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.
In 2019, eligibility for these Ultra Small Emitters (USEs) for the 2021-2025 allocation period was determined based on verified or self-verified emissions in 2016, 2017 and 2018.
For the 2026-2030 reporting period, USE 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. The reporting deadline for the USE scheme is 30 June 2025 but operators are encouraged to complete this exercise as soon as possible to avoid the "crunch" later, as Q2 2025 is also the UK ETS baseline reporting period.
Please be aware that USE operators will use their monitoring plans from 2020 issued by the regulator. They do not have GHG permit, nor will they be required to set up an account in the METS portal. The Regulator will provide a template in due course for USE operators to populate accordingly.
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.
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.