E

=

total emissions from the use of the fuel (gCO2eq / MJ fuel);

e i

=

e i elastic + e i rigid – e ex-use: emissions from supply of inputs (gCO2eq / MJ fuel);

e i elastic = emissions from elastic inputs (gCO2eq / MJ fuel);

e i rigid = emissions from rigid inputs (gCO2eq / MJ fuel);

e ex-use = emissions from inputs’ existing use or fate (gCO2eq / MJ fuel)

e p

=

emissions from processing (gCO2eq / MJ fuel);

e td

=

emissions from transport and distribution (gCO2eq / MJ fuel);

e u

=

emissions from combusting the fuel in its end use (gCO2eq / MJ fuel);

e ccs

=

net emission savings from carbon capture and storage (gCO2eq / MJ fuel);

e ccu

=

net emission savings from carbon captured and permanently chemically bound in long-lasting products (gCO2eq / MJ).

—

the part of the process that is based on the conventional fossil fuel input as well as biofuels, bioliquids and biomass fuels; and

—

the part of the process that is based on low-carbon fuels and renewable fuels of non-biological origin, assuming that the process parts are otherwise identical.

E

=

total emissions from the use of the fuel;

E F

=

total emissions from the fossil fuel comparator.

(a)

greenhouse gas emissions values shall be attributed based on yearly averages as set out in Part C of this Annex;

(b)

greenhouse gas emissions values shall be attributed based on the hourly average greenhouse gas emissions value of the electricity mix at the time of production of the low carbon fuels in the bidding zone, as forecasted by the transmission system operators for the day-ahead market for the bidding zone where the low-carbon fuel is produced two hours before the market gate closure time of the day-ahead market. Where available a harmonised methodology shall be applied for this purpose. Until the establishment of a harmonised methodology, the methodology shall have been approved by the competent authority;

(c)

greenhouse gas emissions values shall be attributed depending on the number of full load hours that the installation producing low-carbon fuels is operating. Where the number of full load hours is equal or lower than the number of hours in which the marginal price of electricity was set by installations producing renewable electricity or nuclear power plants in the preceding calendar year for which reliable data are available, grid electricity used in the production process of low-carbon fuels shall be attributed a greenhouse gas emissions value of 0 g CO2eq/MJ; where this number of full load hours is exceeded, grid electricity used in the production process of low-carbon fuels shall be attributed a greenhouse gas emissions value of 183 g CO2eq/MJ;

(d)

greenhouse gas emissions values shall be calculated as an hourly average, based on the greenhouse gas emissions value of the marginal technology setting the clearing price of electricity in a given market time unit at the time of the production of the low-carbon fuels in the bidding zone. This option may only be used if this value has been made publicly available by the national transmission system operator.

(a)

It shall be calculated as the sum of the methane intensity of the production and transport of inputs.

(b)

The methane intensity of the production of fossil-based elastic inputs shall for inputs produced in the Union be calculated based on the methane emissions reported by Union producers in accordance with Article 12 of Regulation (EU) 2024/1787 of the European Parliament and of the Council (8) and for inputs imported into the Union or used for production of low-carbon fuels outside the Union be based on the methane emissions information reported by importers in accordance with Article 28(1), (2) and (5) of Regulation (EU) 2024/1787 (9).

(c)

The methane intensity of the transport of fossil-based elastic inputs shall for inputs produced in the Union be calculated based on the methane emissions reported by Union producers and asset operators in accordance with Article 12 of Regulation (EU) 2024/1787 and for inputs imported into the Union or used for low-carbon fuels outside the Union be based on the values estimating the methane emissions related to the transport of crude oil, natural gas and coal from third countries published in the Methane Transparency database according to Article 30 point 2(d)(ii) of Regulation (EU) 2024/1787, complemented by relevant methane emissions information reported by asset operators in accordance with Article 12 of Regulation (EU) 2024/1787 and importers in accordance with Article 27(1), Article 28(1), (2) and (5), as well as Annex IX of Regulation (EU) 2024/1787.

(a)

Emissions attributed to the supply of rigid inputs shall be determined by multiplying the lost production of electricity, heat or other products with the relevant emission factor. In case of lost electricity production, the emission factors to consider are for grid electricity generation in the country where the displacement occurred, determined according to the methodology set out under points 5 or 6 (11). In case of diverted material, the emissions to be attributed to the replacement material shall be calculated as for material inputs. For the first 20 years after the start of production of low-carbon fuels, the loss of production of electricity, heat and materials shall be determined based on the average amount of electricity and heat that was produced from the rigid input over the last 3 years before the start of production of low-carbon fuels. After 20 years of production, the loss of production of electricity, heat or other products shall be determined based on the minimum energy performance standards assumed in pertinent best available technology (BAT) conclusions. Where the process is not covered by a BAT conclusion, the estimation of lost production shall be based on a comparable process applying state-of-the-art technology.

(b)

In case of rigid inputs that are intermediate streams in industrial processes, such as coke oven gas, blast furnace gas in a steelworks or refinery gas in an oil refinery, if the effect of diverting it towards fuel production cannot be measured directly, the emissions due to the diversion of inputs shall be determined based on simulations of the plant operation before and after it is modified. If the modification of the plant caused a reduction in the output of some products, the emissions attributed to the rigid input shall include the emissions associated with replacing the lost products.

(c)

Where the process makes use of rigid inputs from new installations, the impact of diverting the input from the most economical alternative use shall be taken into account. The emission implications shall be then calculated according to the minimum energy performance standards assumed in the relevant BAT conclusions. For industrial processes that are not covered by BAT conclusions, the emissions saved shall be calculated on the basis of the comparable process applying state-of-the-art technology.

(a)

CO2 has been captured from an activity listed under Annex I to Directive 2003/87/EC of the European Parliament and of the Council (12) or from combustion of mixed municipal waste, has been taken into account upstream in an effective carbon pricing system and is incorporated in the chemical composition of the fuel before 1 January 2036. That date shall be extended to 1 January 2041 in other cases than CO2 stemming from the combustion of fuels for electricity generation;

(b)

the CO2 has been captured from the air;

(c)

the captured CO2 or carbon monoxide stems from biofuels, bioliquids or biomass fuels complying with the sustainability and greenhouse gas saving criteria set out in Article 29 of Directive (EU) 2018/2001;

(d)

the captured CO2 or carbon monoxide stems from renewable fuels of non-biological origin or low-carbon fuels complying with the greenhouse gas saving criteria set out in Article 29a of Directive (EU) 2018/2001 and in this Regulation;

(e)

the captured CO2 stems from a geological source of CO2 and the CO2 was previously released naturally;

(f)

the carbon stems from inputs qualifying as an energy source for the production of recycled carbon fuels.

(a)

any fossil CO2 stream that leaves the processing plant and is captured at the carbon capture plant and considered under e ccs or e ccu ; and

(b)

any fossil CO2 emitted into the atmosphere at the end of life of the co-products, calculated on a stoichiometric basis for the carbon incorporated in the chemical composition of all co-products, unless the operator demonstrates that such CO2 is captured and stored permanently or permanently chemically bound in long-lasting products listed in Commission Delegated Regulation (EU) 2024/2620 (14). Solid carbon incorporated in co-products because it is permanently chemically bound in products listed in Delegated Regulation (EU) 2024/2620 or solid carbon stored in line relevant requirements for ensuring permanent storage set out in the methodology adopted pursuant to Article 8(2) of Regulation (EU) 2024/3012 of the European Parliament and of the Council (15) is not considered as emitted.

(a)

The allocation shall be conducted at the end of the process that produces the co-products. The emissions allocated shall include the emissions from the process itself as well as the emissions attributed to inputs to the process.

(b)

The emissions to be allocated shall be e i plus any fractions of e p , e td and e ccs that take place up to and including the process step at which the co-products are produced. If an input into the process is itself a co-product of another process, the allocation at the other process shall be done first to establish the emissions to be attributed to the input. Emissions of e ex-use are to be allocated only to co-products that qualify as renewable fuels of non-biological origin or low-carbon fuels.

(c)

If any installation inside the project boundary treats only one of the project’s co-products, then the emissions from that installation shall be ascribed entirely to that co-product.

(d)

Where the process allows the ratio of the co-products produced to be changed, the allocation shall be done based on physical causality by determining the effect on the process emissions of incrementing the output of just one co-product while keeping the other outputs constant.

(e)

Where the ratio of the products is fixed and the co-products are all fuels, electricity or heat, the allocation shall be done by energy content. If allocation concerns exported heat on the basis of the energy content, only the useful part of the heat may be considered, as defined in Part C, point 16 of Annex V to Directive (EU) 2018/2001.

(f)

Where the ratio of the products is fixed and some co-products are materials with no energy content, the allocation shall be done based on the economic value of the co-products. The economic value considered shall be the average factory gate value of the products over the last 3 years. If such data is not available, the value shall be estimated from commodity prices minus the cost of transport and storage.

c CO2

=

CO2 captured at the carbon capture plant (gCO2eq/MJ fuel);

e CO2-c

=

emissions associated with all operations for carbon capture, dehydration, compression and liquefaction of CO2 (gCO2eq/MJ fuel);

e CO2-t

=

emissions from the transport of CO2 by pipeline, ship, barge, rail or truck from the capture site to the permanent storage site (gCO2eq/MJ fuel);

e CO2-i

=

emissions from injection operations of CO2 into the permanent storage site (gCO2eq/MJ fuel).

(a)

GHG emissions per MJ of fuel captured at the carbon capture plant (c CO2 ) for the purpose of permanent geological storage in a storage site permitted under Directive 2009/31/EC of the European Parliament and of the Council (16) or under applicable national law in third countries, and which is not used for enhanced oil and gas recovery. The applicable national law that regulates geological storage sites shall provide for appropriate monitoring, reporting and verification requirements to detect leaks, as well as place legal obligations on the storage operator to ensure remediation in line with the legal provisions applicable in the Union. In case of a leak the equivalent amount of carbon emissions shall not be credited as a reduction in emissions under e ccs . Geological storage sites that repeatedly leak shall not be accepted for injection (e CO2-i).

(b)

GHG emissions per MJ of fuel from CO2 capture operations (e CO2-c) Those emissions shall include emissions from fuel, heat and electricity use and material input use for capture, as well as all material replacements (due to losses or degradation). Those emissions shall be calculated in accordance with Section 21 of Annex IV to Commission Implementing Regulation (EU) 2018/2066 (17).

(c)

GHG emissions per MJ of fuel from the transport of CO2 (e CO2-t) by pipeline, ship, rail, truck or other maritime modal from the capture site. GHG emissions due to the transportation of CO2 shall be calculated based on the distance travelled, modal type and load. If the injected CO2 comes via two or more different transport modes, the emissions shall be calculated as a sum for each transport mode. Transport emissions for multiple sources shall be allocated using the mass-based allocation method. If a pipeline carries CO2 to multiple geological sites or serves multiple uses, CO2 transport emissions shall be allocated using the mass-based allocation method. GHG emissions from dispatching CO2 by pipeline shall be calculated in accordance with Section 22 of Annex IV to Implementing Regulation (EU) 2018/2066.

(d)

GHG emissions per MJ of fuel from injection (e CO2-i) into a permanent geological storage site permitted under Directive 2009/31/EC or under applicable national law in third countries. Those emissions shall include all emissions from fuel combustion at stationary equipment used in CO2 transport, including emissions from electricity and emissions of fuels used in CO2 transport by associated booster stations and other combustion activities including on-site power plants. Those emissions shall be calculated in accordance with Section 23 of Annex IV to Implementing Regulation (EU) 2018/2066.

c CO2

=

CO2 captured at the carbon capture plant (gCO2eq/MJ fuel);

e CO2-c

=

emissions associated with all operations for carbon capture, dehydration, compression and liquefaction of CO2 (gCO2eq/MJ fuel);

e CO2-t

=

emissions from the transport of CO2 by pipeline, ship, barge, rail or truck from the capture site to the utilisation site (gCO2eq/MJ fuel);

e CO2-u

=

emissions from the utilisation of CO2 to chemically bind it permanently in products (gCO2eq/MJ fuel).