27 June 2023

Icelandic GO System – Update

On the 27th of April 2023, the AIB board concluded a compliance assessment against its Icelandic member Landsnet into a possible breach of the AIB’s EECS. At that time, the AIB issued a rectification order, and, pending its implementation, suspended all exports of Icelandic GOs until further notice. However, having worked with Landsnet to resolve the issue, the AIB board conditionally lifted the suspension on 1 June 

The RECS Secretariat is engaging closely with market participants that are impacted by this matter and supporting the efforts of all involved to reach a permanent resolution. On behalf of members, RECS has advocated for greater transparency when such issues arise, including, where possible and appropriate, public notifications of compliance assessments being launched, along with clear timetables for any decisions or actions that may subsequently be required. The AIB has confirmed its willingness to take this into account, balancing the need of transparency and confidentiality. The specific rules in question in this matter are: 

EECS rule C3.3.14: 

Where the Product Rules for an EECS Product contain a Legislative Disclosure Scheme, Scheme Members shall, to the extent reasonably practicable, put in place appropriate mechanisms to ensure that EECS GOs in respect of the relevant Output are used as the sole proof of the qualities of the associated Output according to the relevant Product Rules and that no form of Disclosure is used in relation to Output to which such an EECS GO relates other than in connection with the cancellation of that EECS GO. 

EECS Rule C3.3.1 

An EECS GO shall only be issued in respect of Output which has not been and is not being otherwise Disclosed, including by the Issue of any other Certificate of any variety (save to the extent permitted under Section C8) except, in the case of an EECS GO derived from, and incorporating, the relevant electronic data from one or more National Scheme Certificates, where such National Certificate(s) has/have been withdrawn or cancelled in order for it/them to be replaced by that EECS GO and the Certificate according to the National Certification Scheme has not been and is not being used for Disclosure prior to Withdrawal or Cancellation 

The RECS Secretariat invites members and other stakeholders with concerns to contact Secretary-General Adam White at a.white@recs.org.