Brexit: the effects on Swedish operators

Here follows the latest news about Britain's exit from the EU and its effects on the Emissions Trading Scheme.

Since January first, 2018, emission allowances issued in the UK have been marked with a country code. In December 2018, the Commission adopted a decision to suspend the UK's ability to participate in the EU Emissions Trading Scheme in the scenario of a “no deal” exit from the European Union.

As a result UK may not auction or allocate allowances or exchange international reduction units as of January first 2019.

Swedish operators may be affected

Swedish Energy Agency therefore want to inform Swedish operators who may be affected.

  • Allowances marked with the UK country will no longer be valid for compliance.

  • Transactions from UK accounts in the Union Registry initiated on March 29 will be completed. Thereafter, no transactions will be made to UK accounts in the registry.

  • UK accreditation of verifiers will no longer be recognized. It is therefore important to ensure that the used verifier has accreditation in another Member state.

If the negotiations between UK and EU are delayed the suspension will remain in force until further notice.