MRV System for Climate Change Mitigation Instruments in Chile

In collaboration with the Chilean Ministry for the Environment, EBP developed, together with Negawatt, a Monitoring, Reporting and Verification (MRV) System for the CO2-tax and further planned climate mitigation measures in Chile.

Chile is one of 17 countries implementing the Partnership For Market Readiness (PMR) under the auspices of the World Bank. The PMR program was established in 2010 and has the goal of providing the implementing countries with financial and technical support for the cost-effective reduction of greenhouse gas (GHG) emissions through the development of climate change mitigation instruments.

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Development of a robust MRV-System

In Chile, PMR supports the strengthening of institutional and regulatory competencies for the implementation of the CO2-tax, which was introduced in 2017. Further, the PMR supports the implementation of a robust Monitoring, Reporting and Verification (MRV)-System for the country’s GHG emissions, as well as the development of options for an integrated system of climate change mitigation instruments.

Together with Negawatt, EBP developed a MRV-System to measure, report and verify CO2 emissions. The work included the design of the methodological components, as well as the more technical hard- and software components of the system.

Training for operators of installations subject to the CO2 tax

In a first step, EBP focussed on the necessary MRV elements for the new CO2 tax. The existing MRV system was analysed in detail to identify areas for improvement. In addition, the project team implemented a capacity building program for the operators of the installations that are affected by the CO2 tax.

MRV for additional climate change mitigation instruments

In a second step, the MRV system was adapted so that it could be applied to other climate change mitigation instruments, such as offset projects or an emissions-trading scheme.

An important input for this step came from a comprehensive analysis of experiences to-date with existing MRV systems, including the various MRV systems used with Swiss climate change mitigation instruments, as well as the MRV systems used in the EU Emissions-Trading System, the North American emissions-trading regime (for example, California, Quebec and Ontario) and the Mexican MRV system.

The analysis covered both the hardware and software that were used, as well as the processes, protocols and assessments, particularly for reporting and verification, that were applied, including the accreditation of verification entities. Finally, a series of protocols, recommendations and processes were defined to support Chile in the implementation of an efficient, results-oriented MRV system for its climate change mitigation instruments.