52023SC0346

EUROPEAN COMMISSION

Brussels, 31.10.2023

SWD(2023) 346 final

COMMISSION STAFF WORKING DOCUMENT

Technical information

Accompanying the document

Report from the Commission to the European Parliament and the Council

on the functioning of the European carbon market in 2022 pursuant to Articles 10(5) and 21(2) of Directive 2003/87/EC

{COM(2023) 654 final}

Table 1: Countries reporting non-CO2 emissions from EU ETS activities in 2022

Table 2: Revenue from the auctioning of general and aviation allowances in the EU ETS in 2022 (EU 27)

Table 3: Revenues from the auctioning of general and aviation allowances in 2022 (Iceland, Liechtenstein, Norway and the UK in respect of Northern Ireland)

Table 4: Revenue from the auctioning of allowances for the Innovation Fund and the Modernisation Fund in 2022

Table 5. Projects supported under the InnovFin EDP and CEF DI through NER 300 funds (1 June 2020 to 30 June 2023).

Table 6: Annual contributions of EU ETS countries to the Market Stability Reserve

Table 8: Accreditation and verification in the EU ETS in 2022

Table 9: EU ETS coordination between competent authorities in 2022

Table 10: Administrative charges in the EU ETS in 2022

Table 11: Compliance checks in the EU ETS in 2022

Table 12: EU ETS compliance measures in 2022

Table 13. Excess emissions penalties in the EU ETS in 2022.

Table 14. Comparison of the EU ETS and Swiss ETS - stationary installations in 2022.

Table 15. Comparison of the EU ETS and Swiss ETS - aircraft operators in 2022.

Table 16. Units used for compliance in the EU Registry in 2022.

Table 17. Units used for compliance in the Swiss Registry in 2022.

Table 18. Allowances transferred between the EU ETS and the Swiss ETS in 2020-22.

Table 1: Countries reporting non-CO2 emissions from EU ETS activities in 2022

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

Table 2: Revenue from the auctioning of general and aviation allowances in the EU ETS in 2022 (EU 27)

EU Member State	Revenue in 2022 (million EUR)
	General allowances	Aviation allowances
AT	375.4	6.3
BE	649.2	8.6
BG	1 091.3	2.9
CY	100.8	2.1
CZ	670.6	3.0
DE	6 772.4	40.2
DK	354.5	7.7
EE	333.2	0.8
EL	1 314.0	15.5
ES	3 186.8	44.4
FI	504.7	6.4
FR	1 834.7	33.6
HR	141.1	2.3
HU	462.0	2.9
IE	209.9	5.8
IT	3 166.1	36.6
LT	102.4	1.3
LU	29.6	1.0
LV	82.6	1.6
MT	38.4	1.8
NL	1 123.1	12.8
PL	4 966.4	9.6
PT	661.6	11.6
RO	482.4	5.6
SE	272.1	11.1
SI	170.5	0.4
SK	342.4	0.5

Table 3: Revenues from the auctioning of general and aviation allowances in 2022 (Iceland, Liechtenstein, Norway and the UK in respect of Northern Ireland)

EU ETS country	Revenue in 2022 (million EUR)
	General allowances	Aviation allowances
Iceland	9.9	2.7
Liechtenstein	0.3	0.0
Norway	213.7	12.6
UK (Northern Ireland)	168.3	0.0

Table 4: Revenue from the auctioning of allowances for the Innovation Fund and the Modernisation Fund in 2022

Fund supplied from the EU ETS

Revenue in 2022

(million EUR)

Innovation Fund

3 192.0

Modernisation Fund

5 446.4

Table 5. Projects supported under the InnovFin EDP and CEF DI through NER 300 funds (1 June 2020 to 30 June 2023).

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 100 metre 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.
BORDEAUX LITHIUM ION BATTERY STORAGE (InnovFin EDP)	The project consists of a 105 megawatt lithium ion battery storage asset in Gironde, France. It aims to improve grid flexibility for the integration of renewables and to contribute to the security of supply of the system by increasing the battery storage capacity in the New Aquitaine region. The NER 300 contribution amounts to EUR 16.50 million.
DK Everfuel Green Hydrogen Project (CEF DI)	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 NER 300.
ES Evervest (CEF DI)	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 NER 300 unspent funds.
Innovative Trains – North East Germany (CEF DI)	The project, led by the railway company Niederbarnimer Eisenbahn (NEB), aims to replace diesel locomotives with the first battery-powered trains from December 2024. These trains will use the overhead contact lines on electrified sections of the route to charge the batteries and power the trains on non-electrified sections. As soon as the railway’s electricity comes entirely from renewable sources, the trains will run on zero emissions. The EIB is financing the project with an investment loan of up to EUR 95 million, supported by EUR 21.85 million from the NER 300 unspent funds.

NER 300 programme

The NER 300 funded by the EU ETS was a large-scale funding programme for innovative low-carbon energy demonstration projects set up for 2013-2020. The aim was to demonstrate environmentally safe carbon capture and storage and innovative renewable energy technologies on a commercial scale. The programme pooled revenue from the auctioning of 300 million allowances from the EU ETS New Entrants’ Reserve (NER). Funding was awarded to projects selected in two rounds of calls for proposals, in December 2012 and July 2014. The projects are still being implemented.

In total, 38 renewable energy projects and one carbon capture and storage project in 20 Member States were awarded support from the NER 300, amounting to EUR 2.1 billion, but only eleven projects came into operation. Six projects are considered completed: the bioenergy project BEST in Italy, the onshore wind project Windpark Blaiken in Sweden, the bioenergy project Verbiostraw in Germany, the offshore wind projects Veja Mate and Nordsee One in Germany and the onshore wind project Windpark Handalm in Austria. The implementation of the remaining projects is still monitored under the programme: the smart grid project Puglia Active Network in Italy, the floating offshore wind projects Vertimed in France and Windfloat in Portugal, the concentrated solar power project Minos in Greece and the bioenergy project TORR in Estonia.

Due to difficulties in securing co-financing (private- or public-sector) as well as challenging economic and policy conditions, 28 projects were unable to raise sufficient additional funding and had to be withdrawn from the programme. As a result, over EUR 1.6 billion became available again under the NER 300. These unspent funds have been reallocated. The funds unspent in the first round of calls for proposals (currently EUR 727.6 million) are reinvested under existing financial instruments managed by the European Investment Bank (EIB).

Under the InnovFin Energy Demonstration Projects (InnovFin EDP), projects could be signed off by the end of 2022. Under both the InnovFin Energy financial advisory support and the Connecting Europe Facility Debt Instrument (CEF DI), projects must be signed off by the end of 2023. Table 5 provides further details on the projects supported under the InnovFin EDP and CEF DI since. At the end of June 2023, under InnovFin, NER 300 provided advisory services to 19 projects and more are in the pipeline. These are mainly renewable energy as well as carbon capture and use/storage projects.

The remaining unspent funds from NER 300 are channelled to the Innovation Fund. This includes unspent funds from the second round of calls for proposals and funds returned by Member States due to project failure. So far, EUR 770.2 million has been transferred to the Innovation Fund.

Table 6: Annual contributions of EU ETS countries to the Market Stability Reserve

EU ETS country	2021	2022	2023
AT	5 563 187	6 345 090	5 555 134
BE	9 228 856	10 525 966	9 215 496
BG	6 531 499	7 449 497	6 522 044
CY	874 285	997 166	873 019
CZ	14 108 876	16 091 870	14 088 451
DE	80 029 579	91 277 689	79 913 725
DK	5 005 490	5 709 009	4 998 244
EE	2 225 742	2 538 569	2 222 520
EL	11 888 232	13 559 116	11 871 023
ES	30 610 010	34 912 228	30 565 697
FI	6 682 443	7 621 657	6 672 769
FR	21 881 211	24 956 603	21 849 536
HR	1 513 604	1 726 341	1 511 413
HU	4 381 023	4 996 772	4 374 681
IE	3 740 851	4 266 625	3 735 436
IS	156 001	177 927	155 775
IT	37 775 362	43 084 666	37 720 676
LI	3 492	3 982	3 486
LT	1 100 842	1 255 564	1 099 248
LU	438 053	499 621	437 419
LV	480 330	547 840	479 635
MT	332 525	379 262	332 044
NL	13 394 277	15 276 835	13 374 887
NO	3 106 500	3 543 117	3 102 003
PL	34 583 085	39 443 717	34 533 022
PT	6 072 075	6 925 501	6 063 284
RO	11 604 041	13 234 982	11 587 243
SE	3 246 409	3 702 690	3 241 709
SI	1 478 674	1 686 501	1 476 533
SK	4 206 047	4 797 204	4 199 958
XI (Northern Ireland)	883 013	1 007 119	881 734

Table 8: Accreditation and verification in the EU ETS in 2022 1

Aspect	Countries	Number	Number per country
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 9: EU ETS coordination between competent authorities in 2022 2

Aspect	Number 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 10: Administrative charges in the EU ETS in 2022 3

Aspect		Number and list of relevant countries (charges expressed 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 11: Compliance checks in the EU ETS in 2022 4

Type of check		Number and list of EU ETS countries (% or number per 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)