Jurisdiction: European Union
Under EU ETS regulation industrial installations need to submit an annual emissions report. Industrial installations shall have an approved monitoring plan for monitoring and reporting their annual emissions.
The permit to operate, explicitly requires this plan under the ETS directives in particular for industrial installations.
Greenhouse gases-GHG and sectors covered:
Carbon dioxide (CO2) from:
Power and heat generation
Energy-intensive industry sectors including oil refineries, steel works and production of iron, aluminium, metals
Cement, lime, glass, ceramics, pulp, as well as paper, cardboard, acids and bulk organic chemicals
Nitrous oxide (N2O) from production of nitric, adipic and glyoxylic acids and glyoxal
Perfluorocarbons (PFCs) from aluminium production
At the present time operators must submit an annual emissions report to the competent authority. Additionally, a third party verifier such as EVS shall verify the data in the annual emissions report before 31 March. Once verified, operators shall surrender the equivalent number of allowances by 30 April of the same year to the CA.
While participation in the EU ETS in the above sectors is mandatory, certain small installations can be excluded. These small installations will be excluded if the government has put in place fiscal or other measures that will cut their emissions by an equivalent amount.
The Swiss ETS, presently involves a total of 56 CO2 intensive companies. These include cement, chemicals and pharmaceuticals. In addition, refineries, steel, paper, district heating, as well as other sectors. A company participating in the Swiss ETS program explicitly exempts them from CO2 levies.
Likewise, installations engaged in activities referred to in Annex 6 of the CO2 Ordinance shall participate in the Swiss ETS. The scheme will generally include installations with an installed total rated thermal input of 20 MW or more. Installations with an installed capacity between 10 and 20 MW may voluntarily participate. These activates are specifically referred to in Annex 7 of the CO2 Ordinance (opt-in).
Installations with annual emissions below 25,000 tonnes, in the last three years are eligible to apply for an exemption. The (opt-out) option is processed through FOEN.
Jurisdiction: Republic of Korea
South Korea’s Emissions Trading Scheme (KETS) launched in January 2015 is the second largest in scale after the EU ETS. South Korea is the second country in Asia to initiate a nationwide carbon market after Kazakhstan. The operation applies to over 530 companies, which are accountable for approximately 68% of the nation’s GHG output.
KETS covers direct emissions of six Kyoto gases, as well as indirect emissions from electricity consumption. With this is mind, the sectors covered are:
- power generation
- transportation, and
These sectors further divide into 23 sub-sectors. Additionally, industrial installations covered by KETS will have to develop an annual emission inventory. A third party verifier shall approve the inventory before being reported to the government. Lastly, certified industrial installations must submit their allowances that account for emissions from the previous year.
Moreover, KETS will play an essential role in Complying to the country’s pledge made at the Copenhagen Accord in 2009. South Korea aims to reduce its greenhouse gas (GHG) emissions by 30% below its business as usual scenario by 2020.
Jurisdiction: New Zealand
Launched in 2008, the NZ ETS has since evolved to cover all sectors of the economy. These include forestry as a source of both emissions and units. It also includes agriculture, which currently has reporting without surrender obligations.
The original plan was to link The NZ ETS to international carbon markets under the UNFCCC. However, the use of Kyoto Protocol units became restricted in June 2015, effectively making the NZ ETS a domestic-only system. As indicated by New Zealand’s NDC, reestablishing links to high-integrity international carbon markets is a priority under the Paris Agreement.
Sectors covered and thresholds:
Stationary energy (various thresholds)
Industrial processing (various thresholds)
Liquid fossil fuels (various thresholds)
Waste (except for small and remote landfills)
Synthetic GHGs (various thresholds)
Synthetic GHGs not in the NZ ETS are subject to an equivalent levy
Biological emissions from agriculture must be reported, but face no surrender obligations
The Chinese ETS is a national carbon-trading scheme, presently planned for implementation before the end of 2017. This ETS creates a carbon market where emitters can buy and sell emission credits.
For now, the nation has implemented 7 individual pilot carbon markets. These cities in particular thrive on production of cement, electricity, heat, petroleum and oil extraction. Namely the cities are: Beijing, Chongqing, Guagdong, Hubei, Shanghai, Shenzhento and Tianjin, which represent 25% of China’s total GDP.
Iron and steel
Non ferrous metals
You can count on EVS to verify your GHG data and your monitoring plans. Contact us today.