Greenhouse gases, new obligations and costs for businesses - New emissions monitoring system, expectations for more environmental transparency
The Ministry of Environment has issued for public consultation draft decisions that will enable the implementation of amendments to the law "On Climate Change", establishing a much stricter monitoring, reporting and verification regime for greenhouse gas emissions from the industrial sector, aviation and fuel trade.
The adopted law establishes the basis for the full implementation of the MRVA (Monitoring, Reporting, Verification and Accreditation) system, in accordance with European Union rules. Meanwhile, the draft regulation provides detailed procedures for how companies should monitor emissions, how they should prepare reports and how this data will be verified by accredited verifiers.
The draft regulation covers a wide range of activities, from the combustion of fuels in installations over 20 MW, to the production of cement, clinker, metals, glass, ceramic products, industrial chemicals, as well as civil aviation activities. Fuel wholesalers are also included in the category of regulated entities.
Meanwhile, the accompanying document establishing the rules for the verification and accreditation of greenhouse gas reports poses two main challenges for businesses.
First, companies that must report emissions risk encountering difficulties in finding accredited verifiers, as the market is still limited. This can lead to delays and penalties. Second, the implementation of MRVA procedures brings additional costs for verifier payments and for training technical personnel. The employment or training of a technical employee for monitoring is estimated at 1.3–1.5 million lek per year, while verification by an accredited entity will cost from 1-3 million lek per year, depending on the complexity.
However, the expected effects are considerable. The new system is expected to improve air quality, enabling more accurate calculations of emissions and the establishment of reduction ceilings in the future. Verified reporting increases the reliability of environmental data and helps in the design of future policies.
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