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Emissions Trading

Is emissions trading mandatory for all companies?

No, this system applies only to large industrial facilities exceeding established emission thresholds.

What is the MRV system?

It is a Monitoring, Reporting, and Verification system mandatory for accurate accounting of emissions.

How can I sell remaining allowances?

Allowances can be sold at special auctions or through direct contracts with other companies, with legal assistance.

What is the fine for exceeding the limit?

Fines depend on the volume of excess emissions and are regulated by the Code of Administrative Offences.

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Emissions Trading and Environmental Market Regulation

Emissions Trading is a market mechanism aimed at reducing greenhouse gas emissions. Within the framework of the Association Agreement with the EU, Georgia is actively working on establishing a National Emissions Trading System (ETS). This mechanism will allow large polluters (e.g., cement plants, metallurgical industries) to buy or sell emission allowances. Companies that reduce emissions below their cap can sell excess allowances, generating additional revenue. However, participating in this market requires complex legal and technical procedures: Monitoring, Reporting, and Verification (MRV) of emissions.

This service is designed for industrial companies falling under regulations, as well as investors wishing to participate in the emissions market. Our lawyers will help you prepare for new regulations and avoid environmental fines.

What Does the Emissions Trading Service Cover?

Specialists on Legal.ge offer:

  • MRV System Implementation: Legal structuring of the emissions monitoring, reporting, and verification plan and submission to the Ministry of Environmental Protection.
  • Trading Agreements: Drafting contracts for buying and selling emission allowances on local and international markets.
  • Audit and Compliance: Checking enterprise activities against the Law on Environmental Liability and Climate Change Strategy.
  • Litigation: Appealing fines imposed by the Department of Environmental Supervision if related to incorrect emission calculations.

Common Real-World Scenarios and Needs

Companies in the emissions trading sector face the following challenges:

  • Cap Exceedance: A factory exceeded its annual emissions limit and urgently needs to purchase additional allowances to avoid penalties.
  • Verification Issue: An independent auditor (verifier) did not confirm the company's emissions report, requiring legal response.
  • Export to EU: A company wants to export products to Europe, where the Carbon Border Adjustment Mechanism (CBAM) applies. Documentation of emissions according to international standards is required.

Georgian Legal Framework

Regulated by the Law on Environmental Protection, the Law of Georgia on Ambient Air Protection, and the EU Association Agreement. A specific Law on Climate Change is expected to be adopted in the near future.

Service Process

The process includes:

  1. Audit: Checking emissions inventory.
  2. Documentation: Developing the MRV plan.
  3. Registration: Registering in the database.
  4. Transaction: Legal support for allowance trading.

Why Choose a Specialist on Legal.ge?

Emissions trading is a new and complex field in Georgia. Our lawyers will help you turn environmental obligations into business opportunities.

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Specialists for this service

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