2012
23 May 2012: Meeting our climate goals whilst saving businesses money through deregulation - Launch of the UK’s Small Emitter and Hospital Opt-out Scheme, from 2013
Government has today launched an Opt-out Scheme which could save industry up to £80 million over 2013-2020.
The aim of the Opt-out Scheme is to simplify the legal requirements and reduce the regulatory burdens on operators of around 250 eligible small EU ETS installations, whilst maintaining incentives for emission reductions. As such it is a key policy response to the “Red Tape Challenge” environment theme.
The administrative costs faced by smaller emitters under the EU ETS are disproportionately high per tonne of CO2, compared to the costs for installations with larger emissions. The Opt-out Scheme will help ensure that the EU ETS is implemented in a more proportionate manner.
Details of the Opt-out Scheme, eligibility criteria and application procedure can be found on the Small Emitter and Hospital Opt-out Scheme web page.
Applications are now being invited and must be submitted to DECC by 18 July 2012.
15 May 2012: The European Commission released data on levels of compliance with 2011 emissions reporting obligations under the EU ETS. For static operators this is a regular annual press release, which includes an overall figure on the 2011 emissions and installation-level data on the number and type of allowances surrendered. For aircraft operators, the press release provides an overall picture of compliance by commercial airlines with the first reporting obligation since aviation was included in the scheme. The full release can be viewed on the Europa: press releases web pages.
8 May 2012: The Government has launched a public consultation on new UK Greenhouse Gas Emissions Trading Scheme Regulations, to implement phase III of the EU ETS in the UK. In preparing these regulations the aim has been to simplify the legal requirements and reduce the regulatory burden for UK EU ETS participants from 2013. This is the first major change proposed to legislation by DECC as a result of the “red tape challenge” environment theme. The consultation and associated documents can be found on the Transposition of EU Directive 2009/29/EC revising EU Directive 2003/87/EC web page.
3 May 2012: The European Commission has announced the timetable for the migration of existing EU Emissions Trading System national registries to the single European Union Registry. The full activation of the European Union Registry, a secure web based system, which will be managed and maintained centrally by the EU, is expected on the 20 June 2012.
The following table provides an overview of the key dates associated with the transition to the new system:
| Date |
Registry activity
|
| 1 May 2012 |
The UK registry is now closed to applications for new accounts. The existing union registry will remain open to aircraft operators. |
| 14 May 2012 |
Starting at 09.00 Greenwich mean time, all account holders (including aircraft operators) will be unable to open, close or modify accounts and account representatives’ details in either the UK or the EU registry. |
| 3 June 2012 |
Starting at 09.00 Greenwich mean time, the operation of all national registries and the EU registry will be suspended simultaneously across the EU.
Account holders will not be able to access registry accounts, including the allowances held in these accounts.
Data held in the UK and all national registries will start to be migrated over to the EU registry.
|
| 20 June 2012 |
Starting at 09.00 Greenwich mean time, the single EU registry will be fully activated. Users of existing national registries will be able to use the single EU registry once they are provided with new authentication credentials from the national administrator. The new EU registry will open again to aircraft operators from this date. |
The Environment Agency will continue to be the national administrator for the UK.
The new EU system will eventually provide the same level of functionality as provided by the UK national registry. Functionality for trusted accounts, new account categories and Phase III auctioning, will not be implemented on to the system until a date later in the year. The European Commission will aim to provide the timetable for the implementation of this functionality by the 15 July 2012.
For further information, please see the related press notice on the European Commission website
For any enquiries or further details, contact the UK Registry Administrator.
27 April 2012: The European Commission have announced further details about the transition to a single EU ETS registry during June 2012. Following the partial activation in January of the EU Emissions Trading System single registry for aircraft operators, the full activation of the single registry, including the migration of over 30,000 EU ETS accounts from national registries, is scheduled to take place in June. Two weeks before the full activation, the operation of the registry system will be suspended and account holders will not be able to access registry accounts - including allowances held in these accounts. In addition, in the three weeks prior to this two-week transition period, account holders will not be able to open or close accounts or to modify account representatives.
The announcement can be read in full on the European Commission: Climate Action website
20 April 2012: The Government has announced that London-based ICE Futures Europe has been selected as the preferred supplier to conduct auctions of Phase III and aviation EU ETS allowances. The contract to run the UK’s definitive EU ETS auction platform will run for three years, extendable by a further two. Auctions are due to start in November, subject to approval by the European Union.
5 April 2012: The Government has revised its EU ETS auction schedule for May 2012 to September 2012. The auction for 4 million allowances, previously announced for 7 June 2012, is being postponed until 6 September 2012.
2 April 2012: The European Commission have made the verified emission figures for 2011 publicly available:
The UK summary figures have been provisionally compiled:
March 2012: The Government has issued a call for evidence asking companies and trade bodies to share information and data about their electricity intensity. This will support the Energy Intensives Industries (EII) Package. You can find more information and the call for evidence on the BIS: Energy intensive industries web page.
March 2012: 3.5 million allowances were distributed in the 25th Phase II EU ETS auction. The auction cleared at €8.55 (£7.14). Full details of the auction results are published on the UK Debt Management Office: EU ETS Auction info web pages.
February 2012: 3.5 million allowances were distributed in the twenty forth Phase II EU ETS auction. The auction cleared at €8.11 (£6.79). Full details of the auction results are published on the UK Debt Management Office: EU ETS Auction info web pages.
2011
November 2011: 3.5 million allowances were distributed in the twenty third Phase II EU ETS auction. The auction cleared at €9.72 (£8.30). Full details of the auction results are published on the UK Debt Management Office: EU ETS Auction info web pages.
17 October 2011: DECC released a letter seeking information from businesses in relation to the EU Emissions Trading System (EU ETS) – specifically, the expected use of the Phase II New Entrant Reserve (NER) for the remainder of the phase up to the end of 2012.
If you are planning to commence new activities, or extend existing ones, covered under the EU ETS before 31 December 2012, you may be eligible to receive free allowances from the NER. These allowances can be used to account for the emissions resulting from these new activities. To help us plan for the final stages of phase II, in particular the potential auctioning of any surplus allowances from the NER, we would welcome an indication of the estimated allowances potentially required for, and the timing of, any new EU ETS activities foreseen before the end of next year.
Please email responses to eu.ets@decc.gsi.gov.uk with the title ‘Phase II NER estimates’ by 12 December 2011.
October 2011: 3.5 million allowances were distributed in the twenty second Phase II EU ETS auction. The auction cleared at €10.38 (£8.97). Full details of the auction results are published on the UK Debt Management Office website.
September 2011: 3.5 million allowances were distributed in the twenty first Phase II EU ETS auction. The auction cleared at €12.31 (£10.87). Full details of the auction results are published on the UK Debt Management Office website.
18 July 2011: The Government today publishes an informal consultation on regulating auctions of EU emissions allowances.
The UK currently auctions EU emissions allowances through the Debt Management Office. Changes to the EU ETS from 2013 mean that national auctions must take place on regulated markets, rather than by government agencies. Full details can be found on the HM Treasury: Regulating auctions of EU emissions allowances web page.
July 2011: 3.5 million allowances were distributed in the twentieth Phase II EU ETS auction. The auction cleared at €13.17 (£11.79). Full details of the auction results are published on the UK Debt Management Office website.
June 2011: UK questionnaire response to the European Commission consultation on New State aid Guidelines in the context of the amended EU Emissions Trading System.
June 2011: 3.5 million allowances were distributed in the nineteenth Phase II EU ETS auction. The auction cleared at €16.34 (£14.53). Full details of the auction results are published on the UK Debt Management Office website.
March 2011: 4.4 million allowances were distributed in the eighteenth Phase II EU ETS auction. The auction cleared at €15.59 (£13.34). Full details of the auction results are published on the UK Debt Management Office website.
18 February 2011: Today the UK notified the European Commission that it will opt out of the EU’s common platform and set up a national platform for auctioning in phase III of the EU Emissions Trading System (ETS).
February 2011: 4.4 million allowances were distributed in the seventeenth Phase II EU ETS auction. The auction cleared at €14.36 (£12.19). Full details of the auction results are published on the UK Debt Management Office website.
4 February 2011: at 7am the UK registry (along with France, Germany, the Netherlands and Slovakia) reopened.
24 January 2011: the EU Commission and Member States reached an agreement on the minimum level of registry security required to reopen national registries. The UK is currently working with their contractors in order to provide the Commission with the required evidence to reopen our registry. The Environment Agency is working to ensure the UK registry is reopened as soon as possible.
19 January 2011: the EU Commission terminated all internal and international transactions in all EU ETS registries because of concerns about registry security. The suspension means that all Member States national registries are unable to transfer allowances either within or between each other. However, operators are still able to surrender allowances for compliance purposes.
January 2011: 4.4 million allowances were distributed in the sixteenth Phase II EU ETS auction. The auction cleared at €14.00 (£11.70) Full details of the auction results are published on the UK Debt Management Office website.
2010
September 2010: Benchmarking as an allocation methodology for heat in Phase III of the EU Emissions Trading System (EU ETS)
The study by AEA on behalf of DECC looked at some of the issues involved in using a heat benchmark to allocate allowances in Phase III where no product benchmark is developed.
September 2010: Assessment of degree of carbon leakage in light of an international agreement on climate change
DECC published a study by Climate Strategies, Cambridge Econometrics and Entec UK. The study looked at the impact of an increased EU greenhouse gas reduction target on the risk of carbon leakage. The study shows that for those sectors studied, a move to increase the EU’s 2020 greenhouse gas reduction target from 20% to 30% would not significantly reduce EU output.
August 2010: DECC published a Government response and a summary of responses to the consultation on the Phase II Good Quality Combined Heat and Power (GQ CHP) New Entrant Reserve (NER) ring-fence review. As result of the review, DECC plan to transfer 5.3m unreserved allowances from the GQ CHP NER ring-fence to the main New Entrant Reserve for general new entrant usage.
February 2010: DECC published a study by Entec UK Ltd, which looked at whether benchmarking would be a suitable allocation methodology for the upstream oil and gas industry from Phase III of the EU Emissions Trading System which begins in 2013. The report is available below:
January 2010: On 18 January 2010, DECC published a Joint Consultation on EU ETS Phase III Opt-out for Small Emitters and Hospitals and Phase II Good Quality Combined Heat and Power New Entrant Reserve ring-fence review. The consultation closed on 12th April 2010.
2009
September 2009: A Report on 2008 EU Emissions Trading System emissions data was published. This looks at the emission results across the EU and looks at the sector level results in the UK.
June 2009: DECC published a Consultation on the First Stage Transposition of the Revised EU ETS Directive, relating to Greenhouse Gas Emissions Data and National Implementation Measures on 24 June. The consultation closes on 16 September.
April 2009: National Audit Office (NAO) report on the European Union Emissions Trading Scheme covering developments since 2007. (NAO website)
2008
December 2008: EU Leaders and European Parliament agree EU 2020 Climate & Energy Package
November 2008: Changes to UK ETS rules to provide for adjustments regarding double trading in EU ETS and UKETS.