On 19-20 May 2008, ICAP hosted the The first Global Carbon Market Forum on Monitoring, Reporting, Verification, Compliance and Enforcement (MRVCE) in Brussels.

140 participants from around the world discussed the commonalities and shared experiences in monitoring, reporting, verification, compliance and enforcement in emission trading systems in North America, Europe and other parts of the world as the "Backbone of a Robust Carbon Market". The aim of the conference was to explore relevant issues of linking different carbon trading systems and to see how impediments to this linking could be removed.

The conference’s program and presentations are available for download below.

Summary of the outcomes of the conference

Session I, Technical aspects of monitoring and reporting, examined MRVCE experiences in a variety of systems, including EU ETS, US Acid Rain Program, Western Climate Initiative, and so on. Key conclusions from the group included that third party verification is essential for a well-functioning carbon market and that there is no single blueprint for international MRVCE

Session II examined the significance of monitoring capabilities in determining the scope of a carbon market. Key points discussed included:

  • Extending the scope of ETS has economic and environmental benefits, but realization ofthese benefits depends on the nature and extent of source/sector coverage
  • Critical to the success of a carbon market is the existence of a hard cap on the emissions and the avoidance of over-allocation.
  • It is very difficult to set a precise minimum level of accuracy. More important is the management of uncertainty, because uncertainty levels are likely to develop over time.

Discussion at Session III, Experience with verification, inspections and enforcement to ensure compliance and the use of IT systems, resulted in the following key conclusions:

  • A common compliance terminology is needed in order to enable the actors in emissions trading systems to communicate with each other, to exchange information on all compliance aspects in a cost-effective way and to come to a much more efficient operation of emission data.
  • Linkage with other systems requires that common building for IT systems be reviewed and harmonized globally.
  • IT is only part of the solution to improve compliance: the benefits of IT are highly dependent on the quality of data input in the system.

Session IV, Reporting emissions data in a global carbon market, resulted in the following key conclusions:

  • Clear rules must be set on the content and frequency of emission reporting in ETS. If emission data is not published on an installation level, the data cannot be analysed effectively. This will lead to less transparency in the emissions trading market and less confidence and trust.
  • Carbon markets in Europe, North-America and Asian Pacific have different reporting requirements. The market with the weakest reporting requirements may significantly influence the market sentiment of all carbon markets.
  • With respect to linking no obvious technical linking impediments in emission data reporting issues had been identified, but co-ordination of release dates would be beneficial for a global carbon market.
  • First Global Carbon Forum - Program Download
  • First Global Carbon Forum - Report Download
  • Follow-up: MRVCE Discussion Paper - October 2009 Download
  • All Presentations of Session 1 Download
  • All Presentations of Session 2 Download
  • All Presentations of Session 3 Download
  • All Presentations of Session 4 Download