This page sets out the UK guidance on baseline data verification for the EU Emissions Trading Scheme (EU ETS) and for final allocation decisions for the EU ETS due on 1 October 2004.   It aims to advise operators and verifiers about the verification of baseline data which will - we are told - be required by 31 August 2004.

Baseline data verification is an important tool for ensuring that installation allocations, and in some cases sector allocations, are calculated from baseline data on a fair and equitable basis. Verification aims to avoid distortions that may arise from misstatements or errors in the baseline data, and from incorrect interpretation of baseline data requirements in the National Allocation Plan (NAP).

 Baseline data verification will require accredited verifiers to verify that the historical emissions reported for each installation are:

• free from material errors and mis-statements

• calculated in accordance with an approved method

• submitted according to requirements of the NAP

Baseline data will be used by Government to calculate the ‘relevant emissions’ figure for the installation. This will then be used to determine the installation’s allocation based on the methodology described in the NAP submitted to the Commission, and any subsequent decisions on the treatment of particular situations that occurred during the baseline period such as, plant commissioning and inter-site rationalisation. 

Operators with installations where the baseline data reported may be affected by the issues mentioned above, should prepare for verification (see section 3.10), but await final decisions by the Government before the final verification opinion is completed. Decisions will be made for the revised list of installation allocations to be published in summer 2004.

Government noted in the Draft NAP released in January 2004 that it does not intend for the process of verification to be overly onerous and that a ‘light touch’ approach should be applied. This is because there is a limited time period for baseline data verifications to be completed, much of the data have already been checked through other schemes, and some historical data may be difficult to verify. 

‘Baseline data’ refers to annual carbon dioxide emissions from an installation during the baseline period of 1998 to 2002, and potentially 2003. This data was submitted to Government, originally in ‘Annex 2 forms’ and more recently in ‘NAP Data Forms’.

For the Draft NAP released in January 2004, the annual emissions data from 1998 to 2002 submitted by operators in Annex 2 forms, were used to calculate a ‘relevant emissions’ figure. The ‘relevant emissions’ figure, for installations which had been operating throughout the baseline period, was the average of the annual data supplied dropping the lowest year’s data. It was used to calculate the installation’s indicative allocation for Phase 1. In addition, the emissions data supplied for 2002 was used to calculate some of the sector totals.

Since the draft NAP was published in January 2004, the scope of installations covered by the EU ETS Directive has been confirmed through the issuing of Greenhouse Gas Emissions Permits (GHG Permits) by regulators (Environment Agency, Scottish Environmental Protection Agency and Department of Environment, Northern Ireland). GHG Permits have now been issued for most of the installations covered in the EU ETS. Once the operator received the GHG Permit, Government requested resubmission of baseline data in a NAP Data Form. These revised NAP Data Forms will be used to develop the next list of installation allocations due to be released in summer 2004.

DROP US A LINE, TELEPHONE OR EMAIL TO DISCUSS YOUR CONCERNS