Each year, as a plant operator, you must submit allowances to the competent authority DEHSt by 30.04 in accordance with the rules of the European emissions trading system EU ETS. These allowances must be equal to the amount of CO2 emissions you emitted in the previous year and recorded in the emissions report in your registry account. Each allowance entitles you to emit one tonne of CO2.
For each missing, not submitted allowance by 30.04., you as an affected company in the mandatory EU emissions trading will be fined 100 euros. Of course, you are still obliged to submit the missing allowances on a date specified in the sanction notice. The fine of 100 euros per tonne of CO2 also applies if, after submission of your emissions report - which will be examined in detail by DEHSt within 5 years - errors are identified which determine a higher emission quantity than initially stated.
Failing to submit allowances on time or in full could cost you several hundred thousand euros. Therefore, the registry accounting for companies provided for in the EU ETS must be carried out with the utmost care.
What exactly is the problem?
The fact that the EUA allowances have to be submitted in the registry account by 30.04. of each year is nothing new for you as an operator in the EU ETS. Nevertheless, there are always new and unexpected hurdles that can arise for operators and their authorised representatives.
- This can start with technical accesses that do not work, such as a malfunction at the mobile operator, poor reception, a mobile number that is no longer registered for access, an expiration or loss of access data, a denied access in the internal network, etc.
- This can continue with dangerous uncertainty of the authorised representative as to how and how many allowances are to be submitted, a failure to convert CER into EUA or an insufficient account balance due to an additional return of allowances as a result of overallocation.
- Finally, it can end with the unavailability of the authorised representative as a result of holiday, illness, but also resignation, or simply the absence or unavailability of the second authorised representative, who must also confirm a return.
All these obstacles have one thing in common: they are not force majeure, as the European Court of Justice has stated years ago. And this means that the DEHSt sanction has been established and will generally cause the operator to face massive financial difficulties.
Not only the timely purchase of allowances is a prerequisite for a successful submission, but especially the technical access to the registry system and, above all, well-trained and available authorised representatives who are familiar with the system’s defective software.
We can help you!
If you, as the person responsible in your company, also believe that all processes before, during and after the submission of allowances to DEHSt can involve high and unnecessary risks and would prefer to place these processes in the hands of an external account manager with many years of experience, Emissionshändler.com® would be happy to take on this task for you.
Our offer to you!
The submission of EUA allowances in the EU ETS requires a high degree of knowledge and experience of the authorised representatives, because not only the operability of an IT system classified as poor could represent a problem, but the failure to submit allowances in general is the central risk in the EU ETS for every operator.
It should be worth looking for alternatives if you only consider the liability questions that arise for the corporate bodies and your employees - which were examined in a legal opinion of the well-known law firm BBH *.
If you then consider the problem of burdening your company employees with additional tasks and training, it is generally no longer economically viable to maintain your own registry account management.
It can make therefore a lot of sense to transfer the risk-intensive process of registry account management in the EU ETS to an external specialist, who has been dealing with this type of service in the EU ETS for its customers in many European countries for over 15 years.
* Emissionshändler.com® will be happy to present extracts from this legal opinion to you in a personal appointment in the form of a presentation.