Principles for monitoring MRV, reporting and verification of greenhouse gas emissions, key parties and their responsibilities

Climate change is one of the most significant threats facing countries, governments, businesses and the population for decades to come. This problem can have serious consequences for both human and natural systems and can lead to significant changes in resource use, production and economic activity. In response, international, regional, national and local initiatives to limit greenhouse gas (GHG) concentrations in the earth’s atmosphere are being developed and implemented. Such greenhouse gas initiatives are based on quantification, monitoring, reporting and verification of their emissions.

Ukraine also joined the global initiative to limit greenhouse gas concentrations, signing the EU-Ukraine Association Agreement on 16 September 2014, which requires Chapter VI and Annexes XXX and XXXI to establish procedures for monitoring, reporting and verifying greenhouse gas emissions from energy sources. and industrial installations (enterprises).

In order to emphasize its intentions and fulfill the requirements of the agreement, on December 12, 2019, the Law of Ukraine “On Principles of Monitoring, Reporting and Verification of Greenhouse Gas Emissions” № 0875 was adopted.

The general purpose of this Law is to establish and ensure the confidence of all parties that rely on greenhouse gas reporting and to establish liability for non-compliance with the requirements in the field of monitoring, reporting and verification of greenhouse gas emissions.

The main actors (parties) in accordance with the Law of Ukraine “On Principles of Monitoring, Reporting and Verification of Greenhouse Gas Emissions” № 0875 are:

  • operator – a legal entity or a natural person – entrepreneur who carries out technical operation of the installation, which is owned or used;
  • verifier – a legal entity accredited in accordance with the Law of Ukraine “On Accreditation of Conformity Assessment Bodies”, which performs verification;
  • authorized body – the central executive body that implements state policy in the field of environmental protection, in the field of monitoring, reporting and verification of greenhouse gas emissions;
  1. The operator in accordance with Art. 13 of the Law of Ukraine “On Principles of Monitoring, Reporting and Verification of Greenhouse Gas Emissions” is obliged to:
  2. register the installation in the Unified Register;
  3. develop a NRM monitoring plan in accordance with the procedure for monitoring and reporting on greenhouse gas emissions;
  4. submit the MRL monitoring plan to the authorized body for approval;
  5. establish, document, implement and maintain written data processing procedures for monitoring and reporting on greenhouse gas emissions and provide documents required by the procedure for monitoring and reporting on greenhouse gas emissions;
  6. submit a report on improvement to the authorized body for approval;
  7. ensure the monitoring of greenhouse gas emissions in accordance with the monitoring plan;
  8. develop an operator’s report and submit it for verification;
  9. provide the verifier with access to the installation, facilities and information necessary for the verification, in the manner prescribed by the procedure for verification of the operator’s report;
  10. submit a report of the operator, which according to the results of verification is considered satisfactory, to the authorized body together with the verification report within the period established by this Law;
  11. take into account the recommendations set out in the verification reports when monitoring;
  12. submit to the authorized body for approval the monitoring plan of the MRV with changes and notify the authorized body of the grounds for amendments to the monitoring plan in cases provided for in the procedure of monitoring and reporting on greenhouse gas emissions;
  13. ensure the storage of documents specified in the procedure for monitoring and reporting on greenhouse gas emissions for a specified period;
  14. perform other responsibilities in accordance with the legislation in the field of monitoring, reporting and verification.

In addition to the responsibilities assigned to the operator, he has the right to:

  1. to determine the verifier for verification on a contractual basis, taking into account the requirements established by the procedure for verification of the operator’s report;
  2. to receive from the verifier a verification report on the results of his verification;
  3. exercise other rights in accordance with the legislation in the field of monitoring, reporting and verification.

Verifier in accordance with Art. 14 of the Law of Ukraine “On Principles of Monitoring, Reporting and Verification of Greenhouse Gas Emissions” is obliged to:

  1. to verify the operator’s report in accordance with the legislation;
  2. ensure the competence of the personnel involved in the verification activity;
  3. prepare and compile internal verification documentation;
  4. ensure internal verification of the verification report and internal verification documentation in accordance with the procedure for verification of the operator’s report;
  5. prepare and issue a verification report to the operator;
  6. ensure the provision of access to internal verification documentation at the request of the authorized body or national body of Ukraine for accreditation;
  7. maintain the confidentiality of information obtained during the verification, not to disclose information to which the verifier has access during the verification, and not to use them in their own interests or in the interests of third parties;
  8. perform other responsibilities in accordance with the legislation in the field of monitoring, reporting and verification.

The verifier has the right to:

  1. determine the forms and methods of verification in accordance with this Law, the procedure for verification of the operator’s report and the agreement with the operator;
  2. receive documents, materials and information available to the operator, necessary for verification, in the amounts established by law;
  3. involve technical experts to obtain conclusions and clarifications on verification issues;
  4. to make a decision on conducting on-site verification subject to compliance with the requirements stipulated by the legislation;
  5. exercise other rights in accordance with the legislation in the field of monitoring, reporting and verification.
  1. The authorized body in accordance with Art. 8 of the Law of Ukraine “On Principles of Monitoring, Reporting and Verification of Greenhouse Gas Emissions” on the tasks:

 

  1. summarizes the practice of application of legislation, develops and submits proposals for improving legislative acts and acts of the Cabinet of Ministers of Ukraine in the field of monitoring, reporting and verification, in particular on:
  2. a) the procedure for monitoring and reporting on greenhouse gas emissions;
  3. b) the procedure for verifying the operator’s report;
  4. c) a list of activities;
  5. provides information and clarifications on the implementation of state policy in the field of monitoring, reporting and verification;
  6. provides organizational and methodological guidance and coordination of work related to monitoring, reporting and verification;
  7. approves the monitoring plan and the monitoring plan with changes;
  8. determines the amount of greenhouse gas emissions in cases provided for in the procedure of monitoring and reporting on greenhouse gas emissions approved by the Cabinet of Ministers of Ukraine, and has the right to ask the operator for a written request for information needed to
  9. determine greenhouse gas emissions;
  10. approves the MRV improvement report;
  11. approves the verifier’s decision to conduct on-site verification;
  12. accepts the report of the operator’s MRV;
  13. ensures the maintenance of the Unified Register, as well as is responsible for the technical, technological and software of the Unified Register, storage and protection of data contained in the Unified Register;
  14.   exchanges information and coordinates actions with the national accreditation body of Ukraine and the central executive body that implements the state policy on state supervision (control) in the field of environmental protection, rational use, reproduction and protection of natural resources;
  15. participates in international cooperation on monitoring, reporting and verification, study, generalization and dissemination of international experience in this field;
  16. performs other functions in the field of monitoring, reporting and verification in accordance with the law.
  17. The authorized body has the right to authorize enterprises, institutions and organizations belonging to the sphere of its management to perform certain functions in the field of monitoring, reporting and verification.

Responsibilities of the parties

The party providing the report of the MRV on greenhouse gases is responsible for the veracity of the information provided and compliance with the rules established by law. The validation and verification body is responsible for carrying out an objective assessment of the operator’s evidence-based report. Responsibility for violating the requirements of the legislation in the field of monitoring, reporting and verification of greenhouse gas emissions is enshrined in Art. 91,172 of  the Code of Administrative Offenses:

  1. Violations of the legislation in the field of monitoring, reporting and verification of greenhouse gas emissions by the operator of the installation are described in Article 91 of the Code of Administrative Offenses:
  • non-fulfillment of the obligation to state registration of the installation or to make changes to the entries of the Unified Register for Monitoring, Reporting and Verification of Greenhouse Gas Emissions;
  • failure to submit a monitoring plan, a monitoring plan with changes, an improvement report, an operator’s report that has been found satisfactory as a result of the verification, and a verification report in the manner prescribed by law;
  • providing the verifier or the central executive body implementing the state policy in the field of environmental protection, monitoring, reporting and verification of greenhouse gas emissions, knowingly inaccurate or incomplete information related to the greenhouse gas emissions monitoring operator;
  • non-compliance with the approved monitoring plan, monitoring plan with changes – entails the imposition of fines on natural persons – entrepreneurs from one hundred to three hundred non-taxable minimum incomes and officials – from fifty to eighty non-taxable minimum incomes;

Repeated during the year the violation provided for in part one of this article, for which the person has already been subjected to administrative penalties, entails the imposition of fines on individuals – entrepreneurs from five hundred to one thousand non-taxable minimum incomes and officials – from two hundred n “fifty to four hundred non-taxable minimum incomes of citizens deprived of the right to hold certain positions or engage in certain activities for a period of one year”;

  1. Violation of the requirements for verification of the operator’s report on greenhouse gas emissions is described in Article 172-1-2 of the Code of Administrative Offenses:

– Violation of the verification procedures of the operator’s report on greenhouse gas emissions by the verifier entails the imposition of a fine on the verifier’s officials from fifty to eighty non-taxable minimum incomes;

– The same actions committed by a person who during the year was subject to administrative penalties for violation of part one of this article – entail the imposition of fines on officials of the verifier from two hundred and fifty to four hundred non-taxable minimum incomes of citizens deprived of the right to hold certain positions or engage in certain activities for a period of one year”;

Your involvement in the monitoring and development of the GHG emissions report of our project organization will facilitate the adoption of environmentally sound management decisions that will allow you to professionally develop a monitoring plan for the Ministry of Foreign Affairs, pass the verification and registration procedure, avoid sanctions as well as the opportunity to save time and financial resources that will benefit your business and the environment.