System Certification

UK Emissions Trading System (UK ETS)

A cap and trade system.

UK Emissions Trading System (UK ETS)

The UK Emissions Trading Scheme (UK ETS) replaced the UK’s participation in the EU ETS from 1 January 2021.

The UK Emissions Trading System (UK ETS) is a regulatory mechanism to achieve emissions reduction from the industrial sector. The regulation mandates those affected by the scheme and the need for third party verification.

What are the benefits of verifying greenhouse gas emissions?

Meet your mandatory requirements.
Assure stakeholders that your emissions data is accurate.
Demonstrate consistency and transparency in your reporting.
Get professional endorsement from a UKAS accredited body.
Gain greater credibility with third party verification.
Avoid the penalties of non-compliance through verification.

What is the UK ETS?

The UK ETS works on the "cap and trade" principle. This means there is a "cap", or limit, on the total amount of certain greenhouse gases that can be emitted by the factories, power plants and other installations in the system. Within this cap, companies receive emission allowances which they can sell to or buy (trade) from one another as needed. The limit (CAP) on the total number of allowances available ensures that they have a value.
At the end April following the reporting year each installation or aircraft operator must surrender enough allowances to cover all its emissions, otherwise heavy fines are imposed.
If each installation or aircraft operator reduces its emissions, it can keep the spare allowances to cover its future needs or else sell them to another each installation or aircraft operator that is short of allowances. The flexibility that trading brings ensures that emissions are cut where it costs least to do so.
Each installation or aircraft operator (except those in the hospital and small emitter opt out scheme) must have their CO2(e) emissions and if applicable activity level verified each year to a reasonable level of assurance by an independent accredited verification body. If you are in the hospital and small emitter opt out scheme, BSI can continue to provide verification service to ensure your data remains robust, accurate and complete.
Application Applicant provides their statement, objectives, applicable standard, scope, and assurance level.

Planning BSI assigns competent personnel and plans to minimise misstatement risk. Higher assurance levels require more extensive activity.

Conducting The team executes the plan on-site, remotely, or both.

Conclusions Findings are assessed for misstatements or non-conformances. Material findings must be resolved before a positive opinion can be issued.

Independent Review The draft opinion is independently reviewed before issue.

Opinion & Report The report is issued once review is complete. The full process repeats for any future statements or claims.
The standard or programme may require the types of opinions and reports to be issued and the terminology may differ but typically there are three types:

Unmodified opinion – where there are no misstatements, non -conformances or caveats that the intended user needs to be aware of in relation to the statement/claim.

Modified opinion – where misstatements, non-conformances or caveats that the intended user needs to be made aware exist but are not material, in relation to the statement/claim.

Adverse opinion, where the existence of material misstatements or non-conformances are identified, or insufficient information of evidence has been supplied to enable BSI to conclude that no material misstatements or non-conformances exist.