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To participate in the EU ETS, companies or individuals have to open an account in the Union Registry. To open an account, they must send a request to the national administrator, who collects and checks all supporting documentation.
Non-ETS emissions include the following sectors: transport, agriculture, waste, industrial emissions outside the EU ETS and the municipal and housing sector with buildings, small sources, households, services, etc.
The EU ETS applies in all EU Member States, the European Free Trade Association countries (Iceland, Liechtenstein and Norway) as well as Northern Ireland for electricity generation (under the Protocol of Ireland and Northern Ireland ).
The EU ETS works on the cap and trade principle. A cap is a limit set on the total amount of greenhouse gases that can be emitted by the installations and aircraft operators covered by the system. The cap is reduced annually in line with the EUs climate target, ensuring that emissions decrease overtime.
Sectors gases Participation in the EU ETS is mandatory for companies in these sectors, but: in some sectors, only operators above a certain size are included. certain small installations may be excluded if governments put in alternative measures to cut their emissions.

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The EU ETS: Covers around 45% of the EUs greenhouse gas emissions. Operates in all EU countries plus Iceland, Liechtenstein and Norway.
Participants must be eligible to bid ing to EU rules1. Eligible under these rules are: Compliance buyers, bidding on own account, including any parent companies, subsidiaries and affiliates. Investment firms and credit institutions, bidding on own account or on behalf of clients.
Annual compliance cycle Every year, operators must submit an emissions report. The data for a given year must be verified by an accredited verifier by 31 March of the following year. Once verified, operators must surrender the equivalent number of allowances by 30 April of that year.

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