Union registry for emissions trading system allowances

SUMMARY OF:

Delegated Regulation (EU) 2019/1122 on the functioning of the Union registry

WHAT IS THE AIM OF THE REGULATION?

It aims to guarantee accurate accounting for all allowances issued under the European Union (EU) emissions trading system.

KEY POINTS

EU registry

The EU registry is a single, centralised online database run by the European Commission that holds accounts for operators such as power stations and airline operators.
It covers all EU Member States taking part in the EU greenhouse gas emissions trading system (EU ETS), set up by Directive 2003/87/EC, which aims to reduce emissions in a cost-effective manner as part of the EU’s policy to tackle climate change.
The registry records:
- entities covered by the directive in each Member State and any free allowances allocated to those facilities;
- accounts of companies or individuals with such allowances;
- transfers of allowances performed by account holders;
- verified annual CO₂ emissions of facilities and airline operators;
- the annual reconciliation of allowances and verified emissions.

Phase IV

This regulation sets out the general, operational and maintenance requirements for the EU registry for phase IV of the EU ETS from 2021 to 2030.
It replaces Regulation (EU) No 389/2013 (see summary), which covered phase III (2013–2020) of the EU ETS.

Main elements

The regulation covers a number of aspects, including the following.

The registries system is operated and maintained by a central administrator and national administrators.
An EU transaction log, which automatically checks, records and authorises all transactions between accounts in the registry, replaced the Community independent transaction log from phase II, and is now an integral part of the EU registry.
The regulation simplifies rules on account management with the aim of reducing the burden on national administrators.
Specific rules for the EU ETS registry regarding issues such as:
- verified emissions and compliance;
- transactions, including rules on the execution of transfers and the creation, allocation and transfer of allowances;
- trusted account lists for transactions above a particular threshold (value) to be set by the central administrator, to ensure high-value transactions are secure;
- improving links between the EU ETS and other ETS schemes where a linking agreement has been concluded (e.g. the Swiss ETS – see summary).
Where discrepancies are detected, the central administrator must ensure that the registry terminates the relevant processes and must inform the relevant account or allowance holders that the process has been terminated.
Technical rules and requirements for the registry, including national helpdesks for account holders and representatives.

Repeal

It repeals and replaces Regulation (EU) No 389/2013. The latter continues to apply until 31 December 2025 to all operations in relation to the 2013–2020 trading period and to the Kyoto accounts until the true-up (the additional period for the completion of commitments) of the second commitment period of the Kyoto Protocol in 2023.

FROM WHEN DOES THE REGULATION APPLY?

It has applied since 1 January 2021.

BACKGROUND

For further information, see:

Union registry (European Commission).

MAIN DOCUMENT

Commission Delegated Regulation (EU) 2019/1122 of 12 March 2019 supplementing Directive 2003/87/EC of the European Parliament and of the Council as regards the functioning of the Union Registry (OJ L 177, 2.7.2019, pp. 3–62).

Successive amendments to Regulation (EU) 2019/1122 have been incorporated into the original text. This consolidated version is of documentary value only.