The road to perdition? 100 days to compliance

Time is ticking down for obligated emitters to comply with their EU ETS obligations - 100 days and counting!

The EU ETS compliance period begins on 1st January and ends on the 31st December. By the end of March each year, obligated emitters must submit a report detailing their emissions during the compliance period just elapsed. This report must be verified by an independent accredited verifier before it can be submitted. By the end of April obligated emitters must then hand over an equivalent amount of EU emission allowances (EUA’s) to cover their obligation during the compliance period.

This is the point at which we will find out who has done their homework and hedged accordingly, and who has left it to the last minute and now risks facing onerous penalty fees. Failure to hand over the required number of EUA’s results in a penalty of €111 per tonne for each tonne of carbon dioxide for which there is not a corresponding permit. The name of the non-compliant operator is also made public.