In this article, we will look at the monitoring plan under the Fuel Emissions Trading Act (BEHG) and find out who is affected by it and what requirements result from it. We will also look at the DEHSt presentation from 04.07.2023 to get a comprehensive overview of the national emissions trading system (nEHS) in Germany.
Who is affected?
The Fuel Emissions Trading Act (BEHG) has an impact on biomethane taken from the natural gas grid. Since this year, biomethane has been subject to national emissions trading. From January 1, 2023, distributors who incur the energy tax for biomethane for the first time will also be subject to the BEHG. As a rule, these are biomethane traders or BGAAs.
The Emission Reporting Ordinance (EBeV 2030) regulates the determination of emissions, reporting and verification under the BEHG from 2023 until 2030. It is important to note that fuel emissions from sustainable biomass can be set at an emission factor of zero. However, separate proof of the sustainability of the biomass used must be provided for this.
What are the requirements for the monitoring plan under the Fuel Emissions Trading Act (BEHG)?
The reporting obligation under the BEHG generally relates to CO2 emissions from all energy sources regulated by the Energy Tax Act, including biomethane. However, fuel emissions from sustainable biomass can be set with an emission factor of zero, which means that no emission allowances have to be surrendered for them.
In order to be able to use the zero emission factor for biogenic emissions in accordance with Section 8 (2) EBeV 2030, proof of the sustainability of the biomass used must be submitted to DEHSt. This proof must be provided along the supply chain and a mass balance must be kept. Certification along the supply chain is a prerequisite for recording and submitting the proof.
Previously, only biomethane plants with a rated thermal input of at least 2 MW were certified in accordance with the Biomass Electricity Sustainability Ordinance. Plants that are below this threshold and whose biomethane is fed into the natural gas grid may now have to be certified. At present, the functionality for transferring the sustainability certificates from the BLE's Nabisy database has not yet been technically set up. Until this is done, a transitional provision applies, according to which electronic proof can be transmitted via a recognized certification system (e.g. SURE).
DEHSt presentation from 04.07.2023
The DEHSt (German Emissions Trading Authority) held a presentation on the national emissions trading system (nEHS) in Germany, which serves as a package of measures to safeguard climate targets. It includes CO2 pricing for sectors outside the EU ETS. The BEHG forms the legal framework for the nEHS from 2021. DEHSt is responsible for the implementation of the nEHS and the EU ETS. The revenue from certificate trading flows into the Climate and Transformation Fund, which finances various climate protection measures as well as national and international climate protection projects.
Fundamental aspects of the monitoring plan
There is a simple OB, which is used if only default values are used in accordance with Annex 2 EBeV 2030. For other cases, there is the regular OB, which is used in particular for individual determination of calculation factors and fuel quantity determinations without reference to the Energy Tax declaration. The monitoring plan ensures compliance of emissions reporting based on approved monitoring methods.
The monitoring plan forms the basis for the preparation of all emissions reports from 2024 onwards. It must be prepared for the trading period up to 2030 by 31.10.2023 via the DEHSt platform using the electronic templates provided for this purpose (Form Management System, FMS). The monitoring plan describes the monitoring methodology for calculating fuel emissions. In principle, the monitoring of emissions must be transparent, complete, comparable, consistent and accurate. New installations (i.e. installations commissioned after 29.02.2020) must submit the monitoring plan before the date on which they first become subject to the obligations under Section 5 TEHG. This means that monitoring plans do not have to be submitted until commissioning, but before the first emission of greenhouse gases. The monitoring plans must be submitted and signed electronically via the Virtual Post Office (VPS).
Changes to the monitoring plan
A distinction must be made between significant and non-significant changes to the monitoring plan. This results in different notification obligations. Significant changes are, for example
- Inclusion of material flows and emission sources not previously included in the monitoring plan
- Change in the level applied
- Change of monitoring method, for example from standard method to mass balance or from standard method to continuous emission measurement
- Change of measuring instrument if the proof of compliance with the required level changes (except replacement of a measuring instrument with a calibrated measuring instrument)
- Change of laboratory (except change to a laboratory accredited according to DIN EN ISO/IEC 17025)
In the event of a significant change, the monitoring plan must be adapted immediately.
Non-significant changes are changes that serve to correct what has already been described in the monitoring plan and all other exceptions to the above-mentioned significant changes. These include, for example
- Changes of address, change of contact person for the installation or changes of responsibilities within the installation
- Capacity change of an installation without changing the emission permit and without including new emission sources or substance streams, change of installation components or technologies used in the installation, change of installation category or classification of substance streams, without having to comply with higher level requirements according to the MVO compared to the approved monitoring plan
- Change of the commissioned laboratory, if an accredited laboratory within the meaning of Art. 24 para. 1 MVO is commissioned
- Change in the collection of data by the supplier, if it is ensured by specifications in the monitoring plan that the requirements of the MVO are complied with and evidence of this is provided
All non-significant changes to the monitoring plan should be collected and reported to DEHSt together with the next significant change
Form Management System (FMS)
The FMS enables users to create the monitoring plan efficiently. In addition to direct data entry, the system also supports the import of monitoring plans. Version management is also possible. The monitoring plan can also be set to two modes.
Read mode: In read mode, the information in the monitoring plan can only be read.
Edit mode: In edit mode, all functions for editing the monitoring plan are enabled.
Figure 1:
Structure of the forms in the FMS [5]
Figure 2:
Directory tree in the FMS [5]
The forms marked in bold are always created initially in the monitoring plan. All other forms can be created by the system operator as required. To add forms, the higher-level form must be selected in the directory tree. For example, if a "Measuring device" form is to be created, the system operator first selects the "Cover sheet" form. The possible forms that can be created then appear above the directory tree (see Figure 2). Only forms that are required due to the system constellation should be created. If a monitoring plan is to be submitted to DEHSt, the file must be exported as a ZIP file. The file must then be forwarded to the DEHSt via the VPS.
Virtual mailroom (VPS)
Electronic communication with DEHSt takes place via the Virtual Post Office (VPS). The VPS is a kind of electronic post office to which messages can be sent securely and from which incoming messages must be collected. The VPS ensures that only the intended recipient can decrypt and read the message.
Signature
A signature card (SmartCard) with a valid qualified signature (QES) and a suitable card reader (SmartCard reader) are required to send messages via the VPS.
Finally, it should be mentioned that the DEHSt platform is used for the communication and submission of monitoring plans and emission reports. It is important to set up a compliance account in the nEHS registry in order to submit data. Data collection is done in the Forms Management System (FMS) and once the monitoring plan is created in the FMS, it is exported, uploaded and signed and submitted via the DEHSt platform.
Sources
[1] Welcome and introduction to the event program
[2] Creating the monitoring plan in the form management system (FMS)
[3] General introduction to emissions reporting and monitoring
[4] Electronic communication with the German Emissions Trading Authority
[5] Guidance on the preparation of monitoring plans and emission reports for stationary installations in the 4th trading period (2021 to 2030)
