ABSTRACT
This chapter explains the compliance cycle of the EU emissions trading system (ETS). It provides the findings of an empirical study of the compliance mechanism of the EU ETS in six different member states: Germany, the Netherlands, Poland, Greece, the United Kingdom and Hungary. These member states were chosen because they represent both smaller and larger countries as well as old and new member states. The validation process involves active correspondence with the applicant, and usually requires the remedying of omissions at least once. Interestingly, the UK has developed and installed an online Emissions Trading System Workflow Automation Program (ETSWAP) in which all monitoring plans and reports must be submitted in a standardized electronic format. This online system is capable of checking anomalies relative to previous entries. The yearly emissions registry cycle is also important for the ex-post control mechanism because here the verifiers check the annual emissions reports against the monitoring plan.
