In 2004 and 2005, the UK worked on carbon capture and storage (CCS) being included in the EU Emissions Trading Scheme (ETS). This develop ed monitoring and reporting guidelines (MRG) for capture, transpo rt and injection, wit h storage to be regulated under a separate framework. Since this was reported at GHGT8, some substantial developments from the European Commission (EC) have evolved, whi ch prompted further work by the UK. In particular this work has provided new MRG speci fically for geological storage sites, including for leakage from storage sites, and for enhanced oil recovery. T hese will be described. During this time, t he IPCC published its 2006 IPCC Guidelines for National Greenhouse Gas Inventories. The k ey methodolo gical principles for environmentally-sound CCS established in these guidelines should form the basis for EU ETS accounting, and these will be briefly described. In 2006/7 the EC issued revised M RG to cover Phase II of the EU ETS (2008-2012). These now required CCS projects to be ‘opted-in’ under a case-by-case approval process (Article 24). The UK government proceeded with an ‘opt-in’ applicatio n for a project nominated by the Carbon Capture and Storage Association (CCSA). The EC have now proposed to fully include CCS in the ETS for Phase III (from 2013) as described in the proposed ETS Directive (23 January 08). The EC have also established their own process to develop CCS MRG from the UK MRG (Nov 2007) and this is being reported separately by Groenenberg and Wartmann at GHGT9. So an evolving process for CCS in the EU ETS, but one which has helped to establish some fundamental principles for including CCS in an y emissions trading scheme.