Operators of installations covered by the EU ETS have to surrender the number of emission allowances that correspond to the emissions released by their activity. Emissions are calculated based on the methods described in the installation-specific monitoring plan and have to be reported to the German Emissions Trading Authority (DEHSt) at the German Environment Agency not later than 31/03/ of the subsequent year. Provisions on monitoring and reporting are layed down in the Monitoring and Reporting Regulation.
In the third trading period operators receive a free allocation of emission allowances only transitionally. The amount of free allocation is determined in an EU-wide uniform allocation process based on benchmarks. The allocation rules are laid down in the Allocation Ordinance 2020 (ZUV 2020). Operators emitting a larger amount of greenhouse gas than allowances have been allocated for free have to purchase additional emission allowances. Operators emitting less than their amount of free allocation may sell the surplus.
Emission allowances arising from CDM and JI climate protection projects may be used in the European Emissions Trading Scheme. The relevant directive known as Linking Directive allows operators to fulfill their compliance obligation using allowances out of CDM and JI projects.
The German Environment Agency (Umweltbundesamt, UBA) has been appointed as the responsible national authority.