(1)

Commission Delegated Regulation (EU) 2019/1122 (2) lays down rules for the functioning of the Union Registry, established under Directive 2003/87/EC of the European Parliament and of the Council (3).

(2)

Regulation (EU) 2018/842 lays down obligations for Member States with respect to their minimum contributions towards the Union’s 2030 target for reducing its greenhouse gas emissions.

(3)

In accordance with Article 12 of Regulation (EU) 2018/842, the Union Registry is to ensure the accurate accounting of transactions under that Regulation.

(4)

Regulation (EU) 2018/842 has been amended by Regulation (EU) 2023/857 of the European Parliament and of the Council (4) to increase the Union’s 2030 target for reducing greenhouse gas emissions (from a 30 % reduction to a 40 % reduction compared to 2005 levels) and to adjust some of the requirements applicable to the use of the flexibilities provided to Member States by that Regulation.

(5)

Regulation (EU) 2018/842 provides some Member States with the possibility of notifying the Commission, in 2023, of their intention to make use or further use of a limited cancellation of EU ETS allowances for the purpose of compliance with their obligations under that regulation (‘the ETS flexibility’) and of revising their notified intentions in 2024 and 2027, not only downwards, as it was originally the case, but also upwards. Therefore, it is appropriate to amend the provisions of Delegated Regulation (EU) 2019/1122 on the creation of annual emission allocations (AEAs) in the EU Annex II AEA Total Quantity Account. Additionally, in the absence of an actual definition of the term ‘excess emissions’ for the purpose of the Member States’ use of the ETS flexibility, it is appropriate to replace that term by the formula that is to be used in the determination of whether, and to what extent, a Member State can use the ETS flexibility to ensure compliance in a given year.

(6)

Regulation (EU) 2018/842 requires Member States to inform the Climate Change Committee before transferring AEAs to other Member States. Therefore, it is appropriate to reflect the amendments to the conditions regarding the transferability of the AEAs.

(7)

For clarity and consistency across the different chapters of Delegated Regulation (EU) 2019/1122, it is appropriate to replace the term ‘land mitigation units’ and its abbreviation ‘LMUs’ by ‘land removal units’ and ‘LRUs’, respectively.

(8)

Furthermore, Regulation (EU) 2018/842 was amended as regards the ceilings on borrowing and banking of AEAs, on ex ante transfers of AEAs to other Member States and on the use of net removals from the land use, land use change and forestry (‘LULUCF’) sector. Therefore, it is necessary to reflect those changes in Delegated Regulation (EU) 2019/1122.

(9)

The establishment of the safety reserve is subject to the fulfilment of the Union’s 2030 target on the reduction greenhouse gas emission in the sectors covered by Regulation (EU) 2018/842. Therefore, the Union’s new target on greenhouse gas emissions covered by Regulation (EU) 2018/842 should be reflected in the requirements for the creation of AEAs in the EU ESR Safety Reserve Account.

(10)

The reversal of transfers to ESR Compliance Accounts or Member State LULUCF Compliance Accounts should be carried out under the same conditions, with the appropriate adaptations, that are applicable to the reversal of allocation of general allowances, or aviation allowances, initiated unintentionally or erroneously by a national administrator. Therefore, it is appropriate to correct the erroneous legal reference in Article 59s(2) of Delegated Regulation (EU) 2019/1122 to Article 62(4), (6), (7) and (8) of that Regulation.

(11)

Delegated Regulation (EU) 2019/1122 should therefore be amended and corrected accordingly,

(1)

Article 59a is amended as follows:

(2)

Article 59b is replaced by the following:

(3)

in Article 59f(1) and (2), the abbreviation ‘LMUs’ is replaced by ‘LRUs’;

(4)

in Article 59h, points (c) and (d) are replaced by the following:

(5)

in Article 59i, point (b), the percentage ‘10’ is replaced by ‘7,5’;

(6)

Article 59j is amended as follows:

(7)

Article 59k is replaced by the following:

(*1)  Regulation (EU) 2018/1999 of the European Parliament and of the Council of 11 December 2018 on the Governance of the Energy Union and Climate Action, amending Regulations (EC) No 663/2009 and (EC) No 715/2009 of the European Parliament and of the Council, Directives 94/22/EC, 98/70/EC, 2009/31/EC, 2009/73/EC, 2010/31/EU, 2012/27/EU and 2013/30/EU of the European Parliament and of the Council, Council Directives 2009/119/EC and (EU) 2015/652 and repealing Regulation (EU) No 525/2013 of the European Parliament and of the Council (OJ L 328, 21.12.2018, p. 1, ELI: http://data.europa.eu/eli/reg/2018/1999/oj).’;"

(8)

Article 59l is amended as follows:

(9)

in Article 59m, the following point (d) is added:

(10)

in Article 59n, the percentage ‘70 %’ is replaced by ‘60 %’;

(11)

in Article 59o(1), point (g)(v), the abbreviation ‘LMUs’ is replaced by ‘LRUs’;

(12)

in Article 59q, the following paragraph is added:

(13)

Article 59s, is replaced by the following:

(14)

in Annex I, Table I-II (‘Accounts for the purpose of accounting transactions pursuant to Title IIA’), first row, the abbreviation ‘LMU’ is replaced by ‘LRU’.