Regular reporting on current developments, tailored to your company.
The European emission trading systems (EU ETS I and II)
The European Emissions Trading Scheme (EU ETS I), which has been in place since 2004, obliges power plant and plant operators in the energy-intensive sectors, aviation and shipping companies to submit allowances (EUA – European Union Allowance) to the EU Commission for the emissions they cause. We support you in the efficient and optimal fulfillment of your obligations.
The new and second emissions trading system at European level (EU ETS II) obliges distributors of fuels for road transport and buildings to participate. Within the preparatory phase, participating companies must report on their emissions. Pricing and trading of emission allowances will start in 2027. We will support your company throughout the implementation process so that you can meet your obligations in a timely and efficient manner. This includes:
Does carboneer also offer greenhouse gas accounting services?
Together with our partners, we also provide accounting services for internal and external greenhouse gas emissions (Scope 1-3) for selected clients.
Which energy and climate targets has the EU set for itself?
In the EU Green Deal and the Fit for 55 package, the EU has set itself ambitious energy and climate policy goals. The share of renewable energies in final energy consumption is to increase to 40 percent by 2030 and even to 45 percent according to the new REPowerEU strategy to reduce import dependence on Russian fossil fuels. Greenhouse gas emissions are to fall by at least 55 percent by 2030 compared to 1990. By 2050, the EU is to be climate neutral.
What is the EU ETS?
The European Emissions Trading Scheme (EU ETS) has been the EU’s central climate protection instrument since 2005- and covers about 40 % of the EU-wide greenhouse gas emissions. It aims to reduce greenhouse gas emissions in the participating energy sector, energy-intensive industry, aviation and shipping. The EU ETS works according to the principle of “cap & trade”. A cap determines the total amount of greenhouse gas emissions that may be emitted by installations subject to emissions trading. The emission allowances can be freely traded on the market. This creates a price for the emission of greenhouse gases. This price creates incentives for the participating companies to reduce their greenhouse gas emissions.
How high should the emission reductions in the EU ETS be?
The emission reductions of the sectors and industries in the EU ETS are to fall by at least 62 percent by 2030 compared to 2005. By 2020 the emissions in the EU ETS have already been reduced by 21 percent compared to 2005.
What is the nEHS?
The national emissions trading system (nEHS) is regulated by the Federal Emissions Trading Act (BEHG) and, since January 2021, obliges distributors of fuels in Germany to purchase pollution rights in the form of certificates (so-called “upstream” emissions trading). In contrast to the EU ETS, fuels in the transport and heating sectors are affected by the nETS. Mechanisms exist to avoid double burdens for companies active in both, the EU ETS and the nETS.
What is the EU ETS II?
The details of a new and second emissions trading system (EU ETS II) are currently being negotiated at the EU level. The EU ETS II will require fuel distributors in the road transport and building sectors across the EU to participate and will put a price on emissions in these sectors from 2027 onwards.
What is the Carbon Boundary Adjustment Mechanism (CBAM)?
The Carbon Border Adjustment Mechanism (CBAM) is a climate protection instrument currently being negotiated at EU level. CBAM obliges importers of certain goods to submit emission reports for their products and to submit CBAM certificates depending on the CO2 content of the imported goods. CBAM is to be implemented from 2023 onwards and the European Union will price CBAM allowances in line with the price level in the European Emissions Trading Scheme (EU ETS) from 2026.