UK ETS permitting, monitoring, reporting and verification

If you carry out an activity covered by the UK ETS, you will need a greenhouse gas emissions permit. Operators apply for and receive their permits and submit their reports via the Emissions Trading System Workflow Automation Program (ETSWAP) previously used under the EU ETS.

Operators should read and understand their permit, and the conditions within relating to monitoring and reporting obligations, as well as those requiring third-party verification of reportable emissions and activity levels.

Permits and emissions monitoring plans are issued by the UK ETS Regulators.

Applying for a GHG permit

You apply for a new GHGE permit using ETSWAP and providing your application has been completed correctly and contains all the necessary information you will be issued with a GHGE permit. Your permit will include conditions that require you to:

  • monitor and report your reportable greenhouse gas emissions
  • monitor and report your reportable activity levels (installations eligible for free allocation of allowances only)
  • surrender allowances equal to your reportable emissions
  • notify your regulator of changes in monitoring capability or installation activities

Permit conditions

To comply with the emissions-related conditions in your permit, you must complete the tasks in the UK ETS annual cycle by the specified deadlines. If you do not, your regulator may take enforcement action which could result in a civil penalty.

A scheme year is a calendar year.

Annual tasks and compliance deadlines related to emissions

January – start monitoring your emissions and activity levels where relevant

  • 31 March – submit your annual emissions report and where relevant your activity level report and verification report/s for the previous scheme year using ETSWAP
  • 30 April – surrender allowances that are equal to your reportable emissions in the previous scheme year in the UK ETS registry
  • 30 June – submit improvement reports (if applicable) using ETSWAP
  • July – appoint an appropriate accredited verifier, if you have not already done so
  • 30 September – submit an application for a site visit waiver, if required
  • December – consider starting to prepare your annual emissions report
  • 31 December – notify your regulator of any non-significant changes to your monitoring plan using ETSWAP
  • 31 December – complete your emissions monitoring for that scheme year

Monitor your emissions and activity levels

You must monitor your reportable emissions and activity levels where relevant from 1 January to 31 December in each scheme year.

You must monitor in accordance with:

You use the emissions and activity level data collected during your monitoring to produce your annual emissions and activity level reports. 

Reporting using the ETSWAP system

The ETSWAP system will continue to be used by aviation operators and installation operators until its replacement by a new permitting, monitoring, reporting and verification (PMRV) system. This is planned for 2022 for operators and verifiers of installations, and 2023 for operators and verifiers of aircraft. For further information about the new system, see below.

For further information about the ETSWAP system, visit the Environment Agency’s ETSWAP portal.

New permitting, monitoring, reporting and verification system from autumn 2022

The UK ETS Authority is developing a new digital permitting, monitoring, reporting and verification (PMRV) system to replace ETSWAP.

This project is being implemented in collaboration with UK regulators, with inputs from different users of the system including operators and verifiers.

The PMRV will launch in a phased approach starting from autumn 2022, but please note that dates will not be confirmed until the system receives formal government approval.

PMRV for operators and verifiers of installations

ETSWAP will continue to be used for UK ETS compliance activities until autumn 2022. After that, it will be deactivated. UK operators and verifiers of installations will then start using PMRV for UK ETS compliance activities, including submission of annual reports relating to 2022.

During autumn 2022, there may be a period when ETSWAP is not available for certain compliance activities. Regulators will keep users informed of what they need to do and when.

Installation operators and verifiers will not have access to ETSWAP after it has been de-activated. They will be responsible for archiving their own data.

Further guidance:

PMRV for operators and verifiers of aircraft

ETSWAP will be used for the UK ETS and the Carbon Offsetting and Reduction for International Aviation (CORSIA) compliance activities up to autumn 2023.

During summer 2023 ETSWAP will be deactivated for aircraft operators and verifiers. They will then start using PMRV for UK ETS and CORSIA compliance activities, including submission of annual reports relating to 2023.

During summer 2023, there may be a period when ETSWAP is not available for certain compliance activities. Regulators will keep users informed of what they need to do and when.

Aircraft operators and verifiers will not have access to ETSWAP after it has been de-activated. They will be responsible for archiving their own data.

Further guidance:

Keep updated about the new system

We will provide more detailed timings and deadlines for installation operators and verifiers in early 2022, and support to help transition them onto PMRV.

Email PMRV@beis.gov.uk to register your interest in a user testing group or for any queries you have about the new system. 

Verification

The Verification Regulation 2018 (Commission Implementing Regulation (EU) 2018/2067 of 18 December 2018 as modified requires verifiers to be a legal person or another legal entity that is carrying out verification activities for the purpose of UK ETS and is accredited by the UK Accreditation Service (UKAS).

There is no requirement for UK ETS accredited verifiers to have a physical office in the UK or to be a legal entity registered in the UK.

UKAS is responsible for the accreditation and supervision of verifiers in the UK and for maintaining a list of those verifiers.

Operators are responsible for ensuring that their verifier is accredited for the relevant scope of work. Details of a verifier’s scope of accreditation can be found on the verifier’s certificate of accreditation.

Further guidance:

If you are a verification body accredited to perform verification in the UK ETS for the first time, you will need an ETSWAP account to view your client’s reports and to submit your verification opinion statement.

To do this for installations, email the Environment Agency, quoting ETSWAP Support in your subject line, at ethelp@environment-agency.gov.uk

To do this for aviation, email the Environment Agency, quoting ETSWAP Support in your subject line, at ethelp@environment-agency.gov.uk

 

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