Each Member State shall, by 2020, limit its greenhouse gas emissions at least by the percentage set for that Member State in Annex II to this Decision in relation to its emissions in 2005.

Subject to paragraphs 3, 4 and 5 of this Article and Article 5, each Member State with a negative limit under Annex II shall ensure, including by making use of the flexibilities provided for in this Decision, that its greenhouse gas emissions in 2013 do not exceed its average annual greenhouse gas emissions during 2008, 2009 and 2010, as reported and verified pursuant to Directive 2003/87/EC and Decision No 280/2004/EC.

Subject to paragraphs 3, 4 and 5 of this Article and Article 5, each Member State with a positive limit under Annex II shall ensure, including by making use of the flexibilities provided for in this Decision, that its greenhouse gas emissions in 2013 do not exceed a level defined by a linear trajectory, starting in 2009, on its average annual greenhouse gas emissions during 2008, 2009 and 2010, as reported and verified pursuant to Directive 2003/87/EC and Decision No 280/2004/EC, ending in 2020 on the limit for that Member State as specified in Annex II.

Subject to paragraphs 3, 4 and 5 of this Article and Article 5, each Member State shall annually limit its greenhouse gas emissions in a linear manner, including by making use of the flexibilities provided for in this Decision, in order to ensure that its emissions do not exceed its limit in 2020 as specified in Annex II.

When the relevant reviewed and verified emission data are available, measures shall be adopted within six months to determine the annual emission allocations for the period from 2013 to 2020 in terms of tonnes of carbon dioxide equivalent.

Those measures, designed to amend non-essential elements of this Decision by supplementing it, shall be adopted in accordance with the regulatory procedure with scrutiny referred to in Article 13(2).

During the period from 2013 to 2019, a Member State may carry forward from the following year a quantity of up to 5 % of its annual emission allocation. If the greenhouse gas emissions of a Member State are below its annual emission allocation, taking into account the use of flexibilities pursuant to this paragraph and paragraphs 4 and 5, it may carry over the part of its annual emission allocation of a given year that exceeds its greenhouse gas emissions in that year to the subsequent years, until 2020.

A Member State may request an increased carry forward rate in excess of 5 % in 2013 and 2014 in the event of extreme meteorological conditions which have led to substantially increased greenhouse gas emissions in those years compared to years with normal meteorological conditions. To this end, the Member State shall submit a report to the Commission substantiating this request. Within three months, the Commission shall decide whether an increased carry forward can be granted.

A Member State may transfer up to 5 % of its annual emission allocation for a given year to other Member States. A receiving Member State may use this quantity for the implementation of its obligation under this Article for the given year or any subsequent years until 2020. A Member State cannot transfer any part of its annual emission allocation if, at the time of transfer, that Member State is not in compliance with the requirements of this Decision.

A Member State may transfer the part of its annual emission allocation that exceeds its greenhouse gas emissions for that year, taking into account the use of flexibilities pursuant to paragraphs 3 and 4, to other Member States. A receiving Member State may use this quantity for the implementation of its obligations under this Article for the same year or any subsequent years until 2020. A Member State cannot transfer any part of its annual emission allocation if, at the time of transfer, it is not in compliance with the requirements of this Decision.

In order to facilitate the transfers referred to in paragraphs 4 and 5 and increase their transparency, measures indicating the modalities for such transfers shall be adopted.

Those measures, designed to amend non-essential elements of this Decision by supplementing it, shall be adopted in accordance with the regulatory procedure with scrutiny referred to in Article 13(2).

By 2012, the Commission shall assess and report on the progress of the Community and its Member States towards the objective to reduce energy consumption by 20 % by 2020 compared to projections for 2020, as outlined in the Action Plan for Energy Efficiency which was set out in the Commission Communication of 19 October 2006.

If appropriate, in particular in order to assist Member States in their contributions towards meeting the Community’s greenhouse gas emission reduction commitments, the Commission shall, by 31 December 2012, propose strengthened or new measures to accelerate energy efficiency improvements.

Member States may use the following greenhouse gas emission reduction credits to implement their obligations under Article 3:

Member States should ensure that their policies for purchasing these credits enhance the equitable geographical distribution of projects and the achievement of an international agreement on climate change.

In addition to paragraph 1 and in the event that negotiations on an international agreement on climate change are not concluded by 31 December 2009, Member States may, for the implementation of their obligations under Article 3, use additional greenhouse gas emission reduction credits resulting from projects or other emission reducing activities in accordance with the agreements referred to in Article 11a(5) of Directive 2003/87/EC.

Provided that an international agreement on climate change as referred to in Article 1 has been reached, Member States may, from 1 January 2013, only use credits from projects in third countries which have ratified that agreement.

The annual use of credits by each Member State pursuant to paragraphs 1, 2 and 3 shall not exceed a quantity equal to 3 % of the greenhouse gas emissions of that Member State in 2005, plus any quantity transferred in accordance with paragraph 6.

Member States with a negative limit, or a positive limit of at most 5 %, as set out in Annex II, which are listed in Annex III, shall, in addition to credits used pursuant to paragraph 4, be allowed to use additional credits amounting to 1 % of their verified emissions in 2005 from projects in LDCs and SIDS each year, subject to compliance with one of the following four conditions:

Each year, a Member State may transfer to another Member State the unused part of its annual quantity equal to 3 % as specified in paragraph 4. Where a Member State’s annual use of credits does not reach the quantity in paragraph 4, the Member State may carry over the unused part of that quantity to subsequent years.

Member States shall, in addition, be able to use credits from Community-level projects issued pursuant to Article 24a of Directive 2003/87/EC towards their emission reduction commitments, without any quantitative limit whatsoever.

Member States shall, in their reports submitted pursuant to Article 3 of Decision No 280/2004/EC, include the following:

In the event that a Member State uses credits from project types that cannot be used by operators in the Community scheme, that Member State shall provide a detailed justification for the use of such credits.

The Commission shall, in its reports submitted pursuant to Article 5(1) and (2) of Decision No 280/2004/EC, evaluate whether the progress made by Member States is sufficient for them to fulfil their obligations under this Decision.

The evaluation shall take into account progress in Community policies and measures and information from Member States in accordance with Article 3 and Article 5 of Decision No 280/2004/EC.

Every two years, starting with the greenhouse gas emissions reported for 2013, the evaluation shall also include the projected progress of the Community towards meeting its reduction commitment and of Member States towards fulfilling their obligations under this Decision.

In the report referred to in paragraph 3, the Commission shall assess the overall implementation of this Decision, including the use and quality of CDM credits and the need for further common and coordinated policies and measures at Community level in the sectors covered by this Decision in order to assist Member States in meeting their commitments under this Decision, and shall make proposals as appropriate.

In order to implement this Decision, the Commission shall, where appropriate, make proposals to amend Decision No 280/2004/EC and adopt amendments to Commission Decision 2005/166/EC ( 9 ) with a view to the amending acts applying from 1 January 2013, to ensure in particular:

If the greenhouse gas emissions of a Member State exceed the annual emission allocation specified pursuant to Article 3(2), taking into account the flexibilities used pursuant to Articles 3 and 5, the following measures shall apply:

A Member State covered by paragraph 1 shall, within three months, submit to the Commission an assessment and a corrective action plan that includes:

The Commission may issue an opinion on the corrective action plan of the Member State in question.

Before issuing that opinion, the Commission may submit the corrective action plan to the Climate Change Committee, referred to in Article 13(1), for comments.

Within three months of the signature by the Community of an international agreement on climate change leading, by 2020, to mandatory reductions of greenhouse gas emissions exceeding 20 % compared to 1990 levels, as reflected in the 30 % reduction commitment as endorsed by the European Council of March 2007, the Commission shall submit a report assessing, in particular, the following elements:

On the basis of the report referred to in paragraph 1, the Commission shall, if appropriate, submit a legislative proposal to the European Parliament and to the Council amending this Decision pursuant to paragraph 1, with a view to the amending act entering into force upon the approval by the Community of the international agreement on climate change and in view of the emission reduction commitment to be implemented under that agreement.

The proposal shall be based upon the principles of transparency, economic efficiency and cost-effectiveness, as well as fairness and solidarity in the distribution of efforts between Member States.

The proposal shall allow, as appropriate, Member States to use, in addition to the credits provided for in this Decision, CERs, ERUs or other approved credits from projects in third countries which have ratified the international agreement on climate change.

The proposal shall also include, as appropriate, measures to allow for Member States to use the unused part of the additional usable quantity referred to in paragraph 3 in the subsequent years or transfer the unused part of that quantity to another Member State.

The proposal shall also include, as appropriate, any other measures needed to help reach the mandatory reductions in accordance with paragraph 1 in a transparent, balanced and equitable way and, in particular, shall include implementing measures to provide for the use by Member States of additional types of project credits or of other mechanisms created under the international agreement on climate change, as appropriate.

On the basis of rules agreed as part of an international agreement on climate change, the Commission shall propose to include emissions and removals related to land use, land use change and forestry in the Community reduction commitment, as appropriate, according to harmonised modalities ensuring permanence and the environmental integrity of the contribution of land use, land use change and forestry as well as accurate monitoring and accounting. The Commission shall assess whether the distribution of individual Member States’ efforts should be adjusted accordingly.

The proposal shall include the appropriate transitional and suspensive measures pending the entry into force of the international agreement on climate change.

The Community and its Member States’ registries established pursuant to Article 6 of Decision No 280/2004/EC shall ensure the accurate accounting of transactions under this Decision. This information shall be accessible to the public.

The Central Administrator designated under Article 20 of Directive 2003/87/EC shall, through its independent transaction log, conduct an automated check on each transaction under this Decision and, where necessary, block transactions to ensure there are no irregularities. This information shall be accessible to the public.

The Commission shall adopt measures necessary to implement paragraphs 1 and 2.

Those measures designed to amend non-essential elements of this Decision by supplementing it shall be adopted in accordance with the regulatory procedure with scrutiny referred to in Article 13(2).

The Commission shall be assisted by the Climate Change Committee established by Article 9 of Decision No 280/2004/EC.

Where reference is made to this paragraph, Articles 5a(1) to (4) and Article 7 of Decision 1999/468/EC shall apply, having regard to the provisions of Article 8 thereof.