Case C‑229/17

Evonik Degussa GmbH

v

Bundesrepublik Deutschland

(Request for a preliminary ruling from the Verwaltungsgericht Berlin)

(Reference for a preliminary ruling — Environment — Scheme for greenhouse gas emission allowance trading within the European Union — Free allocation — Directive 2003/87/EC — Article 10a — Annex I — Decision 2011/278/EU — Annex I, Part 2 — Determination of product benchmarks — Production of hydrogen — System boundaries of the product benchmark for hydrogen — Process element of separation of hydrogen in a rich gas stream which already contains hydrogen)

Summary — Judgment of the Court (Sixth Chamber), 17 May 2018

Environment — Atmospheric pollution — Directive 2003/87 — Scheme for greenhouse gas emission allowance trading — Transitional regime for free allocation of quotas — Free allocation of emission allowances associated with the production of hydrogen — Activities included in the product benchmark for hydrogen — Included — Practice of isolation of hydrogen already contained in a gas mixture — Precluded

(European Parliament and Council Directive 2003/87, Art. 10a(1); Commission Decision 2011/278, Annex I)

Annex I, Part 2, to 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 must be interpreted as meaning that a process, such as that at issue in the main proceedings, which does not produce hydrogen by chemical synthesis, but isolates only hydrogen already contained in a gas mixture, does not fall within the system boundaries of the product benchmark for hydrogen. It would be otherwise only if that process, first, were associated with ‘production of hydrogen’ within the meaning of Annex I 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, as amended by Directive 2009/29/EC of the European Parliament and of the Council of 23 April 2009 and, second, have a technical connection with it.

(see para. 47, operative part)