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Emissions Trading

Last updated: 6 May 2015

The European Union Emissions Trading System (EU ETS) is one of a number of measures used by the EU to reduce greenhouse gas emissions and combat the global threat of climate change. The system is designed to help meet the EU’s targets set in the Kyoto Protocol.

New Entrants to the system or extension of an installations capacity may be entitled to a free allocation, but this must be applied for through the phase III New Entrant Reserve (NER) in ETSWAP.

Phase III free allocation

The allocations have been determined in accordance with EU harmonised rules. This can be viewed on the DECC website (see link below).

Approved allowances will be allocated to operators on an annual basis following the Comission notification to the UK Administrator on 18th December 2013. Details of the rules on ‘allocation and adjustment of allowances’ can be found in Schedule 6 of the Greenhouse Gas Emissions Trading Scheme Regulations 2012.

Greenhouse Gas Emissions Trading Scheme Regulations 2012Opens in New window

DECC WebsiteOpens in New window

Compliance with the Scheme

All applications, notifications and forms must be submitted through the online ETSWAP system using the link below.

ETSWAPOpens in New window.

Emissions Trading Registry

All transfers and the surrender of allowances take place on an electronic registry administered by the Environment Agency in the UK. Member States are required to establish and maintain a registry to manage the issue, holding, transfer and cancellation of allowances. All national registries across the EU are linked, to allow trading of allowances between EU states.

Registries Regulation (PDF 389KB)Opens in New window.


Guidance can be found on the Environment Agency website (see link below).

Environment Agency websiteOpens in New window.

How to comply with the EUETS and the Small Emitter and Hospital Opt out scheme (PDF, 463KB) Opens in New window.

If you think that your installation may be covered by Schedule 1 of the Regulations, please contact us on 028 9056 9299 or email with your query.

Links to Sites of Interest: