CCAP played a leading role on the international, multi-disciplinary team that worked to design a GHG emissions trading system for the Environment Directorate General (DGXI) of the European Commission (EC) for their consideration as an option for addressing Kyoto commitments.

Throughout 1999 and 2000, CCAP developed three papers presenting options for points of regulation (e.g., upstream, downstream, hybrid), methods of allocating allowances, and a gradual phase-in of a trading system. These results were presented to the DGXI to assist with the development of a proposed Directive on greenhouse gas (GHG) emissions trading. CCAP’s recommendations ultimately formed the basis for this Directive.

CCAP conducted further work on the EU Emissions Trading Scheme (EU-ETS) in the Netherlands and the Foundation for International Environmental Law and Development in the UK. CCAP’s work explored what monitoring, reporting and verification (MRV) systems would be necessary to support the trading program. The CCAP study addressed:

• Existing emissions MRV systems in the EU;
• Principles and methods for GHG emissions monitoring;
• Special considerations in monitoring emissions in the different sectors to be included in the trading program;
• GHG emissions reporting;
• Verification and validation of reported GHG emissions;
• Tracking of emissions allowances; and
• The legal framework needed to implement the report's recommendations on the MRV system.

The proposed MRV system developed formed an integral component in the MRV Directive.