The European Emission Trading System has changed and TheCompensators* have responded. Transactions with emission allowances are now handled on the European level and not on the national level anymore. As a result of the system change, the distinct identification number of each allowance is not visible to the buyer anymore. Instead, the system generates so-called transaction ID numbers per purchase or deletion order. That means that each ID number now refers to a whole package of either bought or deleted allowances.
From our point of view, the new EU ETS procedures are less transparent. After all, emission allowances only exist in form of ID numbers in the system!
The Compensators* remain true to our transparency credo. We have therefore developed our own new system for attributing distinct numbers to all the pollution rights we destroy. This is how the first deleted certificate looked after its deletion by TheCompensators*:
The letters ‘TC‘ indicate that the ID was generated by TheCompensators*. The remaining code EU138288 is the transaction ID generated by the EU ETS for the package of allowances deleted on November 27th 2013. The ordinal number -0001 indicates that this is the first deleted certificate from this particular package.
Our ID system is based on the ID numbers attributed to the deletion of pollution rights since this is the step that counts. On November 27th 2013 TheCompensators* deleted 1300 emission allowances. They had been purchased one week earlier, on November 11th 2013 with the ID number EU138065.
Each deletion procedure follows a ‘four-eyes principle’: To carry out the transaction ‘destruction of units’ in our ETS account, one authorised member of TheCompensators* has to initiate the operation and another team colleague has to confirm it.