ISO UNFCCC Side Event Ensuring the MRVability of

ISO / UNFCCC Side Event Ensuring the “MRVability” of National Actions COP-15 Copenhagen, Denmark December 12 th, 2009 1

Agenda 1. Introduction to the International Organization for Standardization (ISO) 2. ISO TC 207 Environmental Standards 3. ISO GHG Management Standards 4. Relation of ISO GHG Standards, national regulations and international climate negotiations 5. Stakeholder view on MSS for MRV under NAMAs 6. ISO concept of an MSS for MRV under NAMAs 7. Other ISO Contributions 8. Discussion 9. Closing Remarks 2

1. Introduction to the International Organization for Standardization (ISO) Jacob Holmblad, ISO Vice- President, Technical Management 3

International Organization for Standardization (ISO) Ø Ø Ø Ø Established in 1947, based in Geneva, Switzerland International NGO with national members from 162 countries International, multi-stakeholder, consensus process 600+ international/regional liaison members 17’ 500+ published Standards 3’ 000+ technical groups (Committees, WGs) Partnerships and cooperation with IGOs, business groups and civil society organizations (e. g. , UNEP, UNFCCC, IEA, WBCSD, WRI, IISD, …) ISO Standards important tool to complement governmental policies and regulations (e. g. , maritime sector with IMO, medical device regulators, social responsibility with ILO and UN Global Compact) 4

ISO TC 207 Scope and Membership Scope: Standardization in the field of environmental management systems standards and tools in support of sustainable development. Membership: 75 Participating Countries, 26 Observing Countries, 41 Liaison organizations. 5

2. ISO TC 207 Environmental Standards Marsha Cheddi, Secretary ISO TC 207 / SC 7 6

ISOEnvironmental GHG Standards ISO and Management Scope Areas of Standardization Organizational ü Environmental Management Systems ü Environmental performance evaluation ü Environmental communication Auditing Products ü Guidelines for quality and/or environmental management systems auditing ü Environmental auditing and related environmental investigations ü Life cycle assessment ü Environmental labelling 7

ISO GHG Standards ISO and Greenhouse Gas Management Scope Areas of Standardization Organizational ü Organizational level quantification and reporting of GHG and removals. ü Carbon footprint of organizations Products ü Carbon footprint of products (Quantification, Communication) Projects ü Project level for quantification monitoring and reporting of GHG emission reductions and removal enhancements Validation and Verification ü Validation and verification of greenhouse gas assertions. People ü Competence requirements for GHG validation and verification teams Accreditation ü Requirements for GHG validation and verification bodies 8

3. Supporting Emissions Markets Using ISO Standards Quantification, Validation-Verification, and Accreditation Presented at COP-15 in Copenhagen, Denmark by John C. Shideler, Ph. D

Building Governance, Trust & Integrity in Emissions Markets • Key market needs: – Quantification requirements are adequate and clearly defined – Reported emissions/removals are accurate, transparent, consistent, complete and relevant (a tonne is a tonne!) – Validation and verification bodies operate uniformly in accordance with requirements

Organizational Inventories • ISO 14064: 2006, Part 1 • Defines requirements for: – Quantification of greenhouse gas emissions and removals – Reporting to intended users • May be used by organizations at the highest level of consolidation, or by sub-units (e. g. facilities) • Supports mandatory and voluntary reporting

Guidance for Developing Organizational Inventories • ISO/NWIP 14069: 201 x: Carbon Footprint of Organizations • This Technical Report should provide: – Guidance on establishing organizational boundaries – Guidance on types of emissions included (direct, energy indirect, other indirect) – Guidance on greenhouse gas calculation methodologies

Project Quantification, Monitoring and Reporting • ISO 14064: 2006, Part 2. • Defines requirements for: – Quantification of greenhouse gas emission reductions or removal enhancements – Monitoring project emission reductions or removal enhancements over time – Reporting to intended users • May be used as stand-alone criteria or with a GHG Programme (e. g. Voluntary Carbon Standard)

Validation and Verification of Greenhouse Gas Assertions • ISO 14064: 2006, Part 3 • Principles and requirements for GHG validators and verifiers – Competent, independent, ethical, truthful • Process for validation and verification – Planning, including sampling methodologies – Assessment – Evaluation – Conclusions (expressed in a GHG statement)

Carbon Footprint of Products: Business to Business GHG Reporting • ISO/WD 14067: 201 x, Part 1: Quantification • ISO/WD 14067: 201 x, Part 2: Communication – Defines requirements for quantifying and communicating GHG emissions associated with products within a supply chain – Uses Life Cycle Assessment standards for quantification (ISO 14040, ISO 14044) – Adapts ISO 14025 for communication of product carbon footprint information to end users

ISO Standards Support Capacity Building for GHG Management • ISO standards are “regime-neutral” which gives them broad applicability across many GHG programmes (or no programme) • ISO standards are used as foundation documents for accreditation programmes and may also be used by – Training curricula providers, and – Personnel certification programmes

Accreditation of Validation/ Verification Bodies to ISO 14065 • Key requirements – Governance, legally enforceable contracts – Impartiality, avoidance of conflict-of-interest – Provisions for liability and financing – Competence of personnel – Communication and records – Standardized approach using ISO 14064 -3 – Appeals and complaints – Management system

Competence of Validator/Verifier Teams Defined in 14066 • Strengthens clauses in 14065 • Focus on teams recognizes frequent need for multidisciplinary skill sets in validation or verification engagements • Defines what knowledge and skills a team collectively shall possess • Requires teams collectively to possess sector competence

International Conformity Assessment Is Based on ISO Standards • Validation and verification bodies (VVBs) are accredited to ISO 14065 • National accreditation bodies (ABs) enforce the use of ISO 14064 -3 and the application of international best practices • The International Accreditation Forum (IAF) develops best practice application documents used by ABs to assess VVBs

Path Forward • ISO documents provide a foundation for ensuring trust and integrity in the emissions markets • The infrastructure to implement the standards is in place and operating • Government adoption of ISO standards can complement implementation on a voluntary, nongovernmental basis

4. GHG Standards, National Regulations and International Climate Negotiation: An Emerging New Deal? Jean – Pierre Tabet, Ph. D ADEME (France) ISO/SC 7/WG 3 Convenor (14069)

Key Ideas On climate matters, market and public regulation are dependant on each other. Regulation, Standardization and Negotiation are strongly linked in climate matters, and will continue to be so more and more in the future. MRV (Measurable, Reportable and Verifiable), recently used in negotiation framework, is a common and old Standardization concept Climate negotiation has a strong technical basis, and ISO has proven capacity for achieving consensus among experts

Standards & Regulation & Negotiation Climate regulations need GHG Standards In order to ensure fair market competition Because GHG matters are technological ones In order to be accepted by companies and consumers Climate Negotiations need GHG Standards Because NAMA’s (measures) and TNA’s (technologies) have to be MRV’d (Measurable, Reportable, Verifiable) Because Sectoral Agreements, if chosen, have to be MRV’d Because climate negotiations are strongly linked with international trade agreements Because MRVs have to be internationally compatible

5. Stakeholder view of MSS for MRV under NAMA Anne Arquit Niederberger, Policy Solutions, policy. solutions@comcast. net & Melinda Kimble, UN Foundation mkimble@unfoundation. org 24

UNF Approach to Ensure MRVable NAMAs o Objectives of NAMA MRV o Management system standard approach o Operationalizing NAMA MRV by means of a voluntary certification scheme for National Climate Management Systems (NCMS) o Advantages

Objectives of NAMA MRV o Functions of NAMA MRV are distinct from & complementary to: n National GHG Inventories n National Communications o NAMA MRV mechanism should: n Facilitate continual improvement in climate performance n Recognize national actions that are measurable, reportable and verifiable n Benefit, rather than burden, Parties that participate

Management System Standard (MSS) Approach o MSS = Adopting good practice procedural guidelines on basic elements of national climate management systems (NCMS), such as: n Establishing a climate policy n Setting national goals n Implementing related national actions and tracking progress over time o Voluntary certification of compliance with guidelines o Key requirement: Commitment by Parties to continual improvement in their climate performance over time, based on relevant indicators they select

Climate Policy Voluntary National Climate Management System (NCMS) Model

Voluntary NCMS Certification Scheme Proposed Elements COP o Adopts good practice guidelines & procedures for national climate management systems (NCMS) and accredits independent third parties to certify conformity Party o Implements nationally appropriate mitigation actions in the context of a national climate management system and voluntarily seeks certification of its NCMS COP o Acknowledges the certified NCMS, including NAMAs

Indicative Content NCMS o Management responsibility o Commitment to continual improvement in climate performance o Planning requirements: targets, timetables, indicators o Implementation & tracking n Human & financial resources n Documentation o Checking implementation of actions and resulting climate performance, and corrective actions

Voluntary NCMS Certification Scheme Advantages Respecting of national sovereignty Flexible o Does not dictate which policies, targets, actions and indicators countries select o Even countries with limited resources can start small and fast, and develop strategies most suited to their national emissions profiles and development priorities, adapting these over time Facilitative o Promotes rational decision-making through applying and rewarding good management practices Outcome- o Provides assurance at the international level that national actions are indeed oriented resulting in continual improvement in climate performance

Voluntary NCMS Certification Scheme Indicative Timetable – COP Decisions o COP 15 n Agree to adopt voluntary NCMS certification scheme to operationalize NAMA MRV n Invite substantive inputs from Parties & observers on structure, content and procedures n Request UNFCCC secretariat to compile o COP 16 (2010) n Consider submissions n Adopt work plan to prepare “Good Practice Guidance for National Climate Management Systems” and related procedures for certification o COP 17 (2011) n Adopt good practice guidance and procedures

6. Concept of ISO MSS for MRV under NAMAs Noer Adi Wardojo, ISO/TC 207/SC 1 Vice Chair, Indonesian Expert 33

Outline The basic needs (2) ISO MSS and UNFCCC NAMAs Scheme Current knowledge and trends in Management System Standard (MSS) Concept: MSS for MRV under NAMAs (5) Conclusion 34

The basic needs (internal view) Report Organization TARGET Performance MSS Verify Measure Assurance Achieve Action(s) Improvement + Uncertainty BASELINE 35

The basic needs (external view) Interested Parties MRV requirements Transparency, Integrity, Credibility National Sub-national A MRV MSS Sub-national H MRV MSS Organization A Organization Z Performance Action(s) MRV MSS 36

ISO MSS and UNFCCC NAMAs Scheme ISO/TC 207: [MRV Tools: Management System Standard, requirements and supporting guidance] ISO - UN Foundation proposal [COP 15 Copenhagen decision and mandate] Internal needs UNFCCC COP: [Scheme for NAMA] [Regulatory guidance for NAMA scheme implementation, incl. compliance, aggregation, reporting, verification, recognition] External needs 37

Current knowledge and trends in MSS ISO 14001: most widely used environmental MSS, since 1996 Compatible with regulatory framework (e. g. EU EMAS, future COP NAMA scheme(? )) Facilitate accredited independent certification Control of management to its policy, target and how to achieve, also scope and extent of management system and action(s) Facilitate integration with sustainable development goals Current approach: Plan-Do-Check-Act continual improvement Trends in MSS: internal alignment in MSS, for the benefit of users and market relevance external use of MSS to address challenging global issues (Sustainable development, Climate Change, etc. ) 38

Concept: MSS for MRV under NAMAs (1) Introduction: the context of NAMA and MRV, intended use of the standard, description of deliverables of MSS application Scope of application: applicable to GHG mitigation action(s) at organizational, national, subnational, or sectoral level within NAMA scheme Normative References: NAMA scheme, Requirements for MRV Terms and definitions 39

Concept: MSS for MRV under NAMAs (2) Context of the organization Principles of MRV MSS: transparency, integrity, tracked performance, management of uncertainty, continual improvement Identification of GHG sources and sinks, and significant GHG to address in action(s) NAMA identity and status: Responsible entity, NAMA level, NAMA type, timeframe of action(s), support for NAMA (if any) Position of NAMA in regards to the national inventory The needs and requirements of interested parties, as well as any applicable legal and regulatory requirements 40

Concept: MSS for MRV under NAMAs (3) Leaderships: management commitment, policy, organizational roles, responsibilities and authorities Planning: baseline scenario and performance target, establishment of programme of action Support: resources, competence, awareness, communication, control of data Operation: operational planning and control, control of non-conformity (incl. control of uncertainty sources) 41

Concept: MSS for MRV under NAMAs (4) Performance evaluation: monitoring and measurement (incl. calculation), internal audits, analysis and evaluation (incl. compliance assessment, internal verification of GHG performance, analysis of uncertainty) Management review: system suitability, adequacy, effectiveness performance progress towards the target, NAMA report top management to instruct improvements Improvement: corrective action, preventive action, continual improvement 42

Concept: MSS for MRV under NAMAs (5) Annex: [Guidelines: with guidance statements using “should”, “may”, “can”] NAMA (essential excerpts only) Description of NAMA types Mandatory MRV requirements according to NAMA scheme Bibliography 43

Conclusion A MSS can be developed that would deal with the emerging MRV requirements from NAMAs to facilitate the MRV processes Such a management system would need clarity on a number of issues currently under negotiation (e. g. What to quantify and to report, the level of uncertainty acceptable in quantification, the extent of validity needed in information and/or report/communication) ISO/TC 207/SC 1 MRV Study Group: Noer A. Wardojo (leader) Vice Chair ISO TC 207/SC 1, Marsha Cheddi Secretary ISO TC 207/SC 7, Daniele Pernigotti and Reinhard Peglau 44

7. Other ISO Contributions Kevin Mc. Kinley, ISO Deputy Secretary-General 45

Other ISO contributions addressing the climate change challenge (1) Ø Energy efficiency and performance : Ø Terminology Ø Building energy performance and efficiency Ø Equipment standards of performance (e. g. , heat pumps) Ø ISO 50001 under development: systematic approach to energy performance improvement – UNIDO linkage Ø Renewable energy sources Ø Solar: Heating and cooling technologies terminology, classifications, performance ratings, test methods Ø Wind: Gears and turbines. Joint work IEC on 40 k. W-2 MW units Ø Solid biofuels: terminology, specifications and test methods Ø Measuring the impacts of climate change Ø UN/ISO cooperation on Global Terrestrial Observing System: river discharge, snow/land cover, biomass, etc. Ø ISO Committees TC 207, TC 211 (Geomatics). . 46

Other ISO contributions addressing the climate change challenge (2) Ø Transportation contributions to climate change: Ø Electric vehicles (ISO/TC 22) – batteries, vehicle-to-grid technologies Ø Intelligent transport systems (ISO/TC 204) Ø Sustainability perspectives: Ø ISO 26000 on Social Responsibility Ø Bioenergy sustainability criteria (ISO/PC 248) Ø Sustainability in building construction (ISO/TC 59) Ø Sustainable event management (ISO/PC 250) Ø ISO workshop on sustainable business districts Ø Sustainable tourism (preliminary discussions) 47

8. Discussion Dr Chan Kook Weng, Chair, ISO TC 207 SC 7, Greenhouse Gas management and Related Matters 48

STANDARDS ISO + Nat. & reg. bodies National, regional & international level REGULATIONS MRV International NEGOTIATION UNFCCC 49

Global, National and Local needs Nationally Appropriate Mitigation Actions (NAMAs) should be aligned with Globally Appropriate Mitigation Actions (GAMAs) and Locally Appropriate Mitigation Actions (LAMAs) 50

9. Closing Remarks Kevin Mc. Kinley, ISO Deputy Secretary-General 51

More information == How to Participate 1. Need more information about ISO and climate change? Ø Visit the ISO website at www. iso. org under “News and Media >> Hot Topics” 2. Need more information about specific ISO Committee work in this presentation? Ø Contact ISO Central Secretariat in Geneva: Ms. Sophie Clivio (clivio@iso. org) 3. Want to get involved and help shape ISO Standards? Ø Contact your National ISO Member at www. iso. org under “About ISO >> Members” 52

ISO International Standards for a sustainable world http: //www. iso. org 53