Complex legislation with major financial impact

The EU ETS (Emissions Trading System) is the European mechanism designed to reduce emissions of CO₂ and other greenhouse gases.

Companies receive or purchase emission allowances and must surrender enough allowances each year to cover their actual emissions. Companies that emit less can save or trade allowances, while those that emit more must purchase additional allowances.

In this way, the EU ETS incentivises companies to reduce emissions and invest in long-term sustainability.

Today, ETS obligations directly impact operating costs, margins and long-term financial planning. At the same time, European legislation is evolving rapidly and becoming increasingly complex every year.

For many companies, it is simply unrealistic to maintain all the required expertise internally.

This creates significant risks:

• missing out on free emission allowances
• financial penalties for incorrect or late reporting
• unnecessary compliance costs
• incorrect forecasting of future ETS exposure

Even small reporting errors can have major financial consequences.

Full ETS support with Encon

Encon fully supports ETS companies in all aspects related to CO₂ reporting, allowances and compliance.

Our support includes:

• complete ETS guidance: from reporting to communication with authorities
• a single point of contact for VEKA, VBBV and external verifiers such as SGS
• proactive follow-up of legislative changes
• strategic support to ensure obligations remain correct and proportionate
• continuity and knowledge retention independent of internal staffing

Whether you have limited internal capacity or simply want maximum certainty, we adapt our support to your organisation.

This allows your internal teams to stay focused on operations while Encon safeguards compliance and reporting quality.

In-depth ETS expertise, independent and focused on your interests

For more than 20 years, Encon has supported industrial companies in their energy transition and built extensive expertise within the EU ETS framework.

Today, we actively support more than 20 ETS companies across sectors including:

• chemicals
• building materials
• food industry
• metals and manufacturing

Our clients include companies such as Boortmalt, Nelissen, Etex, Nippon Shokubai, Aperam and Wienerberger.

As an independent consultancy, we closely monitor legislative developments and actively defend our clients’ interests within the regulatory framework.

We maintain regular contact with stakeholders such as VEKA, VBBV and external verifiers, while our broader experience with EBOs, energy studies and sustainability projects allows us to approach ETS obligations strategically rather than purely administratively.

Financial certainty and operational continuity

Accurate ETS reporting is far more than an administrative obligation — it is a strategic financial lever. Encon helps companies minimise risks, maximise allowances and ensure long-term continuity. For example, one of our clients was missing out on approximately €200,000 in free emission allowances annually due to an incomplete interpretation of the legislation. With Encon’s support, this resulted in more than €1,000,000 in additional value over a five-year period.

Why companies choose Encon

• Independent advice focused solely on your interests
• Proven expertise in complex ETS dossiers
• Direct communication with authorities and verifiers
• Reduced internal workload and compliance risk
• Strategic support with long-term financial impact