The EU Emissions Trading System 2 (ETS2) extends carbon pricing to buildings, road transport, and additional sectors. The Monitoring and Reporting Regulation (MRR) Guidance Document provides crucial insights to ensure compliance and transparent emissions reporting.
Scope and Compliance
Unlike ETS1, which regulates direct emissions from large industries, ETS2 applies an upstream approach, focusing on fuel suppliers rather than end consumers. It covers a wide range of fuels, including petrol, diesel, kerosene, natural gas, and heating fuels, aligning with existing energy taxation and excise duty systems.
Monitoring and Reporting Requirements
Regulated entities must adhere to Monitoring, Reporting, and Verification (MRV) principles, ensuring accurate emissions data. A monitoring plan (MP) must be developed, detailing fuel release data, emission factors, and calculation methodologies. The annual compliance cycle includes emissions monitoring, verification by accredited bodies, and surrendering allowances.
Conclusion
ETS2 strengthens the EU’s climate action framework, promoting fairness and transparency in emissions trading. Compliance with MRV guidelines will be essential for businesses to navigate this evolving regulatory landscape.
Download Document PDFs Here: The Monitoring and Reporting Regulation –General guidance for ETS2 regulate dentities ( MRR Guidance document for ETS2 26 March 2024)