OPRED has opened the 2026 compliance year with a clear notice to offshore operators. Published on 20 January, the communication highlights a new UK ETS Activity Level Report (ALR) template, a 31 March 2026 submission deadline, and a reminder on evidence standards for Monitoring Methodology Plans (MMPs). (gov.uk)

The letter, issued on behalf of the UK ETS Authority, sets out who should use which reporting route. Operators that received free allocation in 2021–2025 with no change to electricity‑generator status are classed as Type 1 and should use the online ALR template. Others moving into or changing free allocation status from 2026 are Type 2 and must complete the manual template sent by their regulator. (assets.publishing.service.gov.uk)

For Type 2 incumbents, the historical activity level used to calculate 2026 free allocation is based on 2023 data, so teams should check that the value in the ALR matches the figure submitted during baseline reporting. If a manual template has not arrived, OPRED asks firms to get in touch. (assets.publishing.service.gov.uk)

On MMPs, OPRED reiterates that operators must use the most accurate data sources practicable, with any derogations supported by a robust technical explanation or the regulator’s unreasonable‑costs tool. The note also points installations to the latest UK ETS technical guidance and templates. (assets.publishing.service.gov.uk)

Why this matters now: activity level data determines free allocation and underpins credible decarbonisation plans. The UK ETS Authority refreshed sector guidance in 2025, including clarifications to free‑allocation rules and data‑flow controls, so 2026 reporting is a chance to lock in better data quality across the basin. (gov.uk)

There is momentum to build on. The North Sea Transition Authority reports flaring from UK offshore production halved between 2018 and 2022, with 2022 volumes down to 22 bcf-progress driven by tougher consents and operator upgrades. (nstauthority.co.uk)

Regional monitoring echoes that trajectory. OSPAR’s assessments show broad declines across key atmospheric pollutants over the last decade, alongside long‑term improvements in chemical spill performance-evidence that consistent reporting and enforcement deliver results. (oap.ospar.org)

Global context adds urgency. After a brief dip, worldwide gas flaring rose again to around 151 bcm in 2024, emitting an estimated 389 MtCO2e including methane-reminding the sector that gains are fragile without sustained compliance and investment. (worldbank.org)

Decommissioning is accelerating too. According to the NSTA, operators spent a record £2.4 billion on decommissioning in 2024, with around £27 billion projected for 2023–2032 and a long‑term UKCS scope near £44 billion. Strong data and planning reduce costs for taxpayers and cut emissions during end‑of‑life work. (nstauthority.co.uk)

What to do this quarter: validate 2024 and 2025 activity data against regulator‑returned files; decide Type 1 or Type 2 status early; complete the new ALR and set an internal cut‑off ahead of 31 March; revisit MMP evidence and document any justified derogations; and brief boards on how accurate reporting supports flaring and energy‑efficiency projects through 2026. (assets.publishing.service.gov.uk)