Transactions on CERs Side event Carbon market infrastructure

Transactions on CERs Side event Carbon market infrastructure: Implementing International transaction Log 9 November 2006 Toshiaki Nagata Climate Change Secretariat www. unfccc. int ITL-Administrator@unfccc. int

Purposes • Provide overview of transactions and registry communications • Present screenshots taken from registry systems

Transactions to be presented • Issuance of CERs into the CDM registry • Forwarding of CERs to national registry of Japan • Retirement of CERs within Japanese registry

Scenario used • CDM Project Name : Lawley Fuel Switch Project • Project ID : ZA-177 • Host Party : South Africa (ZA) • Unit type : CER • Investing Party : Japan (JP) • Amount of units issued : 10000 • Amount of units forwarded: 5000

Transactions on CERs • Issuance of CERs • Forwarding to National Registry • Retirement of CERs

Issuance of CERs

Issuance of CERs Proposal

CDM - Issuance proposal

Issuance of CERs Proposal ITL Check Results

Issuance of CERs Key policy checks DESCRIPTION CERs must be issued by the CDM Registry. Commitment Period of units must be appropriate. CODE 5003 5005/6 Serial numbers must be unique. 5007 Quantity of CERs to be issued for the project must not exceed the quantity specified by the Executive Board. 5012 Project ID must be present in the issuance proposal. 5014

Issuance of CERs Proposal ITL Check Results Confirmation

CDM - Issuance completion

ITL – Issuance status

Transactions on CERs • Issuance of CERs • Forwarding to National Registry • Retirement of CERs

Forwarding to National Registry

Forwarding to National Registry Proposal

CDM - Forwarding proposal

Forwarding to National Registry Proposal ITL check results Proposal transmission

Forwarding of CERs Key policy checks – only general checks apply DESCRIPTION CODE Transferring registry must hold units. 4003 Unit information must be consistent with ITL. 4004 Transferring and acquiring registries must be different. 4007 Units must not be previously cancelled, retired, expired or used for replacement. 4011 -4

Forwarding to National Registry Proposal transmission Registry accepts

Japan - Forwarding completion

Forwarding to National Registry Proposal transmission Acceptance transmission Registry accepts

Forwarding to National Registry Proposal transmission Confirmation Acceptance transmission Registry accepts

CDM - Forwarding completion

Transactions on CERs • Issuance of CERs • Forwarding to National Registry • Retirement of CERs

Retirement of CERs Proposal Retirement Account Holding Account

Japan - Retirement proposal

Retirement of CERs Proposal Retirement Account ITL Check Results Retirement Account Holding Account

Retirement of CERs Key policy checks DESCRIPTION CODE Registry which retires units must be a national registry. 5251 Acquiring account must be a retirement account. 5252 Account identifier must be provided for acquiring account. 5253 Commitment periods between units and account must be consistent. 5254 All the mechanism eligibility criteria must be met. 5255