CO2-verification and the EU’s CO2 quota system 

The EU has made a commitment to reduce its CO2 emissions. One means of achieving this is the EU’s CO2 quota system. This system establishes ceilings for how much CO2 may be emitted. It also allows for CO2 quotas to be traded.

As a prerequisite for this, CO2 emissions and activity levels for a production unit must be verified by an impartial third party according to verification and accreditation rules.

The system has been under constant development. In this the latest period, a process of regulatory alignment took place to allow all countries to operate on a common set of EU regulations. In Denmark, the Danish Business Authority administers the Danish side of the EU’s quota registry, while the Danish Energy Agency is responsible for tasks that include the allocating free allowances and issuing CO2 emission permits.

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What is CO2 verification 

Production units subject to the quota system must receive permits from the
appropriate government agency to emit CO2, and they must have an approved oversight plan.

The operating manager must report CO2 emissions annually, and the CO2
emissions report must be verified by an accredited verifier no later than 31 March.

Who should care about CO2 verification? 

In general, the system includes activities that can result in CO2 emissions. It applies to physical locations where emissions are actually generated. For example, the system covers a significant portion of the energy sector, energy-intensive industry, and aviation. 

New to the system?  

To ensure compliance with the quota system requirements, we recommend that you perform a pre-audit on your system before sending in your oversight plans for approval. If you need help to perform this pre-audit, FORCE Certification can offer assistance.   

Applying for free allowances and activity level verification 

Production units subject to the quota system may be entitled to a certain number of ”free allowances”. In 2024, it will be possible to apply for allowances for the second portion of the fourth quota period (2026–2030).  

For new businesses, as well as for businesses that have recently become subject to the system, there will still be an opportunity to apply for free allowances during the current quota period.

The basis for the issuance of free allowances (i.e., the activity level) must be verified annually by an accredited verifier. FORCE Certification is accredited by DANAK to conduct
activity level report verification.

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Interested in applying for support from the EU’s innovation fund?

The European Commission has created an Innovation Fund to support demonstration projects for new, ground-breaking energy technologies on a large scale in the fields of sustainable energy, energy storage, and industrial processes, as well as the capture, storage, and use of CO2. Support is offered to sectors regardless of whether they are subject to the quota system (EU ETS).

The Innovation Fund supports innovation in: 

  • Energy-intensive industry — sectors subject to the quota system (EU ETS)
  • Environmentally safe CO2 capture and use (CCU)
  • Environmentally safe CO2 capture and geological storage (CCS)
  • Innovative production of sustainable energy sources
  • Innovative energy storage technologies  

The support awarded depends on the verified level of emissions avoided. This is determined based on the annual reports which applicants submit in the years following the start of operations. 

FORCE Certification can provide assistance with verifying data in application materials for the EU’s Innovation Fund. While not accredited, this service is based on the same
guidelines as CO2 verification. Only verifiers approved to conduct verification within the scope of the EU ETS are used for this purpose.

Why choose FORCE Certification? 

FORCE Certification A/S is accredited by DANAK to conduct CO2 verification for a wide variety of company and facility types, from small, standard facilities to large, complex co-generation facilities and offshore installations.

What makes us unique?

  • We focus on being straightforward, professional, and always on hand to help.
  • We collaborate closely with our customers from start to finish on every job.
  • We prioritise personal contact, effective communication, and rapid action. To that end, we do not have a central booking department — instead, you can contact your auditor directly.
  • We bring to the table an experienced auditing team that annually verifies more than 140 operators’ CO2 emissions and supporting information for free allowances in both Denmark and Sweden.
  • Our auditors regularly have their skills assessed internally and externally.

 

FORCE Certification’s DANAK accreditation can be reviewed on the websites of the Danish Energy Agency (www.ens.dk) and DANAK (www.danak.dk). These websites also list references to documents containing requirements, instructions, and guidelines related to accreditation and other topics.

Interested in learning more about CO2 verification?

Schedule a qualified, non-binding meeting to discuss your opportunities in CO2 verification.

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Anne Husted
Sales Manager

Phone: +45 4325 0387