The upgrade of the Union Registry implementing the rules related to the holding of international credits on EU ETS accounts will be available from 08:00 CEST on Thursday 18 July.
This upgrade follows the formal adoption of the new registry Regulation in early May and implements the rules related to the holding of certain units on EU ETS accounts. It will notably allow account holders to distinguish international credits that are eligible in the EU ETS from those that are ineligible or require further steps to establish eligibility (i.e. pending).
Upon activation of the upgrade, international credits in EU ETS and EU Kyoto Protocol accounts will be marked as either eligible or pending/ineligible. Units marked aspending/ineligible include those for which further steps to establish eligibility are required. Units marked as pending/ineligible will not be able to be transferred to an EU ETS account.
Initially, some track 1 ERUs issued by a non-EU Party to the Kyoto Protocol will be marked as pending/ineligible as complete information regarding ERUs issued before 2013 is not publicly available. When this data is provided, the status of these credits will be updated in the Union Registry where appropriate. In order to allow further time for the provision of this data, the operation described in Article 58 (3) of the Registry Regulation, whereby pending or ineligible credits would be moved to a Kyoto Protocol account nominated by the account holder, will be delayed until autumn 2013. An update on the timing of this operation will be available on this website by 15 September 2013.
The functionality to exchange eligible international credits for allowances will become legally possible after Member States have submitted an international credit entitlement table.
Following approval by the Climate Change Committee on 10 July, the European Commission has submitted the draft Regulation on international credit entitlements to the European Parliament and the Council for their scrutiny. Provided that they raise no objections within three months, the Commission will adopt and publish the Regulation, after which it will directly enter into force. Member States will then have one month to notify to the Commission the international credit entitlement for each of their operators in accordance with the limits set in the Regulation.
The information in the Union Registry regarding the eligibility of international credits is subject to change over time based on the best information available.
If the credit is a CER, it will be important to check the effective registration date of the project. If the effective registration date is after 2012 and the host Party is not a least developed country, CERs from the project will not be eligible for exchange in the EU ETS in accordance with the provisions of Article 11a(8) of the EU ETS Directive.
If the credit is a CER and the effective registration date is before 2013, it is also important to check that it is not ineligible in phase 3 of the EU ETS in accordance with Regulation 550/2011 (e.g. it is not an HFC-23 project nor an N2O-adipic acid project).
If the credit is a track 2 ERU, check the registration date as above.
If the credit is a track 1 ERU issued by a non-EU Party before 2013, it is possible that the way that the credit is marked in the Union Registry will be changed frompending/ineligible to eligible upon the provision of further information from the UNFCCC and/or the host Party involved. Currently, not all the information required to identify all track 1 ERUs issued before 1 January 2013 by non-EU ETS Parties is available. Whereas all information regarding the issuance of CERs for CDM projects is publicly available, this is not the case for JI. The Commission has used all information available in the EU Transaction Log to identify a significant number of non-EU, track 1 ERUs issued before 2013 but does not have a complete set of information in cases where the credit has never passed through the EU system of registries. The Commission is currently working to obtain the remainder of this information to ensure that the status of a given credit is as accurate as possible in advance of the availability of the exchange mechanism.
Once this information is updated in the Union Registry, the status of these credits will be updated accordingly.
For CERs, track 2 ERUs and ERUs issued by an EU Member State the information in the Union Registry is, to the Commission's knowledge, accurate with respect to the provisions in the EU ETS Directive and the Registry Regulation.