We are currently in a period of transition where RED II has been published and there are clear provisions for the issuing of GoO for renewable gas, as they have had applied to renewable electricity under RED I. However, at the national level only a limited number of registries have been appointed as “competent bodies” under ART 19 RED II who can therefore issue GoO according to the directive.
Instead ERGaR have adopted the term CoO, to describe documentation of renewable gas injections, that may hold the same information as a GoO under Article 19 RED II but may not have been created by a national biomethane registry who has been appointed a “competent body”. A CoO may also include additional information, for example information of greenhouse gas emission intensity or a Proof of Sustainability issued by a recognised voluntary scheme.
CoO are primarily designed to meet the demand of consumers for a method of disclosing their use of renewable gas which, depending on the countries and the reporting methodology, can have various benefits. These benefits are largely related to corporate emissions reporting and statutory uses. The Scheme is designed to evolve as the market develops and the implementation of RED II takes place across Europe and other sectors, e.g. the EU ETS.
The “ERGaR CoO Scheme” is organised and operated by the European Renewable Gas Registry (ERGaR) aisbl to facilitate the cross-border title transfer of Certificates of Origin (CoO) between participating National Biomethane Registries.
The Scheme is in the final stages of development and is expected to go-live soon.
Who is the Scheme for?
National biomethane registries who are operating with or without a government mandate and may or may not have been appointed by their government as the competent body under RED II.
By joining the Scheme a national biomethane registry is able to provide a large market for its participants, being all the accounts in the registries of the other participating National Biomethane Registries.
The ERGaR CoO Scheme Rules describe the functions of the Scheme and how it operates, including provisions for how the rules can be updated from time to time.
When the Scheme is live they will be made publicly available in order to provide a common understanding for the Scheme Participants and other stakeholders (e.g. economic actors and government regulators).
National biomethane registries joining the Scheme will sign a Participation Agreement with the Scheme Operator (ERGaR) which gives the parties a legal basis for the Scheme’s operation and covers topics such as liability, fee payment and confidentiality.
The agreement obliges the national biomethane to follow the Scheme Rules.
ERGaR provides National biomethane registries who want to become Scheme Participants with activation guidelines and checklists on the registration procedure. Please contact Flore Belin, ERGaR Assistant Secretary General, for further information.
In order to be admitted to the ERGaR CoO Scheme a national biomethane registry must:
- maintain independence from economic operators;
- not own CoO (or other similar documents) or participate in markets associated with Biomethane Certificates (other than the functions defined in their foundation documents);
- be trustworthy to carry out operations in a professional and transparent manner, adhering to the relevant laws and regulations;
- have an auditable system for the evidence relating to the issuing, handling and cancelling the CoO
- follow appropriate auditing procedures including conducting external audits that confirm the accuracy of their processes for generating CoO
- keep any evidence for a minimum time period of five years;
- accept responsibility for the preparation of all relevant information for the auditing of their operations relating to their participation in the ERGaR CoO Scheme;
- have appropriate risk management procedures in place to identify potential risks arising from its activities within the ERGaR CoO Scheme.
IT- and communication interface
National biomethane registries, as Scheme Participants of the ERGaR CoO Scheme, will be given an account in the ExtraVert Platform, the IT-solution enabling the CoO transfers.
They will need to implement the necessary processes for sending and receiving data packages, in the form of XML files, to and from other system participants via their account.