United Nations Public Service Awards Case Studies

Since January 2005 European industrial plants with a thermal output over 20 megawatts are obliged to hold emission allowances for the carbon dioxide they emit (European Union Emissions Trading Scheme). During the first trading period 2005-2007 these certificates were allocated free of charge based on the installations’ historic emissions. Surplus certificates can be freely traded within the EU much like stocks. This is the first time a flexible instrument of environmental protection is used in Germany.

The Federal Environment Agency’s new department, the German Emissions Trading Authority (DEHSt) has been appointed as the responsible national authority in early 2004. Within the framework of the EU Emissions Trading Directive and according to the German Greenhouse Gas Emission Allowance Trading Act (TEHG), DEHSt is responsible for the allocation and issuing of allowances, monitoring and control tasks, the administration of the national registry as well as national and international reporting. Until TEHG entered into force in August 2004, DEHSt had only eight months to become fully operational. Within the narrow timeframe before August 24, 2004, DEHSt had to develop and implement all the tools to collect and process the data for the allocation of allowances, as well as design its processes and recruit its personnel. Until December 31, 2004 DEHSt had to calculate the individual amounts of allowances, issue c. 1,850 notifications and open the German national Emissions Trading Registry.

What is the initiative about? (the solution)
All internal and external business processes of the German Emissions Trading Authority (DEHSt) have been planned and executed as entirely electronic since the very beginning. A special challenge and novelty was the law’s demand for an entirely electronic communication, which calls for companies to file their data with DEHSt electronically only. In addition data must not be transmitted via e-mail or web upload but by a confidential means of communication with a legally binding confirmation. In retrospect there were only ten cases (of about 2,000) in the first application phase, which did not provide electronically, legally binding, within the timeframe and according to the legal specifications. Only three of these were recognised as cases of hardship. Today all participants in emissions trading in Germany are online and implement the enforcement of the new climate protection instrument, emissions trading. One criterion for how well the confident and legally binding communication is accepted, is the fact that emissions reporting performed in the electronic way although it is not obliged to. In meantime nearly all relevant communication is performed via Virtual Post Office (VPS).

Who proposed the solution, who implemented it and who were the stakeholders?
The concept and design of the integrated electronically organised national authority was developed by DEHSt’s original staff in collaboration with consulting firm infora. IT-infrastructure and its interfaces was and is implemented by a number of private companies and public service institutions. It was advantageous that DEHSt could make use of the German federal government’s initiative BundOnline 2005. The initiative enabled public authorities such as DEHSt to conclude IT-contracts for basic components in e-government based on federal frame contracts. The following parties were/are involved: Implementation partners: Data entry Application RisaGen: Risa GmbH Application Formular Management System (FMS): Materna, Siemens, Lucom Hosting FMS: ZIVIT Confidential, mandatory electronic communication Application Virtuelle Poststelle + Postfachanwendung: bos Hosting: bos Second Level Support: bos Electronic workflow system Application DOMEA: Opentext, Siemens Consultants: infora GmbH Hosting: DVZ Schwerin Technical application: Allocation procedure/installation assessment Application Anlagendatenbank (ADB): TechniData Markdorf Hosting: TechniData Markdorf Registry Application SERINGAS: CDC-Caisse des dépôts et consignations (France) Hosting: COLT Fees Management Application MACH 1: MACH AG Hosting: Federal Environment Agency’s own computer centre Website Content Management System Application Government Site Builder (GSB): CoreMedia Hosting: Bundesverwaltungsamt (BVA) Support: Materna Stakeholders: Installation operators, authorised experts, regional authorities, industry associations and DEHSt.

Describe how and when the initiative was implemented by answering these questions
a. What were the strategies used to implement the initiative? In no more than 500 words, provide a summary of the main objectives and strategies of the initiative, how they were established and by whom.
The integrated electronic enforcement of the German emissions treading law consists of these steps: Installation operators subject to emissions trading collect their data as the law demands. The data is verified by an authorised expert and testified by his/her electronic signature. Only then does the operator submit his/her personally mandatory signed application via DEHSt’s Virtual Post Office (VPS). DEHSt transfers the data to an electronic workflow system and a technical application that creates the allocation notification. This notification is both directed to the electronic files and sent to its addressee. Tradeable emission allowances are kept in an electronic account, which is provided by DEHSt online. Other internal procedures, e.g. notifications on fees, are also electronically supported. The annual emissions reporting also involves the regional authorities of the German Länder. The gateway to DEHSt’s entire external communication is the internet portal www.dehst.de where all information and publication are found. In order to communicate more individually with its customers DEHSt has established a telephone hotline. The customer service supports the participants in emissions trading with the ever changing requirements in form and content (in a "one face to the customer"-approach). As it also feeds back the customers’ opinions, needs and problems it greatly contributes to the advancement of DEHSt’s services and procedures. During the first trading period 2005-2007 and especially prior to the second trading period 2008-2012 the different IT applications are being further developed, revised, and continuously merged.

b. What were the key development and implementation steps and the chronology? No more than 500 words
The key idea of DEHSt’s IT-infrastruktur is a complete and integrated electronic work-flow. Chronology: - Development website - Development customer service, hotline - Development data entry system RisaGen - Implementation VPS, enhancement of post-office-box client - Development Installations Database ADB - Implementation registry - Implementation, enhancement of fees management system - Implementation records management system - Development data entry system Formular Management System FMS - Enhancement: FMS, ADB, VPS

c. What were the main obstacles encountered? How were they overcome? No more than 500 words
The very narrow time-slot made the establishment of DEHSt a tremendous challenge.

d. What resources were used for the initiative and what were its key benefits? In no more than 500 words, specify what were the financial, technical and human resources’ costs associated with this initiative. Describe how resources were mobilized
Financial: 12,5 Mio €, mobilised through fees Technical: internet, standard IT architectures, e-government standards were selected und purchased Human: c. 120 Persons until now, c. 50 % were personnel of the Federal Environment Agency who were relocated, c. 50 % were recruited from outside

Is the initiative sustainable and transferable?
In 2006 DEHSt won the 6. German eGovernment Competition under the auspices of the German Federal Ministry of the Interior in the category "Best virtual organisation". Until the end of the second commitment period in 2012 DEHSt will continuously advance its IT-infrastructure. Currently there are operators of c. 1,850 installations participating in emissions trading in Germany and an additional c. 265 authorised experts. The return on investment is as yet uncertain as the new political instrument with its IT requirements was only just implemented. If the initiative is be transferable depends on whether it will be possible to make electronic communication mandatory. In the nearer future this will only be feasible in the business-to-administration sector whereas for private individuals there must remain more than one way of communication.

What are the impact of your initiative and the lessons learned?
The “paper less” office is possible – it also makes work more efficient. A government authority depends on three things: the political and administrative will to build up entirely electronic structures, the financial means to do so and the legal basis. A strong project management is essential, a lot of stamina and will not to succumb to resistances is needed.


Institution Name:		German Emissions Trading Authority
Institution Type:		Government Agency
Contact Person:		Thomas Bigalke
Title:		Dr.
Telephone/ Fax:		+493089035250
Institution's / Project's Website:		+493089035010
E-mail:		thomas.bigalke@uba.de
Address:		Bismarckplatz 1
Postal Code:		14193
City:		Berlin
State/Province:		Berlin
Country:		Germany

The Problem

Solution and Key Benefits

Actors and Stakeholders

(a) Strategies

(b) Implementation

(c) Overcoming Obstacles

(d) Use of Resources

Sustainability and Transferability

Lessons Learned

Contact Information