Phase III of the EU ETS (2013-2020)

Presentations from EPA Phase III Webinars which took place in February & October 2014 are available at this link for download.

Presentations from the EPA Phase III workshop of 27th September 2012 are available at this link for download.

Declaration of Operability

Each operator of an installation must complete and return to the EPA the ‘Declaration Form” to ghgpermit@epa.ie by 21 January each year to comply with Condition 2.6 of the GHG Permit.  The Declaration Form must be signed, dated and have a Company Stamp.

In some cases further proof of operation of the activity during the year may be requested by the Agency and a verification visit may be undertaken.

All Operators will be required to confirm that the permitted activity was operational above the activity threshold the previous year or ceased operation the previous year.

In addition for installations who are entitled to free allocation in Phase III, Operators will be required to confirm whether or not the installation partially ceased operations, or recovered from partial cessation as defined in Article 23 of  EU Commission’s Decision of 27 April 2011 determining transitional Union-wide rules for harmonised free allocation of emission allowances or had a significant capacity increase or decrease as defined in Article 3 (i) or (j) or a physical change that may affect capacity of any of the sub-installations. 

In accordance with the Changes in Operation procedure agreed in section 12 of the Monitoring Plan, regular reviews should be carried out throughout the year to identify changes to capacity, activity level or operation of the installation that have an impact on the installation’s free allocation.  All physical changes to a sub-installation (for example decommissioning heat producing or consuming equipment or physical changes to a production line leading to increases or decreases of product output) should be assessed to determine whether or not current capacity of the sub-installation has increased or decreased.  Further guidance on Physical Changes is contained in Chapter 4 and 5 of New Entrants and Closures.

Free allocation to incumbent installations

Ireland submitted its National Implementation Measures (NIMs) to the European Commission on 22 December 2011.

The NIMs document sets out the levels of free allocation of allowances to installations under Phase III of the EU Emissions Trading System (2013-2020), in accordance with Article 11 of the revised ETS Directive (2009/29/EC). The allocations as set out in the NIMs are preliminary allocations only.

The allocations have been determined in accordance with EU harmonised rules, using data provided from operators of EU ETS Phase III installations in 2011. These rules, along with associated guidance, can be found in EU Commission’s Decision of 27 April 2011 determining transitional Union-wide rules for harmonised free allocation of emission allowances. More information is also available on the European Commission pages on free allocation for phase III.

Follow this link to download the NIMs document as published by the EPA.

*NEW*  (October 2017)

Ireland submitted the final NIMs to the Commission for approval on the 06 November 2013. The list and National Allocation Table states the final amount of allowances per installation calculated by applying the linear factor for electricity generators and the cross-sectoral correction factor for non-electricity generators to the preliminary allocations calculated at sub-installation level and submitted in the original NIMs. On 18 December 2013, the European Commission adopted a decision to approve Irelands final NIMs. Free allowances for 2013 were issued to installations on the 19 December.

Follow this link to download NIMs (final) as submitted to Commission.

Follow this link to download the current National Allocation Table, update for changes.

Free allowances for 2014 were issued to 65 installations on the 12 March 2014 and a further 4 installations by the end of March, which demonstrated to the EPA that they did not require changes to their 2014 allocation as a result of partial cessations or significant capacity reductions. 

Free allowances for 2015 were issued to 57 installations on the 11 March 2015 and a further 5 installations by 20 March, which demonstrated to the EPA that they did not require changes to their 2015 allocation as a result of partial cessations or significant capacity reductions.  Details on allowance allocation to installations can be found on the European Commission Website.

Free allowances for 2016 were issued to 59 installations on the 26 February 2016, which demonstrated to the EPA that they did not require changes to their 2016 allocation as a result of partial cessations or significant capacity reductions. Details on allowance allocation to installations can be found on the European Commission Website.

Free allowances for 2017 were issued to 60 installations on the 22 March 2017, which demonstrated to the EPA that they did not require changes to their 2017 allocation as a result of partial cessations or significant capacity reductions. Details on allowance allocation to installations can be found on the European Commission Website.

European Union Transaction Log

Updates to the National Allocation Table

The following table contains details on all updates to the Natioinal Allocation Table (NAT) and details on all submissions of the New Entrant and closure (NEC) list and table to the Commission to-date as a result of cessation, partial cessation, recovery from partial cessation or significant capacity reduction.  The list and table state the final amount of allowances subject to Commission approval.

Date submitted to Commission   Year of ChangeType of ChangeLink to Download
06 November 2013 2011/2012 Partial Cesssation, Significant Capacity Reduction NAT Change table submitted to Commission
19 March 2014 2013 Partial Cessations/Recovery from Partial Cessations & Significant Capacity Reductions NAT change table 1 for 2014 submitted to the Commission
13 March 2015 & 25 March 2015 2014 Partial Cessations/Recovery from Partial Cessations & Significant Capacity Reductions NAT Changes PC RPC SCR 2014
19 November 2015 2014 Significant Capacity Reduction NAT Changes SCR 2 2014
23 March 2016 & 14 April 2016 2015 Partial Cessations/Recovery from Partial Cessations  NAT Changes PCRPC 2016
02 November 2016 2015 Significant Capacity Reduction NAT changes SCR 2016
13 February 2017 2016 Recovery from Partial Cessation NAT changes RPC 2017
21 February 2017 2016 Partial Cessation NAT changes PC 2017
27 March 2017 2016  Partial Cessations/Recovery from Partial Cessations  NAT Changes PCRPC 2017

Updates to the National Implementation Measures (NIMS)

The following table contains details on all updates to the NIMS list and table and NAT change table, submitted to the Commission to date, as a result of carbon leakage list amendments.  The list and table state the final amount of allowances subject to Commission approval.

Date submitted to CommissionCarbon Leakage Commission Decision Download NAT Change Table
27 January 2015 Commission Decision 2014/9/EU NAT Change Table for Carbon Leakage update submitted to the Commission
25 February 2015 Commission Decision 2014/746/EU NAT Change Table for Carbon Leakage update submitted to the Commission
14 April 2015 Commission Decision 2014/746/EU NAT Change table for CL update submitted to the Commission

Allocation from the New Entrant Reserve

The following table contains details on all updates to the New Entrant Reserve, submitted to the Commission to-date, as a result of New Entrants, Significant Capacity Increases and adjustments of allocation of Carbon Leakage (CL) list amendments.  Click here to download the current New Entrant Reserve (NER) Table.

Date submitted to  CommissionCL DecisionDate of Commission DecisionDate of AllocationOperator Name 
February 2014 N/A 03 April 2014 April 2014

FMC International

Nutricia Infant Nutrition Ltd Macroom

April 2015 Commission Decision 2014/746/EU 14 July 2015 17 July 2015 Nutricia Infant Nutrition Ltd Macroom
December 2015 N/A 18 February 2016 01 March 2016 Lakeland Dairies Drying Plant
August 2016 N/A 23 November 2016 30 November 2016 Lagan Brick Ltd 
March 2017 N/A 11 April 2017 24 April 2017 Glanbia Ingredients Ireland Ltd (Belview)

Allocations may change in the future where there is a change to partial cessation status (for example either recovery of activity level or further decreased activity level) or a cessation of activity or additional significant capacity increases or decreases.

The European Commission adopted a decision on Member States' national implementation measures (NIMs) for phase three of the EU Emissions Trading System (EU ETS) on the 05 September 2013. The decision provides the basis for calculating the number of allowances allocated for free and auctioned, respectively, but has no effect on the total amount of allowances put on the market in phase three (2013-2020).

The actual number of allowances handed out each year will be based on harmonised benchmarks. These will be adjusted by a 'cross-sectoral correction factor' laid down in the decision which will vary each year, as foreseen by the ETS legislation. This will ensure that the total amount handed out for free does not exceed a maximum set in the ETS Directive. The factor will reduce the provisional allocation for each EU ETS installation by 5.73% in 2013, rising to 17.56% in 2020. The average reduction of allocation is therefore 11.58% over the period 2013-2020.

The Commission also adopted a decision on standard capacity utilisation factors (SCUFs) on the 05 September 2013. These factors are necessary to enable Member States authorities to calculate the amount of free allocation to be provided to new entrants to the EU ETS in the period 2013 to 2020.

Read more information (Commission Decisions and Questions and Answers)   

Data and Notification Requirements New Entrants, Significant Capacity Decreases, Closures and Partial Cessation of Operations of and Installation

In accordance with the requirements of Article 24.( 1). of EU Commission Decision 2011/278/EU CIM's  the Operator is required to submit all relevant information about any planned or effective changes to the capacity, activity level and operation of an installation to the EPA by 31 December of each year, starting 31 December 2012.

The EU Commission has developed a data collection template entitled Application Form for Amending Amounts Allocated Free of Charge for use by Operators for submission of information about any planned or effective changes to the capacity, activity level and operation of the installation.

Further EU Commission Guidance on New Entrants and closures can be downloaded here New Entrants and Closures and additional information is available on the EU Commission website Phase III Guidance.

The EPA intends to hold a workshop for all Operators in late September 2012 on data and information notification requirements for new entrants, closures and partial cessation of operations, in addition to new monitoring and reporting and accreditation and verification requirements that will apply from 2013.  Please see the EU Commission for further guidance on monitoring, reporting accreditation and verification requirements ETS RegulationsDownload the VOS template from this link.

For new entrants (greenfield plants, significant capacity increases) and significant capacity decreases the completed application form and any relevant additional information must be verified by an accredited verifier and submitted with the verification opinion statement to the EPA. 

For applications for cessation in accordance with Article 22 of the CIM’s or partial cessation in accordance with Article 23 of the CIM’s, the complete application form shall be submitted with relevant attachments to the EPA by 31 December of the year of the planned or effective changes to activity level and operation.

In accordance with Article 17(2) of the CIM’s Member States shall only accept New Entrant applications that are submitted to the Competent Authority within one year following the start of normal operation of the installation or sub-installation concerned.  Access to the New Entrant Reserve is based on a “first come first served” principle based on the notification date which is the date of submission of the complete and verified set of data that are required for the calculation of the allocation by the Competent Authority to the Commission.  Further information which can be downloaded by following this link

Please note that any changes to the installation which require a permit update shall be notified in advance in accordance with permit conditions.

01 April 2011 - Read the latest information regarding Phase III

These pages provide information for operators regarding the third trading period of the EU ETS 2013-2020 (Phase III). Some of the information regards action that must be taken straight away, if for example you are covered by the scheme for the first time from 2013 onwards.

The EU Emissions Trading System has been revised and expanded through the adoption of Directive 2009/29/EC.  A copy of the Directive can be downloaded from the EU Commission website.

See Commission Memo - Questions & Answers on the revised EU Emissions Trading System

The revised Directive takes effect from 1 January 2013 to 31 December 2020. It introduces significant changes to the scope of the EU ETS, as well as changes to operator entitlement to free allowances and how they will be issued.  Initial aspects of this directive have been transposed into Irish legislation by SI 161 of 2010 and SI 127 of 2011.

Scope of Phase III

New sector activities and gases

This includes releases of: carbon dioxide from the production of bulk organic chemicals, non-ferrous metals and gypsum related activities; releases of perfluorocarbons and carbon dioxide from the primary aluminium sector and; releases of carbon dioxide and nitrous oxide from the production of nitric, adipic, glyoxal and glyoxylic acid.

Addition of a broad definition of combustion, now capturing all combustion of fuel. 

How can we identify installations new to EU ETS under Phase III?

Phase III will include any installation where fuel is burned in combustion units of 3 MW rated thermal input or above for any purpose (other than for the incineration of hazardous or municipal waste) and which, when aggregated, together exceed 20MW rated thermal input.  Biomass units using fossil fuels only during start-up or shut down are excluded when assessing the aggregated rated thermal input. 

Where the 20 MW threshold is exceeded, all combustion units (including any biomass units) are captured by the EU ETS except units for the incineration of hazardous or municipal waste. 

This includes all types of:

  • boilers; 
  • burners; 
  • turbines; 
  • heaters; 
  • furnaces; 
  • calciners; 
  • kilns;

and in particular:

  • ovens;
  • fryers; 
  • dryers; 
  • engines; 
  • fuel cells; 
  • chemical looping combustion units; 
  • flares; 
  • thermal or catalytic post-combustion units.

We have consulted with IBEC and contacted sites already regulated by the EPA, who may now also be captured under the changes to the scheme. Ireland, in common with some of the other Member States already used a broad definition of combustion as recommended by the Commission and as a result we do not expect many existing industries to be included for the first time from 2013.