The Research On Legal System Of Carbon Monitoring

The substantive nature of the carbon monitoring, is to seek a “quantifiable way” for the sustainable development. Ensuring the efforts and mitigation actions to be measurable, reportable and verifiable, is the key element of the Bali Action Plan, and it is also the core of the future climate negotiations. Since the carbon monitoring system could be applied to both national appropriate mitigation actions and the supports for the technology, financing and capacity –building, it is really a key balance for the mitigations actions of developing countries and the supports provided by the developed countries. The practical ways to promote the process of the climate negotiations is to focus on the details of the definitions for the measurable, reportable and verifiable(MRV).Although there are irreconcilable discrepancies between developed countries and developing countries in dealing with international climate obligations, the two sides have the same goals of maintaining the level of global warming for climate negotiations. The practices of the principle of "Common but differentiated responsibilities" are the exemplification of the consensus.Indeed, the attitudes of the two camps to the carbon monitoring and the “MRV-able” mechanism are the differences between two camps about the ways of fulfilling the climate obligations. The differences are how to set the mitigation goals, how to achieve the goal through national actions and how to design the mitigation policies. We believe that the system of carbon monitoring could play a crucial role in this process. The well-run system of carbon monitoring at international and domestic level could promote the process of achieving the common commitment framework through the climate negotiation, and the significant progress of coordinated international actions may be possible in the regional level and local area. The system of carbon monitoring could be the activator to make up the gaps, to increase confidence for both sides.Thus, we define the carbon monitoring as the collective activities of monitoring and measuring the carbon emissions, reporting the date and the actions of climate-related operating activities, evaluating, validating and verifying the climate programs in the joint process of setting the mitigation goals, developing climate mitigation policies, adopting mitigation measures.This paper includes eight chapters, which are divided into three main parts.The first part is the research review of carbon monitoring, including the first chapter. Deriving from the international community’s seeking for a consensus to address climate change into a “quantifiable” international mechanism, carbon monitoring develops from technical issues to political issues and legal issues. This section starts from the research levels and areas both in domestic and international perspective, in order to show the issue’s developing direction as well as the way of legalization. Domestic research are focusing on the politicizing of the carbon monitoring issues, the analytical framework of constructing of carbon monitoring system and the MRV mechanism as the foundation of carbon trading. The foreign and international research is focusing on the goals and the means to achieve the ultimate objective of the climate change negotiation. And it also gets rich results in the ways towards effective "carbon governance". There are more important issues which have been launched, which are ways to promote the realization of "climate justice", the security system for the right foundation of the effective "carbon governance".The second part is the theoretical analysis of the carbon monitoring system including the second, third, fourth, and fifth chapter. This part explains the original of the key elements of carbon monitoring, the practice in current climate agreement, the evolvement and the legal value of carbon monitoring, the systematic need of carbon monitoring and the basic principles of the construction of carbon monitoring system.From the perspective of the evolution of the concepts and the origin of the key elements of carbon monitoring, the issue has three elements. There are measuring/monitoring, reporting, review/verification. In the context of climate change, measurement, reporting, and verification are three key elements of the policy infrastructure needed to monitor and track performance. Although different terms are used across domestic and international policy discussions, we define “MRV” based on the following concepts: Measurement refers to direct measurement of emissions, abatement, or some other outcome and to estimation based on proxy indicators or data. Reporting refers to the presentation and transmission of data, measurements, and associated analysis. Verification refers to the process of checking the accuracy of the emissions, abatement, and other information that is measured and reported. Here we define “MRV system” broadly, to cover any institutions or official processes through which countries measure, report, and verify emissions and mitigation actions.Among the key elements of carbon monitoring, measurement is the observation and recording the change of GHG emission about the national emission reduction targets, mitigation actions, mitigation policies and measures. Monitoring is the observation and recording the greenhouse gas emission reductions or carbon sequestration about the specific climate change projects. Both measurement and monitoring are all take place at the same stages in the monitoring cycle. Measurement and monitoring are not related to the evaluation of the climate benefit.Review and verification are the mechanisms and processes of evaluation and assessment to the mitigation actions, greenhouse gas emission reductions goal and climate project. Review takes place before the time of the greenhouse gas emissions reduction benefits or carbon sequestration benefits has been generated for the specific subject or climate mitigation action. The verification takes place after the benefits has occurs. The process of verification is carried by the qualified institutions or the authorized institutions. The aim of verification is to ensure that the GHG emission reduction benefits are consistent with the pre-set emission reduction goals.Reporting is the submission process of the measurement results and associated analysis results. Specifically, according to the provisions of international law or domestic climate law, or voluntary emissions reduction agreement alliance, different reporting entities submit their reports related to emission reduction targets, mitigation actions, mitigation policies and measures to the specific agencies or organizations. The reports submitted mainly include the economic and social impact and cost-effectiveness of the climate actions or projects, the implementation of the climate projects and its climate benefits. The reporting subjects are different, and the content and procedures for reporting is also different. The reporting process may take place before or after the benefits or results occurred. The reporting process is the heart of the three processes. On the one hand, the purposes of measuring or monitoring is largely serving for the reporting, the form of the criteria and methodology used are also based on the reporting requirements. On the other hand, the review or verification is based on the date or resource submitted by reporting entities.In the context of climate change, the need for carbon monitoring system is derived from the pressure to fulfill international climate obligations and requirement of domestic low-carbon transition.The UNFCCC and Kyoto Protocol contain many provisions relating to the measurement and reporting of information on parties’ actions. Under the Convention, all parties are required to submit national communications and national emission inventories, but the requirements for Annex I parties(developed countries and economies in transition) and non-Annex I parties(developing countries) differ substantially. Reporting requirements for Annex I countries were expanded and strengthened under the Kyoto Protocol to enable compliance determinations. Both agreements also provide for the review of information submitted by Annex I parties. “Review” under the climate regime has been construed by and large as a technical assessment of implementation, not as a political judgment of performance, and entails verification only in limited areas. As national responses to climate change evolve and strengthen, so too must the systems for tracking greenhouse gas(GHG) emissions, mitigation actions, and progress toward goals. This evolution is shaped by multiple drivers: new international agreements, shifting political and social pressures, and specific policy reforms at the national and local level. Demands on existing measurement, reporting, and verification(MRV) systems for emissions and mitigation actions will increase and give rise to new systems. All the countries must identify where countries are well-placed to meet emerging MRV needs, and where countries require further development and capacity building now in order to keep systems functioning effectively in coming years.First, in the international climate law, the carbon emissions monitoring system is the institutional foundation for reaching a legally binding international agreement. The ultimate goal of the UN Framework Convention on Climate Change(UNFCCC) is to stabilise atmospheric concentrations of GHGs at a level which prevents dangerous human interference with the climate system. Rendering emission reductions measurable, reportable and verifiable is essential to increase transparency and trust in the international climate regime. Only reaching a transparent, consistent and comparable system of accounting, monitoring and statistics standards, could the international community reach an agreement for coordinated obligation framework. Secondly, in the context of domestic climate law, an effective system of monitoring, reporting and verification(MRV) of greenhouse gas(GHG) emissions is critical for tracking progress towards the achievement of emission reduction targets. The GHG monitoring mechanism has four functions: monitoring all anthropogenic(man-made) GHG emissions covered by the Kyoto Protocol; evaluating progress towards meeting GHG reduction commitments under the UNFCCC and the Kyoto Protocol; implementing the UNFCCC and the Kyoto Protocol as regards national programmes, greenhouse gas inventories, national systems and registries and the relevant procedures under the Kyoto Protocol; ensuring the timeliness, completeness, accuracy, consistency, comparability and transparency of reporting submitted by the reporting entities. The carbon monitoring system is the source of rationality and institutional basis for the legally enforceable carbon constraints overall economy. Only reaching a workable, definite, quantifiable and comparable carbon constraints, could the common response to climate change challenges and sharing responsibilities to the climate be made up across the country. Finally, enterprises in the national economies need to respond to the GHG emissions limitation, control their climate risks, avoid carbon regulatory risk and seize the market opportunities. All of these rely on a stable and credible carbon monitoring system. For most companies, the goal of remaining competitive in a carbon constrained economy requires them to minimize their carbon footprint. To do so, companies must make fundamental organizational and behavioral changes and develop a much broader and deeper understanding of greenhouse gas(GHG) management vernacular. Among the leading concepts for companies to understand are GHG inventories and carbon offsets, among others. All the companies – small and large –none of them are immune to carbon controls. Our society will soon be entering a carbon constrained world. This is the time for businesses across the country to get a jump start on managing their own carbon footprint, laying down their GHG emissions management system. Failing to do so, would mean being left behind by a growing number of more efficient and innovative companies.Therefore, the development of carbon monitoring issues has three dimensions: international climate law, domestic climate law and enterprises’ climate obligations. The construction of carbon monitoring system needs to follow the following six principles: transparency, comparability, reliability, availability, timeliness, and completeness.The third part is the construction of the system, which includes three chapters of the sixth to eighth. Corresponding to the three developing dimensions, the legal system of carbon monitoring needs to construct in three fields: international climate law, domestic climate law and the social carbon management network.In the field of international climate law, coordinated and consistent way to measure and monitor greenhouse gases, is the basis for international verification of greenhouse gas emissions and data comparison. Consistent, internationally standardized and comparable carbon emissions monitoring, reporting and verification mechanisms can reduce data errors associated with the international reporting requirement, can be used as a basis for decision making, and can assist the country, industries, and enterprises to take cost-effective emission reductions measures.During the course of the formation and development of the international climate law, the mission of carbon monitoring system is the following three: first, translating the political will of tackling climate change into a workable legal issues; Second, converting the coordinated will into a legally binding carbon reduction obligations; third, establishing an international "quantifiable" standards for fulfillment of the climate obligations, and achieving the international climate agreement. For climate change mitigation to be effective and a reliable planning tool, Parties need reliable information on emissions and actions, from both at home and abroad.In the field of domestic climate law, the coordination and collective action coping with climate change in a country will necessarily be specific to different levels of implementation such as countries, industries and businesses. The carbon constraints will ultimately be borne by the enterprises.During the course of the formation and development of the domestic climate law, the mission of carbon monitoring system is the following two: Internalizing the international reduction goals into national legally binding obligation; seeking a “quantifiable” way for the countries towards the sustainable development and creating the quantifiable standards for innovation of climate policies. By establishing the overall economy-wide climate-related evaluation criteria, more industries will orbit the sustainable development, find more potential opportunities to reduce emissions. Carbon emission reduction policies and their implementation tools, have been evolved from command-based policies to market-based policies. Currently, the emissions trading, carbon tax and carbon labeling system are all in the need of a set of credible carbon monitoring and statistical reporting system.In the field of social carbon management network, the obligation of reduction carbon emission has evolved from carbon emission control and emission standards to business-oriented green supply management and carbon disclosure. The newly emerging tools such as Carbon Disclosure Project( abbreviated CDP) and Climate Declaration,have greatly changed the ways of implementing climate obligations. Along with the transformation of GHG-control policies from politics issues to administrative control, then gradually expanding to green supply chain in enterprises or between NGOs and enterprises, the new GHG-control measures such as the CDP and Climate Declaration, have been specifically presented in the practice of enterprises’ low-carbon transition.The implementation of the Carbon emission reduction policies and measures make enterprises facing cost oriented from carbon constraint, carbon tariffs and green supply chain management. Apart from this, there are also huge market opportunities for low-carbon development from their initiative adaptive actions. A solid, credible and transparent carbon monitoring system is not only the key cornerstone of the international negotiations for the tackling of the climate change, but also the institutional foundation of the innovations and performance evaluations of a country’s carbon emission reduction policies. The carbon monitoring system is based on the principle of “Monitorable, Reportable and Verifiable” in the climate negotiations.Therefore, the construction of carbon legal monitoring system contains three aspects.In the international climate law level, the purpose is to strengthen the capacity-building of implementing the international climate obligations. The obligations are extended from the duties of reporting to the COP. The Bali Action Plan introduced language on “measurable, reportable and verifiable” greenhouse gas(GHG) mitigation actions and commitments, as well as support for GHG mitigation actions in developing countries. The UNFCCC MRV system is supposed to create transparency and enhance confidence among Parties. MRV will demonstrate that Parties contribute tangible actions to reduce emissions and that developed countries provide substantial support to developing countries. In order to make the global climate regime effective, MRV must ensure transparency. In 2010, the international community took steps to improve the system of reporting and verification under UNFCCC. COP 16 decided to enhance reporting for all countries, and to conduct “international assessment and review”(IAR) of certain information from developed countries and international consultations and analysis”(ICA) of biennial update reports from developing countries. This is a step change from the existing reporting and review system – particularly for developing countries, since information from these countries is currently reported on an infrequent basis and is not reviewed. Establishing a system that combines improved reporting with some form of international verification could improve the quality of information available internationally and increase confidence in the integrity of the information reported. This would help to build trust between countries and potentially also increase the level of ambition of mitigation actions.For china, we should scenically and clearly define the reports obligation’s contents and requirements under UNFCCC. We should strengthen capacity buildings in national information communications, the biennial update reports, national inventory of greenhouse gas emissions, urban greenhouse gas inventory, corporate greenhouse gas reporting and management systems, Nationally Appropriate Mitigation Action report.In the level of domestic climate law, the carbon monitoring system is used in such area: national GHG inventory development and reporting; corporate GHG inventory development and reporting; accounting for GHG emissions reduction projects; assessing GHG impacts of policies and actions; sector-specific GHG accounting(e.g., in the forestry sector); GHG modeling and projections; data collection methods; and establishment and maintenance of data platforms. Furthermore, institutional arrangements for GHG management are in need. GHG management systems depend on countries’ national circumstances and objectives. A variety of objectives can guide the design of institutional arrangements, such as formalization of data collection systems; quantification of GHG effects of mitigation projects, policies, and actions(e.g., NAMAs); tracking progress toward mitigation goals; reporting progress domestically; and reporting relevant information internationally. As long as we define the aims and principles of the carbon monitoring system and identify the roles and functions which the system plays, we could realize the key elements and ideas of constructions of the system.In the level of social GHG management network, enterprises should conform with the requirement of green supply chain management and the Mandatory emission reduction obligations. In this area, there is a need for a lead institution within the national government to oversee and coordinate the entire measurement and performance-tracking system. And relevant public and private GHG management-related institutions must need clearer roles and responsibilities to strengthen the institutional capacity-building. Furthermore, there is a need to define roles and responsibilities within and between each institution in order to avoid duplication of activities and streamline the overall process of measuring GHG emissions and tracking progress.In the level of corporate greenhouse gas emissions management, the carbon inventory in organization level, product carbon footprint and carbon neutral have been the three milestones for international GHG emission reduction management. There are also many relevant international standards and measuring tools that increase the applicability and operability. As to the administrative management strategy concerned, the tradeoff and trading mechanism have been the well-designed drive to encourage the voluntary reduction actions. In order to promote the voluntary action, the government must establish the rules of corporate carbon inventory, product carbon footprint assessment, carbon verification and certification, and make sure that the rules are transparency and consistency. The quality, reliability and authenticity of emissions data are the foundations to the voluntarily mitigation actions. In this area, the corporate greenhouse gas inventory, the product carbon footprint inventory, the carbon neutral system constitute a business-oriented monitoring system.