting, review and multilateral consideration of progress for all Parties as contained in the annex to this decision; 2. Decides that the first biennial communication under the Paris Agreement is to be submitted by [date]; 3. Decides that the [Subsidiary Body for Implementation] will revise the guidelines in [2028] taking into account the experience of Parties in its use; 4. Invites Parties to submit, by [date], their views on experiences with the use of the guidelines for the reporting, review and multilateral consideration of progress, to assist with the revision of the guidelines outlined in paragraph 3 above; 5. [other] 6. Decides that the [Subsidiary Body for Scientific and Technological Advice/Subsidiary Body for Implementation] will develop electronic reporting formats for the use of Parties in their biennial communications, with this work to be completed eighteen months in advance of when the first biennial communications are due to be submitted in line with paragraph 2 above; 7. Requests the secretariat to.[ make preparations for the reporting and review process including developing tabular templates for expert review reports, making electronic reporting formats/ submission portals available etc]

11 Annex 2 PART ONE: REPORTING Section One Potential structure for the part of the reporting guidelines for national inventory reports of anthropogenic emissions by sources and removals by sinks of greenhouse gases (Article 13. paragraph 7(a)) A. OBJECTIVES (i) Assist Parties in meeting their commitments under Article 13, paragraph 7(a) of the Paris Agreement. (ii) Contribute to providing a clear understanding of climate change action in the light of the objective of the Convention as set out in its Article 2, including clarity and tracking of progress towards achieving Parties individual nationally determined contributions under Article 4 of the Paris Agreement. (iii) Assist Parties in ensuring and/or improving the quality and transparency of their GHG inventory submissions over time. (iv) Provide flexibility to developing country Parties that need it in light of their capacities. (v) Promote the provision of transparent, accurate, complete, consistent and comparable information. (vi) Avoid duplication as well as undue burden on Parties and the UNFCCC secretariat. (vii) Ensure Parties maintain at least the frequency and quality of reporting in accordance with their respective obligations under the Convention. (viii) Ensure that double counting is avoided. (ix) Ensure environmental integrity. (x) Facilitate the process of considering national inventories, including the preparation of technical analysis and synthesis documentation. (xi) Facilitate the process of technical expert review and multilateral consideration of the inventory information in accordance with Article 13, paragraphs 11 and 12 of the Paris Agreement. (xii) Inform the Global Stocktake B. PRINCIPLES AND DEFINITIONS (i) The GHG inventory should be transparent, consistent, comparable, complete and accurate. (ii) Definitions of common terms should be as per the IPCC 2006 Guidelines (or any guidelines subsequently adopted by the CMA) C. NATIONAL CIRCUMSTANCES AND INSTUTIONAL ARRANGEMENTS 1. Each Party to implement and maintain national inventory arrangements for the continued estimation, compilation and timely reporting of national greenhouse gas inventory reports in accordance with these guidelines. The national inventory arrangements include all institutional, legal and procedural arrangements made within a Party for estimating anthropogenic emissions by sources and removals by sinks of all GHGs not controlled by the Montreal Protocol, and for reporting and archiving inventory information. 2. As part of its national inventory arrangements each Party to: (i) Designate a single national entity with overall responsibility for the national inventory; (ii) Establish and maintain the institutional, legal and procedural arrangements necessary to perform the planning, preparation and management functions, as appropriate, between the government agencies and other entities responsible for the performance of all functions defined in these reporting guidelines; (iii) Prepare national annual GHG inventories in a timely manner in accordance with these reporting guidelines and relevant decisions of the CMA (including with respect to the

12 (iv) application of IPCC methodologies), and provide the information necessary to meet the reporting requirements defined in these reporting guidelines and in relevant decisions of the CMA; Undertake specific functions relating to inventory planning, preparation and management including: a. Defining specific responsibilities in the inventory development process. b. Establishing processes for the official consideration and approval of the inventory c. Preparing estimates, and compiling the national inventory report and the common reporting tables in accordance with these reporting guidelines; d. Responding in a timely manner, to requests for clarifying inventory information resulting from the different stages of the inventory technical expert review process under Article 13; e. Archiving all relevant inventory information for the reported time series, including all disaggregated emission factors and activity data, documentation on how these factors and data have been generated and aggregated for the preparation of the inventory, internal documentation on QA/QC procedures, external and internal reviews, and documentation on annual key categories and key category identification and planned inventory improvements. f. Providing review teams with access to all archived information used by the Party to prepare the inventory in accordance with technical expert review process under Article 13; D. METHODS 1. Methodologies, parameters and data (i) Use the IPCC 2006 Guidelines for National Greenhouse Gas Inventories as a starting point, and any more recent guidelines accepted by the IPCC and agreed upon by the CMA. (ii) National methodologies tailored to national circumstances can be used if they are fully documented and compatible with the most recent guidelines accepted by the IPCC and agreed upon by the CMA (iii) Every effort should be made to use the latest IPCC good practice method and work towards application of higher tier methods particularly for key categories and for refining estimates of anthropogenic emissions and removals in the land use, land-use change and forestry (LULUCF) sector 2. Key category analysis (i) Conduct a key category analysis consistent with the most recent guidance accepted by the IPCC and agreed upon by the CMA, both level and trend assessment, and including and excluding LULUCF. 3. Time series consistency and recalculations (i) The inventory for a time series should be estimated using the same IPCC methodologies, and the underlying AD and EFs should be obtained and used in a consistent manner. (ii) Recalculations should ensure the consistency of the time series and shall be carried out to improve accuracy and/or completeness, and should be performed in accordance with the most recent guidance accepted by the IPCC and agreed upon by the CMA. 4. Uncertainty analysis (i) Quantitatively estimate the uncertainty of the data used for all source and sink categories using the most recent guidance accepted by the IPCC and agreed upon by the CMA.

13 5. QA/QC processes. (i) Elaborate an inventory quality assurance/quality control (QA/QC) plan and implement general inventory QC procedures in accordance with its QA/QC plan following the most recent guidance accepted by the IPCC and agreed upon by the CMA. E. REPORTING GUIDANCE 1. National inventory arrangements (i) Include a description of the national inventory arrangements (in line with section C above). 2. Gases and sectors (i) Report emissions by sources and removals by sinks of carbon dioxide (CO 2 ), methane (CH 4 ), nitrous oxide (N 2 O), hydrofluorocarbons (HFCs), perfluorocarbons (PFCs), sulphur hexafluoride (SF 6 ) and nitrogen trifluoride (NF 3 ), for each sector, category and sub-category, using the most recent guidance accepted by the IPCC and agreed upon by the CMA. (ii) To the extent possible emissions and removals should be reported at the most disaggregated level of each source/sink category, taking into account that a minimum level of aggregation may be required to protect confidential information. (iii) International aviation and marine bunker fuel emissions should not be included in national totals but should be reported separately (iv) Where methodological or data gaps in inventories exist, information on these gaps should be presented in a transparent manner. Parties should clearly indicate the sources and sinks which are not considered in their inventories but which are included in the IPCC guidance, use notation keys in line with IPCC guidance, and explain the reasons for such exclusion. (v) Indicate the parts of their geographical area, if any, not covered by the inventory and explain the reasons for exclusion 3. Methodologies, parameters and data (i) In line with section D, paragraph 1 above, all methods, sources of emission factors and activity data used to compile the greenhouse gas inventory should be documented in the national inventory report. 4. Metrics (i) Report aggregate (CO 2 equivalent) emissions and removals of greenhouse gases, using IPCC 100-year global warming potentials as agreed upon by the CMA. (ii) As appropriate, report supplemental information on aggregated greenhouse gas emissions using other metrics applicable to national circumstances. 5. Base year and time series (i) The base year should be the same as the base year for the NDC and consistent with that reported in previous inventory submissions (ii) The latest reported year should be the calendar year two years prior to the submission year. (iii) If the latest reported year is different to the calendar year two years prior to the submission year, the reasons for this must be clearly explained. (iv) Estimates to be provided for all years of the time-series (ie, for the base year and each year from the base year to the latest reported year). 6. Key categories (i) Estimate and report the individual and cumulative percentage contributions from key categories to their national total, with respect to both level and trend, consistent with the most recent guidance accepted by the IPCC and agreed upon by the CMA.

14 7. Uncertainties (i) Report results of uncertainty analysis conducted following the most recent guidance accepted by the IPCC and agreed upon by the CMA, as well as report on methods used and underlying assumptions, for the purpose of helping to prioritize efforts to improve the accuracy of national inventories in the future and to guide decisions on methodological choice. 8. Recalculations (i) Provide information on recalculations of previously submitted estimates of emissions and removals as a result of changes in methodologies, changes in the manner in which emission factors and activity data are obtained and used, or the inclusion of new sources or sinks which have existed since the base year but were not previously reported (ii) Provide information on any other changes in estimates of emissions and removals, and clearly indicate the reason for the changes compared with previously submitted inventories (e.g. error correction, statistical reason or reallocation of categories). 9. Quality assurance/quality control (i) Provide information on the inventory QA/QC plan and give information on QA/QC procedures already implemented or to be implemented in the future, in line with IPCC good practice. Information could also be provided on any peer review of the inventory. 10. Identification of constraints and capacity-building needs (i) Provide updated information on constraints and gaps and related financial, technical and capacity-building needs. In doing so, explain how provision of capacity-building would improve the greenhouse gas inventory, and outline what particular aspects of the inventory would be improved, together with proposals on prioritising some improvements over others. 11. Improvement plan (i) Include an improvement plan that takes into account capacity building needs as appropriate (identified in section xx above), summarising proposed activity to enhance the overall quality of the inventory (in line with IPCC good practice), and any steps being taken to strengthen national inventory arrangements, and how these activities will be prioritised. Reference should be made to the key category analysis (identified in section xx above) as appropriate and to recommendations from reviews conducted under Article [see section MM of this Annex below]. F. MODALITIES FOR REPORTING 1. Overview The inventory submission has two parts which together provide sufficient detail to allow for technical expert review under Article 13.11, and meet the requirements of Article 13.7(a). (i) A national inventory report (ii) Common reporting tables available and submitted through an electronic reporting system maintained by the secretariat 2. National inventory report (i) The national inventory report includes detailed, complete and transparent information on the greenhouse gas inventory as described in sections C, D and E above. (ii) The national inventory report should follow the general structure outlined in an annex to the reporting guidelines as summarised in the placeholder below at the end of this section (Suggested standard outline for national inventory reports)

15 3. Common reporting tables (i) Common reporting tables that detail emissions by sector, category and gas, that present data on a gas-by-gas basis in units of mass, with emissions by sources for each gas listed separately from removals by sinks, except in cases where it may be technically impossible to separate information on sources and sinks. (ii) Emissions and removals should be reported at the most disaggregated level possible for each category. (iii) The common reporting tables shall contain sufficient detail to assess the quality of the inventory and understand the Party s emissions profile, including information on activity data, emission factors, and other key parameters. 4. Language (i) The national inventory report shall be submitted in one of the official languages of the United Nations. (ii) Parties are encouraged to submit an English translation of the national inventory report to facilitate its technical expert review. [Placeholder: Annex to reporting guidelines for national inventory: SUGGESTED STANDARD OUTLINE FOR NATIONAL INVENTORY REPORTS This annex could include suggestions for chapter and section titles to assist with comparability between greenhouse gas inventory reports. We have not proposed a detailed outline but note that based on existing experience chapter headings at a minimum could include: Executive Summary Introduction (including description of national inventory arrangements) Trends in greenhouse gas emissions A chapter on each inventory sector (including information on methodological choice) Recalculations and improvements]

16 Section two Potential structure for the part of the reporting guidelines covering information necessary to track progress made in implementing a Party s nationally determined contribution under Article 4 of the Paris Agreement (Article 13, paragraph 7(b)) A. OBJECTIVES (i) Assist Parties in meeting their commitments under Article 13, paragraph 7(b) of the Paris Agreement. (ii) Contribute to providing a clear understanding of climate change action in the light of the objective of the Convention as set out in its Article 2, including clarity and tracking of progress towards achieving Parties individual nationally determined contributions under Article 4 of the Paris Agreement. (iii) Provide flexibility to developing country Parties that need it in light of their capacities. (iv) Promote the provision of transparent, accurate, complete, consistent and comparable information. (v) Avoid duplication as well as undue burden on Parties and the UNFCCC secretariat. (vi) Ensure Parties maintain at least the frequency and quality of reporting in accordance with their respective obligations under the Convention. (vii) Ensure that double counting is avoided. (viii) Ensure environmental integrity. (ix) Facilitate the process of considering information necessary to track progress made in implementing and achieving nationally determined contributions, including the preparation of technical analysis and synthesis documentation. (x) Facilitate the process of technical expert review and multilateral consideration of the inventory information in accordance with Article 13 paragraphs 11 and 12 of the Paris Agreement. (xi) Inform the Global Stocktake B. NATIONALLY DETERMINED CONTRIBUTION (i) Description of the Party s most up-to-date NDC under Article 4, including any information to facilitate clarity and understanding of the Party s NDC. (ii) Any additional information provided on the Party s page in the NDC public registry could be replicated in this section also. C. NATIONAL CIRCUMSTANCES (i) Provide a description of national circumstances, how the national circumstances affect greenhouse gas (GHG) emissions and removals, and how the national circumstances and changes therein affect GHG emissions and removals over time. Parties should provide information on how their national circumstances are relevant to factors affecting GHG emissions and removals, including disaggregated indicators, to explain the relationship between the national circumstances and emissions or removals. Parties may provide whatever information best describes their own national circumstances and historical trends. (ii) The coverage of information that could be provided includes: government structure, population profile, geographical profile, climate profile, sector details: energy, transportation, industry, waste, building stock and urban structure, agriculture, and forestry (iii) Provide a high-level summary of trends of anthropogenic greenhouse gas emissions by sources and removals by sinks as presented in the latest greenhouse gas inventory submitted. (iv) Description of legal, administrative and institutional systems arrangements to track progress towards meeting the NDC under Article 4. D. PROGRESS ON IMPLEMENTING AND ACHIEVING THE NDC UNDER ARTICLE 4 (i) Description of policies and measures in place to help achieve a Party s NDC under Article 4

17 (ii) (iii) (iv) (v) (vi) Provision of, where possible, quantitative estimates of the mitigation achieved to date by the policies and measures described above Explanation of the methodologies used to estimate the mitigation impacts of different policies and measures Description of policies and measures (or targets) relevant to achieving the Party s NDC which do not necessarily have climate change mitigation as their primary focus [Place holder for guidance consistent with the requirements contained in decision 1/CP.21 paragraph 31 on accounting for Parties NDCs, including guidance on: a. Environmental integrity b. Avoidance of double counting c. Accounting methodologies d. Methodological consistency e. Coverage f. Explanation of omitted categories] [Place holder for guidance on how internationally transferred mitigation outcomes under Article 6 are accounted for in tracking progress towards achieving NDCs under Article 4, recognising that the technical work on this is done under the SBSTA. a. As part of their reporting on progress on implementing and achieving the NDC under Article 4, Parties cooperating under Article 6.2 will apply the guidance adopted in decision X/CMA.1: Guidance for cooperative approaches under Article 6.2 of the Paris Agreement.] E. PROJECTIONS (i) Projections of greenhouse gas emissions and removals to at least the end-point year of the Party s NDC by sector (in line with GHG inventories) and aggregated. (ii) Projections to include scenarios with and without policies and measures in place to determine the effect policies and measures are projected to have on a Party s emissions (iii) Projections to include uncertainty and/or sensitivity analyses (iv) For NDCs that are not absolute economy-wide, projections of key indicators to determine progress Parties are making towards their NDC. For example, Parties with intensity type targets, projections of GDP and/or population should be provided. F. IDENTIFICATION OF CAPACITY-BUILDING NEEDS (i) Parties could provide updated information on constraints and gaps and related financial, technical and capacity-building needs. In doing so, Parties should also explain how provision of capacity-building would, over time, improve the quality and transparency of the information to track progress towards implementing and achieving their NDC.

18 Section three Potential structure for the part of the reporting guidelines covering information related to climate change impacts and adaptation under Article 7, as appropriate (Article 13, paragraph 8) GENERAL This part of the reporting guidelines is to assist Parties in communicating their priorities, implementation and support needs, plans and actions regarding adaptation to the impacts of climate change, and to facilitate learning, cooperation and support for implementation of such priorities, plans and actions. STRUCTURE AND CONTENT 1 In preparing information to be included on climate change impacts and adaptation, Parties are encouraged to use and reference relevant methodologies and guidance for assessing climate change impacts, vulnerability and adaptation measures A. Information on the expected impacts of climate change 2 Such information could cover: (i) (ii) Climate modelling, projections and scenarios, relevant to the assessment of climate change impacts and vulnerability; Climate change impacts already experienced or forecast B. Information on risks and vulnerability 3 Such information could cover: (i) Assessment of climate risks and vulnerability to current and expected climate change impacts C. Information on action taken to plan for and adapt to climate change 4 Such information could include: (i) (ii) (iii) (iv) (v) (vi) Domestic adaptation planning processes Implemented and planned actions, strategies, approaches Building the resilience of socioeconomic and ecological systems Progress and outcomes of adaptation action Monitoring and evaluation Implementation and support needs D. Information on cooperation to enhance adaptation 5 Such information on cooperation and enhancing adaptation could include efforts made regarding: (i) (ii) (iii) Sharing of information, good practices, experiences and lessons learned, including as these efforts relate to science, planning, policies and implementation in relation to adaptation actions Strengthening institutional arrangements to support the synthesis of relevant information and knowledge, and the provision of technical support and guidance to Parties Strengthening scientific knowledge on climate, including research, systematic observations of the climate system and early warning systems in a manner that informs climate services and supports decision-making