Brexit brings forward EU ETS deadline

Brexit brings forward EU ETS deadline

Many large businesses will have to alter their emission compliance plans as EU Emissions Trading Scheme (ETS) compliance deadlines are brought forward.

The Department for Business, Energy and Industrial Strategy (BEIS) has decided to bring forward the EU ETS compliance deadline for UK companies.

The new deadline will be 11 March 2019 for reporting emissions used in the previous year. For those surrendering allowances the deadline is 15 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 ahead of Brexit, scheduled for 29 March 2019. Utilitywise provide an all-encompassing EU ETS compliance service, and we can support you through your entire compliance journey.

EU has taken measures against UK exit

The EU has already agreed on measures to protect the ETS against the UK’s departure from the Union. Changes have already been made through the negotiation on the future of aviation in the EU ETS. Meanwhile, back 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. The changes to the compliance deadlines introduced by BEIS have made it possible for UK allowances issued in 2018 to be valid for compliance.

EU ETS beyond Brexit

In relation to the 2019 compliance year, the UK Government hopes that the two-year transition period will ensure continued participation for the remainder of Phase III of the EU ETS.

Previously, BEIS had signalled it would need to issue UK allowances (both auctioning and free allocation) between January and March 2019, if arrangements after the date of withdrawal are not sufficiently clear.

EU ETS compliance support from Utilitywise

Our Market Intelligence team keep a close eye on the energy markets, as well as legislative and industry updates, keeping our clients informed at a frequency to suit them.

We can fully support your EU ETS compliance journey. To find out more call us on 01527 511 757 or visit our website.

Ross Moffat

Posted by on Thursday, the 15. March at 10.45

Ross Moffat has been a part of the Market Intelligence team at Utilitywise since early 2014. His responsibilities include delivering Market Intelligence reports to clients and managing the Utility Insights Twitter account. Ross has a first class Honours degree in Business and Marketing from the University of Stirling.