Proposal for a Decision of the European Parliament and of the Council for a monitoring mechanism of Community greenhouse gas emissions and the implementation of the Kyoto Protocol
Date: 2003-02-05
Institutions: European Commission
Subjects: EU environmental policy, climate change, environmental monitoring, greenhouse gas, reduction of gas emissions, tradeable emission permit

COMMISSION OF THE EUROPEAN COMMUNITIES

Brussels, 5.2.2003
COM(2003)  51 final

2003/0029 (COD)

Proposal for a

DECISION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL

for a monitoring mechanism of Community greenhouse gas emissions and the
implementation of the Kyoto Protocol

(presented by the Commission)

EXPLANATORY MEMORANDUM

1.

JUSTIFICATION FOR THE PROPOSAL

1.1

General considerations

This  proposal  for  a  Decision  regarding  a  monitoring  mechanism  of  Community  greenhouse
gas  emissions  and  the  implementation  of  the  Kyoto  Protocol  will  replace  Council  Decision
93/389/EEC  for  a  monitoring  mechanism  of  Community  CO2  and  other  greenhouse  gas
emissions1,  which  established  a  mechanism  for  monitoring  anthropogenic  greenhouse  gas
emissions  and  evaluating  progress  towards  meeting  commitments  in  respect  of  these
emissions.

The aims of the revision of Decision 93/389/EEC are to:

– 

– 

– 

reflect  in  the  Monitoring  Mechanism  reporting  obligations  and  guidelines  for
the  implementation  of  the  UN  Framework  Convention  on  Climate  Change
(“UNFCCC”) and  the  Kyoto  Protocol,  on  which  the  political  agreements  and
legal decisions were taken at the seventh Conference of the Parties (“COP7”)
in Marrakech;

provide  for  further  information  on  emission  forecasts  at  Member  State  and
Community-level, and harmonisation of these emission forecasts, in the light of
experience with the current Monitoring Mechanism; and

to address reporting requirements and implementation relating to the "burden-
sharing" between the Community and its Member States.

The European Community ratified the Kyoto Protocol on 31 May 2002, pursuant to Decision
2002/358/EC2. This proposal will help the Community  and  the Member  States  comply  with
reporting  requirements  under  both  the  UNFCCC  and  the  Kyoto  Protocol  and  in  general
enhance the timeliness, consistency, accuracy, completeness, transparency and comparability
of reported information.

The Monitoring Mechanism Decision 93/389/EEC provides for the detail of obligations to be
implemented through guidelines adopted by comitology, taking account of the rather technical
nature of the agreed UNFCCC guidelines. This proposal makes similar provision, although it
is  considered  appropriate  to  provide  for  a  number  of  more  important  provisions  in  the
decision itself. In order to limit the reporting tasks of Member States, under the new reporting
requirements, only data that is of interest at Community level will have to be provided.

In  addition,  adjustments  will  be  made  to  the  frequency  of  data  submission.  Following  the
structure  of  the  Kyoto  Protocol  and  the  related  UNFCCC  guidelines,  different  reporting
requirements will be addressed by distinguishing annual and periodical reporting obligations.
Member  States’  Climate  Change  programmes  and  projections  do  not  change  on  an  annual
basis  and  it  is  therefore  proposed  to  shift  the  annual  reporting  to  periodical  reporting.

1

2

OJ L 167, 9.7.1993, p.31. Decision as amended by Decision 99/296/EC (OJ L 117, 5.5.1999, p.35) [and
Regulation (EC) xxxx/2002 (OJ L xxx, x.x.2002, p.x].
Decision 2002/358/EC concerning the approval, on behalf of the European Community, of the Kyoto
Protocol to the United Nations Framework Convention on Climate Change and the joint  fulfilment of
commitments thereunder (OJ L 130, 15.5.2002, p.1.

2

                                                
However, more detailed provisions are included on the type of projections because experience
with the current provisions has shown the need for more comprehensive and detailed data in
this area.

Decision  93/389/EEC  has  already  been  substantially  amended  by  Decision  99/296/EC.  The
extensive  further  amendments  proposed  to  Decision  93/389/EEC  widen  its  scope  to  cover
areas  including  registries,  flexible  mechanisms  and  co-operation  in  procedures  under  the
Kyoto  Protocol.  For  these  reasons,  in  the  interest  of  increased  clarity  and  transparency  it  is
considered  appropriate  to  replace  it,  rather  than  to  amend  it.  This  will  provide  interested
parties with a single clear and coherent legislative act, instead of making isolated changes to
the existing Decision.

A correlation table is annexed to the proposal.

1.2

Environmental objectives to be achieved

Article 2 of the EC Treaty provides that one of the Community’s tasks shall be the promotion
of  a  high  level  of  protection  and  improvement  of  the  quality  of  the  environment.  For  this
purpose,  the  Community  is  required  to  include  a  policy  in  the  field  of  the  environment
(Article 3 (l) of the EC Treaty). This policy should contribute to the pursuit of the following
objectives:

–  preserving, protecting and improving the quality of the environment;

–  protecting human health;

–  prudent and rational utilisation of natural resources;

–  promoting  measures  at  international 

level 

to  deal  with  regional  or  world-wide

environmental problems.

2.

CHOICE AND JUSTIFICATION OF THE LEGAL BASE

The  proposal  aims  to  implement  further  the  objectives  of  the  Community  environmental
policy  defined  in  Article  174  of  the  EC  Treaty.  Therefore,  the  proposal  is  based  on  Article
175(1)  (co-decision  procedure)  of  the  Treaty,  which  is  the  specific  legal  base  for  the
Community’s  policy  in  the  field  of  the  environment  and  upon  which  Council  Decision
93/389/EEC is based.

3.

SUBSIDIARITY AND PROPORTIONALITY

3.1

Objectives of the proposed action in relation to the obligations of the Community

Under  Article  2  of  the  EC  Treaty,  the  one  of  the  Community’s  tasks  is  the  promotion  of  a
high level of protection and improvement of the quality of the environment.

3.2 What is the Community dimension of the problem?

The  Community  is  party  to  the  Kyoto  Protocol  as  are  the  Member  States.  In  decision
2002/358/EC  Member  States  agreed  to  fulfil  their  obligations  under  the  Kyoto  Protocol
jointly and agreed on different emission  limitation/reduction  targets for  each Member State,
thereby contributing  to  the  fulfilment  of  the  overall  compliance  of  the  Community  with  the
international legally binding commitments.

3

3.3 What is the most effective solution, comparing the means of Member States and
the Community?

As a party to the UNFCCC and the Kyoto Protocol, the Community has to take action in order
to be able to comply with its reporting obligations thereunder. The main responsibility for the
reporting of annual emissions will stay with the Member States. In order to limit the reporting
tasks of Member States, under the new reporting requirements, only data that is of interest at
Community level will have to be provided.

3.4 What would be the cost of inaction by the Community?

Inaction  by  the  Community  would  mean  that  the  Community  would  not  be  in  a  position  to
comply with its international reporting obligations, which would result in a loss of credibility
for the EU in international negotiations on addressing climate change.

3.5 Which  instruments  does  the  Community  have  available  in  order  to  meet  the
objectives?

In  order  to  comply  with  its  reporting  obligations,  the  Community  needs  timely,  complete,
consistent and accurate annual reporting from Member States.

3.6

Proportionality

At  the  time  of  the  adoption  of  Decision  93/389/EEC,  Community  action  in  this  area  in  the
form  of  a  Directive  was  considered  proportionate  to  the  objective  pursued.  The  aim  of  the
proposal is to replace Decision 93/389/EEC.

4.

COSTS OF IMPLEMENTING THE PROPOSAL FOR MEMBER STATES

Member  States  have  brought  into  force  the  laws,  regulations  and  administrative  provisions
necessary to comply  with Decision 93/389/EEC. It is not apparent from the national reports
that  the  operation  of  Decision  93/389/EEC  has  given  rise  to  any  great  financial  problems.
Member States already accepted reporting burdens with the ratification of the Kyoto Protocol,
where  the  reporting  requirements  underlying  this  proposal  are  defined.  It  can  therefore  be
assumed  that  no  great  increase  in  costs  will  result  as  a  consequence  of  the  adoption  of  this
proposal.

5.

RESULTS OF CONSULTATIONS WITH INTERESTED PARTIES

5.1 Member States

The Communication on the implementation of the first phase of the ECCP was presented to
the Council in October 2001 and stated the Commission’s intention to prepare an amendment
of the Monitoring Mechanism decision for the second half of 2002.  In its conclusions of 12
December  2001  on  the  ECCP  Communication,  the  Council  welcomed  the  Commission's
intention to propose a revision of Decision 1993/389/EC as amended in order to improve the
effectiveness  of  the  monitoring  of  the  implementation  of  policies  and  measures,  and  stated
that this proposal should also establish the necessary framework to ensure compliance by the
Community  and  the  Member  States  with  the  requirements  on  reporting  and  accounting
established pursuant to Articles 5 and 7 of the Kyoto Protocol. The Council called upon the
Commission to prepare its proposal as early as possible and to consider how to improve the
quality and accuracy of reporting on policies and measures and on emissions and removals of
all greenhouse gases, including methodological aspects. Within the context of the Monitoring

4

Mechanism Committee,  the  general  contents  of  the  proposal  were  presented  to  the  Member
States on 12 March 2002.

5.2

Non governmental organisations and Industry

As  this  proposal  for  a  decision  addresses  reporting  obligations  and  data  exchange  between
Member States and the Commission and reporting to the UNFCCC, particular interests of non
governmental organisations and industry are not affected.

6.

DETAILED EXPLANATION OF THE PROPOSAL

Subject matter (Article 1)

At COP7 in Marrakech (29.Oct.–10. Nov. 2001), detailed guidelines for the annual reporting
of  greenhouse  gases  as  well  as  guidelines  for  the  establishment  by  Parties  to  the  Kyoto
Protocol  of  inventory  systems  (Article  5(1)  Kyoto  Protocol)  and  national  registry  systems
were  approved.  Since  the  Community  is  Party  to  the  Kyoto  Protocol  (Council  Decision
2002/358/EC),  the  subject  (as  in  decision  93/389/EEC  amended  by  decision  99/296/EC)  of
the monitoring mechanism  needs to  be  extended  accordingly.  In  addition, the subject of  the
decision is specified in order to clarify that the decision also covers removals by sinks.

In  reporting  by  the  European  Community  and  its  Member  States  to  the  UNFCCC,  the
decision  aims  to  ensure  that  the  basic  principles  of  the  UNFCCC  reporting  guidelines  are
observed.

National programmes (Article 2)

Continuously  imperative  for  complying  with  the  commitments  under  the  UNFCCC  and  the
Kyoto Protocol  is  the implementation and the periodical  update of national programmes for
limiting  and/or  reducing  their  anthropogenic  greenhouse  gas  emissions  and  the  transparent
monitoring  of  actual  and  projected  emissions.  Therefore  these  central  provisions  of  the
existing monitoring mechanism are kept. The article is updated by deleting of a former indent,
which established the CO2 stabilisation commitment of the Community  by 2000  (which  has
been achieved) and slightly amended by a reference to mandatory elements of information in
Article 3(2) and by the inclusion of the information procedure for information to be provided
from Member States to the Commission and vice versa.

Reporting by Member States (Article 3)

In  addition  to  the  existing  UNFCCC  reporting  guidelines  on  annual  inventories3  at  COP7,
detailed  guidelines  for  the  annual  reporting  of  greenhouse  gases  by  Parties  to  the  Kyoto
Protocol were approved. Annual reporting requirements will cover greenhouse gas emissions
inventories  and  supplementary  information  defined  in  guidelines  under  Article  7(1)  of  the
Kyoto Protocol. Quantitative information on emissions and removals  under Article  3(3)  and
(4) of the Kyoto Protocol should be reported to the Commission, together with inventory data
based on the Intergovernmental Panel on Climate Change (“IPCC”) Good Practice Guidance
currently being developed whose application will be provided for in implementing provisions
to  be  adopted  under  this  decision.  Supplementary  annual  information  under  the  Kyoto
Protocol includes information related to Article 3(3) and (4) of the Kyoto Protocol.

3 see FCCC/CP/1999/7

5

                                                
Reporting on specific supplementary information is also required to facilitate the annual and
periodic  EC  communications  to  the  UNFCCC.  In  the  annual  EC  inventory  reports  to  the
UNFCCC,  the  EC  will  need  to  ensure  those  information  requirements  on  methodological
choices,  such  as  for  sinks,  are  covered  at  Member  State  level.  The  article  establishes  the
general  reporting  requirement  on  this,  while  details  will  be  defined  in  EC  implementing
provisions (Article 3(3)). Requirements on sinks data will be aligned with the IPCC reporting
guidelines that are currently being developed. Reporting is also to be required on all activities
involving the various accounting units created under the Kyoto Protocol.

It  is  proposed  that  the  due  date  for  the  annual  data  submission  by  Member  States  to  the
Commission  be  changed  from  31  December  to  the  following  15  January  in  response  to
requests for more time from some Member States in the Monitoring Mechanism Committee,
while  preserving  sufficient  time  for  the  processing  of  the  submitted  data  before  the  annual
reporting by the Community to the UNFCCC by 15 April.

In addition to annual reporting requirements, there are mandatory periodic submissions to the
UNFCCC, which include reporting on supplementarity relating to the use of the mechanisms
and  on  policies  and  measures.  Member  State  reporting  on  this  needs  to  be  aggregated  to
provide this information at the EC level. It is suggested that further guidance that ensures that
aggregation of such information on supplementarity is feasible should be developed under the
Monitoring Mechanism implementing provisions.

Taking  into  account  the  frequency  of  updates  of  national  emission  projections,  reporting  in
this area will be changed to a biannual scheme, while for consistency the due date will also be
15 January (biannually), starting in 2005.

In  order  to  improve  data,  the  list  of  elements  to  be  reported  on  a  mandatory  basis  in  the
Member  States’  periodic  reports  is  extended  and  revised  slightly,  in  accordance  with  the
discussions  in  the  Monitoring  Mechanism  Committee.  Policies  and  measures  should  be
reported, including objective, type and status of implementation and quantitative estimates of
the  effects  of  the  measures.  Experiences  with  the  current  Monitoring  Mechanism  have
revealed  the  need  for  some  further  harmonisation  in  the  reporting  of  policies  and  measures
and projections by MS, which will be further taken into account in the revised implementing
provisions,  made  under  this  decision.  So  far,  proper  assessment  of  MS  policies  and
projections has been difficult due to significant methodological differences under the current
scheme.  Reliable  emission  projections  will  be  crucial  for  an  early  warning  system  and  for
non-compliance prevention.

Specific implementing provisions under this decision (Article 3(3)) will cover more detailed
requirements  that  specify  which  elements  for  the  accounting  of  sinks  are  also  relevant  for
reporting  under  the  Monitoring  Mechanism.  The  EC’s  compliance  with  the  Kyoto
commitments will depend on the existence of appropriate national inventory systems and well
functioning national registry systems. Reporting any changes to these systems is therefore key
for the Community and also required under the Kyoto Protocol. In addition a set of indicators
that  the  Monitoring  Mechanism  Committee  has  in  principle  already  agreed  upon  on  carbon
dioxide and the other greenhouse gases covered by the Kyoto Protocol will be specified in the
EC monitoring implementing provisions.

Finally, after the end of the Kyoto Protocol’s first commitment period ending in 2012, Parties
to the Kyoto Protocol will be able to continue emissions trading for an additional period for
the purpose of fulfilling their commitments under the Protocol. These Parties are required to
report  supplementary  information  relating  to  the  accounting  of  assigned  amount  in

6

conjunction with a report upon expiration of this additional period for fulfilling commitments
which is referred to in Decision 19/CP.7 of the Marrakech Accords4.

European Community Inventory System (Article 4)

This  article  provides  for  an  Community  greenhouse  gas  Inventory  System  under  the  Kyoto
Protocol and addresses the functions required in the UNFCCC guidelines (under Article 5(1)
of the Kyoto Protocol5) for National Systems for the estimation of anthropogenic greenhouse
gas emissions by sources and removals  by sinks. The  Community’s compliance with Kyoto
Protocol guidelines and the quality of the Community  greenhouse gas inventory depends on
the implementation of National Inventory Systems in the Member States and the quality of the
Member  States’  inventories.  Hence,  in  general,  Article  4(4)  requires  full  implementation  of
the KP Article  5(1)  guidelines  at  the national level by  each  Member  State  by  31  December
2004.  Article  4(1)  provides  a  proper  basis  for  the  existing  gap-filling  procedure  for  the
Community inventory if data from Member States is not provided. More detailed procedures
should be described in the implementing provisions adopted pursuant to this decision.

Technical  details  will  be  dealt  with  under  the  comitology  procedure  (i.e.  EC  monitoring
implementing  provisions)  taking  into  account  those  parts  of  functions  of  an  EC  greenhouse
gas inventory system where arrangements and procedures are already established on the basis
of  Council  Decision  99/296/EC  (amending  Council  Decision  93/389/EEC).  In  addition,  the
specific  central  supporting  role  of  the  European  Environment  Agency  in  the  EC  Inventory
System is reflected in Article 4(3).

Evaluation of progress (Article 5)

In order to assess whether the Community and its Member States  are on track towards their
targets under the Kyoto Protocol,  i.e. the  actual  progress  (reported emissions) and projected
progress  (estimated  effects  of  policies  and  measures  for  emissions  reductions  and  projected
emissions),  the  established  annual  reporting  to  the  Council  and  the  Parliament  needs  to  be
continued.  This  basic  early  warning  system  should  be  seen  in  context  of  Article  10.  This
provides for a review of the extent to which commitments are being met which may lead to
further action at Community and Member State level.

In addition, Article 3(2) of the Kyoto Protocol requires Parties to make demonstrable progress
in achieving their commitments by 2005, and a specific report on Demonstrable Progress has
to be submitted by 1 January 2006 to the UNFCCC. Specific provisions providing details of
additional aspects on the reporting of demonstrable progress are justified to be laid down in
accordance  with  Article  3(3).  The  Commission  will  need  information  in  accordance  with
these provisions by 15 January 2005 for the report to the UNFCCC referred to in Article 5(3).

Furthermore,  the  specific  central  supporting  role  of  the  European  Environment  Agency  in
assessing and reporting progress is reflected in Article 5(4).

4

5

See FCCC/CP/2001/13/Add.2, page 68, paragraph 49.

See UNFCCC decision 20/CP.7 in document FCCC/CP/2001/13/Add.3

7

                                                
National registries (Article 6)

Guidelines  under  Article  7(4)  of  the  Kyoto  Protocol  require  that  each  Annex  I  Party  shall
establish and maintain  a national registry to  ensure  the  accurate  accounting  of  the  issuance,
holding, transfer, acquisition, cancellation  and  retirement of  assigned amount units (AAUs),
emission  reduction  units  (ERUs),  certified  emission  reductions  (CERs)  and  removal  units
(RMUs).  As  Parties  to  the  Kyoto  Protocol,  the  Community  and  the  Member  States  are
therefore required to establish national registries. In accordance with Decision 2002/358/EC,
initial  assigned  amounts  will  be  issued  into  Member  States’  national  registries.  The
Community’s national registry could be used to hold ERUs and CERs generated by projects
funded  by  the  Community,  thereby  providing  a  stimulus  for  EC  action  in  third  countries  to
address climate change more widely. Further provisions on the use of ERUs and CERs held in
the registry may be laid down through co-decision in the light of the review provided for in
Article 10.

The  Article  provides  that  national  registries  may  be  maintained  in  a  consolidated  system.
National  registries  should  incorporate  the  registries  established  under  the  EC  emission
allowance trading scheme, and this is provided for by the Article.

This  Article  also  establishes  requirements  for  information  from  Member  States’  national
registries to be made available in real time to the Central Administrator designated under the
EC  greenhouse  gas  emission  allowance  trading  scheme.  This  is  necessary  because
transactions which take place in the national registries outside the scope of the EC greenhouse
gas emission allowance trading scheme are relevant to meeting the requirements of the Kyoto
Protocol to use its mechanisms, and so the Central Administrator needs to be aware of them.

Assigned amount (Article 7)

Decision  2002/358/EC  states  that  the  committee  established  by  the  Monitoring  Mechanism
Decision 1993/389/EEC shall assist the Commission in determining the respective emissions
levels allocated to the European Community and to each Member State in terms of tonnes of
carbon  dioxide  equivalent.  This  determination  is  to  be  done  on  the  basis  of  the  quantified
emissions limitation or reduction commitments set out in Annex II to that decision. Article 7
of  this  proposal  provides  for  the  respective  emission  levels  determined  in  accordance  with
Decision 2002/358/EC to be submitted to the UNFCCC Secretariat by 1 January 2007.

Article 3(8) of the Kyoto Protocol allows a  choice between 1990  and 1995 as  base  year for
the  three  groups  of  fluorinated  gases  for  the  calculation  of  the  initial  assigned  amount  of  a
Party.  In  order  to  ensure  accuracy  and  consistency  of  reporting,  and  as  the  majority  of
Member  States  prefer  1995  as  the  baseyear  for  emissions  of  the  fluorinated  gases,  it  is
appropriate for the Community and the Member States to take this as its baseyear.

This Article also provides that Member States are to retire assigned amount equivalent to their
annual  emissions  following  the  completion  of  all  the  procedures  establishing  the  levels  of
those  emissions.  This  mirrors  the  requirements  of  the  EC  emissions  trading  scheme  on
companies  to  surrender  allowances  in  respect  of  their  installation’s  annual  emissions  once
these  have  been  definitively  calculated,  and  is  essentially  “good  housekeeping”  which  will
promote the avoidance of non-compliance.

Procedures under the Kyoto Protocol (Article 8)

8

Under  the  Kyoto  Protocol,  reported  data  is  only  acknowledged  and  recognised  after  it  has
undergone the international review procedure. This international KP review process requires
full  and  effective  co-operation  and  co-ordination  between  the  Community  and  its  Member
States, particularly as regards compliance procedures under the Kyoto Protocol, in accordance
with Article 10 of the EC Treaty.

In  the  course  of  the  annual  international  review  under  the  KP,  a  review  team  may  find  an
implementation problem relating to a Member State. In such a case, it should be ensured that
information is made available to the Commission in a timely fashion, and that appropriate co-
ordination with the Commission takes place before action is taken by that Member State, as
any adjustment applied by an international review team to a Member State’s inventory affects
the EC inventory, and thus the overall compliance of the Community. This is equally true as
regards the co-ordination of procedures before the Compliance Committee to be established to
oversee compliance with the Kyoto Protocol. These issues are covered by a general provision
in  this  proposal,  while  it  is  provided  that  the  technical  details  may  be  developed  in
implementing provisions adopted thereunder.

Committee (Article 9)

The  committee  is  referred  to  as  the  Climate  Change  Committee  in  order  to  reflect  the
comprehensive  functions in which it will assist the  Commission. These are  tasks relating to
the  monitoring  and  reporting  of  greenhouse  gas  emissions,  tasks  stemming  from  Decision
2002/358/EC  on  the  conclusion  of  the  Kyoto  Protocol  and  the  joint  fulfillment  of
commitments thereunder, and tasks arising from the EC greenhouse  gas emission allowance
trading scheme trading (COM (2001) 581 final).

Review (Article 10)

Under the Kyoto Protocol the EC will have to comply with its –8% reduction target. Taking
into account the progress that is expected towards the Kyoto targets over the next few years, it
is  appropriate  to  carry  out  a  review,  in  the  light  of  which  additional  compliance  measures
might be proposed at the Community level. As the EC and Member States are required by the
Kyoto Protocol to show demonstrable progress by 2005, the review should be linked with this
assessment  of  progress  in  2006/7,  which  is  close  to  the  beginning  of  the  first  Kyoto
commitment period. The review clause provides for provisions to be proposed, as appropriate.
Such  measures  could  include,  for  example,  recommendations  to  undertake  more  action,
national compliance action plans, the potential use of ERUs and CERs held in the EC registry
to avoid non-compliance or preferential trading arrangements.

The  review  should  cover  the  extent  to  which  the  Community  and  its  Member  States  are
meeting all their commitments under the Kyoto Protocol. This includes ensuring that the use
of  Joint  Implementation,  the  Clean  Development  mechanism  and  international  emissions
trading, pursuant to Articles 6, 12 and 17 of the Kyoto Protocol is supplemental to domestic
actions. In the light of this assessment, the Commission may make proposals as appropriate to
ensure that these commitments are met.

Supplementary provisions (Articles 11 and 12)

The proposal contains a provision, which repeals Decision 93/389/EEC and provides that all
references made to Decision 93/389/EEC shall be construed as references to the new decision.
This Decision is addressed to the Member States.

9

2003/0029 (COD)

Proposal for a

DECISION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL

for a monitoring mechanism of Community greenhouse gas emissions and the
implementation of the Kyoto Protocol

THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European Community, and in particular Article
175(1) thereof,

Having regard to the proposal from the Commission1,

Having regard to the opinion of the Economic and Social Committee2,

Having regard to the opinion of the Committee of the Regions3,

Acting in accordance with the procedure laid down in Article 251 of the Treaty4,

Whereas:

(1) 

(2) 

Council  Decision  93/389/EEC  of  24  June  1993  for  a  monitoring  mechanism  of
Community  CO2  and  other  greenhouse  gas  emissions5  established  a  mechanism  for
monitoring anthropogenic greenhouse gas  emissions and evaluating progress towards
meeting  commitments  in  respect  of  these  emissions.  In  order  to  take  into  account
developments on international level and on the grounds of clarity, it is appropriate for
that Decision to be replaced.

The  ultimate  objective  of  the  United  Nations  Framework  Convention  on  Climate
Change  (UNFCCC),  which  was  approved  by  Council  Decision  94/69/EC  of
15 December  1993  concerning  the  conclusion  of  the  United  Nations  Framework
Convention  on  Climate  Change6,  is  to  achieve  stabilisation  of  greenhouse  gas
concentrations  in  the  atmosphere  at  a  level  which  prevents  dangerous  anthropogenic
interference with the climate system.

(3) 

The  UNFCCC  commits  the  Community  and  its  Member  States  to  develop,
periodically  update,  publish  and  report  to  the  Conference  of  the  Parties  national

1

2

2

2

3

4

5

6

OJ C […], […], p. […]., , p. .
OJ C […], […], p. […].
OJ C […], […], p. […].
OJ C […], […], p. […]., , p. .
OJ C , , p. .
OJ C , , p. .
OJ L 167, 9.7.1993, p.31. Decision as amended by Decision 1999/296/EC (OJ L 117, 5.5.1999, p.35)
[and Regulation (EC) xxxx/2002 (OJ L xxx, x.x.2002, p.x].
OJ L 33, 7.2.1994, p. 11.

10

                                                
(4) 

(5) 

(6) 

(7) 

(8) 

(9) 

inventories  of  anthropogenic  emissions  by  sources  and  removals  by  sinks  of  all
greenhouse  gases  not controlled by the  Montreal Protocol on substances  that  deplete
the  ozone  layer  (hereinafter  "greenhouse  gases"),  using  comparable  methodologies
agreed upon by the Conference of the Parties.

The  UNFCCC  commits  all  Parties  to  formulate,  implement,  publish  and  regularly
update national, and where appropriate, regional programmes  containing measures to
mitigate  climate  change  by  addressing  anthropogenic  emissions  by  sources  and
removals by sinks of all greenhouse gases.

The Kyoto Protocol to the UNFCCC was approved by Council Decision 2002/358/EC
of  25  April  2002,  concerning  the  conclusion  of  the  Kyoto  Protocol  to  the  United
Nations  Framework  Convention  on  Climate  Change  and  the  joint  fulfillment  of
commitments thereunder7.

Article  3(2)  of  the  Kyoto  Protocol  requires  Parties  included  in  Annex  I  to  the
UNFCCC to have made demonstrable progress in achieving their commitments under
the Protocol by 2005.

Each Party included in Annex I to the UNFCCC is required to establish and maintain a
national  registry  in  order  to  ensure  the  accurate  accounting  of  the  issue,  holding,
transfer,  cancellation  and  retirement  of  emission  reduction  units,  certified  emission
reductions, assigned amount units and removal units8.

The  Community  and  its  Member  States  have  made  use  of  Article  4  of  the  Kyoto
Protocol,  which  allows  Parties  to  the  Protocol  to  meet  their  emission  limitation  and
reduction commitments jointly. Therefore it is appropriate to provide for effective co-
operation  and  co-ordination  in  relation  to  the  compilation  of  the  Community
greenhouse gas inventory, the evaluation of progress as well as review and compliance
procedures enabling the Community to comply with its reporting obligations under the
Kyoto  Protocol as laid  down in  the political agreements and legal  decisions  taken  at
the seventh Conference of the Parties to the UNFCCC in Marrakech .

Since  the  objectives  of  the  proposed  action,  namely  to  comply  with  the  Community's
commitments  under  the  Kyoto  protocol,  in  particular  the  monitoring  and  reporting
requirements laid down therein, cannot, by their very nature, be sufficiently achieved by
the  Member  States  and  can  therefore  be  better  achieved  at  Community  level,  the
Community may adopt measures, in accordance with the principle of subsidiarity as set
out in Article 5 of the Treaty. In accordance with the principle of proportionality, as set
out in that Article, this Decision does not go beyond what is necessary in order to achieve
those objectives.

(10)  Since the measures necessary for the implementation of this Decision are measures of
general scope within the meaning of Article 2 of Council Decision 1999/468/EC of 28
June  1999  laying  down  the  procedures  for  the  exercise  of  implementing  powers
conferred  on  the  Commission9,  they  should  be  adopted  by  use  of  the  regulatory
procedure provided for in Article 5 of that Decision,

7

8

9

OJ L 130, 15.5.2002, p. 1.
Decision 19/CP.7, Annex, II - Registry requirements, A – National registries.
OJ L 184, 17.7.1999, p. 23.

11

                                                
HAVE ADOPTED THIS DECISION:

Article 1

Subject matter

This Decision establishes a mechanism for:

(a) monitoring  all  anthropogenic  emissions  by  sources  and  removals  by  sinks  of
greenhouse  gases  not  controlled  by  the  Montreal  Protocol  on  substances  that
deplete the ozone layer (hereinafter "greenhouse gases") in the Member States;

(b)

(c)

(d)

evaluating  progress  towards  meeting  commitments  in  respect  of  these
emissions by sources and removals by sinks;

implementation  of  the  UN  Framework  Convention  on  Climate  Change
(hereinafter  "UNFCCC")  and  the  Kyoto  Protocol,  in  particular  as  regards
greenhouse gas inventories, national systems and registries of the Community
and its Member States; and

ensuring  the  timeliness,  completeness,  accuracy,  consistency,  comparability
and transparency of reporting by the Community and its Member States to the
UNFCCC.

Article 2

National programmes

1. 

Member States shall devise and implement national programmes for limiting and/or
reducing their anthropogenic emissions by sources and enhancing removals by sinks
of all greenhouse gases in order to contribute to:

(a)

(b)

the  fulfilment  of  the  Community's  and  its  Member  States'  commitments
relating  to  the  limitation  and/or  reduction  of  all  greenhouse  gas  emissions
under the UNFCCC and under the Kyoto Protocol, and

transparent and accurate monitoring of the actual and projected progress made
by Member States, including the contribution made by Community measures,
in meeting the  commitments of the Community and its Member States'  under
the UNFCCC and the Kyoto Protocol.

These programmes shall include the information referred to in Article 3(2) and shall
be updated accordingly.

2. 

Member States shall make national programmes and updates thereof available to the
public, and within three months of their adoption shall inform the Commission.

At subsequent meetings of the committee referred to in Article 9(1), the Commission
shall  inform  the  Member  States  of  any  such  national  programmes  and  updates
thereof that it has received.

12

Article 3

Reporting by Member States

1. 

Member States shall, for the assessment of actual progress, determine and report to
the Commission by 15 January each year (year X):

(a)

(b)

(c)

(d)

(e)

(f)

(g)

(h)

their  anthropogenic  emissions  of  greenhouse  gases  listed  in  Annex  A  to  the
Kyoto  Protocol  (carbon  dioxide  (CO2),  methane  (CH4),  nitrous  oxide  (N2O),
hydrofluorocarbons (HFCs), perfluorocarbons (PFCs) and sulphur hexafluoride
(SF6)) during the year before last (year X-2);

provisional data on their emissions of carbon monoxide (CO), sulphur dioxide
(SO2), nitrogen  oxides  (NOx)  and  volatile  compounds  (VOC)  during  the  year
before last (year X-2), together with final data for the year three years-previous
(year X-3);

their  anthropogenic  emissions  or  removals  of  carbon  dioxide  by  sinks  during
the year before last (year X-2);

information  with  regard  to  the  accounting  of  emissions  and  removals  from
land-use, land-use change and forestry for the years between 1990 and the year
before last (year X-2);

any  changes  to  the  information  referred  to  in  points  (a)  to  (d)  relating  to  the
years between 1990 and the year three years-previous (year X-3);

their  national  inventory  report,  containing  a  description  of  the  national
inventory  system,  methodological  choices  made  and  changes  between  data
from the year before last (year X-2) and earlier years;

information from the national registry, once established, on the issue, holding,
transfer,  cancellation  and  retirement  of  assigned  amount  units,  removal  units,
emission reduction units and certified emission reductions during the previous
year (year X-1);

information  on  legal  entities  authorised  to  participate  in  mechanisms  under
Articles 6 and 12 of the Kyoto Protocol, in compliance with relevant national
or Community provisions;

(i)

steps  taken  to  improve  estimates,  where  areas  of  the  inventory  have  been
subject to adjustments;

(j)

information on indicators for the year before last (year X-2); and

(k)

any changes to the national inventory system.

2. 

Member  States  shall,  for  the  assessment  of  projected  progress,  report  to  the
Commission, by 15 January 2005 and every two years thereafter,:

(a)

information  on  national  policies  and  measures  which  limit  and/or  reduce
greenhouse  gas  emissions  or  enhance  removals  by  sinks,  presented  on  a
sectoral basis for each greenhouse gas, including:

13

i)

ii)

the objective of policies and measure;

the type of policy instrument;

iii)

the status of implementation of the policy or measure;

iv)

v)

vi)

indicators  of  progress,  including  those  indicators  specified  in  the
implementing provisions adopted pursuant to paragraph 3 ;

quantitative estimates of the effect of policies and measures on emissions
by sources and removals by sinks of greenhouse gases between the base
year  and  subsequent  years,  including  2005,  2010  and  2015,  including
their economic impacts to the extent possible; and

the  extent  to  which  domestic  action  constitutes  a  significant  element  of
the efforts undertaken at national level as well as the extent to which the
use of Joint Implementation and the Clean Development mechanism and
international emissions trading, pursuant to Articles 6, 12 and 17 of  the
Kyoto Protocol, is supplemental to domestic actions;

(b)

national projections of greenhouse gas emissions and their removal by sinks as
a minimum for the years 2005, 2010, 2015 and 2020, organised by gas and by
sector, including:

i)

ii)

“with  measures”  and  “with  additional  measures”  projections  such  as
mentioned in the guidelines of the UNFCCC and further specified in the
implementing provisions adopted pursuant to paragraph 3;

clear  identification  of  the  policies  and  measures  included  in  the
projections;

iii)

results of sensitivity analysis performed for the projections; and

iv)

descriptions of methodologies, models, underlying assumptions  and key
input and output parameters.

(c)

(d)

information  on  measures  being  taken  or  planned  for  the  implementation  of
relevant  Community  legislation  and  policies,  and  information  on  legal  and
institutional  steps  to  prepare  to  implement  commitments  under  the  Kyoto
Protocol and information on arrangements for, and national implementation of,
compliance and enforcement procedures.

information  on  institutional  and  financial  arrangements  and  decision  making
procedures to co-ordinate  and  support  activities  related  to  participation  in  the
mechanisms  under  Articles  6  and  12  of  the  Kyoto  Protocol,  including  the
participation of legal entities.

3. 

Implementing  provisions  for  the  reporting  of  the  information  referred  to  in
paragraphs  1  and  2  and  for  estimating  data  that  may  be  missing  from  national
inventories, shall be adopted in accordance with the procedure referred to in Article
9(2).

14

1. 

2. 

3. 

4. 

1. 

Those  implementing  provisions  may  contain  requirements  for  reporting  on  the
demonstration of progress as required by Article 3(2) of the Kyoto Protocol and on
reporting in relation to the additional period for fulfilling commitments.

The  implementing  provisions  shall  be  revised,  as  appropriate,  taking  into  account,
where relevant, decisions taken under the UNFCCC and the Kyoto Protocol.

Article 4

Community inventory system

The Commission shall, in co-operation with the Member States, annually compile a
Community  greenhouse  gas  inventory  and  a  Community  greenhouse  gas  inventory
report, circulate these in draft to the Member States by 28 February, and publish and
submit them  to  the  UNFCCC  Secretariat  by  15  April  each  year.  Estimates  for  data
missing from a national inventory shall be included in accordance with implementing
provisions adopted pursuant to Article 3(3).

The Commission shall, in accordance with the procedure referred to in Article 9(2),
adopt  a  Community  inventory  system  for  ensuring  the  accuracy,  comparability,
consistency,  completeness  and  timeliness  of  national  inventories  with  regard  to  the
Community greenhouse gas inventory.

This  system  shall  provide  for  a  quality  assessment/  quality  control  programme
including the establishment of quality objectives and an inventory quality assessment
and quality control plan.

The European Environment Agency shall provide assistance to the Commission for
the  implementation  of  paragraphs  1  and  2  as  appropriate,  in  accordance  with  its
annual work programme.

Member States shall, by 31 December 2004 at the latest, establish national inventory
systems under the Kyoto Protocol  for  the  estimation  of anthropogenic  emissions of
greenhouse gases and removals of carbon dioxide by sinks.

Article 5

Evaluation of progress and reporting

The  Commission  shall  assess  annually,  in  consultation  with  Member  States,  the
progress  of  the  Community  and  its  Member  States  towards  fulfilling  their
commitments  under  the  UNFCCC  and  the  Kyoto  Protocol  as  set  out  in  Decision
2002/358/EC,  in  order  to  evaluate  whether  progress  is  sufficient  to  fulfil  these
commitments.

This  assessment  shall  take  into  account  progress  in  Community  policies  and
measures and information submitted by Member States in accordance with Articles 3
and 6(2) of this Decision and with Article 21 of Directive xx/xxxx/EC [establishing a
scheme  for  greenhouse  gas  emission  allowance  trading  within  the  Community  and
amending Council Directive 96/61/EC].

15

The  assessment  shall  also  every  two  years  include  the  projected  progress  of  the
Community  and  its  Member  States  towards  fulfilling  their  commitments  under  the
UNFCCC and the Kyoto Protocol.

2. 

On  the  basis  of  the  assessment  referred  to  in  paragraph  1  the  Commission  shall
submit annually a report to the European Parliament and the Council.

3. 

4. 

1. 

2. 

1. 

2. 

This report shall contain sections on actual and projected emissions and removals by
sinks, policies and measures and on the use of mechanisms pursuant to Articles 6, 12
and 17 of the Kyoto Protocol.

The Commission shall prepare a report on the demonstration of progress achieved by
2005  by  the  Community,  taking  into  account  information  submitted  in  accordance
with the implementing provisions adopted pursuant to Article 3(3), and submit this to
the UNFCCC Secretariat by 1 January 2006 at the latest.

The European Environment Agency shall provide assistance to the Commission for
the  implementation  of  paragraphs  1,  2  and  3  as  appropriate,  in  accordance  with  its
annual work programme.

Article 6

National registries

The  Community  and  its  Member  States  shall  establish  and  maintain  registries  in
order  to  ensure  the  accurate  accounting  of  the  issue,  holding,  transfer,  cancellation
and retirement of assigned amount units, removal units, emission reduction units and
certified emission reductions. These registries shall incorporate registries established
pursuant  to  Article  19  of  Directive  xx/xxxx/EC  [establishing  a  scheme  for
greenhouse  gas  emission  allowance  trading  within  the  Community  and  amending
Council  Directive  96/61/EC],  in  accordance  with  provisions  adopted  in  accordance
with the procedure referred to in Article 9(2) of this Decision.

The  Community  and  the  Member  States  may  maintain  their  registries  in  a
consolidated system, together with one or more other Member States.

The elements referred to in the first sentence of paragraph 1 shall be made available
to  the  Central  Administrator  designated  under  Article  20  of  Directive  xx/xxxx/EC
[establishing  a  scheme  for  greenhouse  gas  emission  allowance  trading  within  the
Community and amending Council Directive 96/61/EC].

Article 7

Assigned amount

In  accordance  with  Article  3(8)  of  the  Kyoto  Protocol  the  Community  and  its
Member States shall use 1995 as base year for hydrofluorocarbons, perfluorocarbons,
and sulphur hexafluoride.

The  Commission  shall,  by  31  December  2006  at  the  latest,  submit  a  report  to  the
UNFCCC  Secretariat  determining  for  the  Community  and  its  Member  States  the

16

assigned amount as equal to their respective emission levels determined pursuant to
the first paragraph of Article 3 of Decision 2002/358/EC.

3. 

Member  States  shall,  following  the  completion  of  the  review  of  their  national
inventories  under  the  Kyoto  Protocol  for  each  year  of  the  Kyoto  Protocol’s  first
commitment  period,  including  the  resolution  of  any  questions  of  implementation,
forthwith retire assigned amount equivalent to their net emissions during that year.

Article 8

Procedures under the Kyoto Protocol

1. 

Member  States  shall  ensure  that  there  is  full  and  effective  co-operation  and  co-
ordination with the Commission in relation to:

(a)

the compilation of the Community  greenhouse  gas inventory  and Community
greenhouse gas inventory report, pursuant to Article 4(1);

(b)

review and compliance procedures under the Kyoto Protocol;

(c)

(d)

any adjustments or other changes to national inventories and national inventory
reports submitted, or to be submitted, to the UNFCCC Secretariat; and

the preparation of the report on the demonstration of progress by 2005 by the
Community pursuant to Article 5(3).

Member States  shall  submit  national  inventories  to  the  UNFCCC  Secretariat  by  15
April each year containing information identical to that submitted in accordance with
Article  3(1),  unless  information  removing  any  inconsistencies  or  gaps  has  been
provided to the Commission by 15 March of that year.

The Commission may, in accordance with the procedure referred to in Article 9(2),
lay down procedures and timescales for such co-operation and co-ordination.

Article 9

Committee

The  Commission  shall  be  assisted  by  a  committee  “Climate  Change  Committee”)
composed  of  the  representatives  of  the  Member  States  and  chaired  by  the
representative of the Commission.

Where  reference  is  made  to  this  paragraph,  the  regulatory  procedure  laid  down  in
Article  5  of  Decision  1999/468/EC  shall  apply,  in  compliance  with  Article  7  and
Article 8 thereof.

The  period  provided  for  in  Article  5(6)  of  Decision  1999/468/EC  shall  be  three
months.

2. 

3. 

1. 

2. 

3. 

17

Article 10

Review

Following  the  submission  of  the  report  on  the  demonstration  of  progress  by  2005  in
accordance with Article 5(3), the Commission shall forthwith review the extent to which the
Community  and  its  Member  States  are  making  progress  towards  their  emission  levels
determined  in  accordance  with  Decision  2002/358/EC  and  the  extent  to  which  they  are
meeting  their  commitments  under  the  Kyoto  Protocol.  In  the  light  of  this  assessment,  the
Commission  may  make  proposals  as  appropriate  to  ensure  that  the  Community  and  its
Member States comply with their emission levels and that their commitments under the Kyoto
Protocol are met.

Article 11

Repeal

Decision 1993/389/EEC is hereby repealed.

Any  references  made  to  the  repealed  Decision  shall  be  construed  as  references  to  this
Decision and shall be read in accordance with the correlation table in the annex.

Article 12

Addressees

This Decision is addressed to the Member States.

Done at Brussels, […]

For the European Parliament
The President
[…]

For the Council
The President
[…]

18

ANNEX

CORRELATION TABLE

Decision 93/389/EEC

This Decision

Article 1

Article 2(1)

Article 2(2)

Article 3(1)

Article 3(2)

Article 3(3)

Article 4

------------

Article 5(1) + (2)

Article 5(3)

Article 5(4)

------------

Article 6

Article 7

------------

------------

------------

Article 8

------------

------------

Article 9

Article 1

Article 2(1)

Article 2(1) + Article 3(2)

Article 3(1) + Article 3(3)

Article 3(1) + Article 4(2)

Article 4(1)

Article 3(2), Article 3(3), Article 5(1)

Article 4(3)

Article 2(2)

Article 5(1)

Article 5(2)

Article 5(3)

Article 5(1)

------------

Article 6

Article 7

Article 8

Article 9

Article 10

Article 11

Article 12

19

IMPACT ASSESSMENT FORM

The financial impact of the proposal on the budgetary resources of the European
Community

TITLE OF THE PROPOSAL

Proposal  for  a  Decision  of  the  European  Parliament  and  of  the  Council  for  a  monitoring
mechanism  of  Community  greenhouse  gas  emissions  and  the  implementation  of  the  Kyoto
Protocol

DOCUMENT REFERENCE NUMBER

COM(2003) 51

THE PROPOSAL

The  proposal  for  a  Decision  regarding  a  monitoring  mechanism  of  Community  greenhouse
gas emissions and the implementation of the Kyoto Protocol would replace Council Decision
93/389/EEC  for  a  monitoring  mechanism  of  Community  CO2  and  other  greenhouse  gas
emissions1,  which  established  a  mechanism  for  monitoring  anthropogenic  greenhouse  gas
emissions  and  evaluating  progress  towards  meeting  commitments  in  respect  of  these
emissions.  The  aims  are: 
the
implementation of the Kyoto Protocol in the Monitoring  Mechanism,  on which the  political
agreements  and  legal  decisions  were  taken  at  UNFCCC  COP7  in  Marrakech,  and  the
harmonisation  of  emission  forecasts.  The  amended  monitoring  mechanism  will  contribute
towards  the  effective  fulfilment  of  the  international  commitments  of  the  European
Community  and  its  Member  States  under  the  United  Nations  Framework  Convention  on
Climate Change and the Kyoto Protocol.

to  reflect  reporting  obligations  and  guidelines  for 

THE IMPACT ON THE BUDGET

No direct impact on the Community budget is foreseen.

The  proposal  provides  for  continuation  of  the  monitoring  mechanism  for  greenhouse  gases
(Council  Decision  93/389/EEC  for  a  monitoring  mechanism  of  Community  CO2  and  other
greenhouse gas emissions2) in an amended form. The costs of this monitoring will continue to
be borne by the Member States.

Costs associated with registries are not expected to exceed the estimates already provided in
the  proposal  for  a  Directive  establishing  a  scheme  for  greenhouse  gas  emission  allowance
trading  within  the  community  and  amending  Council  Directive  96/91/EC3.  The  details  of

1

2

3

OJ L 167, 9.7.1993, p.31. Decision as amended by Decision 99/296/EC (OJ L 117, 5.5.1999, p.35) [and
Regulation (EC) xxxx/2002 (OJ L xxx, x.x.2002, p.x].
OJ L 167, 9.7.1993, p.31. Decision as amended by Decision 99/296/EC (OJ L 117, 5.5.1999, p.35) [and
Regulation (EC) xxxx/2002 (OJ L xxx, x.x.2002, p.x].
COM (2001) 581 final

20

                                                
estimated  costs  for  establishing  and  running  a  registry  are  laid  down  in  COM  (2001)  581
final.

The costs of the committee are covered by budget line A 7030 as this is not a new committee.

ON STAFF RESOURCES

As explained above, the proposal also, in future, envisages annual and periodic reports by the
Commission  to  the  Parliament,  the  Council  and  the  UNFCCC.  This  function,  carried  out
through co-operation between the European Environment Agency, its associated Topic Centre
on  Air  and  Climate  Change  and  the  Commission’s  services,  would  be  attributable  to  the
Community budget. No additional particular staff resources are envisaged for the Commission
for this continuation of the monitoring. Additional staff resources that may be warranted after
adoption  of  the  proposal  should  be  available  from  within  existing  resources  of  DG
Environment.

Staff associated  with registries are not expected to exceed  the estimates already provided in
the  proposal  for  a  Directive  establishing  a  scheme  for  greenhouse  gas  emission  allowance
trading  within  the  community  and  amending  Council  Directive  96/91/EC4.  The  number  of
staff  for  establishing  and  running  a  registry  (5  new  permanent  posts)  are  laid  down  in
COM(2001) 581 final.

4

COM (2001) 581 final

21

                                                
IMPACT ASSESSMENT FORM

The impact of the proposal on business with special reference to small and medium-
sized enterprises (SMEs)

TITLE OF PROPOSAL

Proposal  for  a  Decision  of  the  European  Parliament  and  of  the  Council  for  a  monitoring
mechanism  of  Community  greenhouse  gas  emissions  and  the  implementation  of  the  Kyoto
Protocol.

DOCUMENT REFERENCE NUMBER

COM(2003) 51

THE PROPOSAL

The  proposal  for  a  Decision  regarding  a  monitoring  mechanism  of  Community  greenhouse
gas emissions and the implementation of the Kyoto Protocol would replace Council Decision
93/389/EEC  for  a  monitoring  mechanism  of  Community  CO2  and  other  greenhouse  gas
emissions1,  which  established  a  mechanism  for  monitoring  anthropogenic  greenhouse  gas
emissions  and  evaluating  progress  towards  meeting  commitments  in  respect  of  these
emissions.  The  aims  are: 
the
implementation of the Kyoto Protocol in the Monitoring  Mechanism,  on which the  political
agreements  and  legal  decisions  were  taken  at  UNFCCC  COP7  in  Marrakech,  and  the
harmonisation  of  emission  forecasts.  The  amended  monitoring  mechanism  will  contribute
towards  the  effective  fulfilment  of  the  international  commitments  of  the  European
Community  and  its  Member  States  under  the  United  Nations  Framework  Convention  on
Climate Change and the Kyoto Protocol.

to  reflect  reporting  obligations  and  guidelines  for 

THE IMPACT ON BUSINESS

Who will be affected by the proposal?

The  proposal  addresses  reporting  obligations  of  the  Member  States  –  there  is  no  impact  on
business.

–  Which sectors of business?

Not applicable.

–  Which sizes of business (what is the concentration of small and medium-sized firms)?

Not applicable.

1

OJ L 167, 9.7.1993, p.31. Decision as amended by Decision 99/296/EC (OJ L 117, 5.5.1999, p.35) [and
Regulation (EC) xxxx/2002 (OJ L xxx, x.x.2002, p.x].

22

                                                
–  Are there particular geographical areas of the Community where these businesses are

found?

Not applicable.

What will business have to do to comply with the proposal?

Not applicable

What economic effects is the proposal likely to have?

Not applicable

–  On employment?

Not applicable

–  On investment and the creation of new businesses?

Not applicable.

–  On the competitiveness of businesses?

Not applicable

Does the proposal contain measures to take account of the specific situation of small and
medium-sized firms (reduced or different requirements etc)?

Not applicable.

CONSULTATION

List of the organisations that have been consulted about the proposal.

Not applicable.

23