EU Emissions ­Trading System

Is your company ready for phase 4 of the EU ETS?

The EU Emissions Trading System has become the world’s largest market for trading allowances for greenhouse gas (GHG) emissions. During phase 3 (2013-2020), changes were made to the allocation mechanisms and a wider range of industries and GHGs were included. With phase 4 new rules regarding the application of free allocations, the annual reporting procedures and the monitoring of GHG emissions occurring in installations will be implemented.

EU-Emissionshandel, EU-ETS, EU Emissions Trading

sustainable advises companies on strategic emissions trading questions and helps them strike the most cost-effective balance between in-house measures to reduce GHG emissions and the trading of allowances. We offer a range of services including:

  • Identification and evaluation of in-house measures to reduce emissions
  • Formulation of an optimal strategy for complying with the obligation to surrender allowances
  • Operational assistance: drafting of monitoring plans, reports on operations and emissions reports as required by the German Greenhouse Gas Emissions Trading Act (TEHG)
  • Assistance with the verification process and communications with the German Emissions Trading Authority (DEHSt).

Further changes to the allocation mechanisms and compliance regulations are expected during the forthcoming phase 4. The implications for companies’ day-to-day business will vary depending on the industry and their plant configuration. Our services include:

  • Advice regarding new or modified compliance requirements
  • Advice regarding the strategic implications of phase 4 (2021-2030)
  • Projections of likely allocations and financial implications
  • Assistance and support with preparing allocation applications.