The purpose of this study is to define the systems for monitoring, reporting and verifying greenhouse gas (GHG) emissions covered by a European Union greenhouse gas cap-and-trade programme. The European trading programme is discussed in the Commission's green paper on emissions trading, which used as inputs reports prepared by FIELD and CCAP under a trading system design project sponsored in 1999 by the Commission. The green paper stated that the trading system should start with a relatively small number of economic sectors and sources that contribute significantly to total emissions and for which the costs of reduction efforts differ significantly.. It included a table that identified the following sectors for possible inclusion in the system:
- Electricity and heat production;
- Iron and steel;
- Glass, pottery and building materials (including cement); and
- Paper and printing (including paper pulping).
Regarding the monitoring, reporting and verification of emissions, the earlier work by CCAP and FIELD noted the need to harmonise monitoring requirements and recommended that national authorities perform verification of reported emissions. But while it spoke generally of the relative merits of measurement and calculation as monitoring techniques, it provided little detail on how monitoring, reporting and verification would actually work. The purpose of this report is to provide this detail.