27th November 2018
BREXIT - EUETS deadlines brought forward for Operators administered by the UK authority
Due to BREXIT, the UK is experiencing some changes regarding the EU ETS deadlines for Operators administered by the UK Member State (or soon not to be) for the 2018 reporting year.
Usually and across the EU the deadlines for reporting and surrendering carbon units are as follows:
31st March 2019 – Annual Emissions Reports(AERs) must be verified and submitted for the 2018 reporting year
28th February 2019 – Spain’s deadline for submitting the 2018 Verified Annual Emission Report
30th April 2019 – Emission units are to be purchased and surrendered for 2018.
UK’s deadlines are:
11 March 2019 – Annual Emissions Reports(AERs) must be verified and submitted for the 2018 reporting year
15 March 2019 – Emission units are to be purchased and surrendered for 2018.
Failure to adhere to the above deadlines carries an EU penalty of €100.00 per tonne of carbon emitted.
No Brexit Deal Scenario (this does not affect operators for the 2018 reporting year)
The UK will be excluded from participating in the EU Emissions Trading System in a ‘no deal’ scenario. This means that current participants in the EU Emissions Trading System who are UK operators of installations will no longer take part in the system and flights within the UK will no longer be covered by EU Emissions Trading System obligations. Flights between the UK and the European Economic Area (EEA) are not expected to be covered by EU Emissions Trading System obligations.
The UK will no longer be responsible for managing the EU Emissions Trading System requirements for the aircraft operators it currently administers. If those aircraft operators continue to fall within the scope of the EU Emissions Trading System (for example, if they operate intra-EEA flights after exit), these requirements will need to be administered by an EU Member State.
In a ‘no deal’ scenario, UK government will therefore remove requirements relating to the surrender of emissions allowances. However, to retain as much continuity as possible, UK government intends to maintain Monitoring, Reporting and Verification arrangements.
The European Commission Regulation 389/2013, as amended by Commission Regulation 2018/208, will invalidate any allowances issued by the UK in 2019 such that they will not have any value on the carbon market.
The UK will not have guaranteed access to the Consolidated System of European Registries which includes the EU Emissions Trading System Union Registry and the UK’s Kyoto Protocol National Registry.