(1)

Directive 2003/87/EC establishing a system for greenhouse gas emission allowance trading within the Union (EU ETS) was revised and amended by Directive (EU) 2023/959 of the European Parliament and of the Council (2) to align it with Regulation (EU) 2021/1119 of the European Parliament and of the Council (3) setting a target of at least 55 % net emission reductions by 2030 compared to 1990.

(2)

Following the amendment of Directive 2003/87/EC by Directive (EU) 2023/958 of the European Parliament and of the Council (4) and Directive (EU) 2023/959, Commission Implementing Regulation (EU) 2018/2066 (5) should be amended accordingly to incorporate the necessary definitions and detailed arrangements for the monitoring and reporting of emissions from renewable fuels of non-biological origin and recycled carbon fuels and also to ensure proper alignment with sustainability and greenhouse gas savings criteria laid down in Directive (EU) 2018/2001 of the European Parliament and of the Council (6), for the monitoring and reporting of emissions from the transport of CO2 by other means than pipelines for geological storage, emissions from aviation including monitoring and reporting of non-CO2 aviation effects, emissions from the new emission trading system for buildings, road transport and non-ETS industry.

(3)

Under the new emission trading system for buildings, road transport and additional sectors, it is necessary, for the definition of a ‘final consumer’ in Article 3(69) to provide for more specific reference to the definition of regulated entity in Article 3(ae) of Directive 2003/87/EC.

(4)

Article 5 of Implementing Regulation (EU) 2018/2066 should be amended to reflect that the completeness of monitoring and reporting should cover all process and combustion emissions of the stationary installation, from all emission sources and source streams belonging to activities listed in Annex I to Directive 2003/87/EC and other directly associated activities in line with Article 3(e) of that Directive.

(5)

To improve the quality of information on biomass, on renewable fuels of non-biological origin (RFNBOs), on recycled carbon fuels (RCFs), and on synthetic low-carbon fuels and to facilitate national reporting under Regulation (EU) 2018/1999 of the European Parliament and of the Council (7), operators should monitor and report emissions from the non-zero rated and zero-rated carbon fraction of these fuels as memo-items in the emission reports. For that purpose, parameters concerning non-zero-rated and zero-rated biomass, RFNBOs and RCFs, or synthetic low-carbon fuels should be determined and reported for each corresponding source stream under the standard calculation methodology pursuant to Article 24 of Implementing Regulation (EU) 2018/2066 and the mass balance system pursuant to Article 25 of that Regulation. Specific rules are necessary on the determination of composition-related calculation factors concerning non-zero-rated and zero-rated biomass, RFNBOs and RCFs, and synthetic low-carbon fuels, including the zero-rated and non-zero-rated carbon fraction.

(6)

To avoid systematic underestimation of the total emissions in the mass balance system when zero-rated carbon is contained in the input and in the output streams, it is important for operators to determine the zero-rated carbon content of the output streams. Clear evidence is required to demonstrate that underestimation has been avoided and that the total mass of the zero-rated carbon fractions in the output materials is equivalent to the total mass of zero-rated carbon fractions contained in the input materials.

(7)

Directive 2003/87/EC, as revised by Directive (EU) 2023/959, specifies that the emission factor of biomass is zero if the biomass complies with the sustainability and greenhouse gas emissions savings criteria for the use of biomass fuels established by Directive (EU) 2018/2001, taking into account any necessary adjustments for application under Directive 2003/87/EC, as set out in the implementing acts referred to in Article 14 of that Directive. In order to clarify the conditions under which biomass emissions can be zero-rated and to align with the revised Directive (EU) 2018/2001, Article 38(5) of Implementing Regulation (EU) 2018/2066 should be amended. Where the relevant sustainability and greenhouse gas emissions savings criteria do not apply to a specific type of biomass, that biomass can be zero-rated directly. However, in this case, operators should still demonstrate that the criteria are not applicable. Assessing the proof of applicability and proof of sustainability is an essential part of the verification where the verifier checks the correct application of the monitoring methodology, including the zero-rating of the biomass. Where sustainability and greenhouse gas emissions savings criteria laid down in Article 29(2) to (7) and (10) do apply, compliance with these criteria is required for zero-rating. Biomass that does not comply with the criteria in this case should be treated as a fossil fuel. Zero-rating of emissions under EU ETS is distinct from support schemes defined in Article 2, point (5) of Directive (EU) 2018/2001.

(8)

Article 31a of the amended Directive (EU) 2018/2001 of the European Parliament and of the Council (8) sets up a Union database to enable the tracing of liquid and gaseous renewable fuels, recycled carbon fuels and synthetic low-carbon fuels (‘the Union Database’). By 21 November 2024, the Union Database should be fully operational. Where compliance is required with the sustainability and the greenhouse gas emissions saving criteria laid down in Article 29, paragraphs (2) to (7) and (10) of Directive (EU) 2018/2001, for biomass, and Article 29a of that Directive, for liquid and gaseous renewable fuels and RCFs, proof of sustainability should be provided in line with Article 30 and 31 of that Directive. To facilitate this process and to reduce the administrative burden, Member States should be able to rely on the evidence provided by EU ETS operators, aircraft operators and regulated entities from the Union Database on the transactions related to any amount of fuel that has been purchased and used during the reporting year and that has been connected to the cancellation of the respective quantity in the Union database. In the case of subsequent non-compliance regarding the proof of sustainability of the quantities cancelled in the databases, the competent authority shall correct the verified emissions accordingly.

(9)

According to Article 33 of Implementing Regulation (EU) 2018/2066, sampling is to be representative for the specific batch and free of bias. Where continuous sampling of the flue gas stream is used, the analysis frequency should be aligned with this process and cover the whole reporting year without interruption.

(10)

Directive (EU) 2023/959 has extended the scope of activities listed in Annex I to Directive 2003/87/EC for the refining of any oil, the production of any iron, the production of alumina, the production of hydrogen and the transport of CO2 through means other than pipelines. In order to ensure alignment with Annex I to Directive 2003/87/EC, the Annexes to Implementing Regulation (EU) 2018/2066 need to be updated.

(11)

Directive 2003/87/EC recognises the potential role of RCFs and RFNBOs for reducing greenhouse gas emissions in sectors that are hard to decarbonise. To contribute to the decarbonisation, their greenhouse gas emissions savings need to meet the minimum greenhouse gas emissions savings laid out in Article 29a of Directive (EU) 2018/2001 and be calculated according to the methodology set out in the act adopted pursuant to that Article.

(12)

RCFs or RFNBOs that contain carbon in their chemical composition, such as e-kerosene or e-methanol, require a carbon feedstock for their production. Until all stages of the life of a product, in which captured carbon is used, are subject to carbon pricing, in particular at the stage of waste incineration, reliance on accounting for emissions at the point of their release from products into the atmosphere would result in emissions being underestimated. Where RFNBOs or RCFs are produced from captured CO2 under an activity covered by Directive 2003/87/EC, the emissions should be accounted for under that activity. In order to avoid double counting and requiring a double payment for the same emissions, the CO2 emissions from RCFs and RFNBOs that comply with the criteria laid out in Directive (EU) 2018/2001 should have an emission factor of zero.

(13)

Synthetic low-carbon fuels must comply with the greenhouse gas savings criteria laid down in Article 2 point 13 of Directive (EU) 2024/1788 on common rules for the internal markets in renewable gas and natural gas and in hydrogen. Synthetic low-carbon fuels require carbon feedstock for their production. Subject to review in respect of zero-rated carbon combusted in installations which are exempt from the EU ETS due their high use of biomass pursuant to point 1 of Annex I, to avoid double counting within the EU ETS in accordance with Article 5 of Commission Implementing Regulation (EU) 2018/2066, if the carbon content of the fuels stems from the EU ETS and it has therefore been accounted, including when its emissions factor is zero, the emissions from the synthetic low-carbon fuel should be zero-rated. The emissions resulting from synthetic low-carbon fuels with other carbon content should be treated as their fossil fuel equivalents. It is necessary to provide rules for the determination of the fraction of zero-rated synthetic low-carbon fuels.

(14)

RCFs or RFNBOs that do not meet the greenhouse gas emissions savings laid out in Article 29a of Directive (EU) 2018/2001 are considered to lead to insufficient greenhouse gas emissions savings in comparison to fossil fuels. Therefore, the emissions resulting from the combustion of such RCFs or RFNBOs should be treated as their fossil fuel equivalents. As fossil fuels may be blended with RCFs or RFNBOs, it is necessary to provide rules for the determination of the fraction of zero-rated RCF or RFNBO.

(15)

Implementing Regulation (EU) 2018/2066 should determine the monitoring methodology that should be applied to emissions from zero-rated RFNBOs, RCFs and synthetic low-carbon fuels. Provisions should be included for the deduction of total zero-rated RFNBO, RCF and synthetic low-carbon fuels emissions, in the case where the operator uses the measurement-based methodology for the determination of total CO2 emissions. When designing support schemes for renewable or low-carbon fuels, Member States retain the right to specify how to incentivise the different RFNBOs, RCFs or synthetic low carbon fuels.

(16)

In addition, when applying the measurement-based methodology for biomass-containing fuels and materials, conditions should be added when the biomass fraction equals the zero-rated biomass fraction. Clarifications should also be provided when these conditions are not met and in such case the provisions deployed related to calculation-based approach should be followed by the operator.

(17)

When the installation’s proposed methodology involves continuous sampling from the flue gas stream, and at the same time the stationary installation consumes natural gas from the grid, to avoid double counting, the CO2 stemming from biogas should be determined by laboratory analysis and this amount should be respectively deducted from the total zero-rated CO2 previously determined by calculation-based approach.

(18)

Directive 2003/87/EC does not recognise negative greenhouse gas emissions. To avoid generating negative emissions, an operator should not subtract from its emissions any CO2 that originates from zero-rated fuels. In the case of the capture of emissions from a mix of zero and non-zero-rated sources, to ensure clarity and simplicity, the quantity of CO2 resulting from non-zero-rated sources that can be deducted from the operator’s emissions should be established based on the proportion of the zero-rated and non-zero-rated emissions.

(19)

The activities ‘transport of greenhouse gases for geological storage’, and ‘geological storage of greenhouse gases’, in Annex I to Directive 2003/87/EC, cover all CO2 transported and stored in a storage site permitted under Directive 2009/31/EC, irrespective of the geographical and physical origin of the CO2. In order to avoid any gaps in the monitoring and reporting framework and to provide the incentives for operators of CO2 transport infrastructure or of CO2 storage sites to minimise leaks, it is necessary to clarify that these operators should monitor and report any emissions from all CO2 for geological storage in their custody, including if originating from activities outside of the scope of Directive 2003/87/EC.

(20)

As CO2 for geological storage is expected to be transported by a variety of modes, Directive (EU) 2023/959 expanded the scope of the activity ‘transport of greenhouse gases for geological storage’ in Annex I to Directive 2003/87/EC to any transport mode. Therefore, it is necessary to revise the monitoring and reporting provisions related to the CO2 transport activity to ensure that they are applicable to a CO2 transport infrastructure based on any transport modes. Where a transport mode is also covered by another activity under Directive 2003/87/EC, to avoid the double counting of emissions, the emissions covered by the other activity under that Directive should be excluded from the boundaries of the CO2 transport activity.

(21)

The transport of CO2 for geological storage may take place over long distances. Therefore, the CO2 may be in transit for lengthy periods. In such cases, it is appropriate to provide the operator of the CO2 transport infrastructure the flexibility to subtract from the emissions to be reported in a given year any amount of CO2 that is still in transit by 31 December of that year, provided that the CO2 shipment reaches its destination and is transferred out to a storage site or to another EU ETS installation no later than 31 January of the following year.

(22)

The revised Directive 2003/87/EC amended the definition of emissions to also encompass greenhouse gases that are not directly released into the atmosphere. Therefore, these should also be considered emissions under the EU ETS, unless they are stored in a storage site in accordance with Directive 2009/31/EC or they are permanently chemically bound in a product so that they do not enter the atmosphere under normal use, and do not enter the atmosphere under any normal activity taking place after the end of the life of the product. In consequence, the Annexes to Implementing Regulation (EU) 2018/2066 need to be updated accordingly to account for greenhouse gases released in ways other than directly into the atmosphere, while avoiding the double counting of emissions where greenhouse gases not emitted directly into the atmosphere are re-used within the same installation or in another EU ETS installations. To avoid undue disruptions for installations affected by these changes, their application should be delayed until 1 January 2025 to allow sufficient time for the necessary adaptations.

(23)

When determining the oxidation or conversion factor of a source stream, carbon monoxide (CO) emitted to the atmosphere should be considered as the molar equivalent amount of CO2. CO that is otherwise transferred in a product or as a feedstock is not considered as an emission under the scope of Directive 2003/87/EC.

(24)

Article 12(3b) of Directive 2003/87/EC provides that allowances do not need to be surrendered for greenhouse gases which are considered to have been captured and utilised in such a way that they have become permanently chemically bound in a product so that they do not enter the atmosphere under normal use, including any normal activity taking place after the end of the life of the product. It is necessary to include a general provision for operators to determine and subtract from their emissions the amount of CO2 considered to be permanently chemically bound in a product listed in the delegated act adopted pursuant to Article 12(3b) of Directive 2003/87/EC, replacing the provision that allowed to subtract the CO2 considered chemically bound in precipitated calcium carbonate.

(25)

Having regard to Article 14(5) of Directive 2003/87/EC, the monitoring, reporting and verification framework (MRV) of non-CO2 effects constitutes a stand-alone, distinct exercise from carbon pricing. EU research and innovation activities on the impact and technological solutions of non-CO2 aviation effects are ongoing since 1994 and should continue. Given the uncertainties surrounding the impacts of non-CO2 effects, it is key to start the MRV on non-CO2 effects with a view to ensuring scientific validation of the impacts.

(26)

Aircraft operators should monitor the non-CO2 aviation effects occurring from 1 January 2025, from the activities performed by aeroplanes equipped with jet engines, enabling the calculation of a CO2 equivalent (CO2(e)) per flight. The aircraft operators should report those non-CO2 aviation effects once a year. However, to facilitate the start of the MRV for non-CO2 effects, in 2025 and 2026, while the reporting may cover all routes, such reporting shall only be required in respect of routes involving two aerodromes located in the European Economic Area (EEA), and routes from an aerodrome located in the EEA departing to Switzerland or to the United Kingdom. In respect of 2025 and 2026, the reporting of non-CO2 aviation effects taking place from other flights is possible.

(27)

In order to minimise administrative burden, aircraft operators should provide a single monitoring plan for CO2 emissions and non-CO2 effects.

(28)

The calculation of the CO2(e) per flight should be done using the Global Warming Potential (GWP) metric in three time horizons GWP20, GWP50 and GWP100, to better understand those impacts on climate, applying efficacy, as defined in Implementing Regulation (EU) 2018/2066, and the Commission’s non-CO2 aviation effects tracking system (NEATS), to refine the GWP metric.

(29)

In order to calculate CO2(e) for non-CO2 effects, the aircraft operators should use a CO2(e) calculation approach. This approach includes modules for estimating fuel burn and different emissions (NOx, CO, HC), models calculating CO2(e) using the input data and default values as described in Annex IIIa and Annex IIIb to Implementing Regulation (EU) 2018/2066, where data gaps occur.

(30)

In order to avoid incentivizing underreporting, conservative default values may be used. Where data sourced by the aircraft operator is not available, work needs to continue to enable reporting of measured values, based on the best information available. Relying on default values decreases the precision of the data.

(31)

Acknowledging the importance of providing appropriate tools to limit the administrative effort of monitoring, reporting and verification of non-CO2 aviation effects, the aircraft operators may rely on the information technology tool, NEATS, provided by the Commission. The aircraft operators may also opt to use their own or third-party information technology tools provided that these tools comply with the provisions of Implementing Regulation (EU) 2018/2066, in particular Article 56a, and provided that the Commission approves them.

(32)

The aircraft operators should securely collect, and store monitored data, including flight details and aircraft information. For this purpose, the aircraft operators may rely on the Commission IT tool and/or third-party resources, ensuring compliance with confidentiality rules and accessibility for verification purposes.

(33)

In a situation where no data is provided by the aircraft operators NEATS should be able to calculate the CO2(e) automatically, on the basis of data gathered from external sources and the default values as described in Annex IIIa and Annex IIIb to Implementing Regulation (EU) 2018/2066.

(34)

In the event of the unavailability of IT tools, aircraft operators should monitor essential flight and aircraft properties information as an interim measure.

(35)

In the event of the unavailability of common reference Numerical Weather Prediction (NWP) model, aircraft operators should use a location-based simplified approach to calculate the CO2(e) of non-CO2 aviation effects as an interim measure.

(36)

For the purpose of minimising the administrative burden, small emitters may choose to use a location-based simplified approach to calculate the CO2(e) of non-CO2 aviation effects.

(37)

Based on the feedback on the implementation of the EU ETS, it is necessary to further facilitate the identification of the operator of an aircraft pursuant to Article 3(o) of Directive 2003/87/EC and to include an additional step in this process.

(38)

In order to align the provisions of Article 28a(4) of Directive 2003/87/EC and this Regulation concerning the definition of small emitters, this Regulation should be updated to allow operators meeting the criteria defined in Article 28a(4) of that Directive, to use the fuel estimation tools implemented by Eurocontrol.

(39)

Reporting requirements play a key role in ensuring proper emission monitoring and enforcement of legislation. In order to streamline those reporting requirements, appropriate reporting rules should be established for aircraft operators for the use of different types of alternative aviation fuels, including biofuels, RFNBOs, RCFs and other fuels eligible under the EU ETS support system established pursuant to Article 3c(6) of Directive 2003/87/EC.

(40)

Emission thresholds apply to aircraft operators for their inclusion into the EU ETS or ICAO’s Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA). Aircraft operators can be considered small emitters or allowed to use simplified tools. In accordance with the purpose of the EU ETS and the principles also included in ICAO’s CORSIA scheme, the calculation of these emissions thresholds should not take into account the possible use of fuels with an emission factor of zero. Therefore, it is appropriate to establish a preliminary emission factor for the purpose of a calculation of these thresholds.

(41)

In accordance with Directive (EU) 2023/959, the surrendering of allowances under the new emissions trading for buildings, road transport and additional sectors system will start in 2028 for the annual emissions of 2027. However, the monitoring and reporting of emissions under the new emissions trading system will start from 1 January 2025. Clear monitoring and reporting rules for the emissions trading system for buildings, road transport and additional sectors should be laid down sufficiently in advance, in order to facilitate orderly implementation in Member States. In order to reduce administrative burden, to ensure consistency between monitoring methodologies and to build on experiences from the existing emission trading system for stationary installations and aviation, it is appropriate to set up the relevant rules for the new system.

(42)

In order to ensure a robust level of monitoring accuracy and to minimise the administrative burden for the regulated entities and competent authorities, the scope factor should be applied after the categorisation of the regulated entity and the fuel streams. This should allow more accurate monitoring and should avoid unnecessary changes to the monitoring plans, which reduce the administrative burden for regulated entities and competent authorities.

(43)

In order to limit the administrative burden, it is appropriate to provide specific rules for regulated entities with low emissions and give flexibility to the competent authorities in the categorisation of regulated entities.

(44)

In order to facilitate the implementation of the new measures, it is appropriate to provide a time-bound derogation, before 2027, to the application of the scope factor after the categorisation. It is appropriate for the competent authorities to be able to qualify regulated entity as regulated entities with low emissions, or to allow the regulated entity to classify itself and each fuel stream, based on the emissions after the application of the scope factor, with the exclusion of CO2 stemming from zero-rated fuels, where it can be demonstrated to the satisfaction of the competent authority that the scope factor applied for the classification will also remain to be representative in the future years.

(45)

In order to facilitate verification, it is appropriate that stationary installations operators, aircraft operators, shipping companies and regulated entities submit the information on fuels used for activities referred to in Annex I to Directive 2003/87/EC together with the annual emissions report. No separate report should be required on the amounts of fuels acquired and used. Implementing Regulation (EU) 2018/2066 should therefore be amended accordingly.

(46)

In order to facilitate the orderly and coherent submission of the monitoring plan for regulated entities to the competent authorities, and considering the provisions that have already been adopted in Commission Implementing Regulation (EU) 2023/2122 (9) of 17 October 2023, amending Implementing Regulation (EU) 2018/2066, all provisions contained in this Regulation relating to the new emissions trading for buildings, road transport and additional sectors, should apply from 1 July 2024.

(47)

Directive 2003/87/EC already provides that the emissions from RFNBOs used for aircraft operators shall be zero-rated before the entry into force of this revision of the Implementing Regulation (EU) 2018/2066. Therefore, in order to ensure consistency, clarity and a level playing field, the rules for monitoring and reporting of emissions from zero-rated RFNBO, RCF and synthetic low-carbon fuels should apply as of 1 January 2024.

(48)

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

(1)

Articles 1 and 2 are replaced by the following:

(2)

Article 3 is amended as follows:

(3)

Article 4 is replaced by the following:

(4)

in Article 5, the first subparagraph is replaced by the following:

‘Monitoring and reporting shall be complete and cover all process and combustion emissions from all emission sources and source streams belonging to activities listed in Annex I to Directive 2003/87/EC and other relevant activities included pursuant to Article 24 of that Directive, as well as associated activities included in the boundaries of the installation, and of all greenhouse gases specified in relation to those activities, while avoiding double-counting.’;

(5)

in Article 6, paragraph 3 is inserted:

(6)

Article 8 is replaced by the following:

(*1)  Commission Implementing Regulation (EU) 2018/2067 of 19 December 2018 on the verification of data and on the accreditation of verifiers pursuant to Directive 2003/87/EC of the European Parliament and of the Council (OJ L 334, 31.12.2018, p. 94, ELI: http://data.europa.eu/eli/reg_impl/2018/2067/oj).’;"

(7)

in Article 11(1), the first subparagraph is replaced by the following:

(8)

in Article 14(2), the following point (aa) is inserted:

(9)

Article 15(4) is amended as follows:

(10)

in Article 18(2), second subparagraph, Article 19(2), points (a), (b) and (c), Article 19(5), Article 38(1) and Article 47(2), points (a) and (b), the term “biomass” is replaced by “zero-rated carbon”.

(11)

in Article 19, paragraph 6 is deleted.

(12)

Article 24 is amended as follows:

(13)

Article 25 is amended as follows:

(14)

Article 30 is amended as follows:

(15)

in Article 37(2), the last subparagraph is replaced by the following:

‘Where mixed fuels are used, the operator shall provide evidence that application of points (a) or (b) of the first subparagraph does not lead to an underestimation of emissions.’;

(16)

in Section 2, the title of subsection 5 is replaced by the following:

‘ Treatment of biomass, synthetic low-carbon fuels, RFNBO and RCF ’;

(17)

Article 38 is amended as follows:

(18)

Article 39 is amended as follows:

(19)

the following Article 39a is inserted:

(20)

Article 43 is amended as follows:

(21)

in Article 44(1), the first subparagraph is replaced by the following:

(22)

in Article 46 and in Annex I, Section 1, points (7)(a), (b) and (c), the term “transport network” is replaced by “CO2 transport infrastructure”.

(23)

in Article 47(2), the last subparagraph is deleted.

(24)

Article 48 is amended as follows:

(25)

Article 49 is amended as follows:

(26)

the following Article 49a is inserted:

(27)

the title to Chapter IV is replaced by the following:

‘ MONITORING OF EMISSIONS AND NON-CO2 EFFECTS FROM AVIATION ’;

(28)

Article 51 is amended as follows:

(29)

In Article 52(1), the first two subparagraphs are replaced by the following:

(30)

Article 53 is amended as follows:

(31)

the following Article 53a is inserted:

(32)

Articles 54 and 54a are replaced by the following:

(33)

the following Articles 54b and 54c are inserted:

(34)

in Article 55(2), the first subparagraph is replaced by the following:

(35)

the following Articles 56a and 56b are inserted:

(36)

Article 58 is amended as follows:

(37)

Article 66 is amended as follows:

(38)

in Article 68, the following paragraphs 5 and 6 are inserted:

(39)

in Article 69(1), the first subparagraph is replaced by the following:

(40)

Article 70 is amended as follows:

(41)

Article 72(1) is replaced by the following:

(42)

Article 75d(3) is amended as follows:

(43)

Article 75e is amended as follows:

(44)

The title of subsection 4 is replaced by the following:

‘ Treatment of biomass synthetic low-carbon fuels, RFNBO and RCF ’;

(45)

Article 75m is amended as follows:

(46)

Article 75n is amended as follows:

(47)

Annex I is amended as follows:

(48)

Annex II is amended as follows:

(49)

Annex IIa is amended as follows:

(50)

in Annex III, the title is replaced by the following:

‘ Monitoring methodologies for emissions from aviation (Article 53) ’;

(51)

the following Annexes IIIa and IIIb are inserted:

(52)

Annex IV is amended as follows:

(h)

Section 21 is amended as follows: (i) in Point (A), the first paragraph is replaced by the following: ‘CO2 capture shall be performed either by a dedicated installation receiving CO2 by transfer from one or more other installations, or by the same installation carrying out the activities producing the captured CO2 under the same greenhouse gas emissions permit. All parts of the installation related to CO2 capture, and transfer to a CO2 transport infrastructure or to a site for geological storage of CO2 greenhouse gas emissions, including any functionally connected ancillary facilities, such as CO2 intermediate storage, booster, liquefaction, gasification, purification stations or heaters, shall be included in the greenhouse gas emissions permit and accounted for in the associated monitoring plan. In the case of the installation carrying out other activities covered by Directive 2003/87/EC, the emissions of those activities shall be monitored in accordance with the other relevant sections of this Annex.’; (ii) point (B) is replaced by the following: ‘B.   Quantification of transferred and emitted CO2 amounts B.1.   Installation level quantification Each operator shall calculate the emissions by taking into account the potential CO2 emissions from all emission relevant processes at the installation, as well as the amount of CO2 captured and transferred to the CO2 infrastructure, using the following formula: Where: Ecapture installation = Total greenhouse gas emissions of the capture installation; Tinput = Amount of CO2 transferred to the capture installation, determined either based on one or more source streams as in a mass balance methodology in accordance with Article 25 or based on a measurement-based methodology in accordance with Article 40 to 46 and Article 49 of this Regulation. Ewithout capture = Emissions of the installation assuming the CO2 were not captured, meaning the sum of the emissions from all other activities at the installation, monitored in accordance with relevant sections of Annex IV, including Method B in Section 22 of Annex IV to this Regulation for any functionally connected ancillary facilities; Tfor storage = Amount of CO2 transferred to a CO2 transport infrastructure or a storage site, determined either based on one or more source streams as in a mass balance methodology in accordance with Article 25 or based on a measurement-based methodology in accordance with Article 40 to 46 and Article 49 of this Regulation. In cases where CO2 capture is carried out by the same installation as the one from which the captured CO2 originates, the operator shall use zero for Tinput. In cases of stand-alone capture installations, the operators of these installations shall take into consideration the following: (a) the operator shall consider Ewithout capture to represent the amount of emissions that occur from other sources than the CO2 transferred to the installation for capture. The operator shall determine those emissions in accordance with this Regulation; (b) by way of derogation from the monitoring methodology described in this section, the operator may monitor the emissions of the installation by using Method B as described in Section 22 of Annex IV to this Regulation. In the case of stand-alone capture installations, the operator of the installation transferring CO2 to the capture installation shall deduct the amount Tinput from the emissions of its installation based either as one or more source streams as in a mass balance methodology in accordance with Article 25 or based on a measurement-based methodology in accordance with Article 49 of this Regulation. B.2.   Determination of transferred CO2 Each operator shall determine the amount of CO2 transferred from and to the capture installation based either as one or more source streams as in a mass balance methodology in accordance with Article 25 or based on a measurement-based methodology in accordance Articles 40 to 46 and Article 49 of this Regulation.’;

(i)

Section 22 is replaced by the following: ‘22.   DETERMINATION OF GREENHOUSE GAS EMISSIONS FROM THE TRANSPORT OF CO2 FOR GEOLOGICAL STORAGE IN A STORAGE SITE PERMITTED UNDER DIRECTIVE 2009/31/EC A.   Scope The boundaries for monitoring and reporting emissions from CO2 transport shall be laid down in the CO2 transport infrastructure’s greenhouse gas emissions permit, including all ancillary facilities functionally connected to the transport infrastructure, such as CO2 intermediate storage, booster, liquefaction, gasification, purification stations or heaters. Each transport infrastructure shall have a minimum of one start point and one end point, each connected to other installations or CO2 transport infrastructure carrying out one or more of the activities: capture, transport or geological storage of CO2. Start and end points may be set at bifurcations of the transport infrastructure and at cross national borders. Start and end points as well as the installations or CO2 transport infrastructure they are connecting to, shall be laid down in the greenhouse gas emissions permit. Each operator of a CO2 transport infrastructure shall consider at least the following potential emission sources for CO2 emissions: combustion and other processes at installations functionally connected to the transport infrastructure including booster stations and liquefaction stations; combustion units, including internal combustion units in CO2 transport vehicles, to the extent emissions are not subject to surrender obligations related to activities listed in Annexes I or III to Directive 2003/87/EC in that same reporting year; fugitive emissions from the transport infrastructure; vented emissions from the transport infrastructure; and emissions from leakage incidents in the transport infrastructure. CO2 transported for purposes other than for geological storage in a storage site permitted under Directive 2009/31/EC shall not be part of the boundaries for monitoring and reporting emissions by the CO2 transport infrastructure. In cases where the same infrastructure is used for the transport of CO2 for multiple purposes, including for geological storage in a storage site permitted under Directive 2009/31/EC, in a manner where the different consignments cannot be distinguished, the operator of a CO2 transport infrastructure shall indicate this in the greenhouse gas emissions permit and establish a method for recording and documenting the volumes of CO2 transported for purposes other for geological storage in a storage site permitted under Directive 2009/31/EC. The operator of a CO2 transport infrastructure shall monitor emissions resulting from the total volume of CO2 transported but shall report as emitted the share of the emissions corresponding to the volume of CO2 transported for geological storage in a storage site permitted under Directive 2009/31/EC divided by total volume of CO2 transported. B.   Quantification Methodologies for CO2 The CO2 transport infrastructure operator shall determine emissions using one of the following methods: (a) Method A (overall mass balance of all input and output streams) set out in subsection B.1; (b) Method B (monitoring of emission sources individually) set out in subsection B.2. The operator shall apply Method B unless the operator can demonstrate to the competent authority that the application of Method A will lead to more reliable results with lower uncertainty of the overall emissions, using best available technology and knowledge at the time of the application for the greenhouse gas emissions permit and approval of the monitoring plan, without incurring unreasonable costs. Where Method B is applied, each operator shall demonstrate to the satisfaction of the competent authority that the overall uncertainty for the annual level of greenhouse gas emissions for the operator’s transport infrastructure does not exceed 7,5 %. The operator of a CO2 transport infrastructure using Method B shall not add CO2 received from another installation or CO2 transport infrastructure permitted in accordance with Directive 2003/87/EC to its calculated level of emissions, and shall not subtract from its calculated level of emissions any CO2 transferred to another installation or CO2 transport infrastructure permitted in accordance with Directive 2003/87/EC. Each operator of a CO2 transport infrastructure shall use Method A for the validation of the results of Method B at least once annually. For that validation, the operator may use lower tiers for the application of Method A. B.1.   Method A Each operator shall determine emissions in accordance with the following formula: Emissions [t CO2]=Etransport infrastructure +∑iTIN,i – ∑iTOUT,i– ΔEin transit Where: Emissions = Total CO2 emissions of the transport infrastructure [t CO2]; Etransport infrastructure = Amount of CO2 [t CO2] from the transport infrastructure’s own activity, meaning not emissions stemming from the CO2 transported, but being emitted from combustion or other processes functionally connected to the transport infrastructure, monitored in accordance with the relevant sections of Annex IV to this Regulation; TIN,i = Amount of CO2 transferred to the transport infrastructure at entry point i, determined either based on one or more source streams as in a mass balance methodology in accordance with Article 25 or based on a measurement-based methodology in accordance with Articles 40 to 46 and Article 49 of this Regulation. TOUT,i = Amount of CO2 transferred out of the transport infrastructure at exit point i, determined either based on one or more source streams as in a mass balance methodology in accordance with Article 25 or based on a measurement-based methodology in accordance with Articles 40 to 46 and Article 49 of this Regulation. ΔEin transit = Amount of CO2 transferred to the transport infrastructure at entry point i, that is not transferred to another installation or CO2 transport infrastructure in the same reporting period but by the deadline indicated in Article 49(7) of this Regulation in the year after the reporting period. Corresponding amounts shall not be taken into account for TOUT,i for the subsequent reporting period. B.2.   Method B Each operator shall determine emissions considering all processes relevant to emissions at the installation as well as the amount of CO2 captured and transferred to the transport infrastructure using the following formula: Emissions [t CO2]= E fugitive + Evented + E   leakage events + Etransport infrastructue Where: Emissions = Total CO2 emissions of the transport infrastructure [t CO2]; Efugitive = Amount of fugitive emissions [t CO2] from CO2 transported in the transport infrastructure, including from seals, valves, intermediate compressor stations and intermediate storage facilities; Evented = Amount of vented emissions [t CO2] from CO2 transported in the transport infrastructure; Eleakage events = Amount of CO2 [t CO2] transported in the transport infrastructure, which is emitted as the result of the failure of one or more components of the transport infrastructure; Etransport infrastructure = Amount of CO2 [t CO2] from the transport infrastructure’s own activity, meaning not emissions stemming from the CO2 transported, but being emitted from combustion or other processes functionally connected to the transport infrastructure, monitored in accordance with the relevant sections of Annex IV to this Regulation. B.2.1.   Fugitive emissions from the transport infrastructure The operator of a CO2 transport infrastructure shall consider fugitive emissions from at least any of the following types of equipment: (a) seals; (b) measurement devices; (c) valves; (d) intermediate compressor stations; (e) intermediate storage facilities including those mounted onto CO2 transport vehicles. The operator shall determine average emission rates ER (expressed in g CO2/unit time) per piece of equipment per occurrence where fugitive emissions can be anticipated at the beginning of operation, and by the end of the first reporting year in which the transport infrastructure is in operation at the latest. The operator shall review those rates at least every 5 years in the light of the best available techniques and knowledge. The operator shall calculate fugitive emissions by multiplying the number of pieces of equipment in each category by the emission rate and adding up the results for the single categories as shown in the following equation: The number of occurrences (Noccurr) shall be the number of pieces of the given equipment per category, multiplied by the number of time units per year. B.2.2.   Emissions from leakage events The operator of a CO2 transport infrastructure shall provide evidence of the system integrity by using representative (spatial and time-related) temperature and pressure data. Where the data indicates that a leakage has occurred, the operator shall calculate the amount of CO2 leaked with a suitable methodology documented in the monitoring plan, based on industry best practice guidelines, including by use of the differences in temperature and pressure data compared to integrity related average pressure and temperature values. B.2.3.   Vented emissions Each operator of a CO2 transport infrastructure shall provide in the monitoring plan an analysis regarding potential situations of venting emissions, including for maintenance or emergency reasons, and provide a suitable documented methodology for calculating the amount of CO2 vented, based on industry best practice guidelines.’;

(53)

Annex V is amended as follows:

(54)

in the Table of Annex VII, the following rows are inserted after the second row, heading ‘natural gas’:

(55)

Annex IX is amended as follows:

(56)

Annex X is amended as follows: