AEA Certification stakeholder consultation: DAREL Recommendations

AEA Certification survey: Markets, Policies and Regulations (July 2022)

To support the development of a detailed work plan for AEA Certification Working Group 3: Markets, Policies and Regulations (WG3), we are inviting all participants in the AEA Certification initiative to share your views through this survey, which will be reviewed within WG3. A report summarizing all input (aggregated and anonymized) will be shared with all AEA Certification Initiative participants.

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Name*
Membership status*
Your organization's role(s) within AEA Certification initiative*
Please submit one survey per organization. Indicate all groups in which you and/or your colleagues participate.

Markets, Policies, and Regulations (WG3) survey

The following questions have been developed to help frame the scope of work for Working Group 3.

Identifying the consumer

Who will be the most important end-consumers of the AEA's certificates?
Please aim to identify 3 priority end-consumers, indicating country / market as relevant. Click "+" to add more lines.
End-consumer
Market
Country/Region
Comment
 
Why will end-users purchase the AEA certificates?
Select all that apply
Which of these should the AEA's top priority?
Select only the top priority

Certification for regulatory compliance

When using the certificate for regulatory compliance, what key regulations should the certificate scheme recognize?
Please try to list 3 key regulations in order of priority, and indicate if you have existing connections with the regulator. It would be very helpful if you are also able to provide a few details of the regulation (ie, what requirements are set for certification). Use the "+" button to add more lines.
Regulation
Country/Region
Are you connected?
Requirements for certification?
 

Certification for voluntary disclosure

When using the certificate for voluntary disclosure, what is the AEA's primary objective?

If the certificate classifies ammonia, who should define the thresholds, labels, etc

Harmonization / chain of custody

Assuming that the AEA certification scheme enables trading of the certificate separate from the product (ie, using Book & Claim), can the AEA scheme also harmonize with more restrictive regulations (ie, requiring Mass Balance)?
Click "+" to add more rows.
Restrictive Regulation / Compatibility Issue
Proposed harmonization approach
 

DAREL Recommendations

The following questions draw on the recommendations contained in the report by DAREL, containing the matrix of external related certification schemes, which was submitted to WG3 earlier this year.

DAREL Recommendation #1: "Key Schemes"

"To support and focus on key certification scheme developments like IPHE and CertifHy, in this further promoting extension of these schemes to cover ammonia plus international alignment and acceptance of those."
Extending schemes
Should the AEA aim to encourage other key organizations to extend their hydrogen certification schemes to include ammonia?
Integrating schemes
Should the AEA aim to accept other key organizations' hydrogen certificates as valid inputs to our ammonia certification scheme?

DAREL Recommendation #2: "Close Connections"

"To stay closely connected to individual certification schemes developed by ammonia producers for instance, to ensure and support alignment with international certification schemes while these mature."
What specific certification schemes should AEA stay closely connected to, and how?
Please share your insights regarding existing and/or in-development schemes and initiatives, and comment on how the AEA certification scheme might connect.
Certification initiative
Are you connected?
Comments - potential to connect
 

DAREL Recommendation #3: "End-User Adoption"

"To stimulate countries who are focused on implementing ammonia and hydrogen application on a large scale on implementing a certification scheme as soon as practically possible, to avoid (short-term) higher emissions from grey ammonia production due to fast rising demand, also with an eye on increased import/export streams."
This recommendation appears to come from the perspective that ammonia in energy applications could increase life-cycle emissions (eg, grey ammonia vs natural gas), which is beyond the scope of the AEA certification initiative. Identification of end-consumers has already been addressed above. If you wish to provide additional comment on recommendation #3, please do so.

DAREL Recommendation #4: "Cooperation with IPHE"

"To continue close cooperation with IPHE due to IPHE’s large, global influence, pragmatic approach to carbon footprint methodology development and input to ISO’s standard development initiative."

IPHE is an intergovernmental organization that is developing a global methodology for determining GHG emissions from hydrogen and ammonia production. IPHE is not developing a certification scheme, but its methodology will be incorporated by many certification schemes (eg, Australian Government's Guarantee of Origin, UK Government's (BEIS) scheme, Green Hydrogen Standard, CertifHy, etc).

The AEA provided feedback to IPHE on its draft (yet to be published) ammonia as a hydrogen carrier methodology in February 2022 (https://drive.google.com/file/d/1Cj5nMEgN25dd8uGqGJP2r9V6CWdBnwdx/view?usp=sharing). IPHE published its Hydrogen methodology in October 2021 (https://www.iphe.net/iphe-working-paper-methodology-doc-oct-2021).
Adopt/Extend IPHE
Should we adopt (and extend as necessary) the IPHE methodology as the foundation for the AEA's certification scheme?

Adapt/Expand IPHE
IPHE has no methodology for many relevant technology pathways (for example, CCU or Methane Pyrolysis). If the IPHE methodology is adopted as the foundation for the AEA certification scheme, should AEA's scheme be constrained to pathways defined by IPHE, or should AEA's scheme build beyond IPHE and define its own pathways as necessary?

Approach to ISO
Should AEA develop its own input to ISO, or focus support for other initiatives like IPHE in their efforts to develop ISO standards?

DAREL Recommendation #5: "Exporting Countries"

"To catalyse global trade in renewable and low carbon ammonia by support exporting countries in adaption of certification schemes, in order to bring the supply and demand sides of the market together more quickly."
Exporting countries & key actors
Please try to list 3 exporting countries that should be priorities for the AEA, and identify the key actors with whom the AEA should engage, both government and NGO (eg, local trade associations, etc). Use the "+" button to add more lines.
Country/Region
Key government agencies
Key organizations
Comment
 

DAREL Recommendation #6: "Engage the EU"

"To engage with and actively advocate at EU/EC level to speed up development and implementation of regulations (RED II, RED III, Gas Package, Fit for 55 Package, CBAM, EU ETS), in this bringing clarity on definitions, certification and carbon footprint methodologies."
Please provide details.

DAREL Recommendation #7: "Pilot learnings"

"To facilitate replication of learnings from HyXchange trading pilot in The Netherlands to other emerging markets globally."
Please provide details.

DAREL Recommendation #8: "Support IMO"

"To support implementation of carbon emission reduction scheme in the maritime sector, by supporting IMO organization, and building on initiatives from Trafigura and Maersk Mc-Kinney Møller."
Working with IMO
Should the AEA engage with the IMO and flag states in order to develop a certificate that is acceptable to them and us?

Please provide details.
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