Solution: Carbon Offsetting Projects EU-ETS 

EU Emissions trading system (EU ETS)
The EU ETS, established by Directive 2003/87/EC, is the world’s first and largest international “cap-and-trade” system. It sets an overall cap on GHG emissions from covered sectors and allows companies to buy and sell allowances as needed. This approach reduces emissions cost-effectively while maintaining flexibility for businesses.

Key requirements under EU ETS include:

• Development and approval of a monitoring plan detailing data collection, calculation methods, and quality assurance procedures.

• Annual reporting of verified emissions data in line with the Monitoring and Reporting Regulation (MRR).

• Independent verification by an accredited body, confirming the completeness and reliability of reported data.

The system applies to major emission-intensive sectors such as power and heat generation, oil refineries, iron and steel, cement and lime, pulp and paper, and certain aviation activities. Participation is mandatory for eligible installations.

Benefits of EU ETS verification include: regulatory compliance, enhanced credibility with stakeholders, improved emissions risk management, and operational efficiency through better data insights.

Carbon border adjustment mechanism (CBAM)
To complement EU ETS and prevent carbon leakage, the EU has introduced the Carbon Border Adjustment Mechanism (CBAM), established under Regulation (EU) 2023/956. CBAM ensures that imports of carbon-intensive goods into the EU bear a carbon cost equivalent to EU-produced goods. This guarantees fair competition and reinforces climate objectives.

From 1 January 2026, companies importing products such as iron and steel, cement, aluminium, fertilizers, electricity, and hydrogen will be required to submit CBAM declarations, including verified data on embedded emissions.

TÜV AUSTRIA’s CBAM Verification service ensures that these declarations are accurate, consistent, and compliant with the regulation. Independent verification helps companies avoid penalties, ensures reliability of reported data, and provides readiness before mandatory requirements take effect.

Benefits of CBAM verification include: reliable submission of reports, protection against financial penalties, alignment with EU climate regulations, and increased stakeholder trust.

Why TÜV AUSTRIA?
With proven expertise in greenhouse gas verification, non-financial reporting, and sustainability standards, TÜV AUSTRIA supports companies throughout the compliance process. Whether preparing annual EU ETS emissions reports or CBAM declarations, our accredited experts provide:

• Independent and transparent verification

• In-depth technical knowledge of EU climate legislation

• A reliable partner to safeguard regulatory compliance and credibility

Contact us to learn more about EU ETS and CBAM verification services and how TÜV AUSTRIA can support your organization in meeting Europe’s climate compliance requirements.