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Document 32014D0746
2014/746/EU: Commission Decision of 27 October 2014 determining, pursuant to Directive 2003/87/EC of the European Parliament and of the Council, a list of sectors and subsectors which are deemed to be exposed to a significant risk of carbon leakage, for the period 2015 to 2019 (notified under document C(2014) 7809) Text with EEA relevance
2014/746/EU: Commission Decision of 27 October 2014 determining, pursuant to Directive 2003/87/EC of the European Parliament and of the Council, a list of sectors and subsectors which are deemed to be exposed to a significant risk of carbon leakage, for the period 2015 to 2019 (notified under document C(2014) 7809) Text with EEA relevance
2014/746/EU: Commission Decision of 27 October 2014 determining, pursuant to Directive 2003/87/EC of the European Parliament and of the Council, a list of sectors and subsectors which are deemed to be exposed to a significant risk of carbon leakage, for the period 2015 to 2019 (notified under document C(2014) 7809) Text with EEA relevance
OJ L 308, 29.10.2014, p. 114–124
(BG, ES, CS, DA, DE, ET, EL, EN, FR, HR, IT, LV, LT, HU, MT, NL, PL, PT, RO, SK, SL, FI, SV)
In force
Relation | Act | Comment | Subdivision concerned | From | To |
---|---|---|---|---|---|
Repeal | 32010D0002 | ||||
Repeal | 32011D0745 | ||||
Modifies | 32012D0498 | Partial repeal | |||
Modifies | 32014D0009 | Partial repeal |
29.10.2014 |
EN |
Official Journal of the European Union |
L 308/114 |
COMMISSION DECISION
of 27 October 2014
determining, pursuant to Directive 2003/87/EC of the European Parliament and of the Council, a list of sectors and subsectors which are deemed to be exposed to a significant risk of carbon leakage, for the period 2015 to 2019
(notified under document C(2014) 7809)
(Text with EEA relevance)
(2014/746/EU)
THE EUROPEAN COMMISSION,
Having regard to the Treaty on the Functioning of the European Union,
Having regard to Directive 2003/87/EC of the European Parliament and of the Council of 13 October 2003 establishing a scheme for greenhouse gas emission allowance trading within the Community and amending Council Directive 96/61/EC (1), and in particular Article 10a(13) thereof,
Whereas:
(1) |
Directive 2003/87/EC provides that auctioning should be the basic principle for allocation of greenhouse gas emission allowances to operators of installations within the scope of the Emission Trading System of the Union (‘EU ETS’) from 2013 onwards. However, eligible operators continue to receive free allowances between 2013 and 2020 in accordance with the rules set out in Directive 2003/87/EC and Commission Decision 2011/278/EU (2). |
(2) |
The absence of an ambitious international agreement on climate change aiming to limit the global temperature increase to 2 °C could undermine the benefit of actions carried out by the Union. The absence of binding action at the international level could lead to an increase in greenhouse gas emissions in third countries where industry is not subject to comparable carbon constraints (‘carbon leakage’). To address this risk of carbon leakage, Directive 2003/87/EC provides that, subject to the outcome of the international negotiations, the Commission is to determine a list of sectors and subsectors deemed to be exposed to a significant risk of carbon leakage (‘list of sectors and subsectors’). Those sectors and subsectors should receive free allowances at 100 % of the quantity determined on the basis of Directive 2003/87/EC and Decision 2011/278/EU, subject to the cross-sectoral correction factor referred to in Article 10a(5) of Directive 2003/87/EC and set out in Annex II to Commission Decision 2013/448/EU (3). |
(3) |
In this respect, the Commission analysed the extent to which third countries representing a decisive share of global production of products in sectors and subsectors on the carbon leakage list firmly commit to reducing greenhouse gas emissions in those relevant sectors, and whether those commitments are comparable with those of the Union and are carried out within the same time-frame. In addition, the extent to which the efficiency of the installations located in those countries is comparable to the installations located in the Union was also examined. The Commission concluded that no sufficient comparability can be established on the commitment to reduce greenhouse gas emissions, and therefore the comparability of carbon efficiency is not relevant. |
(4) |
The first list of sectors and subsectors deemed to be exposed to a significant risk of carbon leakage was established for 2013 and 2014 by Commission Decision 2010/2/EU (4) in 2009. |
(5) |
The assessment should be based on a number of quantitative and qualitative criteria, and based on data from the three most recent years. In this regard, the Commission used data from the years 2009, 2010 and 2011, since data from 2012 were available for only some of the parameters. |
(6) |
In order to establish the list of sectors and subsectors, the Commission assessed the risk of carbon leakage of sectors and subsectors at NACE-4 level of the Statistical classification of economic activities in the Union in accordance with Regulation (EC) No 1893/2006 of the European Parliament and of the Council (5). NACE-4 is the level with optimal data availability defining sectors precisely. A sector is denoted at a 4-digit level of the NACE classification, and a subsector is denoted at CPA (6-digit) or Prodcom (8-digit) level, that is, the classification of goods used for statistics on industrial production in the Union, following directly from the NACE classification. |
(7) |
The sectors were first assessed on the basis of the quantitative criteria set out in Article 10a(15) and (16) of Directive 2003/87/EC. To apply those quantitative criteria, the Commission had to determine the sum of direct and indirect additional costs induced by the implementation of Directive 2003/87/EC. |
(8) |
The direct additional costs, induced by the quantity of allowances that a sector would need to purchase if not deemed to be exposed to a significant risk of carbon leakage, were calculated on the basis of the data on direct CO2 emissions at sectoral level. The data in the European Union Transaction Log (‘EUTL’) are considered to be the most accurate and transparent source of CO2 emissions data at installation level and have therefore been used to calculate the direct cost for sectors. For sectors and greenhouse gases only covered by the EU ETS from 1 January 2013, there are no emissions data in the EUTL available. Therefore, the Commission used the data on direct CO2 emissions provided by Member States in the National Implementation Measures (NIMs) pursuant to Decision 2011/278/EU in those cases. |
(9) |
In order to determine the indirect additional costs, the Commission collected data on electricity consumption at sectoral level from Member States, ensuring that no double counting of electricity consumed occurred between different NACE codes. To determine the emissions related to the production of electricity consumed by the different sectors for the list of sectors and subsectors in Decision 2010/2/EU, the Commission used the average emission factor derived from the total fuel mix for electricity production as it was considered to be based on the most accurate data. The same average emission factor has been used for the assessments underlying this Decision. |
(10) |
Furthermore, to determine the direct and indirect additional costs, the Commission had to estimate the average carbon price. In order to establish the first list of sectors and subsectors an assumed carbon price of EUR 30 per tonne of CO2 equivalent was used for the assessments. In the period of application of Decision 2010/2/EU, there has been a substantial difference between the carbon price assumed for the assessments and the actual carbon price, the latter one being considerably lower. However, the Commission has in its Communication entitled ‘A policy framework for the climate and energy in the period from 2020 to 2030’ (6) proposed a 40 % unconditional greenhouse gas emission reduction target by 2030 as compared to 1990 and a corresponding renewable energy sources target. The Commission has also proposed to establish a market stability reserve in the EU ETS. Under those circumstances, it is expected that the carbon price will in the future be more strongly driven by mid- and long-term emission reductions. It is therefore considered justified to continue using an assumed carbon price of EUR 30 per tonne of CO2 equivalent for the assessments underlying this Decision. |
(11) |
The direct and indirect additional costs should be calculated as a share of gross value added. Regarding the estimation of gross value added at sectoral level, data from the Eurostat Structural Business Statistics have been used. |
(12) |
Furthermore, the Commission assessed the trade intensity for each sector and subsector on the basis of data obtained from the Eurostat Comext database. |
(13) |
In total, the Commission assessed 245 industrial sectors and 24 subsectors classified under the ‘Mining and quarrying’ and ‘Manufacturing’ divisions of the NACE classification. The sectors and subsectors listed in point 1 of the Annex to this Decision meet the criteria set out in Article 10a(15) and (16) of Directive 2003/87/EC and should be deemed as exposed to a significant risk of carbon leakage. |
(14) |
Assessments based on the qualitative criteria set out in Article 10a(17) of Directive 2003/87/EC have been carried out on a number of sectors that were not deemed to be exposed to the risk of carbon leakage based on the quantitative criteria set out in Article 10a(15) and (16). The qualitative assessment was carried out in cases which met the qualitative criteria in the context of the determination of the previous list, in cases of sectors considered to be borderline, and on request by industry representatives. |
(15) |
In the case of the sectors ‘Finishing of textiles’ (NACE code 1330), ‘Manufacture of bricks, tiles and construction products, in baked clay’ (NACE code 2332), ‘Manufacture of plaster products for construction purposes’ (NACE code 2362), ‘Casting of iron’ (NACE code 2451) and ‘Casting of light metals’ (2453), the qualitative assessments carried out in the context of the determination of the previous list of sectors and subsectors, valid for 2013 and 2014, have been updated. It was concluded that the circumstances justifying the addition of those sectors to the list of sectors and subsectors still prevail. Therefore, those sectors should be deemed as exposed to a significant risk of carbon leakage also for the period 2015 to 2019. |
(16) |
A qualitative assessment was carried out for the sector ‘Manufacture of malt’ (NACE code 1106), as this sector represented a borderline case with regard to Article 10a(16b) of Directive 2003/87/EC. Taking into account the increased cost resulting from the implementation of Directive 2003/87/EC, the assessment demonstrated high trade intensity and a significant drop in the profitability of the sector in the Union. The low profit margins limit the capacity of installations to invest and reduce emissions. Based on the combined impact of those factors, the sector should be deemed as exposed to a significant risk of carbon leakage. |
(17) |
The sectors listed in point 2 of the Annex should be deemed as exposed to a significant risk of carbon leakage on the basis of the qualitative criteria. |
(18) |
As the list of sectors and subsectors which are deemed to be exposed to a significant risk of carbon leakage to be laid down in the Annex is to be valid for the period from 2015 to 2019, this Decision should apply from 1 January 2015. |
(19) |
For reasons of legal certainty and clarity, Decision 2010/2/EU should be repealed with effect from 1 January 2015. |
(20) |
The measures provided for in this Decision are in accordance with the opinion of the Climate Change Committee, |
HAS ADOPTED THIS DECISION:
Article 1
The sectors and subsectors listed in the Annex shall be deemed to be exposed to a significant risk of carbon leakage.
Article 2
Decision 2010/2/EU is repealed with effect from 1 January 2015.
Article 3
This Decision shall apply from 1 January 2015.
Article 4
This Decision is addressed to the Member States.
Done at Brussels, 27 October 2014.
For the Commission
Connie HEDEGAARD
Member of the Commission
(1) OJ L 275, 25.10.2013, p. 32.
(2) Commission Decision 2011/278/EU of 27 April 2011 determining transitional Union-wide rules for harmonised free allocation of emission allowances pursuant to Article 10a of Directive 2003/87/EC of the European Parliament and of the Council (OJ L 130, 17.5.2011, p. 1).
(3) Commission Decision 2013/448/EU of 5 September 2013 concerning national implementation measures for the transitional free allocation of greenhouse gas emission allowances in accordance with Article 11(3) of Directive 2003/87/EC of the European Parliament and of the Council (OJ L 240, 7.9.2013, p. 27).
(4) Commission Decision 2010/2/EU of 24 December 2009 determining, pursuant to Directive 2003/87/EC of the European Parliament and of the Council, a list of sectors and subsectors which are deemed to be exposed to a significant risk of carbon leakage (OJ L 1, 5.1.2010, p. 10).
(5) Regulation (EC) No 1893/2006 of the European Parliament and of the Council of 20 December 2006 establishing the statistical classification of economic activities NACE Revision 2 and amending Council Regulation (EEC) No 3037/90 as well as certain EC Regulations on specific statistical domains (OJ L 393, 30.12.2006, p. 1).
(6) COM(2014)15 final/2 of 28 January 2014.
ANNEX
Sectors and subsectors which, pursuant to Article 10a(13) of Directive 2003/87/EC, are deemed to be exposed to a significant risk of carbon leakage
1. BASED ON THE CRITERIA SET OUT IN ARTICLE 10a(15) AND (16) OF DIRECTIVE 2003/87/EC
1.1. At the NACE-4 level
NACE Code |
Description |
Criteria met |
0510 |
Mining of hard coal |
C |
0610 |
Extraction of crude petroleum |
C |
0620 |
Extraction of natural gas |
C |
0710 |
Mining of iron ores |
C |
0729 |
Mining of other non-ferrous metal ores |
C |
0891 |
Mining of chemical and fertiliser minerals |
C |
0893 |
Extraction of salt |
A |
0899 |
Other mining and quarrying n.e.c. |
A, C |
1020 |
Processing and preserving of fish, crustaceans and molluscs |
C |
1041 |
Manufacture of oils and fats |
C |
1062 |
Manufacture of starches and starch products |
A |
1081 |
Manufacture of sugar |
A |
1086 |
Manufacture of homogenised food preparations and dietetic food |
C |
1101 |
Distilling, rectifying and blending of spirits |
C |
1102 |
Manufacture of wine from grape |
C |
1104 |
Manufacture of other non-distilled fermented beverages |
A |
1310 |
Preparation and spinning of textile fibres |
C |
1320 |
Weaving of textiles |
C |
1391 |
Manufacture of knitted and crocheted fabrics |
C |
1392 |
Manufacture of made-up textile articles, except apparel |
C |
1393 |
Manufacture of carpets and rugs |
C |
1394 |
Manufacture of cordage, rope, twine and netting |
C |
1395 |
Manufacture of non-wovens and articles made from non-wovens, except apparel |
C |
1396 |
Manufacture of other technical and industrial textiles |
C |
1399 |
Manufacture of other textiles n.e.c. |
C |
1411 |
Manufacture of leather clothes |
C |
1412 |
Manufacture of workwear |
C |
1413 |
Manufacture of other outerwear |
C |
1414 |
Manufacture of underwear |
C |
1419 |
Manufacture of other wearing apparel and accessories |
C |
1420 |
Manufacture of articles of fur |
C |
1431 |
Manufacture of knitted and crocheted hosiery |
C |
1439 |
Manufacture of other knitted and crocheted apparel |
C |
1511 |
Tanning and dressing of leather; dressing and dyeing of fur |
C |
1512 |
Manufacture of luggage, handbags and the like, saddlery and harness |
C |
1520 |
Manufacture of footwear |
C |
1622 |
Manufacture of assembled parquet floors |
C |
1629 |
Manufacture of other products of wood; manufacture of articles of cork, straw and plaiting materials |
C |
1711 |
Manufacture of pulp |
A, C |
1712 |
Manufacture of paper and paperboard |
A |
1724 |
Manufacture of wallpaper |
C |
1910 |
Manufacture of coke oven products |
A, C |
1920 |
Manufacture of refined petroleum products |
A |
2012 |
Manufacture of dyes and pigments |
C |
2013 |
Manufacture of other inorganic basic chemicals |
A, C |
2014 |
Manufacture of other organic basic chemicals |
A, C |
2015 |
Manufacture of fertilisers and nitrogen compounds |
A, B |
2016 |
Manufacture of plastics in primary forms |
C |
2017 |
Manufacture of synthetic rubber in primary forms |
C |
2020 |
Manufacture of pesticides and other agrochemical products |
C |
2042 |
Manufacture of perfumes and toilet preparations |
C |
2053 |
Manufacture of essential oils |
C |
2059 |
Manufacture of other chemical products n.e.c. |
C |
2060 |
Manufacture of man-made fibres |
C |
2110 |
Manufacture of basic pharmaceutical products |
C |
2120 |
Manufacture of pharmaceutical preparations |
C |
2211 |
Manufacture of rubber tyres and tubes; retreading and rebuilding of rubber tyres |
C |
2219 |
Manufacture of other rubber products |
C |
2311 |
Manufacture of flat glass |
A |
2313 |
Manufacture of hollow glass |
A |
2314 |
Manufacture of glass fibres |
A/C (1) |
2319 |
Manufacture and processing of other glass, including technical glassware |
C |
2320 |
Manufacture of refractory products |
C |
2331 |
Manufacture of ceramic tiles and flags |
A, C |
2341 |
Manufacture of ceramic household and ornamental articles |
C |
2342 |
Manufacture of ceramic sanitary fixtures |
C |
2343 |
Manufacture of ceramic insulators and insulating fittings |
C |
2344 |
Manufacture of other technical ceramic products |
C |
2349 |
Manufacture of other ceramic products |
C |
2351 |
Manufacture of cement |
B |
2352 |
Manufacture of lime and plaster |
B |
2370 |
Cutting, shaping and finishing of stone |
C |
2391 |
Production of abrasive products |
C |
2410 |
Manufacture of basic iron and steel and of ferro-alloys |
A |
2420 |
Manufacture of tubes, pipes, hollow profiles and related fittings, of steel |
C |
2431 |
Cold drawing of bars |
C |
2441 |
Precious metals production |
C |
2442 |
Aluminium production |
A, C |
2443 |
Lead, zinc and tin production |
A |
2444 |
Copper production |
C |
2445 |
Other non-ferrous metal production |
C |
2446 |
Processing of nuclear fuel |
A, C |
2540 |
Manufacture of weapons and ammunition |
C |
2571 |
Manufacture of cutlery |
C |
2572 |
Manufacture of locks and hinges |
C |
2573 |
Manufacture of tools |
C |
2594 |
Manufacture of fasteners and screw machine products |
C |
2599 |
Manufacture of other fabricated metal products n.e.c. |
C |
2611 |
Manufacture of electronic components |
C |
2612 |
Manufacture of loaded electronic boards |
C |
2620 |
Manufacture of computers and peripheral equipment |
C |
2630 |
Manufacture of communication equipment |
C |
2640 |
Manufacture of consumer electronics |
C |
2651 |
Manufacture of instruments and appliances for measuring, testing and navigation |
C |
2652 |
Manufacture of watches and clocks |
C |
2660 |
Manufacture of irradiation, electromedical and electrotherapeutic equipment |
C |
2670 |
Manufacture of optical instruments and photographic equipment |
C |
2680 |
Manufacture of magnetic and optical media |
C |
2711 |
Manufacture of electric motors, generators and transformers |
C |
2712 |
Manufacture of electricity distribution and control apparatus |
C |
2720 |
Manufacture of batteries and accumulators |
C |
2731 |
Manufacture of fibre optic cables |
C |
2732 |
Manufacture of other electronic and electric wires and cables |
C |
2733 |
Manufacture of wiring devices |
C |
2740 |
Manufacture of electric lighting equipment |
C |
2751 |
Manufacture of electric domestic appliances |
C |
2752 |
Manufacture of non-electric domestic appliances |
C |
2790 |
Manufacture of other electrical equipment |
C |
2811 |
Manufacture of engines and turbines, except aircraft, vehicle and cycle engines |
C |
2812 |
Manufacture of fluid power equipment |
C |
2813 |
Manufacture of other pumps and compressors |
C |
2814 |
Manufacture of other taps and valves |
C |
2815 |
Manufacture of bearings, gears, gearing and driving elements |
C |
2821 |
Manufacture of ovens, furnaces and furnace burners |
C |
2822 |
Manufacture of lifting and handling equipment |
C |
2823 |
Manufacture of office machinery and equipment (except computers and peripheral equipment) |
C |
2824 |
Manufacture of power-driven hand tools |
C |
2825 |
Manufacture of non-domestic cooling and ventilation equipment |
C |
2829 |
Manufacture of other general-purpose machinery n.e.c. |
C |
2830 |
Manufacture of agricultural and forestry machinery |
C |
2841 |
Manufacture of metal forming machinery |
C |
2849 |
Manufacture of other machine tools |
C |
2891 |
Manufacture of machinery for metallurgy |
C |
2892 |
Manufacture of machinery for mining, quarrying and construction |
C |
2893 |
Manufacture of machinery for food, beverage and tobacco processing |
C |
2894 |
Manufacture of machinery for textile, apparel and leather production |
C |
2895 |
Manufacture of machinery for paper and paperboard production |
C |
2896 |
Manufacture of plastic and rubber machinery |
C |
2899 |
Manufacture of other special-purpose machinery n.e.c. |
C |
2910 |
Manufacture of motor vehicles |
C |
2931 |
Manufacture of electrical and electronic equipment for motor vehicles |
C |
3011 |
Building of ships and floating structures |
C |
3012 |
Building of pleasure and sporting boats |
C |
3030 |
Manufacture of air and spacecraft and related machinery |
C |
3091 |
Manufacture of motorcycles |
C |
3092 |
Manufacture of bicycles and invalid carriages |
C |
3099 |
Manufacture of other transport equipment n.e.c. |
C |
3109 |
Manufacture of other furniture |
C |
3211 |
Striking of coins |
C |
3212 |
Manufacture of jewellery and related articles |
C |
3213 |
Manufacture of imitation jewellery and related articles |
C |
3220 |
Manufacture of musical instruments |
C |
3230 |
Manufacture of sports goods |
C |
3240 |
Manufacture of games and toys |
C |
3250 |
Manufacture of medical and dental instruments and supplies |
C |
3291 |
Manufacture of brooms and brushes |
C |
3299 |
Other manufacturing n.e.c. |
C |
1.2. At the CPA or Prodcom level
CPA or Prodcom |
Description |
Criteria met |
081221 |
Kaolin and other kaolinic clays |
C |
08122250 |
Common clays and shales for construction use (excluding bentonite, fireclay, expanded clays, kaolin and kaolinic clays); andalusite, kyanite and sillimanite; mullite; chamotte or dinas earths |
C |
10311130 |
Frozen potatoes, prepared or preserved (including potatoes cooked or partly cooked in oil and then frozen; excluding by vinegar or acetic acid) |
A |
10311300 |
Dried potatoes in the form of flour, meal, flakes, granules and pellets |
A |
10391725 |
Concentrated tomato puree and paste |
C |
105121 |
Skimmed milk powder |
C |
105122 |
Whole milk powder |
C |
105153 |
Casein |
C |
105154 |
Lactose and lactose syrup |
C |
10515530 |
Whey and modified whey in powder, granules or other solid forms, whether or not concentrated or containing added sweetening matter |
A, C |
108211 |
Cocoa paste, whether or not defatted |
C |
108212 |
Cocoa butter, fat and oil |
C |
108213 |
Cocoa powder, not containing added sugar or other sweetening matter |
C |
10891334 |
Bakers' yeast |
C |
20111150 |
Hydrogen |
B |
20111160 |
Nitrogen |
B |
20111170 |
Oxygen |
B |
203021 |
Prepared pigments, opacifiers and colours, vitrifiable enamels and glazes, engobes, liquid lustres and the like; glass frit |
C |
239914 |
Artificial graphite; colloidal or semi-colloidal graphite; preparations based on graphite or other carbon in the form of semi-manufactures |
C |
23991910 |
Slag wool, rock wool and similar mineral wools and mixtures thereof, in bulk, sheets or rolls |
A |
23991920 |
Exfoliated vermiculite, expanded clays, foamed slag and similar expanded mineral materials and mixtures thereof |
A |
25501134 |
Open die forged ferrous parts for transmission shafts, camshafts, crankshafts and cranks etc. |
A, C |
The criteria based on which a sector is deemed to be exposed to a significant risk of carbon leakage are the following:
A |
: |
criterion set out in Article 10a(15) of Directive 2003/87/EC; |
B |
: |
criterion set out in Article 10a(16)(a) of Directive 2003/87/EC; |
C |
: |
criterion set out in Article 10a(16)(b) of Directive 2003/87/EC. |
2. BASED ON THE CRITERIA SET OUT IN ARTICLE 10a(17) OF DIRECTIVE 2003/87/EC
NACE Code |
Description |
1106 |
Manufacture of malt |
1330 |
Finishing of textiles |
2332 |
Manufacture of bricks, tiles and construction products, in baked clay |
2362 |
Manufacture of plaster products for construction purposes |
2451 |
Casting of iron |
2453 |
Casting of light metals |
(1) The sector ‘Manufacture of glass fibres’ is described by two CPA codes: ‘ 231411 Slivers, rovings, yarn and chopped strands, of glass fibre’ and ‘ 231412 Voiles, webs, mats, mattresses, boards and other articles of glass fibres, except woven fabrics’. Assessed at the NACE-4 level, the sector does not meet the criteria set out in Article 10a(15) and (16) of Directive 2003/87/EC. However, subsector 231411 meets the criterion set out in Article 10a(16)(b), and subsector 231412 meets the criterion set out in Article 10a(15). As the two CPA codes cover the entire sector ‘Manufacture of glass fibres’, the sector is added to the list at NACE-4 level for ease of reference.