European Union Emissions Trading Scheme - Phase II
The European Union Emissions Trading Scheme (EU ETS) controls and regulates, with the aim of reducing, the CO2 emissions from installations in sectors such as power, mineral oil refineries, offshore, other heavy industrial and some smaller non-industrial installations with on-site combustion capacity.
With extensive experience and sector knowledge, we offer a full range of greenhouse gas (GHG) emissions services.
In 2005, we were named by UKAS as one of just eight verification bodies to be fully accredited to offer initial EU ETS baseline and annual emissions verification.
We verified in excess of 105 million tonnes of CO2 from more than 430 installations across Europe in 2005.
Phase II (2008-2012)
Phase II changes operator requirements greatly compared to Phase I which ran from 2005 until 2007. It also expands the range of industry sectors included, e.g., carbon black and integrated steelworks. Aviation is also likely to be included from 2010 (with annual verification starting in 2012).
We verify the largest single CO2 emitting installation in the Scheme.
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.
What will the LRQA verification process entail?
Normally a two-stage verification, our staged approach aims to reduce the disturbance to you.
We commence verification at the end of the calendar year to which the Emissions Report refers and complete it at the beginning of the following year.
This enables us to provide verification opinions to meet the 31 March deadline.
Year 1
- Stage 1 - Monitoring plan conformance assessment, strategic analysis, risk analysis and verification planning.
- Stage 2 - Process analysis and data verification. Technical review and preparation of internal and external verification reports.
The complexity of the assessment process is dependent on the type of GHG emissions to be verified and the installation’s data management and control systems.
Year 2 onwards
Further annual verification activities will be undertaken in subsequent years to verify those emissions reports.
The mechanism of verification will vary according to the complexity of changes identified at subsequent verifications but will largely follow the same format as the first year.
Why choose LRQA?
For Phase II verification, we have revised and further improved our processes and procedures, which we estimate can save you 25% or more through our significantly reduced total verification times.
Minimised costs to you
- Evidence requests, plus use of your internal data audits and verifications means our time is better utilised.
- Optional self-preparation means our time is reduced.
- Time spent reporting is reduced.
- Better client guidance means you are better prepared.
Minimised disruption to you
- More remote work conducted, with less required on site.
- Appropriate but not onerous sampling is completed.
- Time on ‘de minimis’ or immaterial sources is reduced.
What service options are there?
Our range of service options means that you can pick tailored verification to best meet your needs and resources, whatever your line of business. Our services recognise individual organisation’s unique objectives, commercial approach and cultures.
| Service Option | Eligibility & Conditions |
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For those that qualify, our NEW rEMIT verification package is highly cost-effective if clients are willing to complete our unique ‘evidence pack’ and checklist (including all internal data audits and verifications), prior to our first visit. rEMIT is dependent on certain banding and combustion criteria, so contact us today to confirm whether this new service option is available for your organisation. To enable this lower cost package, additional time and costs will be invoiced if clients do not provide all of the required information on time. |
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Full Service |
This full package option is as per our existing Phase I offering and follows our previous service delivery model. With a pre-verification gap analysis (optional) and then a two-stage verification, it offers an all encompassing service option for companies that do not qualify for the ‘rEMIT’ service option or those that would like the most comprehensive option. |
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Gap Analysis |
Optional gap analysis as a precursor to official Phase II verification. We review your greenhouse gas emissions against the scheme’s monitoring and reporting requirements. This early pre-assessment of the implementation of your monitoring and reporting plan and the requirements of the monitoring and reporting decision will help you identify and resolve any issues before they impact on your emissions figures or internal processes. |
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New Entrant |
This is a review of emissions data and the design report for submission to government to obtain an allowance. This is only applicable to new entrants, i.e., organisations that have an installation which has commenced or extended a Schedule 1 activity (or has plans to extend or commence). Existing companies in the Scheme can also be classed as new entrants where they have revision to capacity. |
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Rationalisation |
Known as ETS 12, this option allows an organisation to retain an allocation due to site closure and relocation or rationalisation. |
For further details:
www.defra.gov.uk/environment/climatechange/trading/eu/index.htm
DEFRA (Department for Environment, Food and Rural Affairs)
Lloyd's Register Quality Assurance • A member of the Lloyd's Register Group
