MRV (Monitoring, Reporting, and Verification) tools

Dear all,

Thank you for attending the meeting with Andrii. I would like to follow up on the points discussed:

1. Problem: Ukraine lacks an implemented system for issuing and trading Energy Attribute certificates, commonly known as Guarantees of Origin (GOs). EU to launch the first phase of a world-first CO2 border tax. Ukrainian companies do not have effective instruments to approve the origin of electrical energy to mitigate their costs, tax, and sell goods in the EU. The European GO issuance rules and platforms were developed a lot of years ago and were not efficient.

Solution: We propose the following solutions to address the problem:

1. The platform for issuance and trade of GOs: Developing a platform for the issuance and trade of GOs, along with carbon abatement information, will enhance transparency and facilitate internal usage and export to the EU under AIB rules.
2. This platform can be on blockchain and use smart contracts for issuing GOs: Implementing smart contracts with governmental entity signatures can streamline the issuance process. By integrating metering devices with blockchain technology, we can ensure accurate and tamper-proof data for GOs.
2. Technical and legislative system: To build this solution, we need to establish a comprehensive technical and legislative system for GOs.
1. Target Industries:
1. 1) Metallurgical
2. 2) Chemical
3. 3) Petrochemical
4. 4) Agro

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For sustainability certification, industrial goods can be classified as renewable or sustainable based on their CO2 reduction through energy Guarantees of Origin (GO).

1. 1) Steel, steel products, DRI, HBI
2. 2) Ammonia, Urea, other fertilizers, biogenic CO2
3. 3) Agro products that used renewable fertilizers and energy in their production, storage, and logistics
4. 4) Petrochemical - synthetic fuels, such as methanol, synthetic jet fuel, and other e-fuels
3. We need to make amendments to the legislative system to achieve this goal. We see the following Scope and timeline under this project. Research and analysis of potential acts for implementation or amendments.
1. Stage 1: The list of acts for research and analyses.
1. This stage is already one of the key acts already considered:
1. Red III, Red II
2. RepowerEU - strategy
3. EU ETS + CBAM
4. Law on Amendments to Certain Laws of Ukraine on the Restoration and Green Transformation of the Energy System of Ukraine
5. Virtual Assets in Ukraine
6. The Tax Legislation of Ukraine, which establishes the environmental tax
7. Code of distribution systems in Ukraine
8. Market in crypto assets (MiCA)
9. National DLT regulations in the EU
10. Law On Electricity Market
2. The result of Stage 1: is the file with potential acts for deeper research. This stage is already done, the file is in the attachment.
2. Stage 2
1. Review the acts mentioned in the previous stage to identify necessary amendments to the Ukrainian legislation that will enable us to build this solution.
2. The result of Stage 2: will be the relevant scope of acts and the points of amendments to these acts.
3. Stage 3
1. Discuss the result of Stage 2 with the stakeholders.
2. The result of Stage 3 is to obtain approval for the scope of work from the stakeholders.
4. Stage 4
1. Drafting and promulgation of requisite legislative bills and enactments for the introduction and modification of Ukrainian statutory provisions
2. The result of Stage 4 will be the creation of bills and acts that outline the legislative requirements for the implementation of the system for issuing and trading Energy Attribute certificates (GOs).
5. Stage 5
1. Enactment of these legislative measures through the comitets, Verkhovna Rada of Ukraine, or governmental bodies (depends on acts).
2. The result of Stage 5 will be the official adoption and implementation of the bills and acts, making them legally binding and enforceable.
4. Expectations result from the project. The values and results is launching the system for Guarantees of Origin (GOs) and the expected outcomes include:
1. Ukrainian companies will have effective instruments to approve the origin of electrical energy
2. Ukrainian companies will mitigate their costs and CO2 border tax during the sale of goods in the EU.
3. Ukraine is developing an innovative system and mechanism that can be shared with other countries.

Please let me know if you have any further questions or if this plan can be improved.

Peter BilykChief Innovation Officer Juscutum+38 067 412 74 43

Problem / Solution fit

Problem:

• верификация государством - долго, дорого и коррупционно

Solution:

• Гнучкість для розвитку водневої економіки – дозволить всатновлювати електролізери біля велики споживачів
• Інструмент дозволить експортувати вказані відновлювальні енергоносії до країн ЄС та буде сприяти енергобезпеці регіону
• Дозволить підвищити конкурентоздатність відчизняної промислової та сільськогосподарської продукції через маркування зменшеної кількості викидів вуглецю у процесі їх виробництва
• Дозволить малим приватним виробникам ВДЕ маркувати та реализовувати надлишки

More

https://transparency-partnership.net/publications-tools/mrv-tool-how-set-national-mrv-systems

https://www.eublockchainforum.eu/sites/default/files/reports/Workshop report_Blockchain applications in the energy sector_v01.pdf