Compliance with the European Emissions Trading System

Under the European emissions trading system (ETS), the 12,000 largest emitters of greenhouse gases must surrender emission allowances in line with their emissions to their regulators on a yearly basis. Participation in the ETS is complicated, and potentially expensive. Therefore, companies need a robust strategy to efficiently meet their emissions trading obligations. For over 15 years, First Climate has been supporting businesses to achieve compliance with ETS regulations.

Our analyses bring clarity

First Climate is the partner of choice for fulfilling the technical requirements of the European and Swiss emissions trading systems. We conduct baseline analyses, forecast emissions and allowance allocations, and analyze the latest developments in the carbon markets to support you throughout the compliance process:

  • Creation of monitoring plans
  • Annual emissions reporting to the regulator
  • Applications for electricity price compensation
  • Allocation calculations for new installations and capacity expansions


Emissions trading is our core business

Our experts are familiar with emissions trading from the perspectives of both regulators and private entities. Early in the development of the compliance carbon market, we worked alongside regulators in defining the legal guidelines. We have also provided guidance to numerous companies in Europe and Switzerland on ETS topics, and provided access to trading services for emission allowances and reduction certificates.

Thinking post 2020

In July 2015, the European Commission presented the legislative proposal for a revision of the EU emissions trading system post-2020. By 2030, total European emissions must have decreased by at least 40% compared to 1990 levels. In order to achieve this goal, companies covered by the EU ETS are to reduce their emissions by 2.2% annually, starting in 2020 (currently 1.74%). The EU Commission also proposes a revision of the procedure for free allocation of emission rights to the companies in question. The main criteria here is the likelihood that a company would shift its operations to a country outside of Europe because of its emissions trading obligations (so-called “carbon leakage”).