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Document 52022SC0407
COMMISSION STAFF WORKING DOCUMENT Accompanying the document Report from the Commission to the European Parliament and the Council on the Functioning of the European carbon market in 2021 pursuant to Articles 10(5) and 21(2) of Directive 2003/87/EC (as amended by Directive 2009/29/EC and Directive (EU) 2018/410)
COMMISSION STAFF WORKING DOCUMENT Accompanying the document Report from the Commission to the European Parliament and the Council on the Functioning of the European carbon market in 2021 pursuant to Articles 10(5) and 21(2) of Directive 2003/87/EC (as amended by Directive 2009/29/EC and Directive (EU) 2018/410)
COMMISSION STAFF WORKING DOCUMENT Accompanying the document Report from the Commission to the European Parliament and the Council on the Functioning of the European carbon market in 2021 pursuant to Articles 10(5) and 21(2) of Directive 2003/87/EC (as amended by Directive 2009/29/EC and Directive (EU) 2018/410)
SWD/2022/407 final
EUROPEAN COMMISSION
Brussels, 14.12.2022
SWD(2022) 407 final
COMMISSION STAFF WORKING DOCUMENT
Accompanying the document
Report from the Commission to the European Parliament and the Council
on the Functioning of the European carbon market in 2021 pursuant to Articles 10(5) and 21(2) of Directive 2003/87/EC (as amended by Directive 2009/29/EC and Directive (EU) 2018/410)
{COM(2022) 516 final}
Contents
Appendix 1 – ETS scope
Appendix 2 – Auction revenues
Appendix 3 – Balancing supply and demand
Appendix 4 – Monitoring, reporting and verification
Appendix 1 – ETS scope
Figure 1.1. Number of installations per emissions category in 2021.
Table 1.1. Countries reporting non-CO2 emissions from EU ETS activities in 2021.
|
Gas |
Activity |
Number of countries |
EU ETS country |
|
PFCs |
Primary aluminium |
12 |
DE, ES, FR, GR, IS, IT, NL, NO, RO, SE, SI, SK |
|
N2O |
Nitric acid |
19 |
AT, BE, BG, CZ, DE, ES, FI, FR, GR, HR, HU, IT, LT, NL, NO, PL, PT, RO, SK |
|
Adipic acid |
3 |
DE, FR, IT |
|
|
Glyoxal and glyoxylic acid |
3 |
DE, FR, IT |
Appendix 2 – Auction revenues
Table 2.1. Revenues from the auctioning of general and aviation allowances in 2021 (EU27).
|
EU ETS country |
Revenues in 2021 [million EUR] |
|
|
General allowances |
Aviation allowances |
|
|
AT |
306.6 |
4.4 |
|
BE |
527.3 |
5.9 |
|
BG |
830.9 |
2.0 |
|
CY |
77.0 |
1.4 |
|
CZ |
601.9 |
2.1 |
|
DE |
5 270.9 |
35.3 |
|
DK |
287.6 |
5.3 |
|
EE |
248.1 |
0.6 |
|
EL |
1 003.9 |
10.7 |
|
ES |
2 452.4 |
30.5 |
|
FI |
404.6 |
4.4 |
|
FR |
1 446.0 |
23.1 |
|
HR |
110.7 |
1.6 |
|
HU |
286.2 |
2.0 |
|
IE |
145.3 |
4.0 |
|
IT |
2 495.8 |
25.2 |
|
LT |
85.3 |
0.9 |
|
LU |
7.3 |
0.7 |
|
LV |
61.3 |
1.1 |
|
MT |
29.5 |
1.2 |
|
NL |
885.2 |
8.8 |
|
PL |
5 588.6 |
5.0 |
|
PT |
505.9 |
8.0 |
|
RO |
480.1 |
3.8 |
|
SE |
214.5 |
7.6 |
|
SI |
129.8 |
0.3 |
|
SK |
275.8 |
0.3 |
|
Total |
24 758.6 |
196.1 |
Table 2.2. Revenues from the auctioning of general and aviation allowances in 2021 (EFTA countries).
|
EU ETS participating country |
Revenues in 2021 [million EUR] |
|
|
General allowances |
Aviation allowances |
|
|
Iceland |
3.9 |
1.9 |
|
Liechtenstein |
0.2 |
- |
|
Norway |
174.5 |
8.6 |
|
Total |
178.6 |
10.5 |
Table 2.3. Revenues from the auctioning of allowances for the Innovation and Modernisation Funds.
|
Fund |
Revenues [million EUR] |
|
|
2020 |
2021 |
|
|
Innovation Fund |
1 333.8 |
2 163.2 |
|
Modernisation Fund |
- |
3 751.7 |
|
Total |
1 333.8 |
5 915.0 |
Table 2.4. Projects supported under the InnovFin EDP and CEF DI (through NER 300 funds), June 2020 - June 2022.
|
Project title |
Description |
|
Provence Grand Large Floating Offshore Wind Project (InnovFin EDP) |
The project concerns the design, installation, operation and maintenance of a floating offshore wind farm about off the coast of Marseille, France in 100m Water Depth. The project will consist of three 8MW turbines which will be mounted in an innovative floating. The NER 300 contribution in form of loans) amounts to EUR 50 million. |
|
CH New Charging and Energy Storage Solutions (InnovFin EDP) |
The proposed technology platform allows the integration of electric vehicles (“EVs”) into the power grid by aggregating and leveraging the energy storage potential of end-user EVs batteries as stationary storage devices in order to provide power system services. The project’s demonstration is located in Germany, France and the Netherlands and the NER 300 contribution amounts to EUR 2.1 million. |
|
DK Everfuel Green Hydrogen Project |
The project comprises the deployment of a hydrogen distribution infrastructure and a hydrogen production plant, to supply green hydrogen to a large-scale fleet of fuel cell electric buses in Denmark. The financing of EUR 20.7 million is supported under the Future Mobility product, backed by the Connecting Europe Facility and the NER300 Programme. |
|
ES Evervest |
The project consists of the roll out of an electric vehicle charging network involving the deployment of 476 charging points in 200 sites over a 3-year implementation period. Charging points will only sell electricity sourced from renewable sources backed by relevant certificates. This project requested the EIB loan of EUR 50 million, fully covered from NER300 unspent funds. |
Table 2.5. Total number of allowances in the Modernisation Fund per beneficiary Member State for phase 4 (2021-30).
|
Member State |
Share as per
|
Allowances as per
|
Transfers from
|
Transfers from
|
Total transfers from
|
Total |
|
BG |
5.84% |
16 095 825 |
0 |
0 |
0 |
16 095 825 |
|
CZ |
15.59% |
42 968 135 |
38 722 276 |
111 462 281 |
150 184 557 |
193 152 692 |
|
EE |
2.78% |
7 662 054 |
0 |
0 |
0 |
7 662 054 |
|
HR |
3.14% |
8 654 262 |
0 |
5 978 852 |
5 978 852 |
14 633 114 |
|
LV |
1.44% |
3 968 834 |
0 |
0 |
0 |
3 968 834 |
|
LT |
2.57% |
7 083 265 |
0 |
8 696 818 |
8 696 818 |
15 780 083 |
|
HU |
7.12% |
19 623 677 |
0 |
0 |
0 |
19 623 677 |
|
PL |
43.41% |
119 643 793 |
0 |
0 |
0 |
119 643 793 |
|
RO |
11.98% |
33 018 490 |
81 673 875 |
86 073 704 |
167 747 579 |
200 766 069 |
|
|
6.13% |
16 895 104 |
1 783 231 |
33 228 414 |
35 011 645 |
51 906 749 |
|
Total |
100.00% |
275 613 439 |
122 179 383 |
245 440 068 |
367 619 451 |
643 232 890 |
Appendix 3 – Balancing supply and demand
Figure 3.1. TNAC methodology
A key notion for the functioning of the Market Stability Reserve (MSR) is the total number of allowances in circulation (TNAC). Allowances are added to the reserve if the TNAC is above a predefined upper threshold (833 million allowances), and are released from the reserve if the TNAC is below a predefined lower threshold (below 400 million allowances)*. The MSR absorbs or releases allowances when the circulating volume is outside of a predefined range. Backloaded and so-called unallocated** allowances were also put in the reserve. From 2023 onwards, allowances held in the MSR exceeding the previous year's auction volume will no longer be valid.
The TNAC relevant for determining the MSR feeds and releases is calculated on the basis of the following formula:
TNAC = Supply – (Demand + allowances in the MSR)
The components of supply and demand used in the formula are described in the Communication from the European Commission on the TNAC, published annually in May.***
* Or where measures are adopted under Article 29a of the EU ETS Directive.
**Unallocated allowances are allowances not allocated pursuant to Article 10a(7) of the EU ETS Directive, i.e. allowances remaining in the new entrants' reserve, and resulting from the application of Article 10a(19) and (20), i.e. allowances foreseen for free allocation to installations but remaining unallocated because of (partial) cessation of operations or significant capacity reductions. De facto "unallocated" allowances stemming from the application of the relevant carbon leakage factor to sectors not included in the carbon leakage list during the current period, as well as any allowances that are not allocated under Article 10c of the ETS Directive, are not foreseen to be placed in the MSR under Article 1(3) of Decision (EU) 2015/1814 . Such allowances are therefore not covered (please refer to p. 225 of the Impact Assessment (SWD(2015)135 final) accompanying the 2015 proposal for revision of the EU ETS Directive).
***See the latest TNAC Communication, published in May 2022: C/2022/4874 .
Table 3.1. Annual contributions to the Market Stability Reserve by EU ETS country.
|
EU ETS country |
2021 |
2022 |
|
AT |
5 563 187 |
6 345 090 |
|
BE |
9 228 856 |
10 525 966 |
|
BG |
6 531 499 |
7 449 497 |
|
CY |
874 285 |
997 166 |
|
CZ |
14 108 876 |
16 091 870 |
|
DE |
80 029 579 |
91 277 689 |
|
DK |
5 005 490 |
5 709 009 |
|
EE |
2 225 742 |
2 538 569 |
|
EL |
11 888 232 |
13 559 116 |
|
ES |
30 610 010 |
34 912 228 |
|
FI |
6 682 443 |
7 621 657 |
|
FR |
21 881 211 |
24 956 603 |
|
HR |
1 513 604 |
1 726 341 |
|
HU |
4 381 023 |
4 996 772 |
|
IE |
3 740 851 |
4 266 625 |
|
IS |
156 001 |
177 927 |
|
IT |
37 775 362 |
43 084 666 |
|
LI |
3 492 |
3 982 |
|
LT |
1 100 842 |
1 255 564 |
|
LU |
438 053 |
499 621 |
|
LV |
480 330 |
547 840 |
|
MT |
332 525 |
379 262 |
|
NL |
13 394 277 |
15 276 835 |
|
NO |
3 106 500 |
3 543 117 |
|
PL |
34 583 085 |
39 443 717 |
|
PT |
6 072 075 |
6 925 501 |
|
RO |
11 604 041 |
13 234 982 |
|
SE |
3 246 409 |
3 702 690 |
|
SI |
1 478 674 |
1 686 501 |
|
SK |
4 206 047 |
4 797 204 |
|
NI (Northern Ireland) |
883 013 |
1 007 119 |
Appendix 4 – Monitoring, reporting and verification
Table 4.1. Accreditation and verification in the EU ETS in 2021 1 .
|
Aspect |
Countries |
Number |
Differences per country compared to 2020 |
|
Number of verifiers accredited by the National Accreditation Body of a Member States – for installations |
23 |
106 |
AT(2), BE(2), BG(3), CZ(5), DE(16), DK(3), EE(1), EL(5), ES(6), FI(4), FR(6), HR(2), HU(5), IT(10), LV(3), NL(3), NO(3), PL(8), PT(3), RO(6), SE(4), SI(2), SK(4) |
|
Number of verifiers accredited by the National Accreditation Body of a Member State- for aviation |
12 |
23 |
AT(1), CZ(1), DE(4), EL(3), ES(2), FR(2), IT(3), LV(1), PT(2), RO(2), SI(1), SK(1) |
|
Number of verifiers accredited by another Member State - for installations |
24 |
57 |
AT(1), BE(4), BG(4), CY(2), CZ(1), DK(1), EE(3), ES(3), FR(1), HR(1), HU(3), IE(6), IS(2), LT(3), LU(4), MT(1), NL(2), NO(2), PL(3), PT(1), RO(2), SE(4), SK(1), XI(2) |
|
Number of verifiers accredited by a national accreditation body in another Member State - for aviation |
23 |
39 |
AT(2), BE(3), BG(1), CY(1), DK(1), EE(1), ES(1), FI(1), HR(1), HU(1), IE(2), IS(1), IT(3), LT(2), LU(2), MT(3), NL(2), NO(3), PL(3), PT(1), RO(1), SE(2), SK(1) |
|
Number of complaints made about verifiers |
6 |
28 |
DE(4), ES(16), FR(4), LV(1), RO(2), SE(1) |
|
Number of resolved complaints |
5 |
26 |
DE(4), ES(16), FR(3), RO(2), SE(1) |
|
Number of complaints from prior reports, not reported as resolved earlier and meanwhile resolved |
1 |
11 |
DE(11) |
|
Number of non-conformities for verifiers reported in the information exchange |
8 |
64 |
AT(10), BG(10), FI(18), FR(3), HR(10), HU(5), IE(3), NO(5) |
|
Number of non-conformities above resolved |
8 |
46 |
AT(10), BG(5), FI(9), FR(3), HR(10), HU(5), IE(3), NO(1) |
|
Number of non-conformities from prior reports, not reported as resolved earlier and meanwhile resolved |
3 |
24 |
BG(4), DE(11), FI(9) |
|
Verifiers suspended |
1 |
2 |
NO(2) |
|
Withdrawal of accreditation certificate |
1 |
1 |
FR(1) |
|
Scope of accreditation reduced |
6 |
7 |
DE(2), DK(1), FI(1), FR(1), NO(1), SE(1) |
Table 4.2. EU ETS coordination between competent authorities in 2021 2 .
|
Aspect |
Number of countries and list of relevant countries |
|
|
Does a central competent authority review monitoring plans, annual emission reports and improvement reports in addition to local and regional authorities on a regular basis? |
11 |
AT, BG, ES, HR, HU, LT, NL, PL, SE, SI, XI |
|
Does a central competent authority steer local and/or regional competent authorities by giving binding instructions and guidance? |
5 |
BG, FR, NL, SK, XI |
|
Does a central competent authority steer local and/or regional competent authorities by giving non- binding instructions and guidance? |
5 |
AT, FI, LT, PL, PT |
|
Are regular meetings organised with the competent authorities? |
9 |
BE, BG, EL, ES, FR, NL, PT, SE, XI |
|
Is common training organised for all competent authorities to ensure harmonised implementation of requirements? |
8 |
AT, BG, FR, NL, PT, SE, SK, XI |
|
Is a structured working or coordination group established, where competent authority staff, discusses monitoring and reporting issues and develops common approaches? |
10 |
BG, EL, ES, FR, HR, HU, NL, PT, SE, XI |
Table 4.3. Administrative charges in the EU ETS in 2021 3 .
|
Aspect |
Number of countries and list of relevant countries (values in EUR) |
||
|
Installations |
Are fees charged to operators? |
16 |
AT, BG, CZ, DK, ES, FI, HR, HU, IS, IT, NO, PL, PT, RO, SI, XI |
|
Permit issuance/monitoring plan approval |
14 |
BG(250), CZ(400), ES(985.35), FI(500), HR(5), HU(257), IS(3500), IT(250), NO(3356), PL(17.52), PT(207.96), RO(360), SI(22.6), XI(7729.2) |
|
|
Permit update |
13 |
BG(100), ES(393.33), FI(400), HR(5), HU(143), IS(780), IT(62), NO(1007), PL(2.13), PT(103.97), RO(360), SI(22.6), XI(546.92) |
|
|
Permit transfer |
8 |
FI(500), HR(5), HU(143), IS(780), IT(62), PL(2.13), SI(22.6), XI(546.92) |
|
|
Permit surrender |
3 |
IT(62), PL(2.13), XI(870.1) |
|
|
New entrant reserve application |
8 |
BG(500), HR(5), HU(652.5), IS(2600), IT(62), PT(1455.69), SI(22.6), XI(1447.53) |
|
|
Annual subsistence charge amount |
3 |
DK(4854), IT(250), XI(5277) |
|
|
Aircraft operators |
Are fees charged to aircraft operators? |
13 |
AT, BG, DK, FI, HR, HU, IS, IT, NO, PL, PT, RO, SI |
|
Approval of monitoring plan for emissions |
11 |
BG(500), FI(700), HR(5), HU(540), IS(3100), IT(250), NO(3000), PL(2.13), PT(279.14), RO(2000), SI(22.6) |
|
|
Approval of change to monitoring plan for emissions |
11 |
BG(50), FI(250), HR(5), HU(540), IS(1080), IT(62), NO(800), PL(2.13), PT(139.57), RO(500), SI(22.6) |
|
|
Approval of monitoring plan for tonne-kilometre data |
8 |
BG(500), HU(540), IS(3100), IT(62), PL(2.13), PT(279.14), RO(2500), SI(22.6) |
|
|
Approval of change to monitoring plan for tonne-kilometre data |
8 |
BG(50), HU(540), IS(1080), IT(62), PL(2.13), PT(139.57), RO(500), SI(22.6) |
|
|
Transfer of monitoring plan |
5 |
HR(5), HU(540), IS(1080), IT(62), SI(22.6) |
|
|
Surrender of monitoring plan |
1 |
IT(62) |
|
Table 4.4. Compliance checks in the EU ETS in 2021 4 .
|
Type of check |
Number of EU ETS countries (% or number per relevant country) |
||
|
Installations |
Share of the emissions reports checked for completeness and internal consistency (%) |
30 |
AT(100%), BE(100%), BG(100%), CY(100%), CZ(100%), DE(100%), DK(100%), EE(100%), EL(100%), ES(100%), FI(100%), FR(100%), HR(100%), HU(100%), IE(90%), IS(100%), IT(100%), LT(100%), LU(100%), LV(100%), MT(100%), NL(100%), NO(100%), PL(100%), PT(100%), RO(100%), SE(100%), SI(100%), SK(100%), XI(100%) |
|
Share of the emissions reports checked for consistency with the monitoring plan (%) |
29 |
AT(20%), BE(70%), BG(100%), CY(100%), CZ(30%), DE(100%), DK(100%), EE(100%), EL(100%), ES(90%), FI(100%), FR(70%), HR(100%), HU(100%), IE(90%), IS(100%), LT(80%), LU(100%), LV(100%), MT(100%), NL(100%), NO(100%), PL(100%), PT(100%), RO(100%), SE(3%), SI(100%), SK(100%), XI(100%) |
|
|
Share of the emissions reports that were cross-checked with allocation data (%) |
23 |
AT(20%), BE(100%), BG(100%), CY(100%), CZ(10%), DK(100%), EE(100%), EL(100%), ES(43%), FI(100%), FR(100%), HU(100%), IE(1%), IS(100%), LT(80%), LU(100%), LV(100%), PL(100%), PT(100%), RO(100%), SI(100%), SK(100%), XI(100%) |
|
|
Share of the emissions reports that were cross-checked with other data (%). |
21 |
AT(20%), BE(100%), BG(100%), CY(100%), CZ(30%), DK(79%), EE(100%), EL(100%), ES(34%), FR(100%), HR(100%), LT(80%), LU(100%), NL(100%), NO(100%), PT(100%), RO(100%), SE(100%), SI(100%), SK(100%), XI(100%) |
|
|
Share of the emissions reports that were analysed in detail (%). |
25 |
AT(20%), BE(11%), BG(8%), CY(100%), CZ(30%), DK(54%), EE(100%), EL(50%), ES(23%), FI(100%), FR(30%), HR(100%), IE(90%), IS(100%), LT(100%), LU(100%), MT(100%), NL(25%), NO(100%), PL(100%), PT(100%), RO(100%), SE(3%), SK(100%), XI(100%) |
|
|
Number of verified emissions reports that were rejected because of non-compliance |
2 |
FR(1), RO(1) |
|
|
Number of verified emissions reports that were rejected because of other reasons. |
5 |
ES(5), FR(4), LT(16), NO(3), PT(26) |
|
|
Aircraft operators |
Share of the emissions reports checked for completeness and internal consistency (%) |
26 |
AT(100%), BE(50%), BG(100%), CY(100%), CZ(100%), DE(100%), DK(100%), EE(100%), EL(100%), ES(100%), FI(100%), FR(100%), HR(100%), IE(100%), IS(100%), IT(100%), LT(100%), LU(100%), MT(100%), NL(100%), NO(100%), PL(100%), PT(100%), RO(100%), SE(100%), SK(100%) |
|
Share of the emissions reports checked for consistency with the monitoring plan (%) |
24 |
AT(100%), BE(50%), BG(100%), CY(100%), CZ(50%), DE(100%), DK(100%), EE(100%), EL(100%), ES(100%), FI(100%), HR(100%), IS(100%), IT(60%), LT(100%), LU(100%), MT(100%), NL(14%), NO(100%), PL(100%), PT(100%), RO(100%), SE(100%), SK(100%) |
|
|
Share of the emissions reports that were cross-checked with other data (%) |
23 |
AT(100%), BE(100%), BG(100%), CY(100%), DE(100%), DK(100%), EE(100%), EL(100%), ES(100%), FI(100%), FR(100%), HR(100%), IS(67%), IT(100%), LT(100%), LU(100%), MT(100%), NL(100%), NO(100%), PT(100%), RO(100%), SE(100%), SK(100%) |
|
|
Share of the emissions reports that were analysed in detail (%). |
23 |
AT(100%), BG(100%), CY(100%), DE(100%), DK(30%), EE(100%), EL(100%), ES(100%), FI(100%), FR(80%), HR(100%), IS(100%), IT(50%), LT(100%), LU(100%), MT(100%), NL(14%), NO(50%), PL(100%), PT(100%), RO(100%), SE(45%), SK(100%) |
|
|
Number of verified emissions reports that were rejected because of non-compliance |
0 |
- |
|
|
Number of verified emissions reports that were rejected because of other reasons. |
1 |
PT(3) |
|
Table 4.5. EU ETS compliance measures in 2021 5 .
|
Compliance measures |
Countries |
||
|
Installations |
Onsite inspections |
17 |
AT, BE, BG, CY, EL, ES, FR, HR, HU, IS, LT, NL, NO, PL, RO, SE, SI |
|
Have preventive measures been taken to ensure operator’s compliance? |
17 |
AT, BG, CZ, DE, DK, EE, ES, FI, FR, HR, HU, LU, NL, NO, PL, SE, SI |
|
|
Ensuring that selling of emission allowances is prohibited in the case of irregularities |
7 |
AT, BG, CZ, DE, FR, SI, SK |
|
|
Imprisonment possible? |
8 |
BE, CY, DK, EE, IE, LU, NO, SE |
|
|
Aircraft operators |
Onsite inspections |
0 |
- |
|
Have preventive measures been taken to ensure aircraft operator’s compliance? |
4 |
AT, CZ, DE, RO |
|
|
Ensuring that selling of emission allowances is prohibited in the case of irregularities |
12 |
AT, CY, CZ, DE, EE, FI, HR, IS, LU, NO, RO, SE |
|
|
Imprisonment possible? |
6 |
CY, DK, IE, LU, NO, SE |
|
Table 4.6. Excess emissions penalties in the EU ETS in 2021 6 .
|
Penalty |
Countries |
Number of operators and country |
|
|
Imposition of excess emission penalties to installation |
8 |
29 |
CZ(2), DE(1), DK(1), ES(4), HR(1), HU(9), PL(1), RO(10) |
|
Imposition of excess emission penalties to aircraft operators |
4 |
9 |
BE(1), DE(3), ES(4), IE(1) |
The maximum number of countries is 30 because Liechtenstein did not have any active operators in 2021.
The maximum number of countries is 30 because Liechtenstein did not have any active operators in 2021.
The maximum number of countries is 30 because Liechtenstein did not have any active operators in 2021.
The maximum number of countries is 30 because Liechtenstein did not have any active operators in 2021.
The maximum number of countries is 30 because Liechtenstein did not have any active operators in 2021.
The maximum number of countries is 30 because Liechtenstein did not have any active operators in 2021.