MRV compliance cycle

The monitoring, reporting and verification (MRV) of emissions are crucial for maintaining the integrity of any emissions trading system. The yearly activities involving the monitoring, reporting, and verification of emissions, along with the surrender of allowances and the procedures followed by the competent authority for accepting emission reports, are commonly known as the “compliance cycle.” The Regulation 2023/2122, amending Implementing Regulation (EU) 2018/2066 and updating the monitoring and reporting of greenhouse gas emissions pursuant to Directive 2003/87, came into force on January 1, 2024. Additionally, in March 26, 2024, the EU Commission (EC) published a guidance document for Emissions Trading System (ETS) 2 regulated entities on monitoring and reporting