MRV Primer by AX Digital Palette Designs

Measurement, Reporting, and Verification An Introduction on Tracking the Progress of Mitigation Actions Towards Achieving Targets

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Imprint As a federally owned enterprise, we support the German Government in achieving its objectives in the field of international cooperation for sustainable development. Items from the named author does not necessarily reflect the views of the publisher. Published by Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH Philippine Climate Change Commission (CCC)

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http://mitigationpartnership.net/information-matters

Registered offices Bonn and Eschborn, Germany T +49 228 44 60-0 (Bonn) T +49 61 96 79-0 (Eschborn) Friedrich-Ebert-Allee 40 53113 Bonn, Germany T +49 228 44 60-0 F +49 228 44 60-17 66 Dag-Hammarskjöld-Weg 1-5 65760 Eschborn, Germany T +49 61 96 79-0 F +49 61 96 79-11 15 E: info@giz.de I: www.giz.de

Authors Mary Martha Merilo SandeeRecabar Voltaire Acosta Mara Mendoza

Inputs from Ricardo Energy and Environment (formerly Ricardo-AEA)

Place and date of publication Manila, Philippines April 2016

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Measurement, Reporting, and Verification An Introduction on Tracking the Progress of Mitigation Actions Towards Achieving Targets

A PUBLICATION BY THE DEUTSCHE GESELLSCHAFT FÃ&#x153;R INTERNATIONALE ZUSAMMENARBEIT (GIZ) GMBH AND THE PHILIPPINE CLIMATE CHANGE COMMISSION (CCC)

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Table of Contents List of Tables......................................................................................................................................................................iv List of Figures...................................................................................................................................................................iv Introduction..........................................................................................................................................................................1 Basic Concepts of MRV.................................................................................................................................................2 Measurement..............................................................................................................................................................2 Reporting.......................................................................................................................................................................2 Verification...................................................................................................................................................................2 Uses of MRV...............................................................................................................................................................3 MRV and M&E.............................................................................................................................................................5 History of MRV....................................................................................................................................................................6 Applications OF MRV...................................................................................................................................................10 MRV of Emissions.................................................................................................................................................10 MRV of Mitigation Actions............................................................................................................................11 MRV of Support......................................................................................................................................................13 Institutional Structures for MRV..........................................................................................................................19 Applications of MRV in the Philippines...........................................................................................................21 National Integrated Climate Change Database Information and Exchange System........................................................................................................................................21 The Philippine Greenhouse Gas Inventory Management and Reporting System (Pghgimrs).............................................................................................................22 REDD+ in the Philippines.................................................................................................................................22 References..........................................................................................................................................................................25 Endnotes..............................................................................................................................................................................27

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List of Tables Figure Figure Figure Figure Figure Figure Figure Figure Figure Figure Figure Figure Figure Figure Figure Figure Figure Figure

1. MRV in Policy Design, Implementation, and Evaluation..................................................4 2. Further Uses of GHG Inventories................................................................................................10 3. Mapping the causal chain for NAMAs.....................................................................................11 4. MRV design within the NAMA design.......................................................................................12 5. Types of Support....................................................................................................................................13 6. International ‘cooperation and support’ architecture....................................................13 7. ‘MRV of ‘support’ for activities relating to climate change......................................14 8. MRV of Support as A tool to support national climate policy development and implementation...............................................................................14 9. Relationship between MRV of ‘support needed’ and MRV of ‘support received’................................................................................................................15 10. Evaluation of support effectiveness..........................................................................................15 11. Steps in conducting MRV of Support Needed......................................................................17 12. Key considerations for conducting MRV of Support Needed.....................................18 13. Steps in conducting MRV of Support Received..................................................................18 14. Key considerations for conducting MRV of support received...................................19 15. Proposed Philippine MRV System for Climate Finance.................................................20 16. Proposed National Integrated Climate Change Database Information and Exchange System by the LECB PHL Project..............................................................21 17. The Philippine Greenhouse Gas Inventory Management and Reporting System (PGHGIMRS)...........................................................................................22 18. MRV in the implementation of REDD+ in the Philippines............................................24

List of Figures Table Table Table Table Table Table Table Table Table Table

1. 2. 3. 4. 5. 6. 7. 8.

Summary of MRV Concepts................................................................................................................3 MRV of GHGI, NAMA, and Support.................................................................................................5 Progress of MRV in International Climate Discussions...................................................6 Reports under the UNFCCC................................................................................................................8 Difference between MRV of NAMAs and MRV of GHG Inventory............................11 General MRV of support system design principles.........................................................16 Considerations in Designing Institutional Set-up For MRV of Support..............17 Comparing Centralized and Decentralized Institutional Structures for MRV................................................................19 9. Elements of Institutional Structures for MRV....................................................................20 10. ..........................................................................................................................................................................23

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Introduction

easurement, Reporting, and Verification (MRV) is a system used to analyze and assess the status of greenhouse gas (GHG) emissions as well as the progress and impacts of climate change mitigation actions and support (alternatively Means of Implementation (MOI)) needed and received. This system is a crucial component of climate change mitigation aligned with the United Nations Framework Convention on Climate Change (UNFCCC) which aims to “stabilize greenhouse gas concentrations in the atmosphere at a level that will prevent dangerous anthropogenic interference with the climate system.” The MRV system helps countries organize reliable climate-relevant data and information which will aid in planning and developing climate change mitigation initiatives and policies towards low carbon development at the national and international levels. In the Philippines, Executive Order No. 174 Series of 2014 and Executive Order 881 Series of 2010 provide the policy framework for the implementation of the national MRV system. EO 174 created the Philippine Greenhouse Gas Inventory Management and Reporting System (PGHGIMRS) which guides the Philippine Climate Change Commission (CCC) in developing the national MRV system. It also provides guidance to the sectoral lead agencies on GHG accounting and reporting. On the other hand, EO 881 provides the institutional framework for the implementation of Reducing Emissions from Deforestation and Forest Degradation with Forest Conservation, Sustainable Management of Forests, and Enhancement of Forest Carbon Stocks (REDD+) in the Philippines, which has separate MRV guidelines prescribed by the UNFCCC. Through this EO, the Philippine Department of Environment and Natural Resources (DENR) through the Forest Management Bureau (FMB) was assigned to lead the implementation and monitoring of REDD+ activities in the country in coordination with CCC. Towards establishing a national and sectoral MRV system, CCC is developing the National Integrated Climate Change Database Information and Exchange System (NICCDIES) that will allow sectoral lead and supporting agencies to input, process, and maintain quality control and quality assurance standards on climate-relevant data and information. This Primer on MRV aims to provide guidance to national government agencies in assessing the progress and impacts of climate change mitigation actions and support in reducing GHG emissions. The CCC and the Deutsche Gesselschaft fur Internationale Zussamenarbeit (GIZ) GmbH jointly developed this Primer based on the presentations and outputs of Ricardo Energy and the Environment (formerly Ricardo AEA) commissioned to conduct capacity building activities and provide technical support for the project Information Matters: Capacity Building for Enhanced Reporting and Facilitation of International Mutual Learning through Peer-to-Peer Exchange (Information Matters Project). Supported by the International Climate Initiative of the German Federal Ministry for the Environment, Nature Conservation, Building and Nuclear Safety (BMUB), the Information Matters Project aims to build the institutional capacity of the Philippine government through CCC on international climate reporting especially in the preparation of National Communications (NCs) and Biennial Update Reports (BURs) in line with the country’s commitment to the UNFCCC as Party to the Convention. The Project covered four countries, namely: Chile, Dominican Republic, Ghana, and the Philippines through the support and cooperation of the United Nations Development Program – Low Emission Capacity Building Program (UNDP-LECB), National Communication Support Program (NCSP), United Nations Environment Programme (UNEP), World Resource Institute (WRI), and the International Partnership on Mitigation and MRV (IMMA). Activities undertaken under the Project include Gap Analyses, Capacity Building Missions, Backstopping and Technical Support, and Peer-to-Peer Exchanges. For more information on the Project implementation in the Philippines: http://climate.gov.ph/index.php/projects/ mitigation/information-matters For further information on global implementation as well as to access different tools and knowledge products under the Project: http://mitigationpartnership.net/information-matters 1

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Measurement, Reporting, and Verification

Basic Concepts of MRV MEASUREMENT Measurement relies on quantitative and qualitative indicators that characterize greenhouse gas (GHG) emissions as well as the impacts of climate change mitigation actions and the support needed and received towards reducing emissions. Measurement requires identifying indicators that are relevant to meeting emission reduction targets whether through specific mitigation actions or policies. Indicators should also be specific and measurable based on a set of established criteria, and achievable given the available resources and time. Since measurements are intended to assess changes over time, it is also necessary to establish baselines, determine target values, and set the timeline for which indicators will be observed.

REPORTING Reporting requires accurate presentation of the status of GHG emissions, the procedures undertaken in implementing mitigation actions, as well as the results of mitigation actions and support needed and received. Further, reports must consider the target audience and purpose to ensure that information presented are tailored and relevant to their specific information needs. A common reporting format is available for national and international climate reporting needs (i.e. GHG inventory, National Communications, Biennial Update Reports, and Nationally Appropriate Mitigation Actions).

VERIFICATION Verification provides transparency, consistency, and reliability of reported GHG emissions and outcomes to ensure that these are attributed to the implemented mitigation actions and the support received towards reaching emission targets. This involves reviewing the objectives of mitigation actions, checking whether the actions including the methodologies and methods used correspond to the objectives, assessing the reliability and accuracy of data, and validating the outcomes of the actions and the support provided. The Convention proposed two ways of verification: domestic review or through a third-party reviewer. Domestic verification is conducted by designated national agencies to generate their own national reports while ensuring confidentiality of national data especially from those sectors or entities providing sensitive information. On the other hand, third-party reviews are conducted by international experts or institutions to ensure transparency and reliability of the reports without prejudice to the country submitting the reports.

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Measurement, Reporting, and Verification

USES OF MRV Even before plans are made to institutionalize MRV system as a tool for climate reporting, many Philippine government agencies have put in place similar processes to assess other initiatives such as DENR’s forest resource assessment and the report on Department of Interior and Local Government’s (DILG) and the National Solid Waste Management Commission’s (NSWMC) reports on the status of waste generation and disposal facilities. Table 1. Summary of MRV Concepts MEASUREMENT

REPORTING

VERIFICATION

Purpose

Provide data on relevant indicators

• Comply with the Check the accuracy and reporting requirements reliability of reported of the UNFCCC information or the procedures used to • Communicate and generate information document lessons, innovations, and best practices among Parties of Convention

Observation Units

Indicators: Quantifiable Attributes: unit of measure, standards (e.g. forest cover, GHG inventory)

• National conditions • Policies and measures • Results of actions • Climate change mitigation activities • Support received to reduce GHG emission

Reliability and accuracy of data and methodology

what has been done and what were the results

how reliable and accurate the methodology used and the data produced

Phenomena: Commitments to achieve results (e.g. Funding, policies, actions, safeguards, other forest benefits) Information Generated

what is changing or what is happening

Requirements

Indicators: • Data/information • Domestic/third-party Standards, Guidelines1 on GHG emissions, reviewer Target value, baseline, mitigation actions, and • Verification guidelines timeline to which support needed and and processes target value and received baseline relate • Reporting guidelines and format

Issues

• Quality Assurance (QA)/Quality Control (QC) of data • Direct or indirect attribution (i.e. Attribution gap) • Data Uncertainty

• Transparency – making • Qualifications of verifiers available climate• Identification of verifiers relevant information (in-house, designated of countries could be agency, third party, both beneficial and international expert) unfavorable • Structure/guidelines for • Reliability of the verifying report

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Measurement, Reporting, and Verification

International Climate Reporting National climate reports submitted to the UNFCCC include information on the MRV processes undertaken in the conduct of GHG inventories, implementation of nationally appropriate mitigation actions (NAMAs), and assessment of impacts of support for mitigation actions in generating GHG and non-GHG results. MRV also serves as a tool for documenting and communicating significant lessons and innovations, as well as best practices on climate change mitigation across institutions and countries. Lessons drawn from these reports could be used as inputs for the design and implementation of MRV systems of other governments and concerned agencies and organizations ii. In addition, MRV serves as a tool for transparency allowing governments to look into the relationship between domestic funding and support received for the design and implementation of the MRV system and its corresponding resultsi. Policy and Development Planning MRV generates evidenced-based climate relevant information to support development planning and policy- and decision-making, as shown in Figure 1. Specifically in assessing emission trends and patterns, sectors can be identified and prioritized, and consequent policies can be designed or further improved to generate desired results. In addition, MRV allows for the evaluation of processes and structures to identify gaps and capacity and technological needs. It also helps in identifying areas for improvement to enhance resource efficiency and formulate capacity building initiatives and knowledge management frameworks iii.

Policy Design Develop and implement MRV system

Policy Implementation Operate MRV system

Policy Evaluation Evaluate using MRV data

Learn from implementation and evaluation and feedback into design phase Figure 1. MRV in Policy Design, Implementation, and Evaluation Source: John Watterson and Ross Hunter, â&#x20AC;&#x153;Basic Concept of Measurement, Reporting, and Verification (MRV) Systemâ&#x20AC;? (presentation, Information Matters Project Training-Workshop on MRV Domestic Architecture and Baselines Scenario Setting, Manila, Philippines, April 24-25 and 28-30, 2014)

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Measurement, Reporting, and Verification

MRV AND MONITORING AND EVALUATION MRV is closely related to Monitoring and Evaluation (M&E). Both systems require indicators to assess the effectiveness of the interventions or actions. While M&E is mostly applicable to the assessment of climate change adaptation measures, it is possible to integrate its components with mitigation-relevant MRV as in the case of South Africaâ&#x20AC;&#x2122;s MERV systemiii. The differences between MRV and M&E are on their reporting obligation, preparation, and submission. M&E is not often limited to a singular official reporting element unlike MRV that requires a unitary form or reporting format to comply with. Moreover, reports in M&E are often generated from previous studies while reports in MRV entails generation of data and consequent report preparation where a third-party is enlisted to review and verify the report ii. Table 2. MRV of GHGI, NAMA, and Support

GREENHOUSE GAS INDICATORS (GHGI)

NATIONALLY APPROPRIATE MITIGATION ACTIONS (NAMAS)

SUPPORT

Focus

greenhouse gas emissions

sustainable development goals and GHG cobenefits

financial, technical, and capacity buildingi support received and provided

Measurement

based on internationally approved guidelines of the Intergovernmental Panel Climate Change

based on domestically approved guidelines

based on internationally approved guidelines

Reporting

international climate reports domestic reports/ national planning

domestic reports/ national planning international registry

international climate reports domestic reports/ planning

Verification

third party

domestic

domestic or third party

Guidelines

IPCC 2006

UNFCCC Handbook on Measurement, Reporting and Verification for Developing Country Parties

UNFCCC Background Paper on the MRV of support and biennial assessments and overview of financial flows

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Measurement, Reporting, and Verification

History of MRV MRV is a fundamental component to meet emission reduction targets and implementing mitigation actions. It has become among the key themes in international climate negotiations, thus resulting to its integration into national climate reporting as a requisite standard. Table 3 presents the progress of MRV in international climate discussions. Table 3. Progress of MRV in International Climate Discussions YEAR

EVENT

2007

Negotiations during the Conference of Parties (COP) in Bali, Indonesia resulted in the Bali Action Plan or Decision 1/CP.13 which outlined specific steps towards climate change adaptation and mitigation in accordance with its five pillars: • A shared vision for long-term cooperative action • Enhanced national/international action on mitigation of climate change • Enhanced action on adaptation • Enhanced action on technology development and transfer to support action on mitigation and adaptation • Enhanced action on the provision of financial resources and investment to support action on mitigation and adaptation and technology cooperation

2009

Further steps to set up concrete measures and actions towards climate change adaptation and mitigation were discussed among Parties to the Convention which resulted in the Copenhagen Accord or Decision2/CP.15.

DESCRIPTION

The Conference of Parties through Paragraph 1b (i) and (ii) of Decision 1/CP.13 or the Bali Action Plan had agreed on and reinforced the important role of MRV in climate mitigation. Through this Decision, MRV was established as a standard for assessing national appropriate mitigation actions and commitments.

In line with the provisions indicated in the Bali Road Map, countries have detailed the specific plans of action towards reaching the objectives of the Convention through Decision 2/CP.15 or the Copenhagen Accord. Under this Decision, MRV was established as a requisite in the implementation of emission reduction targets for Annex I countries with additional provisions that MRV reports should be rigorous, robust and transparent (Par. 4). The same also applies to mitigation actions by Non-Annex I countries, but in the context of common but differentiated responsibilities (Par. 5).

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Measurement, Reporting, and Verification

YEAR

EVENT

DESCRIPTION

2010

The Cancun Agreements or Decision 1/C.6 was agreed upon by member Parties to strengthen the actions towards climate change adaptation and mitigation. These measures and actions were set against the pillars indicated in the Bali Action Plan.

The function and role of MRV in climate change mitigation were further integrated to different intervention areas outlined in the Cancun Agreements: Internationally supported mitigation actions (Par. 61) Domestically supported mitigation actions (Par. 62) MRV of support (Par. 66) MRV of mitigation actions in the forestry sector (Par. 73)

2011

In order to meet emission reduction targets with increased urgency, the Durban Platform was formulated to expound the measures indicated in the Copenhagen Accord and Cancun Agreements with reference to the Bali Action Plan.

As mitigation targets and actions are required to be implemented in a measurable, reportable, and verifiable manner, Decision 2/ CP.17 initiated the role of the Subsidiary Body for Scientific and Technological Advice in the formulation of guidelines for MRV (Par.37).

2013

In line with progressing mitigation initiatives of both developed and developing countries, guidelines on the implementation of instruments such as International Consultation and Analysis (ICA), MRV, and REDD+ were agreed upon in Warsaw.

General guidelines for domestic measurement, reporting and verification of domestically supported NAMAs by developing country Parties were established under Decision 21/CP.19.

Source: Data adapted from United Nations Framework Convention on Climate Change (UNFCCC), “First steps to a safer future: Introducing The United Nations Framework Convention on Climate Change”, United Nations Framework Convention on Climate Change, accessed May 2015. http://unfccc.int/essential_background/convention/items/6036.php.

In assessing initiatives towards emission reduction and low carbon development, MRV has become a requisite in national climate reports such as the National Communications (NCs) and Biennial Update Reports (BURs); Kyoto Mechanisms such as Clean Development Mechanisms (CDM), Emissions Trading, and Joint Implementation (JI); and further mitigation actions such as REDD+, NAMAs, and Intended Nationally Determined Contributions (INDCs)iv (Table 4). Aside from describing and observing the impacts of mitigation actions and policies, MRV also enhances transparency in reporting as emission data are compared against emission reduction targets. Moreover, it strengthens trust among country Parties as it represents each Party’s commitment to achieve reduction targets.

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Measurement, Reporting, and Verification

Table 4. Reports under the UNFCCC

NATIONAL CLIMATE REPORTS DEVELOPED COUNTRIES (ANNEX I)

DEVELOPING COUNTRIES (NON-ANNEX I)

• greenhouse gas emissions and removals • national circumstances • policies and measures climate change adaptation and mitigation • vulnerability assessment • financial resources and transfer of technology • education, training, and public awareness • any other information on related activities

• greenhouse gas inventories and adaptation and mitigation measures • any other information on related activities

NATIONAL COMMUNICATIONS (NCS)V

Countries submit information on national implementation of climate change adaptation and mitigation measures as well as other related initiatives every four years which include greenhouse gas inventories.

BIENNIAL REPORT (BR) AND BIENNIAL UPDATE REPORT (BUR)I

Biennial reports and biennial update reports are submitted by developed and developing countries respectively every two years in between the submission of their national communications to provide status reports on national implementation of the Convention

Biennial reports • progress in achieving emission reductions • provision of financial, technology, and capacitybuilding support to nonAnnex I Parties

Biennial update reports • update on measures indicated in the National Communications • greenhouse gas inventories • mitigation actions • constraints and gaps • support needed and received

Inventory of direct GHGs from the following sectors: • Energy • Industrial processes and Solvents • Agriculture • Land Use, Land-Use Change and Forestry (LULUCF) • Waste

GHG INVENTORIESI

Developed countries submit their national GHG inventories every year with reference to the base year to provide on the status of their emission reduction commitments. Developing countries include their national GHG inventories in the NCs submitted every four years and in the BURs submitted every two years

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Measurement, Reporting, and Verification

KYOTO MECHANISMS CLEAN DEVELOPMENT MECHANISMSVI

EMISSIONS TRADINGVII

JOIN IMPLEMENTATIONVIII

Developed countries that submitted emission reduction targets can provide support to developing countries through investment in national sustainable developmentoriented activities towards mitigation. This will give the developed countries certified emission reduction (CER) credits which can contribute in meeting their commitments as indicated in the Kyoto Protocol.

Countries that committed to reduce emission under the Kyoto Protocol have assigned amount units (AAUs). These targets are accepted by each Party as their allowable emission until the Kyoto Protocol ends. Those countries that have allowable emissions left to spare can sell these units to countries that have exceeded their targets.

Countries with specified emission reduction or limitation targets (Annex B) can jointly implement mitigation projects which will earn them emission reduction units (ERUs) to be credited in meeting their targets.

NAMASX

INDCSXI

Developing countries may implement NAMAs voluntarily as a country or through individual initiative. NAMAs include policies or specific activities that contribute to emission reductions while advancing national development goals. Countries that are in need of support and those willing to provide support may collaborate through the NAMAs Registry.

In order to strengthen efforts towards meeting the objectives of the Convention after 2020, countries were enjoined to submit INDCs in the first quarter of 2015. The INDC outlines their proposed targets and actions towards adaptation and mitigation as well as support needed for implementation. These mitigation actions were developed at the national level which corresponds to the countryâ&#x20AC;&#x2122;s circumstances and capacities while contributing to the global mitigation goal.

MITIGATION ACTIONS REDD+IX

REDD+ is a voluntary mechanism towards mitigation through reduction or avoided emissions in the forestry sector. Countries implementing REDD+ submit information on forest emission and reference emission levels, safeguards executed, and specific actions towards eliminating drivers of deforestation and forest degradation.

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Measurement, Reporting, and Verification

Application of MRV MRV OF EMISSIONS GHG inventories provide information on emissions in terms of developments at the national level over time which could allow for prioritization of sectors and sources or gases for mitigation actionxii. GHG inventories are also necessary in formulating baseline scenarios and projections and mitigation actions, as well as in designing policies to support mitigation actions. Estimation Approaches for Emissions Emissions can be estimated by multiplying activity data with the corresponding emission factor. Activity data can be obtained from surveys, national statistics, proxy data, and bottom up data i while emission factors can be sourced from international defaults, country-specific factors, and data from other countries with similar national circumstances i.The level of detail and complexity in estimating emissions are classified into three tiersi: • Tier 1 - Default approach • Tier 2 - Country-specific • Tier 3 - Installation specific or model approaches As indicated in the IPCC 2006 guidelines, the report should include GHG emissions from the following sectors: energy, agriculture, waste, industrial processes and product use, agriculture, and land use, land-use change and forestryi.

Scenarios Target setting

Projections

Regulation Plans Targets

GHG INVENTORY Greenhouse Gases Energy use

National Data

Regional & Local Data

Good Practice

Guidance & Expertise

Knowledge

Lessons

Figure 2. Further Uses of GHG Inventories Source: John Watterson and Ross Hunter, “MRV of Emissions” (presentation, Information Matters Project Training-Workshop on MRV Domestic Architecture and Baselines Scenario Setting, Manila, Philippines, April 24-25 and 28-30, 2014)

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Deutsche Gesellschaft fĂźr Internationale Zusammenarbeit (GIZ) GmbH Registered offices Bonn and Eschborn, Germany 9th Floor PDCP Bank Centre, Rufino corner Leviste Streets, Salcedo Village, 1227 Makati City, Philippines Contact Dr. Bjoern Surborg Principal Advisor Support to the Philippines in Shaping and Implementing the International Climate Regime (SupportCCC II) Project Tel. +63 2 426 0726 Fax +62 2 426 0726 Email: bjoern.surborg@giz.de www.giz.de

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