EU-ETS

87/2003/ΕC Directive, GHG Verification according to the EU Emissions Trading System, EU ETS

The European Union, having committed itself under the Kyoto Protocol to contributes to the reduction of anthropogenic greenhouse gas emissions and has developed an extensive greenhouse gas emissions trading system at installation level.

The EU ETS (European Union Emissions Trading System) is a cornerstone of the EU's policy to combat climate change and a key tool for reducing greenhouse gas emissions cost-effectively. It was introduced by the European Union in its Member States with Directive 87/2003/EC. It is the world's first major carbon market and remains the biggest one. The system works on the 'cap and trade' principle, where a cap (the limit) is set on the total amount of certain Greenhouse Gases GHGs that can be emitted by installations covered by the system.

This system, which was implemented by the EU Member States on the 01.01.2005 for the three-year period 2005-2007, then 2008-2012, 2013-2020 and is now in the phase 2021 -2030. It is based on the innovative mechanisms established by the Kyoto Protocol, namely:

• International Emissions Trading
• Joint Implementation (JI) and
• Clean Development Mechanism (CDM).

Within this cap, organizations and companies receive or buy emission allowances which they can trade with one another as needed, like a commodity. Some companies, other than electricity generators, receive some free alocations of allowances from the EU Commission. From 2024, the EU ETS also covers emissions from maritime transport.

The Verification under the EU ETS is crucial as it ensures the accuracy of the reported data on emissions, which determines the number of allowances each company needs to surrender. Companies must have their emission reports verified by an accredited verifier to ensure they are correct and comply with the regulations.

In order for an Operator of an installation to participate in the greenhouse gas emissions trading system, it must:

• have emission allowances, which are the tradable unit of the system and are referred to in the National Emissions Allocation Plan
• have an approved emissions monitoring plan and the relevant emissions permit which sets out the monitoring and reporting requirements for an installation,
• submits to the competent authority a relevant emissions report after each calendar year and by the 31 March of the following year, which have been verified with regard to the adequacy and accuracy of their data by independent accredited environmental verifiers.

The benefits of verification include:

• Compliance with regulatory requirements,
• Αvoiding fines,
• Maintaining a good reputation
• Verified data helps in making informed decisions regarding emission reductions and operational improvements.
• Enhancement of transparency and credibility with stakeholders, including investors, regulators, and the public, supporting sustainable business practices.

TÜV HELLAS, as a Certification/Verification Body, holds the relevant Accreditation from the Greek Accreditation Body E.SY.D. S.A. (Accreditation Certificate No.: 884-5) and carries out verifications of EU-ETS greenhouse gas emissions with Greek approved verifiers, initially in accordance with article 11 of the Joint Ministerial Decree No. 54409/2632/27.12.2004 (Government Gazette 1931B’), as replaced by Joint Ministerial Decree No. 181478/965/26.10.2017 (Government Gazette 3763B’) and most recently it was replaced by the Joint Ministerial Decree No. YPEN/DKAPA/86227/2245/09.08.2024 (Government Gazette 4674B’).