Emissions trading system for companies

EU-ETS regulations

In 2005, the European Emissions Trading System (EU-ETS) for industrial plants was introduced by the European Union.

It is aimed at companies with a thermal capacity of more than 20 MW of industrial installations. In this context, the term ET companies (ET meaning Emission-Trading) is also used.

An ET company obtains emission rights for every tonne of CO2 emitted. Some of these emission rights are granted free of charge, the remainder can be purchased by the operator from the European Union.

In the context of the EU-ETS, the following actions are expected from these companies each year:

  1. 14 March: submittal of the verified annual emissions report (approval by 15 April)
  2. 30 June: submittal of the monitoring improvement report (optional)
  3. 15 November: submittal of the EU ETS monitoring plan


New allocation rules from 2018 onwards 

The EU allocation rules for the 2021-2030 trading period were amended at the end of 2017. Each ET company is therefore required to develop a new methodology for this period.

This new legislation requires the following actions:

  1. 15 November 2018: deadline for submitting the preparation of the monitoring methodology plan 2021-2030
  2. 31 March 2019: submittal of the monitoring methodology plan (MMP) 2021-2025
  3. 30 June 2019: submittal of the baseline report 2021-2025

At Encon, we can provide support throughout the entire EU-ETS process, based on a specific approach aimed at relieving clients of as many burdens as possible and maximising their return on investment. Customers can choose which support is needed:

  • Preparation of the monitoring plan and annual emissions report
  • Preparation of the monitoring methodology plan & baseline report 2021-2025
  • Support with the allocation of emission rights

It is essential to draw up these documents properly, as the allocation of free emission rights (and hence avoidable costs) is linked to them.