Member Article

UK Logistics firms unaware of carbon reporting obligations

It’s environment focus week on Bdaily, and we are looking at what the low-carbon economy really means for UK SMEs, as well as picking apart the nuts and bolts of adapting business to “go-green.“

Companies may be failing to meet reporting obligations under the European Union Emissions Trading System (EU ETS), according to a survey of 50 UK logistics professionals.

The research from law firm Thomas Eggar LLP, shows that three quarters of respondents are either aware of the EU ETS, but find it difficult to understand, or not aware of it at all.

The System is designed to combat emissions, and covers power stations and industrial sites across 30 countries, whose carbon emissions make up almost 50% of Europe’s total.

It caps the total emissions allowed, and allowance certificates adding up to the cap are issues to the companies regulated by the scheme.

Those companies that exceed their allowance must purchase extra certificates, and those that fall short of the allowances are allowed to sell surplus certificates, creating a financial incentive.

Matthew Bridger, Associate at Thomas Eggar LLP, said: “Unfortunately, the EU ETS has been subject to many revisions and there are now proposals for yet more changes. This uncertainty has made it difficult for logistics companies to properly assess and participate in the system. Also, some have heavily criticised the EU ETS, which will have had an impact on compliance with the system.”

EU ETS applies only to firms operating installations with a rated thermal input above 20 MW, or those carrying out certain activities, such as processing ferrous metals.

Thomas Eggar suggest companies unsure of their position should seek advice from the Environment Agency, as there are heavy penalties for non-compliance.

This was posted in Bdaily's Members' News section by Tom Keighley .