The EU emissions trading system was conceived as a tool to facilitate the fulfilment of the commitments undertaken by the European Community after the approval of the Kyoto Protocol and to acquire experience in the participation in an emissions trading system before the entry into force of said Protocol. On 13 October 2003, Directive 2003/87/EC of the European Parliament and of the Council was approved, establishing a scheme for greenhouse gas emission allowance trading within the Community and amending Council Directive 96/61/EC. In accordance with the provisions set forth in the Directive, the EU emissions trading system commenced operations on 1 January 2005.
The emissions trading system in Spain
The trading of greenhouse gas emissions is governed by Law 1/2005, of 9 March. It started on 1 January 2005 as a fundamental measure to encourage the reduction of CO2 emissions in the industrial and electricity generation sectors.
The purpose of the national registries is the exact accounting of the issue, ownership, transfer and cancellation of emissions allowances.
In the European Union, the national registries were established with a dual role: guarantee the accounting within the framework of the Kyoto Protocol and ensure the correct functioning of the European Union Emissions Trading System (EU ETS).
The national registries of emissions allowances of the member states of the European Union are integrated within a common platform together with the Union Registry (managed by the European Commission) known as the Consolidated System of European Registries (CSEUR). In spite of this consolidation, the accounts held on the Union Registry continue to be independently managed by each Member State through its National Administrator (each Member State is responsible for a section within the registry, comprising, for example, the accounts of the fixed installations located within its territory, those of the aircraft operators it has been assigned, those of any individual, business (trading), verifier, external platform and surrender by means of auction opened at the request of any interested party and those owned by this State).
After gaining access to the Registry, at the top left there is an option which is "Public Information", as well as via the website for the Ministry for the Ecological Transition and the Demographic Challenge:
There are different ways to access the Spanish Section of the Union Registry:
In the case that you need to request a new password to access the Website, you can request a new one through the tab:
You must follow the steps from the access manual created for this purpose. In order to obtain this and other help manuals, see point 9 of this document.
Remember that the password cannot include your name or surname and must contain a minimum of 10 characters and at least two of the following four combinations:
It is the right to emit an equivalent tonne of carbon dioxide during a specified period. These were created within the emissions trading system established in the European Union through Directive 2003/87/EC.
There are two types of allowances: General allowances or "European Union Allowances" (EUAs) and aviation allowances or "European Union Aviation Allowances" (EUAAs). The aircraft operators can settle accounts for their emissions by surrendering both aviation allowances, as well as general allowances. Installations, however, cannot surrender aviation allowances.
General Allowances (EUAs) and Aviation Allowances (EUAAs)- Explained in the previous section (point 6).
Certified Emission Unit (CER).- Issued by virtue of CDM projects. The Clean Development Mechanism (CDM) is detailed in article 12 of the Kyoto Protocol and is based on the investment of a developed country in a project for the reduction of emissions or carbon fixation in a developing country. In return for the investment, the developed country will receive the reduction credits associated to the emissions prevented or removed which it will be able to use to reach its reduction/limitation commitments. Both countries, the investor and recipient, must be parties to the Kyoto Protocol.
The allocation of emission allowances is the method by which emission allowances are placed on the market. Basically there are two options: free distribution between the affected installations (free allocation) and auctioning. The rules determining free allocation are common to all the installations throughout the member States. These rules are detailed in Decision 2011/278/EU and are implemented in a set of interpretive guidelines.
The owners of installations with a right to free allocation, (the generation of electricity is an activity that does not have any such right), will be able to request the individual allocation of emission allowances in accordance with article 19 of Law 1/2005, article 17 et seq (chapter IV) of Commission Decision 2011/278/EU of 27 April 2011, Article 9 of Royal Decree 1722/2012 of 28 October, and Guidance Document no. 7 on New Entrants and Closures prepared by the European Commission.
Upon accessing the Registry, in the Help section (upper right of the screen), there is a link where you can find all the different user manuals.
Any installation within the scope of application of Law 1/2005, of 9 March and which has a greenhouse gas emissions permit, is obliged to have a holding account in the name of the installation in the Spanish Section of the Union Registry.
Any aircraft operator within the scope of application of Law 1/2005 of 9 March and Law 13/2010 of 5 July, and which has an approved Monitoring Plan, is obliged to have an aircraft operator holding account in the Union Registry.
The opening of an account requires the verification of the identification of the applicant, as well as the representatives authorised to act on its behalf, the power of attorney granted to the latter and the prior signature of a contract, in accordance with the model established in the annex, in which the obligations and rights of the parties are determined, pursuant to that established at any time by the applicable legislation.
The legal representative does not have access to the account. It is the figure to whom the following five specific powers are granted:
The authorised representatives are responsible for one or more accounts on behalf of the account holder.The following roles can be assigned to the authorised representatives:
The functions in which the authorised representatives are involved are:
Use of the access codes for the Account that the Account Holder has in the Spanish Section of the Union Registry.
The authorised representatives and additional authorised representatives shall be natural persons over the age of 18. The member State of the national administrator may require that at least one of the authorised representatives of an account permanently reside in said member State, except in the case of verifier accounts.
Pursuant to Article 20.2 of Delegated Regulation (EU) 2019/1122, the account must have at least two designated authorised representatives when it is opened, who may have the following rights in relation to performing processes from the account (including transactions):
For processes to be run, one of the following combinations of authorised representatives must be established:
Article 20 (4) of Delegated Regulation (EU) 2019/1122): Account holders may decide that the approval of a second authorised representative is not necessary to propose transfers for execution to accounts on the trusted account list set up pursuant to Article 23. The account holder may withdraw such decision. The decision and the withdrawal of the decision shall be communicated in a duly signed statement submitted to the national administrator.
A legal representative may be an authorised representative of one or more accounts at the same time.
Individual or legal entity holding an account in their name in the registry system.
Any individual or legal entity that operates or controls the installation, either as the owner, or under any other legal title, provided that this grant sufficient powers over the technical and economic operation of the installation.
The Union Registry consists of the registry of the transactions carried out within the framework of the European Union emissions trading system, acting as a sole "ETS registry" for all the member States.
In the Union Registry, there are several types of accounts depending on the type of user and operability: The opening of installation operator holding accounts and the aircraft operator holding accounts is obligatory for these subjects, so that these may comply with the obligations imposed by the regulations relating to the EU emissions trading system. Whereas there are accounts that may be opened by any individual or legal entity wishing to participate in the trading system on a voluntary basis. These accounts are the trading accounts. These accounts are identifiable because their numbers begin with digits EU-100.
Access to the account information may be obtained in three different manners:
Having accessed the account, it is possible to browse all the tabs where all the account information is held.
All installations subject to the emissions trading system through the performance of any of the activities generating greenhouse gases included within the scope of Law 1/2005 must comply with the obligations deriving from its inclusion therein. Among these obligations is that of surrendering, during the four months following the end of the calendar year, an amount of emissions allowances equivalent to the total verified emissions of the installation during the previous year (article 27, Law 1/2005). This process of surrendering allowances is known as compliance.
The central administrator shall ensure that on 1 May of each year the Union Registry indicates the figure relating to the compliance status corresponding to the previous year for each installation operator and aircraft operator with an open or blocked holding account, calculating the total of all the emission allowances surrendered for the year in progress, less the total of all verified emissions for the period in progress up to and including the year in progress, plus a correction factor.
Compliance status figure for each installation and corresponding year. This figure will indicate whether the installation has surrendered an amount of allowances equivalent to the same data for the verified emissions detailed in its Registry account.
You can view the dynamic compliance status of the account, which may be one of the following:
As indicated in the Registry application, the compliance history is updated every 15 May.
In accordance with article 27 of Law 1/2005 of 9 March, before 30 April of each year, the owners of installations and aircraft operators must surrender a number of emissions allowances equivalent to the verified emission data recorded in accordance with the provisions of article 23 of the aforementioned Law.
Yes, it is possible to surrender the allowances before 1 April, even without the validation of the verified emission data by the Competent Authorities. However, in order not to incur any errors, the accuracy of the data that must be checked with the competent authority, as this may be subject to modification.
Before 31 March, provided that:
In order to check the verified emissions recorded for the installation/aircraft operator, you must go to the compliance tab, where the verified emissions appear listed by year:
In addition to the total verified amount, the total amount surrendered by the installation is also listed:
In the case in which on 1 April of any given year the annual verified emissions relating to the previous year of an installation operator or aircraft operator have not been recorded in the Union Registry, the central administrator shall ensure that the Union Registry blocks the corresponding holding account of the installation operator or aircraft operator.
When all the verified emissions of the installation operator or aircraft operator for that year pending notification have been recorded in the Union Registry, the central administrators shall ensure that the Union Registry unblocks the account.
Iberclear, as the entity responsible for the Spanish Section of the Union Registry and the provision of the support service to the national administrator, can certify any transaction, balance or action carried out within the Spanish Section of the Union Registry.
To do so, the account holder must send an email to email@example.com detailing its request. The account holder will be sent an email with the steps to be followed..
The fees for issuing certificates under the provision of additional services, as set forth by article 4 of Order TEC/813/2019 of 24 July, concerning Fees for the Spanish Section of the Union Registry are:
You must visit: www.renade.es
Article 35 (5) of Delegated Regulation (EU) 2019/1122: The central administrator shall ensure that the Union Registry enables to abort a transaction, which is subject to execution rules set out in paragraph 3, before its execution. An authorised representative may initiate aborting a transaction at least two hours before its execution. If aborting a transaction was initiated because of suspected fraud, the account holder shall immediately report it to the competent national law enforcement authority. That report shall be forwarded to the national administrator within 7 working days.
In accordance with sections 1 and 2 of article 58 of Delegated Regulation (EU) 2019/1122 of 12 March 2019:
Yes. In accordance with sections, 1 and 4 of article 22 of Delegated Regulation (EU) 2019/1222 of 12 March 2019:
The Union Registry distinguishes between the following account statuses: open, blocked, suspended and closed. You can check the status of your account at:
Active accounts (those that allow their representatives access) are considered to be those that have a status of "open" or "blocked". The representatives will not be able to perform any transactions from a blocked account, unless it is to surrender allowances (if they are able to receive allowances or KP units from other accounts).
Inactive accounts (those that do not allow their representatives access) are considered to be those that have a status of "suspended" or "closed". The representatives will not be able to perform any transaction from a suspended account (Article 9).
When an installation/aircraft operator with an account open in the registry is excluded from the system, the status of the holding account associated to the installation/aircraft operator (installation holding account/operator holding account) changes to "excluded". The exclusion is a property of the account visible on the compliance tab, which implies that for the year during which the account shows as excluded, none of the following processes will be possible: