In a significant move towards advancing sustainable practices, the European Commission has officially approved a Delegated Regulation amending the Registry Regulation (EU) 2019/1122, aligning it with the revised Emissions Trading System (ETS) Directive within the Fit for 55 legislative package. This crucial update, now open for stakeholder feedback, carries substantial implications for professionals involved in managing building emissions.
The amended Union Registry Regulation introduces key provisions to address evolving challenges in emissions management:
- Expansion to Maritime Transport: Starting from 2024, the scope of the ETS will extend to encompass maritime transport. This development will necessitate new rules and tools for maritime operators to ensure compliance with ETS regulations, marking a major milestone in the efforts to mitigate emissions from the shipping industry.
- Introduction of a Separate Trading System: By 2027, a dedicated emissions trading system will be established for buildings, road transport, and other sectors. Regulated entities will need to familiarize themselves with the updated Union Registry to adhere to ETS compliance requirements. This initiative represents a strategic move towards a more targeted approach in managing emissions across various sectors.
- Compliance Date Adjustments: The amendments also include changes to compliance dates within the EU ETS Directive, impacting the timeline for operators to surrender allowances. This adjustment aims to align compliance processes with current industry realities.
- Enhanced Transparency and Market Integrity: To bolster the European carbon market, mandatory marking of bilateral transactions of emission allowances will be implemented. This measure aims to improve market monitoring, ensuring fair and transparent trading practices.
- Simplification Measures: Starting from 2025, the full fungibility of general and aviation allowances will be ensured, streamlining the trading process. Additionally, measures will be put in place to prevent the transfer of free allocations to non-compliant installations and aircraft operators, further reinforcing compliance efforts.
The adopted Delegated Regulation is now under review by the European Parliament and Council. Should no objections be raised within the next two months, it is slated for publication in the Official Journal, with implementation scheduled by the year's end.
For professionals engaged in building emissions management, these regulatory updates represent a pivotal step towards achieving more sustainable and environmentally conscious practices within the industry. Staying informed and prepared for these changes will be paramount in ensuring compliance and contributing to a greener future.