(1)

Directive 2003/87/EC requires certain operators to establish climate-neutrality plans. Climate-neutrality plans are to be drafted in order to receive the conditional free allocation by operators of installations whose greenhouse gas emission levels are higher than the 80th percentile of emission levels for the relevant product benchmarks. Climate-neutrality plans are also to be drafted by operators of district heating applying for optional additional free allocation for district heating installations in certain Member States.

(2)

In accordance with Article 10a(1), fifth subparagraph, of Directive 2003/87/EC, climate-neutrality plans are to be drafted at installation level and are to contain the elements specified in Article 10b(4) of that Directive. Optionally, it should be possible to provide further details and specific measures at sub-installation level, to significantly reduce greenhouse gas emissions in view of contributing to climate neutrality. For district heating installations in the Member States referred to in Article 10b(4), second subparagraph, of Directive 2003/87/EC, the climate-neutrality plans are to be drafted at company-level or at installation-level in accordance with Article 10b(4), third subparagraph, of that Directive.

(3)

Pursuant to Directive 2003/87/EC, the Commission is to adopt implementing acts to specify the minimal content and format of the climate-neutrality plans while seeking synergies with similar plans as provided for in Union law. In view of generating synergies and reducing the administrative burden for economic operators, elements included in plans under other Union legal acts, in particular those referred to in Directive 2010/75/EU of the European Parliament and of the Council (2), should be considered when drafting the climate-neutrality plans.

(4)

In the context of the climate-neutrality plans, climate neutrality is to be understood as defined by Article 2 of Regulation (EU) 2021/1119 of the European Parliament and of the Council (3).

(5)

To ensure the coherence of Union legislation, the milestones and targets should be defined in accordance with Regulations (EU) 2021/241 (4) and (EU) 2023/955 (5) of the European Parliament and the Council. To address all relevant aspects of operators’ actions towards climate neutrality and to ensure transparency and comparability, a distinction needs to be made in the climate-neutrality plans between the monitoring of progress towards qualitative achievements (‘milestones’) and the monitoring of progress towards quantitative emissions reduction achievements (‘targets’). To ensure consistency with the existing emissions trading system, milestones and targets should be expressed and reported in accordance with the rules set out in Commission Implementing Regulation (EU) 2018/2066 (6) and in Commission Delegated Regulation (EU) 2019/331 (7).

(6)

In order to be consistent with Delegated Regulation (EU) 2019/331, defining targets specific to the activity levels for product benchmark sub-installations or for fall-back sub-installations should be expressed as tonnes CO2 equivalents per relevant unit of production. Targets relative to the benchmark values in line with Commission Implementing Regulation (EU) 2021/447 (8) should be expressed as percentage reduction. In addition, to allow for more flexibility and to increase the verifiability of the achievement of the targets, it should be possible to also express the targets in absolute terms.

(7)

In order to reduce the administrative burden for operators when collecting data for the climate-neutrality plans, the plans should be integrated into existing procedures for free allocation established by Delegated Regulation (EU) 2019/331. Therefore, the reference period for historical emissions should be consistent with the relevant baseline period as defined in Article 2(14) of that Regulation and the scope of emissions should be consistent with the system boundaries of the relevant sub-installations pursuant to that Regulation. The scope of emissions to be reported should be consistent with the scope of emissions in the greenhouse gas emissions permit of the installation concerned and the requirements for the monitoring and reporting of emissions laid down in Implementing Regulation (EU) 2018/2066.

(8)

The measures provided for in this Regulation are in accordance with the opinion of the Climate Change Committee,

(1)

‘district heating company’ means a company that operates installations the main economic activities of which are classified according to the NACE codes referred to in Regulation (EC) No 1893/2006 of the European Parliament and of the Council (9) as either steam and air conditioning supply, or production of electricity combined with the export of district heating.

(2)

‘milestones’ means qualitative indicators of progress towards the achievement of a measure or investment to reach climate neutrality objective by 2050 as described in Article 2 of Regulation (EU) 2021/1119 at installation level or optionally at company level for operators of district heating, pursuant to Article 10a(1), fifth subparagraph and Article 10b(4), third subparagraph of Directive 2003/87/EC, excluding the use of carbon offset credits;

(3)

‘targets’ means quantitative indicators of progress towards the achievement of a measure or investment to reach climate neutrality by 2050 as described in Article 2 of Regulation (EU) 2021/1119 at installation level or optionally at company level for operators of district heating, pursuant to Article 10a(1), fifth subparagraph and Article 10b(4), third subparagraph of Directive 2003/87/EC, excluding the use of carbon offset credits;

(4)

‘intermediate targets and milestones’ means targets and milestones set for 31 December 2025 and for 31 December of each fifth year thereafter.