EU ETS Readiness Assessment Audit
Emission Trading Systems (ETSs) are the main but most complex tool in the efforts of
countries or Unions of countries (like the European Union) to address the control of
Greenhouse Gas Emissions.
Due to the complexity of the regulatory framework, the majority of the industries
already
included in the EU ETS have faced tremendous challenges not only at the initial
stages
of implementation but even up to now.
If a proactive approach is followed, the Maritime sector could avoid the potential
losses coming out of such challenges. Losses that may be added cost for Emissions
Allowances (EUAs) due to a less optimum trading decision, penalties, friction in
relations with charterers’ or loss of reputation.
Serving this proactive approach, ETSdesk, proudly offers its customers, the first
in the market “EU ETS Readiness Assessment Audit (EU ETS RAA)”. This audit was
carefully
developed by ETSdesk experts during the last three years using the cumulative
knowledge
of the EU relevant legislation, and best practices followed by other industries in
the
past adapted to Maritime.
In brief, EU ETS RAA assesses Shipmanagers’ preparedness to establish the proper
workflow and process which will ultimately result in better management of all EU
ETS challenges.
Upon completion of the audit, which (although it may be done remotely), is highly
preferable to be done in the company’s premises, a confidential, short but
sufficient
for the next actions report is delivered to Principals.
Please contact us for a tailor-made, company-specific quote to receive this unique
ETSdesk service.
A Unique Approach for Adequate ETS Preparedness
Emission Data and Reporting
- Analyze the quality and availability of emission data.
- Ensure that systems for data collection, reporting, and verification in place are well managed.
Resources and Personell
Review the process related to the
involvement of ETS-responsible persons.
Assess the cash flow practices when
it comes to purchases EUAs above defined limitations.
Trading Systematics
Review the systems established for
effective trading at short notice when needed, etc
Evaluate the financial department’s
involvement in the whole process.
The primary objective of
conducting an EU ETS readiness audit for a company is to assess its
readiness and capacity to participate in the ETS. Specific
objectives include:
- Evaluating the company’s existing ETS-related emissions reduction efforts.
- Identifying regulatory requirements and compliance obligations.
- Assessing the company’s internal capabilities and processes for ETS handling.
- Determining the financial implications and risks associated with ETS.
- Setting the basics for an action plan for ETS compliance and emissions reduction.
The audit should encompass
various aspects of the company’s structured approach towards EU ETS,
including:
- Assessment of greenhouse gas emissions data quality.
- Identification of relevant EU ETS regulations and market mechanisms.
- Review of internal policies and procedures related to emissions and emissions allowances management.
- Evaluation of decision process for technological and operational measures for emissions reduction.
- Examination of the financial implications and potential cost optimization when handling ETS tasks.
- Matrixing of potential risks and mitigation strategies.
The ETS readiness audit is
carried out in a systematic manner, involving the following steps:
- Data Collection: Gather information on the company’s emissions, existing emissions reduction initiatives, and historical data.
- Regulatory Review: Identify relevant ETS regulations, compliance deadlines, and reporting requirements.
- Internal Assessment: Evaluate the company’s internal processes, staff training, and technology infrastructure to manage emissions and needed allowances.
- Financial Analysis: Assess the financial impact of ETS participation, including the costs of compliance and potential revenue from trading allowances.
- Risk Assessment: Identify potential risks and develop strategies to mitigate them.
- Action Plan: Communicate the basic principles for the company to develop a comprehensive action plan for the optimum compliance with ETS and emissions reduction goals.
Conducting an ETS readiness
audit offers several benefits for a company, including but not
limited to:
- Improved understanding of carbon footprint and emissions profile.
- Improved compliance with ETS regulations, reducing the risk of penalties.
- Identification of cost-saving opportunities through emissions reduction strategies and optimum EUAs trading practices.
- Improved reputation and market positioning as a responsible, sustainability-focused company.
- Reduced environmental impact and contribution to global climate goals.