What is EU ETS?
The EU ETS involves the allocation and trading of greenhouse gas (GHG) emission allowances throughout the European Union with caps set by each member state. Allowances are then distributed to each installation covered by the scheme.
Introduced in 2013, EU ETS Phase III remains in effect until 31 December 2020 and includes harmonised allocation methodologies, additional GHG and emission sources. EU ETS Phase 3 requires each eligible installation to produce an annual emissions report, which needs an independent verification report submitted to the relevant Regulator between 28 February and the end of March each year (deadline dependent on the Member State in which the installation operates). The report verifies emissions for the previous calendar year; with allowances equal to the verified emissions then surrendered.
EU ETS3 Annual Verification
Lloyd's Register’s (LR) independent EU ETS Annual Verification service establishes robust, reproducible mechanisms for quantifying, monitoring and reporting your annual GHG emissions.
LR supports all types of installation operators who need to meet the EU ETS Phase 3 regulation including those in the chemical, glass, metallurgy, paper and refinery industries; alongside those with fuel combustion of 20MW or greater.
Under EU ETS3, operators must submit an annual GHG emissions report, which an accredited body must verify by 31 March the following year. Once verified, operators surrender the equivalent number of allowances by 30 April of that year.
EU ETS3 Baseline Verification
LR’s EU ETS3 Baseline Verification service helps organisations meet the European baseline regulation through robust, reproducible mechanisms that quantify, monitor and report annual GHG emissions.
Emission allowances were initially based upon baseline data (2005–2008; or optionally 2009–2010) that required verification by an accredited verification body by July 2011. During Phase 3 (2013–2020), new entrants and operators involved with capacity change, merges and splits, fell into the scope of ‘New Entrant & Closure’. This means they need to apply for a baseline verification by an accredited body.
Under this requirement, operators must have their free allocation of emission allowances verified by an accredited body within 12 months after the start of normal operations. This requirement refers to the verified and approved first-day of a continuous 90-day period during which the installation operates at a minimum of 40% of the capacity at which the equipment is designed to handle.
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 has moved from Phase 2, LR’s independent third-party verification can help you meet your mandatory reporting requirements. LR provides annual verification, new entrant reserve applications, closures and rationalisations, as well as Phase 3 gap analysis and support.
We were one of the first verification bodies to gain accreditation for EU ETS, and our two-stage verification enables us to minimise your risk of non-compliance while reducing disruption to your operations.
Why work with us?
LR verifiers are management systems 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.
Your business helps LR to help others
The profits we generate fund the Lloyd’s Register Foundation, a charity which supports science and engineering-related research, education and public engagement around everything we do. All of this helps us stand by the purpose that drives us every single day: Working together for a safer world.
We maintain our impartiality by proactively managing conflicts of interest across all LR businesses including those which may exist between consultancy and third-party certification services. Click here to learn more.
Who we work with
We help businesses across dozens of sectors push forward and achieve like never before. How can we help you?
Aker BP: Using data intelligently to cut planned maintenance in half.
LR AllAssets Maintenance Optimisation reduces planned maintenance of centrifugal pumps and fire and gas detectors by up to 50%.
What we think
LR's experts regularly share their research and insights.