The new deadline will be 28 February 2019 for reporting emissions used in the previous year. For those surrendering allowances the deadline is 22 March. This is over a month earlier than the compliance date for previous years. The move is intended to ensure that UK compliance is carried out before the UK’s official exit from the European Union, scheduled for 29 March 2019.
EU has taken measures against Brexit
The EU has already agreed on measures to protect the ETS against UK’s departure from the Union. Changes have already been made through the negotiation on the future of aviation in the EU ETS. Meanwhile, in October, the European Commission issued a proposal to amend the EU ETS Registry Regulations. This move was designed to identify allowances issued by a Member State without obligations expiring.
After identifying the allowances issued by an individual country, the Commission then intends to assign all UK allowances with a country code. From 1 January 2018, these UK allowances will be auctioned and freely allocated as normal, but will no longer be able to be surrendered as part of carbon compliance.
This will specifically impact UK operators, in that they will not be able to use the free allowances issued to them in February 2018 in order to surrender emissions from 2017 in April 2018.
EU ETS after Brexit?
In relation to the 2019 compliance year, the UK Government hopes that more clarity will be provided through the ongoing Article 50 negotiations with the EU.
However, BEIS has plans to stop issuing UK allowances (both auctioning and free allocation) between January and March 2019, if arrangements after the date of withdrawal are not sufficiently clear.
Subject to responses to the consultation, BEIS propose to put legislation before Parliament in December with the intention that the changes take effect from 1 January 2018.
EU ETS compliance help from Utilitywise
If you’re looking for support with compliance, you can find out more about our EU ETS compliance service online, or by calling 01527 511 757.