UK ETS Phase I Ultra Small Emitter Opt-Out Scheme (Article 27a)
Stationary installations that emit less than 2,500 tCO2eq per year are permitted by DESNZ (Department of Energy Security and Net Zero) to opt out of Phase I of the UK Emissions Trading Scheme as Article 27a reporters.
For the 2026-2030 reporting period, Ultra Small Emitters (USE) “Article 27a” operators are required to have their emissions independently verified over the period 2021, 2022 and 2023 to demonstrate they are below the 2,500 tCO2eq per year threshold. Note that a site visit by the verifier is also mandatory to check the current status.
A USE reporting template has been issued by the regulator and can be found here here Operators can commence gathering their data early. The reporting deadline for the USE scheme is 30th June 2025.
The full regulator guidance can be found here here and a dedicated help line will be set up shortly UKETSDataCollection@environment-agency.gov.uk
Existing USE installations are expected to use their monitoring plans (permits) from 2020 issued by the regulator (because they do not have a current GHG permit). They do not need to submit their application via METS (as they won’t have a METS account) – they will complete the application form to apply for USE status and submit it to their Regulator, together with the verification report (VOS), via email, to the usual contact email address for their Regulator.
Lucideon has the correct accreditation for this service (Group 98) so please contact us for a proposal.
Why choose Lucideon?
Lucideon is the leading auditor for UK ETS in the UK and EU ETS in Ireland including opt out installations. We understand small emitter installations (typically datacentres, corporate buildings, service hubs with large emergency power) and have a pragmatic yet robust approach. Lucideon was the verification body for the majority of USEs until 2020 and their services were used to demonstrate that the sites were eligible to leave the main scheme.
Our auditors have been verifying under EU ETS for Lucideon since the start of Phase II of EU ETS in 2008 (many since the start of Phase I in 2005), and they are strategically located, ensuring that the carbon footprint of the verification exercise is kept to a minimum. To facilitate this, we have also perfected a remote working model which minimises site visit time and emissions associated with business travel.
Over the years, we have developed a dedicated helpdesk, providing regular ETS updates throughout the cycle, ensuring that clients are informed of any changes or updates. In addition to this, we also run a bi-annual training course, which is perfect for those who are new to the scheme, or even those just looking to refresh their knowledge.