EU Emissions Trading System

This was introduced across the European Union in 2005 as the EU Emissions Trading Scheme with the aim of helping member countries meet its greenhouse gas (GHG) emissions reduction target agreed under the Kyoto Protocol.

The Scheme involves the allocation and trading of greenhouse gas (GHG) emission allowances throughout the region, with caps set by each member state. Allowances are then distributed to each installation covered by the scheme. Operators need to make sure that at the end of the year they have sufficient allowances to cover their emissions. If not, they are able to ‘top up’ by buying in additional allowances to meet their quota or if they have surplus, sell on to other organisations.

Verification by LRQA of your organisation's emission of greenhouse gases will mean that you can show how you are meeting emission targets, allowing you to comply with the Directive, protect your financial position and business reputation.

How do I comply?

The European Union Emissions Trading Scheme Directive (EU ETS) requires relevant installations to limit their CO2 emissions to allocated levels in three phases: 2005-2007; 2008-2012 and post 2012.

Phase II requires each eligible installation to produce an annual emissions report. These reports require an independent verification report to be submitted to the relevant Regulator by the end of March each year, verifying emissions for the previous calendar year. Allowances equal to these verified emissions must then be surrendered.

And it’s here where LRQA can help. We undertake accredited EU ETS verifications across the EU including annual verifications, new entrant reserve applications, closures and rationalisations and Phase II gap analysis and support. And with the inclusion of Aviation into the EU ETS Regulations from 31 August 2010, we are also able to provide accredited services to those airline operators needing to comply. Further information is available from our Aviation EU ETS product page.

Our specific focus on phases verification means we can minimise the installation's risk of non compliance with the Scheme. Normally a two-stage verification, our staged approach aims to reduce the disturbance to you. For further information on our approach, please visit our verification page.

Phase III of the EU ETS will run from 1 January 2013 to 31 December 2020. The scope will be extended to include new sectors including petrochemicals, ammonia and aluminium and will also introduce more challenging reduction targets. There will be a gradual phasing out of free allocation for electricity production in the UK and most other Member States with an increase in auctioning of allowances.

Need to know more?

Call 0800 783 2179 or complete our enquiry form for further information on our services.