EU Emissions Trading System (EU ETS)

Get Started
EU Emissions Trading System (EU ETS)

Tarik Bellahcene (Belgium)

Business Development Director
Contact

What is EU Emissions Trading System (EU ETS)?

The European Union Emissions Trading System (EU ETS) is the cornerstone of EU climate policy and the world’s largest carbon market. It operates on a cap and trade principle: a maximum cap is set on total GHG emissions from covered installations, and companies must monitor, report, and surrender allowances corresponding to their verified emissions.
ETS compliance is mandatory for a wide range of industries, including:

  • Power & heat generation
  • Manufacturing of cement, steel, glass, chemicals, paper
  • Aviation operators
  • Large industrial combustion units

The system incentivizes decarbonization while ensuring robust, transparent emissions reporting across the European market.

Scope and applicability

SCS provides support for EU ETS compliance obligations for operators required to submit verified emissions information to a national Competent Authority. Service availability depends on the applicable scheme, location, and accreditation scope.  SCS Europe is in process of achieving accreditation for the activity group 4 (production of (non) ferrous metals) and activity group 8 chemicals.

Why Choose SCS?

SCS Global Services has provided third-party Greenhouse Gas verification for over 15 years in various industry sectors, including: Food and Agriculture, Apparel, Manufacturing, Technology, Airlines, Retail, Building Materials, Municipalities, Utilities and many more. Since 2026, SCS Global Services Europe has added a new program to our portfolio: the EU Emissions Trading System (ETS).

SCS verifiers employ the most current accounting principles and GHG calculation methodologies for our accredited activity groups 4 and 8. We ensure thar your emissions data is accurate, compliant and ready for submission to the competent authorities of your country.

Share Your Feedback

Submit feedback, complaints, or comments here.

  • Main Obligations for ETS Installation Operators
  • The ETS Verification Process
  • SCS ETS Services

Operators participating in the EU ETS must fulfil several core obligations each year:

  1. Monitor Greenhouse Gas Emissions

    Installations must follow an approved Monitoring Plan describing measurement methodologies, data sources, calculation factors, and QA/QC procedures.

  2. Prepare and Submit an Annual Emission Report

    Each installation submits a verified Annual Emissions Report (AER) to its national Competent Authority.
    This report must:

    • Cover all relevant direct emissions
    • Follow the approved methodology
    • Ensure completeness, accuracy, and transparency
    • Include activity data, emission factors, and calculation details

  3. Have the Report Independently Verified

    Before submission, the AER must be verified by an accredited, independent third party verifier.

  4. Surrender Emission Allowances

    By the annual deadline, operators must surrender EU Allowances (EUAs), equal to their verified emissions. EUAs can be bought and sold on the market, and the variable market price of EUAs reflects the cost of reducing emissions.

Step by Step Overview of the Verification Cycle

SCS verification activities are conducted in line with EU ETS monitoring, reporting and verification requirements (MRV), using a risk-based approach to assess data, controls, and materiality. 

  1. Strategic Analysis

    The verifier performs a high level assessment of your installation, processes, monitoring methodology, and inherent risks.

  2. Risk Assessment

    A detailed risk analysis is conducted to identify:

    • Significant emission sources
    • Data gaps
    • Calculation risks
    • Control system weaknesses

  3. Verification Planning

    Based on identified risks, the verifier develops a tailored verification plan covering:

    • Site visits
    • Data checks
    • Transaction sampling
    • Methodology reviews

  4. Process Analysis & Data Verification

    The verifier reviews:

    • Activity data (fuel, materials, outputs)
    • Emission factors
    • Calibration records
    • Internal controls & QA/QC
    • Completeness and consistency of datasets

  5. Site Visit (where required)

    On site assessment to validate:

    • Measurement systems
    • Operational boundaries
    • Metering and sampling procedures
    • Data capture processes

  6. Issue Resolution

    The verifier communicates non conformities and improvement needs, allowing the operator to correct or clarify issues prior to finalization.

  7. Verification Report Opinion

    Once all issues are addressed:

    • A formal Verification Report is issued
    • A Verified Emission Figure is provided

The operator can then safely submit the AER to the authorities.

Supporting Installations from Preparation to Annual Verification

  1. SCS provides a full suite of services to ensure operators meet their ETS obligations efficiently and confidently.
    ETS Preparation Session

    We offer preparation sessions to explain:

    • ETS fundamentals
    • Monitoring & reporting rules
    • Calculation methodologies
    • Data validation and internal controls
    • Common verification findings and how to avoid them
      Preparation sessions can be delivered onsite or online, oriented towards operators, compliance teams, or sustainability managers.

  2. Pre-Verification check

    Before the formal verification begins, SCS can perform a pre verification check, including:

    • An online self-assessment (link to Microsoft forms)
    • Review of the Monitoring Plan
    • Evaluation of data availability & completeness
    • Testing sample calculations
    • Identifying early issues to avoid non conformities
    • Providing recommendations to improve accuracy and reliability
      Pre-verification helps ensure a smooth, low risk  formal verification later in the year.

Request Information

Ready to get started or need more info? Connect with us.

Tarik Bellahcene (Belgium)

Business Development Director
+32.471.820.305
Contact