Guidelines / Functions of Emissions Trading Authorities (DEHSt)
Example: Federal Republic of Germany
According to the German government's decision, in 2004 the authority for ‚Emissions Trade' was instituted in the responsible Federal Environmental Agency. The authority's functions are among others
- the central record administration
- Allotment of certificates
- Awarding of emission rights
- Accounting
- Controlling of emission reports
For commercial enterprises the German Emissions Trading Authority (DEHSt) is the most important contact point as their projects and facilities underly the guidelines of the EU-emissions trade and are also registered here.
According to the application procedure the registered companies have to file ‚allotment applications' with the responsible DEHSt-authority. All details have to be checked and verified by an authorized expert or a professional institution respectively.
After the required verification of the application is completed (e.g. calculation of the allotment amount according to NAP-table), the DEHSt issues the annual authorization notifications.
The validity of the authorization only ever applies to one notification period. The current period began January 1, 2005 and is effective until December 31, 2007.
The Emissions Trading Authority's calculated allotment decision positively determines, how and which subsets / wastage are to be released annually.
The DEHSt is required to issue the allotment decision to the respective company by February 28 the latest each year (according to notification procedure).
The registered company in emission trading is required to hand in the company's protocols and emission reports respectively by March 31 the latest for verification and registration.
Important key points in the emission report are the listing of the company's details of their own CO2 emission reduction and the respective transactions (emission certificates), as well as the verification of the provided data on CO2 emissions, provided that your company holds the necessary emission rights.
The experts and institutions respectively who are responsible for the verification of your company's reports and applications, are listet and published by the German Emissions Trading Authority, dept. Registration.
Negative effects for the company have to be expected, if the emission report for the responsible DEHSt is not handed in in due time (e.g. after March 31).
The DEHSt is authorized to freeze the holder's trading account which makes a transferral of certificates to third parties impossible.
The reactivation of the account can only be granted if the registered holder successfully provides the respective emission report or the authority has the company evaluated ex officio.
With the authorization to issue an expert's report also the duty of payment to the company is determined. The estimanted subset is apparent from the receipt. In case of neglect of the payment duties, penalty payments can be charged (approx. €40,- per ton).
If a breach of the rules in the transmission of rights is detected, the respective company's name will be published on the internet (according to the Greenhouse Gas Emission Trade Law - TEHG , and with permission of the German Emissions Trading Authority - DEHSt).
The DEHSt is also responsible for the administration and management of the national register. In the electronic data base of the national register the companies and their actions of trade are recorded.
The authorities open an account for each market participant where the following data is officially registered:
- account numbers / account relationship
- Allotment / release of certificates (on the part of DEHSt)
- Ownership and transferral of certificates (on the part of the company)
According to law, the saved data / information must be accessible and available to the owner / holder at any time.
The transfer of certificates / emission rights to the account of a buyer is backed up with with an entry in the accounting sector. This entry of a transfer of certificates to the buyer's account can only take place on demand of the seller.
On grounds of the responsible EU-commission's resolution, every legal and natural person of full age is allowed to trade with emission rights.