What is EU ETS?
The EU ETS involves the allocation and trading of greenhouse gas (GHG) emission allowances throughout the European Union. Allowances are then disctributed to each installation covered by the scheme.
Introduced in 2021, the fourth period of the EU-ETS remains in effect until 31st December 2030 and includes harmonised monitoring, reporting and allocation methodologies. The fourth period of EU-ETS relates to the Commission Implementing Regulation (EU) 2018/2066 of 19 December 2018 on the Monitoring & Reporting of GHG emissions and to the Commission Delegated Regulation (EU) 2019/331 of 19 December 2018 determining transitional Union-wide rules for harmonised free allocation of emission allowances.
The fourth period of the EU-ETS requires each eligible installation to produce an annual emissions report and an allocation level report, which needs 2 independent verification reports submitted to the relevant Regulator in February or March each year (legal deadline dependent on the Member State in which the installation operates). The reports verifies emissions and allocation levels for the previous calendar year; with allowances equal to the verified emissions then surrendered.
EU ETS Annual Verification
LRQA's independent EU-ETS Annual Verification service establishes robust, reproducible mechanisms for quantifying, monitoring and reporting your annual GHG emissions, in compliance with the Commission Implementing Regulation (EU) 2018/2066 of 19 December 2018 on the Monitoring & Reporting of GHG emissions.
LRQA supports all types of installation operators who need to meet the EU-ETS regulation including those in the chemical, glass, metallurgy, paper and refinery industries; alongside those with fuel combustion of 20MW or greater.
Under EU-ETS, operators must submit an annual GHG emissions report, which an accredited body must verify by 31 March the following year (or sooner depending on the Member State). Once verified, operators surrender the equivalent number of allowances by 30 April of that year.
EU ETS Baseline Data Report Verification
LRQA's EU ETS BDR Verification service helps organisations obtain free allocations of emission allowances and meet the European FAR regulation (Commission Delegated Regulation (EU) 2019/331 of 19 December 2018 on Free Allocation Rules) through robust, reproducible, independent mechanisms that monitor, quantify, and report activity levels for each sub-installation.
Emission allowances for the fourth period of EU-ETS were initially based upon the average activity levels of the historical period 2014–2018. Those historical data (HAL) were verified by an accredited verification body and were submitted to Competent Authorities by May 2019.
This data verification and submission must now be conducted every five years.
Under this requirement, operators willing to obtain free allocations must have their free allocation of emission allowances verified by an accredited body at the same periodicity (CIN 055).
EU ETS New Entrant Report Verification
New entrants are operators who obtained a GHG permit for the first time. For those operators willing to claim for the free allocation of emission allowances, they can opt for a data submission related to the first full calendar year of operation. Operators who apply under this requirement must have their free allocation of emission allowances verified by an accredited body (CIN 055).
EU ETS Allocation Level Report Verification
LRQA’s EU ETS ALR Verification service helps incumbent organisations adjusting their free allocations of emission allowances where their activity levels of sub-installations change by + or – 15% compared to the baseline activity level.
This ALR submission is to be done once a year, by 31/03 (or earlier depending on each Member State national legislation) and must be verified by an accredited Verification Body at the same periodicity.
Usually, the EU ETS ALR verification is conducted together with the EU ETS Annual Emissions Report verification as both activities are annual obligations (CIN 055).
Benefits of EU ETS
Verification to EU ETS demonstrates that your organisation meets GHG emissions targets.
You can benefit from selling any surplus credits your organisation no longer needs.
By identifying deficiencies against EU ETS requirements with a phased verification, you can minimise the risk of non-compliance.
Need help with EU ETS?
Whether your organisation is new to the EU ETS or was already eligible for several years, LRQA's independent third-party verification can help you meet your mandatory reporting requirements.
LRQA provides annual verification, BDR verification, NER verification, ALR verification, as well as gap analysis.
We were one of the first verification bodies to gain accreditation for EU ETS, and our multiple-stage verification process enables us to minimise your risk of non-compliance while reducing disruption to your operations.
Why work with us?
LRQA verifiers are experts, qualified in all aspects of emissions verification guaranteeing a comprehensive audit of your operations.
We assess and verify high-profile clients across the waste management, utilities, metallurgy, oil & gas, nuclear and government sectors with our depth of knowledge being a direct benefit to your organisation.
We maintain our impartiality by proactively managing conflicts of interest across all LRQA businesses including those which may exist between consultancy and third-party certification services. Click here to learn more.
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