Questions & Answers
Is there a clear definition or exhaustive list of ‘regulated Emission Trading Schemes’?
- Emission trading schemes
Background
ESRS E1 paragraph 48 states: ‘The disclosure on gross Scope 1 GHG emissions required by paragraph 44 (a) shall include:
(a) the gross Scope 1 GHG emissions in metric tonnes of CO2eq; and
(b) the percentage of Scope 1 GHG emissions from regulated emission trading schemes.’
The related ESRS E1 paragraph AR 44 states: ‘When preparing the information on the percentage of Scope 1 GHG emissions from regulated emission trading schemes required under paragraph 48 (b), the undertaking shall:
(a) consider GHG emissions from the installations it operates that are subject to regulated Emission Trading Schemes (ETS), including the EU-ETS, national ETS and non-EU ETS, if applicable;
(b) only include emissions of CO2, CH4, N2O, HFCs, PFCs, SF6 and NF3;
(c) ensure the same accounting period for gross Scope 1 GHG emissions and GHG emissions regulated under the ETS; and
(d) calculate the share by using the following formula:
GHG Emissions in (t CO2eq) from EU ETS installations + national ETS installations + non EU ETS installations |
Scope 1 GHG emissions (t CO2eq)’ |
CDP provides a list of ETS’s around the world that can be found in the guidance to question ‘3.5.2 – Provide details of each Emissions Trading Scheme (ETS) your organization is regulated by’ of ‘CDP Full Corporate Questionnaire’ (version May 2024).
Answer
The undertaking shall consider GHG emissions from the installations it operates that are subject to regulated Emission Trading Schemes (ETS), including the EU-ETS, national ETS and non-EU ETS, if applicable (ESRS E1 AR 44). The schemes that fall under this requirement, therefore, include not only EU ETS but those regulated ETS which are either upcoming and/or non-EU trading schemes. Only emissions of CO2, CH4, N2O, HFCs, PFCs, SF6 and NF3 shall be included. Separate ETS for other greenhouse gases do not have to be included. Currently, there is no clear definition or exhaustive list of ‘regulated Emission Trading Schemes’. CDP provides an indicative, non-exhaustive list of ETS around the world, showing examples of ETS. The list is the following:
Alberta TIER – ETS
Australia ERF Safeguard Mechanism – ETS
Austria – ETS
BC GGIRCA – ETS
Beijing pilot ETS
California CaT – ETS
Canada federal OBPS – ETS
China national ETS
Chongqing pilot ETS
EU ETS
Fujian pilot ETS
Germany ETS
Guangdong pilot ETS
Hubei pilot ETS
Indonesia ETS
Kazakhstan ETS
Korea ETS
Massachusetts state ETS
Mexico pilot ETS
Montenegro ETS
New Brunswick ETS
New Zealand ETS
Newfoundland and Labrador PSS – ETS
Nova Scotia CaT – ETS
Ontario EPS – ETS
Oregon ETS
Québec CaT – ETS
RGGI – ETS
Saitama ETS
Sakhalin ETS
Saskatchewan OBPS – ETS
Shanghai pilot ETS
Shenzhen pilot ETS
Switzerland ETS
Tianjin pilot ETS
Tokyo CaT – ETS
UK ETS
Vietnam ETS
Washington CAR – ETS