What is a national registry?
An emissions trading registry is a web-based application that records:
- CO2 allowances and units allocated to and held in operator, person and Government accounts
- the movement of allowances and units between accounts (including allocations, transfers, surrender and cancellations)
- annual verified emissions of installations
- annual compliance status of installations
An account holder can therefore hold, transfer, cancel or acquire EU Allowances (EUAs) and Kyoto units (e.g. CERs, ERUs, AAUs, RMUs, tCERs and lCERs). Further details regarding each of these unit types can be found in A Guide to Using Kyoto Units in the European Union Emissions Trading Scheme, available on the Environment Agency’s website. In addition, regulators and nominated competent authorities can manage regulated industries (those with legal emissions reduction targets), and monitor national compliance and performance against international emissions reductions obligations.
Computerised registries are key components of the EU Emissions Trading System (EU ETS) and wider international emissions trading under the United Nations Framework Convention on Climate Change’s (UNFCCC's) Kyoto Protocol. Under Directive 2003/87/EC, EU Member States were required to put in place a standardised, electronic national registry from 2005, whilst Parties to the Kyoto Protocol were required to put in place a national registry to allow international emissions trading from 2008. The functional requirements of the Registry are determined by the European Commission (through the Registry Regulations) and the UNFCCC secretariat (through various COP / MOP decisions).
All national registries are connected directly to the UNFCCC’s International Transaction Log (ITL). This transaction log is responsible for checking all transactions to ensure they adhere to the rules of international emissions trading under the Kyoto Protocol. The ITL also has a link to the EC’s Community Independent Transaction Log (CITL). This transaction log is responsible for checking all transactions to ensure that they adhere to the rules of the EU ETS.
Key functions of the registry
- Account management: allows operators and registry administrators to create, update, and close holding accounts as well as record emissions
- Surrender and retirement: allows regulated companies (surrender) and national competent authorities (retirement) to demonstrate compliance with national emissions reduction targets
- Internal and external transfers: allows accounts holders within the same registry and those in other national registries to transfer units and allowances between their accounts
- Cancellation and replacement, and carry over: of units and allowances in accordance with the emissions trading rules. This allows the registry to comply with both the EU and UN requirements
- Reconciliation: with the Community Independent Transaction Log and the UNFCCC Independent Transaction Log on a periodic basis to ensure registry records are consistent
- Generation of reports
Who can use the registry?
Operators of installations with legally binding compliance obligations must open an operator holding account in the national registry of the country in which their emissions physically occur.
In addition to operator accounts, the registry also contains person holding accounts. Any individual or organisation can apply to open such an account.
Accounts can be applied for online using the registration process on the public homepage of the UK national registry. The registration process will require details of two users that will be able to access the account on behalf of the organisation – the Primary and Secondary Authorised Representatives (PAR and SAR) and any details of the organisation and installation (if applicable).
All applications for accounts must be accompanied by identity documentation in order to pass the security checks that are carried out on all new users. There is a separate fee for opening a Personal Holding Account. You can find details of the necessary documentation and fees on the Environment Agency website. This site also contains details of how to use the national registry.
The Secretary of State has been designated as the competent authority in the UK for appeals in relation to Person Holding Accounts in the EU ETS. A Direction has been issued to the Environment Agency requiring them to refer to the Secretary of State any appeals in UK relating to Person Holding Accounts and is available below:
The Environment Agency is the registry administrator for the UK’s national registry and is responsible for managing it on a daily basis. If you have any questions about opening an account, or the operation of the registry, please contact the Environment Agency helpdesk direct.
Verifiers access the national registry in order to verify emissions of installations under the EU ETS.