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Consultation on Bringing Forward EU Emissions Trading System 2018 Compliance Deadlines in the UK

Consultation on Bringing Forward EU Emissions Trading System 2018 Compliance Deadlines in the UK

The Department for Business, Energy and Industrial Strategy (BEIS) is seeking views on a proposed amendment to the UK Greenhouse Gas Emissions Trading Scheme Regulations 2012 that will bring forward the reporting and surrender compliance deadlines for UK regulated EU Emissions Trading Scheme (EU ETS) participants for the 2018 compliance year to before 29 March 2019, the date the UK will leave the EU. The proposed Regulations that are the subject of this consultation will apply throughout the UK.

Reasons for the Amendments

The changes are intended to provide clarity to EU ETS participants on the UK’s 2018 compliance obligations during the UK’s withdrawal from the EU.

In addition, they will alleviate the negative impacts of an amendment to the EU ETS Directive 2003/87/EC, which stipulates that aviation and stationary operators will not be able to use allowances issued by a Member State in respect of which there are obligations lapsing. The stated objective of the amendment to the Directive is to protect the environmental integrity of the EU ETS in the event of a UK departure from the system in March 2019. This would mean that allowances issued by the UK in 2018 could not be used for compliance. However, bringing forward the 2018 compliance deadlines would mean that obligations for 2018 compliance would not be lapsing and it would therefore not be necessary to implement a measure which would have a negative and disruptive effects on the smooth operation of the carbon market and on EU ETS participants.    

Who will be interested in the proposals?

This consultation will be of particular interest to all UK regulated EU ETS operators with obligations to comply in the power, aviation and industrial sectors.

Timescale

This consultation closes on 24 November 2017. Following the consultation the UK Government proposes to lay the amending Regulations before Parliament in December 2017 with the intention that they take effect from 01 January 2018.

Further Information

Consultation document and draft statutory instrument https://www.gov.uk/government/consultations/bringing-forward-eu-emissions-trading-system-2018-compliance-deadlines-in-the-uk

 

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