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The EU Emission Trading System (EU ETS)

The EU ETS is the largest multi-country, multi-sector greenhouse gas emissions trading system in the world. It includes around 11,000 Europe-wide installations, excluding aviation, and accounts for about 45% of EU carbon dioxide emissions

Important changes to electronic payments: Our bank details have changed

If you want to pay for your permit or licence application by electronic transfer please use the information below to make your payment. 

Company name:           Natural Resources Wales

Company address:       Income Department, PO BOX 663, Cardiff, CF24 0TP

Bank:                           RBS

Address:                      National Westminster Bank Plc, 2½ Devonshire Square, London, EC2M 4BA

Sort Code:                    60-70-80

Account number:         10014438 

Do not use the details given in our permit/ licence application forms and guidance if they are different to the ones above.

We will update our forms as soon as possible, but please use the new information when making electronic payments from now on.

Note: Waste mobile plant deployment application forms have been updated with the new information. 

Making payments from outside the UK

These details have changed.

If you are making your payment from outside the United Kingdom (which must be received in sterling), our IBAN number is GB70 NWBK6070 8010 014438 and our SWIFT/BIC number is NWBKGB2L. 

Send us your payment details by email

Please email your payment details and payment type details (such as ‘Waste Variation’ or ‘Water Quality New’) to banking.team@naturalresourceswales.gov.uk or banking.team@cyfoethnaturiolcymru.gov.uk or fax it to 0300 065 3001.

You must include your company name and invoice number. Where possible, please also submit a remittance advice. This will ensure accurate processing of your payment. 

You should still include the BACS payment reference on the application form itself.

If you do not quote your payment reference number, there may be a delay in processing your payment and application.

The scope of the EU ETS

Installations captured by the EU ETS include power stations, oil refineries, offshore platforms and industries that produce iron and steel, cement and lime, paper, glass, ceramics and chemicals. Other organisations, including universities and hospitals may be covered by the EU ETS depending on the combustion capacity of equipment at their sites. Aviation operators flying into or from a European airport are also covered.

How the EU ETS works

The EU ETS works on the ‘cap and trade’ principle. The overall volume of greenhouse gases that can be emitted each year by installations captured by the system is subject to a cap set at EU level. Emission allowances are the ‘currency’ of the EU ETS, and the limit on the total number available gives them a value.

EU ETS timeline

Phase III of the EU ETS runs from 1 January 2013 to 31 December 2020.  During each trading year within the phase participating installations are required to monitor their emissions and then have these emissions independently verified. Operators are then required to ensure they have enough allowances to cover their installation's emissions. Installations may receive some allowances from governments for free, however, installations that produce electricity from fossil fuels (including combined heat and power installations) will not receive any free allowances from 2013 onwards.

Buying and selling emission allowances

Installations have the flexibility to buy additional allowances on top of any free allocation, or to sell any surplus allowances generated from reducing their emissions. Within limits, they can also buy credits from certain types of approved emission-saving projects around the world.

What the allowances represent

Each allowance gives the holder the right to emit one tonne of CO2, the main greenhouse gas, or the equivalent amount of two more powerful greenhouse gases, nitrous oxide (N2O) and perfluorocarbons (PFCs).

Managing system participation

All permit applications, variations, notifications and submissions of reports are managed through the online greenhouse gas emissions planning, reporting and management tool Emissions Trading System Workflow Automation Program (ETSWAP).  New applicants, excluding off-shore installations, need to go to ETSWAP and register a new installation. 

Requirements for EU ETS participants

In each compliance year an installation participating in the EU ETS needs to do the following:

  • Monitor emissions stipulated within their greenhouse permit throughout the calendar year
  • Submit an emissions report for previous reporting year via ETSWAP by 31 March
  • Surrender emission allowances equal to the total emissions within the report by 30 April

EU ETS customers in Wales should continue to use ETSWAP on the Environment Agency’s website to manage compliance activities. 

What we do

The UK is the member state for compliance within the EU ETS, and the Department for Energy and Climate Change (DECC) is the UK competent authority. DECC also sets the UK’s policy, working in partnership with the devolved administrations and other government departments. Responsibility for implementation and regulation of the EU ETS is largely geographically based.

The role of the Environment Agency

The Environment Agency is the UK administrator and they maintain ETSWAP.

All regulation, compliance, enforcement, auditing and permitting activities (including new permits, variations, surrenders, transfers, revocations, notifications, activity/capacity changes and new entrants reserve applications) relating to installations in Wales transferred to Natural Resources Wales on 1 April 2013. Natural Resources Wales is also responsible for responding to technical enquires raised by Welsh participants.

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