In January 2005 the EU ETS commenced operation as the largest multi-country, multi-sector Greenhouse Gas (GHG) emission trading scheme world-wide. The scheme is based on Directive 2003/87/EC, inforced on 25 October 2003.
Allowances traded in the EU ETS are held in accounts in electronic registries set up by Member States. All of these registries are overseen by a Central Administrator at EU level who, through the Community independent transaction log, checks each transaction for any irregularities. In this way, the registries system keep track of the ownership of allowances in the same way as a banking system keeps track of the ownership of money.
The EU ETS is based on the recognition, that creating a price for carbon through the establishment of a cap-and-trade system and a liquid market for emission reductions, it will be created the most cost-effective way for EU Member States to meet their Kyoto obligations and move towards the low-carbon economy of the future.
What does the scheme cover?
While emissions trading has the potential to involve many sectors of the economy and all the greenhouse gases controlled by the Kyoto Protocol (CO2, methane, nitrous oxide, hydrofluorocarbons, perfluorocarbons and sulphur hexafluoride), the scope of )
the ETS is limited during its initial phase while experience of emissions trading is built up.
Consequently, during the first trading period, from 2005 to 2007, and the second trading period from 2008 to 2012 , the ETS covers only CO2 emissions from large emitters in the power and heat generation industry and in selected energy-intensive industrial sectors: combustion plants, oil refineries, coke ovens, iron and steel plants and factories making cement, glass, lime, ceramics, pulp and paper.
Even with this limited scope, more than 12,000 installations in the 27 Member States are covered, accounting for around 45 % of the EU’s total CO2 emissions or about 30 % of its overall greenhouse gas emissions.
Service in EU ETS
Our services for the EU ETS are the following:
1. Technical and strategic advisory
This advisory service includes: General insight into the EU wide ETS market, overview of opportunities for maximizing profits and investment advice, overview of ETS risk management, overview of important reporting structures as required by EU law and Bulgarian law, advice on ETS multi-year strategy.
2. Technical monitoring support (including software)
This service helps to monitor, in real time, the amount of emitted CO2 from the beginning of each period on the ETS. This service includes the establishment of monitoring system using specialized monitoring software which complies with EU standards.
3. Trading and brokerage service
This service covers all activities related to the trading of EUAs in the international emissions trading market. We make an optimal balance between profiting from EUA sales and the delivery risks. The financial services will further include: Risk analysis of price development on the ETS market, offering forward delivery transaction possibilities with international reliable buyers, offering spot transaction possibilities at the biggest well-known European emission trading exchanges.
4. Carbon asset management
Through this service we offer a full outsourcing concept to the ETS installations of the EU ETS trading activities. The ETS installation decides when to buy and or sell, and Global Carbon takes care of all procedures concerning the transaction itself and the delivery of the EU allowances. This service is especially interesting for companies that trade smaller volumes of EU allowances per year. This service reduces transaction costs and administrative efforts for the ETS installation to a minimum. Global Carbon offers the possibility to manage your carbon business and guarantees to manage this task with optimal financial results.
Please contact us to make an appointment to discuss your needs.