The German government passes the long-awaited Carbon Leakage Ordinance (BECV)
Today, on 31 March 2021, the Federal Cabinet adopted the Ordinance on Measures to Prevent Carbon Leakage (BECV) in the National Emissions Trading Scheme(nEHS). The long-awaited SESTA Carbon Leakage Ordinance (BECV) consistently implements the cornerstone resolutions of September 2020. The regulation also builds on the European Emissions Trading Scheme(EU ETS); the list of sectors and subsectors of the BECV is equivalent to that of the EU ETS and further sectors have the possibility to be included within an application procedure. However, certain qualitative as well as quantitative conditions must be met, which are described in detail in the BECV.
On the one hand, it must be a sector or subsector eligible for aid ( Section 5 BECV) and, on the other hand, a minimum threshold must be reached in accordance with Section 7 of the BECV.
In addition, the company entitled to the aid must provide one of the following counterparties in order to receive the aid:
- A certified energy management system according to DIN EN ISO 50001
- An environmental management system in accordance with Regulation (EC) No 1221/2009
- or from 01.01.2023 at the latest a non-certified energy management system based on DIN EN ISO 50005 (at least level 3)
In addition, the company must be able to demonstrate that it has used the aid received for investments which are
- Either present measures to decarbonise the production process
- Or include measures to improve energy efficiency.
We are also happy to support you in the introduction and operation of effective and certified energy management systems according to DIN EN ISO 50001 or DIN EN ISO 50005 as well as in the introduction and operation of an environmental management system according to Regulation (EC) No. 1221/2009.
We will be pleased to carry out the following activities for you in the context of SESTA:
- Advice on the economic and procedural effects of the Fuel Emissions Trading Act (BEHG) on your company
- Advice for possible switch to EU-ETS
- Preparation and submission of the monitoring plan in accordance with §6 BEHG and continuous monitoring up to approval
- Verifiable determination of fuel emissions and preparation of the emissions report pursuant to § 7 para. 1, 2 SESTA
- Preparation and support of the verification of the emission report according to § 7 para. 3 SESTA
- Transmission of the verified emissions report to the competent authority (DEHSt) by 31.07 of the following year in accordance with §7 Para. 1 SESTA
- Verification of the avoidance of double charging in accordance with §7 Para. 5 SESTA
- Support in the establishment of accounts and account representatives in the national emissions trading registry pursuant to section 12 para. 2 SESTA for the administration of emission allowances pursuant to section 9 para. 1
- Support in the management of their register account e.g. as one of the authorized account holders
- Verification of transfers
- timely retransfers of emission allowances by 30.09 for the previous year pursuant to § 8 SESTA
- Data updates of information in the register
- Representation of historical account movements and balances on the basis of account statements
- Support in the purchase and sale of emission certificates
- Support with requests for information and assistance with on-site inspections by the competent authority pursuant to § 14 SESTA
- Identification of emission allowance price drivers and market monitoring
- Ad hoc announcements on relevant events, political developments and legislative changes
- Regular status and strategy meetings to strengthen decision-making capacity
Author: Sina Barragan, 31.03.2021