EU Emissions Trading System (EU ETS)

The EU Emissions Trading System (ETS) is the European Union’s primary instrument for reducing greenhouse gas emissions. It operates under a “cap‑and‑trade” framework, where a maximum limit is placed on total emissions from covered activities, and operators must hold and surrender emission allowances equal to their verified emissions each year.

EU ETS applies to operators of covered installations in energy‑intensive sectors (such as producers of oil, steel, cement, iron and aluminum, glass, and pulp and paper, among others) as well as certain aviation activities. Covered installations must monitor emissions, submit an Annual Emissions Report (AER), have it independently verified, and surrender sufficient allowances by regulatory deadlines.

Robust MRV ensures that emissions data is accurate, transparent, and comparable across the system. Independent verification is a mandatory requirement and plays a critical role in maintaining the integrity and effectiveness of the EU ETS, while enabling operators to demonstrate compliance with regulatory obligations.

SCS Global Services Europe B.V. provides independent assurance services across GHG emissions programs. It is expanding its capabilities to deliver accredited verification and independent pre-verification assessments aligned with EU ETS requirements and broader EU regulatory frameworks. These services are non-advisory and do not include system design, data development, or implementation support.

SCS Europe submitted its accreditation application to become an EU ETS verifier in early 2026 for:

• Activity Group 4 – Production of (non)‑ferrous metals
• Activity Group 8 – Chemical industry activities

This initiative reflects SCS’ long-term commitment to serving regulated operators with reliable, independent, and technically rigorous verification services.

Yes. SCS Europe offers EU ETS readiness and pre-verification services that provide independent assessment of an operator’s systems and data in advance of formal verification. SCS Europe brings experience across EU regulatory programs, including ETS, CBAM, EUDR, and RED III, allowing for a consistent approach to GHG-related assurance from pre-verification through final verification.

The EU ETS Readiness Tool is a free, online self-assessment developed by SCS Europe. It allows operators to evaluate their readiness for EU ETS verification by identifying potential gaps or areas of misalignment in monitoring, reporting, and control processes.

Pre-verification is a voluntary, non-accredited service conducted with the same technical rigor as formal verification, without issuing a verification opinion. It provides a detailed review of an operator’s emissions monitoring and reporting systems and identifies potential material misstatements, weaknesses in monitoring plans or data flows, and risks related to compliance with the EU ETS Monitoring and Reporting Regulation (MRR).

Early identification of these issues provides greater visibility into verification readiness and potential compliance risks.

As part of pre-verification engagements, SCS Europe offers informational sessions for installation operators and responsible staff. Sessions provide an overview of:

• EU ETS principles and requirements
• Legal obligations and timelines
• Monitoring, reporting, and verification processes
• Common findings observed during ETS verifications

The goal is to ensure teams are informed on requirements, timelines, and verification expectations.

Pricing for EU ETS services is determined on a case-by-case basis, depending on factors such as the activity group, size and complexity of the installation, data quality, and the scope of services required (e.g., readiness assessment or pre-verification). This approach ensures services are appropriately scoped and aligned with regulatory requirements.

Operators can begin by using the free EU ETS Readiness Tool to assess their current state of readiness. For those seeking further evaluation, SCS Europe offers independent pre-verification services that provide detailed insight into verification readiness.