The EU ETS Registry is a central part of the European Union’s Emissions Trading System (EU ETS) which came into effect on 1 January 2005. It is a common registry for the EU Member States, as well as Norway, Iceland, Liechtenstein and Northern Ireland, each of which maintains a national EU ETS Registry. The national registries are connected through an electronic network administered by the respective countries and the European Commission, as the EU ETS Registry is technically operated by the European Commission, which places the registry at the disposal of the member states.
The EU ETS registry contains allowances which are electronic units. As EU allowances only exist in electronic form, they are held in electronic registries where ownership is recorded. Each allowance represents one ton of greenhouse gases which can be used to cover emissions from companies obligated to participate in the EU-ETS. EU allowances can be traded on the carbon allowance market and between accounts in the EU ETS registry. Account holders with an EU account may also make transfers to the Swiss emissions trading system and trade Swiss allowances within the EU ETS registry.
The EU ETS is a cornerstone of the EU’s efforts to combat climate change and the primary tool for reducing industrial CO2 emissions cost-effectively. The market is based on a “cap and trade” model. This means there is a cap on the total volume of greenhouse gas emissions. Over time, the cap is lowered to ensure that overall emissions decline year by year.
The directive was transposed into Danish law by the Danish Emission Allowances Act (Lov om CO2-kvoter), which is administered by the Danish Energy Agency and the Danish Business Authority.
The two branches of EU ETS: ETS1 and ETS2
The EU ETS registry is a common registry for the scheme’s two branches, ETS1 and ETS2, but the two branches operate independently of each other.
ETS1
ETS1 is the original scheme, covering energy companies and energy intensive businesses, collectively referred to as operators, as well as the aviation and maritime sectors.
ETS2
ETS2 is a new branch of the carbon allowance scheme that covers fuel suppliers (regulated entities), such as fuel combustion in the construction industry, road transport and additional sectors that are predominantly small industries.
The scheme entered into force on 1 January 2025, but it will not be possible to open accounts for ETS2-covered companies until 1 January 2027. From mid-2026, the Danish Business Authority will contact all affected ETS2 companies directly to begin the process of opening ETS2 accounts.
The EU ETS Registry is a shared registry for both ETS1 and ETS2, but the two branches operate independently of each other. ETS2 will have its own type of CO2 allowance, which cannot be transferred or traded between the two branches. Trading accounts will be the only type of account through which it will be possible to trade allowances from both ETS1 and ETS2.
Accounts in the Danish EU ETS Registry
The Danish Energy Agency administers and determines which operators and aircraft operators are covered by the carbon allowance scheme and informs the Danish Business Authority accordingly. The Danish Business Authority then contacts the relevant operators and aviation businesses to request the information needed to open accounts.
The European Commission administers which maritime companies are covered by the carbon allowance scheme. The Danish Energy Agency is the competent authority in Denmark, but the Danish Business Authority contacts all covered maritime companies to open accounts in the EU ETS registry.
A Danish registered company or private individual may also choose to open a trading account in the Danish EU ETS Registry, which is a voluntary account type. Please note that companies and individuals holding a trading account in the Danish EU ETS Registry must be VAT registered in Denmark.
Verifier access - In addition to the above, the Danish EU ETS Registry also has access for verifiers, which can be used solely to verify greenhouse gas emissions related to Aircraft Operator Holding Accounts.
Account types in ETS1
There are five different account types in the ETS1 branch of the EU ETS Registry.
There are three different types of Compliance Accounts:
- Operator Holding Account (OHA)
- Aircraft Operator Holding Account (AOHA)
- Maritime Operator Holding Account (MOHA)
Trading Account – Voluntary accounts that you may request to have opened in the EU ETS Registry. Please note that companies and private individuals holding a Trading Account in the Danish EU ETS Registry are required to be VAT-registered in Denmark.
Verifier Access – Verifiers can gain access to the EU CO₂ Allowance Registry in order to verify emissions for aircraft operators.