In supervising and enforcing the laws and regulations of the European Emission Trading System (EU ETS) in the Netherlands, the NEa focuses on the prevention and resolution of violations. Our main objective is to ensure compliance. Given the significant financial interests tied to trading allowances, and the high number of companies taking part in EU ETS, the NEa's enforcement efforts help maintain the integrity of the EU ETS for all stakeholders involved. 

In carrying out its tasks, the NEa adheres to the following principles:

  • The NEa treats companies fairly and equally. This means that it makes careful and uniform assessments
  • The NEa actively promotes compliance by implementing preventive measures (compliance assistance), including offering information on our website and hosting webinars in advance of upcoming legislation
  • Sanctions are proportional to the severity of the violation
  • In the case of punitive sanctions, such as administrative fines, culpability is a key factor —unless overridden by legislation, as seen with violations of the submission obligation under the EU ETS

The board of the NEa has various supervision and enforcement powers to enforce the EU ETS rules. 

Supervision and monitoring

The NEa monitors compliance with the rules and legislation concerning EU ETS. For this, the NEa takes measures such as: 

  • Requesting information: The NEa can request information from companies about their emissions and other relevant data
  • Conducting controls and inspection: The NEa has the authority to conduct site visits and inspections to verify whether companies comply with legislation

Enforcement

When violations occur, the NEa can impose administrative sanctions. Administrative sanctions are generally divided into reparatory/restorative and punitive sanctions. Punitive sanctions are aimed at punishing the offender, while restorative sanctions are aimed at ending or reversing the violation or its consequences, or preventing recurrence. This distinction is not absolute: punitive sanctions can also be aimed at preventing recurrence (as a form of general prevention). Administrative sanctions include measures such as:

  • Issuing a warning. This will only be used in situations where the violation is stopped and of minor significance
  • Issuing an order that includes incremental penalty payments. This refers to a financial penalty designed to enforce compliance with a legal obligation, such as requiring a shipping company to submit a monitoring plan
  • Imposing an administrative fine. The NEa can (and some cases is required by law to) impose an administrative fine

Conservative estimation of emissions data

The NEa can – under certain circumstances – make a conservative estimate of the aggregated emissions data at company level. For instance, when a shipping company fails to submit the aggregated emissions data to the NEa on time, or when the data is not verified as satisfactory according to legal requirements.