What changed, Commission Regulation (EU) No 389/2013 of 2 May 2013 establishing a Union Registry pursuant to Directive 2003/…

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− ## *CHAPTER 1* / ***Subject matter, scope and definitions***
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− ### Article 1 — Subject matter
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− This Regulation lays down general, operational and maintenance requirements concerning the Union Registry for the trading period commencing on 1 January 2013 and subsequent periods, concerning the independent transaction log provided for in Article 20(1) of Directive 2003/87/EC, and concerning regis…
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− This Regulation also provides for a communication system between the Union Registry and the ITL.
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− ### Article 2 — Scope
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− This Regulation applies to allowances created for the trading period of the Union emissions trading scheme commencing on 1 January 2013 and subsequent periods, annual emission allocation units and Kyoto units.
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− This Regulation also applies to aviation allowances to be auctioned that were created for the trading period from 1 January 2012 to 31 December 2012.
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− ### Article 3 — Definitions
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− Unless otherwise indicated, terms used in Title II of this Regulation have the same meaning as under Directive 2003/87/EC. Moreover, the definitions set out in Article 3 of Regulation (EU) No 1031/2010 and in Article 3 of Commission Decision 2011/278/EU apply. The following definitions also apply:
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− (1) ‘account holder’ means a natural or legal person that holds an account in the registries system;
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− (2) ‘central administrator’ means the person designated by the Commission pursuant to Article 20 of Directive 2003/87/EC;
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− (3) ‘competent authority’ means the authority or authorities designated by a Member State pursuant to Article 18 of Directive 2003/87/EC;
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− (4) ‘external trading platform’ means any type of multilateral exchange that brings together or facilitates the bringing together of multiple third-party buying and selling interests as defined in Article 4 of Directive 2004/39/EC of the European Parliament and of the Council (1), where the interest…
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− (5) ‘verifier’ means a verifier as defined in Article 3(3) of Commission Regulation (EU) No 600/2012 (2);
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− (6) ‘assigned amount units’ (‘AAUs’) means units issued pursuant to Article 7(3) of Decision No 280/2004/EC;
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− (7) ‘aviation allowances’ means allowances created pursuant to Article 3c(2) of Directive 2003/87/EC;
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− (8) ‘general allowances’ means all other allowances created pursuant to Directive 2003/87/EC;
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− (9) ‘long-term certified emission reductions (‘lCERs’) means units issued for an afforestation or reforestation project activity under the clean development mechanism (‘CDM’) which, subject to Decision 5/CMP.1 of the Conference of the Parties serving as the meeting of the Parties to the Kyoto Protoc…
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− (10) ‘removal units’ (‘RMUs’) means units issued pursuant to the relevant provisions in the annex to Decision 13/CMP.1;
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− (11) ‘temporary certified emission reductions’ (‘tCERs’) means units issued for an afforestation or reforestation project activity under the CDM which, subject to Decision 5/CMP.1, expire at the end of the Kyoto Protocol commitment period following the one during which they were issued;
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− (12) ‘Kyoto units’ means AAUs, emission reduction units (‘ERUs’), certified emission reductions (‘CERs’), RMUs, lCERs and tCERs.
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− (13) ‘process’ means an automated technical means to carry out an action relating to an account, a unit or a portion of the credit entitlement in a registry;
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− (14) ‘transaction’ means a process in the Union registry that includes the transfer of an allowance, a Kyoto unit, an annual emission allocation unit or a portion of the credit entitlement from one account to another account;
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− (15) ‘surrender’ means the accounting of an allowance by an operator or aircraft operator against the verified emissions of its installation or aircraft;
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− (16) ‘cancellation’ means the definitive disposal of a Kyoto unit by its holder without accounting it against verified emissions;
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− (17) ‘deletion’ means the definitive disposal of an allowance by its holder without accounting it against verified emissions;
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− (18) ‘retirement’ means the accounting of a Kyoto unit by a party to the Kyoto Protocol against the reported emissions of that Party;
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− (19) ‘money laundering’ means money laundering as defined in Article 1(2) of Directive 2005/60/EC of the European Parliament and the Council (3);
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− (20) ‘serious crime’ means serious crime as defined in point (5) of Article 3 of Directive 2005/60/EC;
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− (21) ‘terrorist financing’ means terrorist financing as defined in Article 1(4) of Directive 2005/60/EC;
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− (22) ‘national administrator’ means the entity responsible for administering on behalf of a Member State a set of user accounts under the jurisdiction of a Member State in the Union Registry, designated in accordance with Article 8;
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− (23) ‘directors’ means the persons effectively directing the day-to-day operations of a legal person
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− (24) ‘Central European Time’ means Central European Summer Time during the summer-time period as defined in Articles 1, 2 and 3 of Directive 2000/84/EC;
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− (25) ‘national administrative platform’ means an external system operated by a national administrator or a competent authority that is securely connected to the Union Registry for the purposes of automating functions related to the administering of accounts and of compliance obligations in the Union…
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− (26) ‘international credits’ means CERs, ERUs and credits from projects or other emission reducing activities which may be used pursuant to Article 11a(5) of Directive 2003/87/EC;
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− (27) ‘annual emission allocation unit’ (‘AEA’) means a subdivision of a Member State's annual emission allocation as determined pursuant to Article 3(2) and Article 10 of Decision No 406/2009/EC equal to one tonne of carbon dioxide equivalent;
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− (28) ‘credit entitlement’ means the right of a Member State, expressed as a number equal to a percentage of its 2005 greenhouse gas emissions as specified in Article 5(4) of Decision No 406/2009/EC, to use credits referred to in Article 5 of Decision No 406/2009/EC in order to comply with its obliga…
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− (29) ‘unused credit entitlement’ means a Member State's credit entitlement less the sum of international credits, tCERs or lCERs held in the ESD Compliance Account at the moment of determination of the compliance status figures pursuant to Article 79 of this Regulation.
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− ## *CHAPTER 2* / ***The registries system***
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− ### Article 4 — Union Registry
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− **1.** A Union Registry for the trading period of the Union emissions trading scheme commencing on 1 January 2013 and subsequent periods is established.
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− **2.** The central administrator shall operate and maintain the Union Registry, including its technical infrastructure.
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− **3.** Member States shall use the Union Registry for the purposes of meeting their obligations under Article 19 of Directive 2003/87/EC and Article 11 of Decision No 406/2009/EC and to ensure accurate accounting of allowances, AEAs and to the credit entitlement within the scope of this Regulation. …
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− **4.** The central administrator shall ensure that the Union Registry conforms to the functional and technical specifications for data exchange standards for registry systems under the Kyoto Protocol elaborated pursuant to Decision 12/CMP.1 and have regard to the hardware, network, software and secu…
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− ### Article 5 — National and Union KP registries
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− **1.** For the purposes of meeting their obligations as Parties to the Kyoto Protocol and under Article 6 of Decision No 280/2004/EC to ensure the accurate accounting of Kyoto units, each Member State and the Union shall operate a Kyoto Protocol registry (KP registry) in the form of a standardised e…
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− **2.** The central administrator shall ensure that the Union Registry also function as a KP registry for the Union as a Party to the Kyoto Protocol. The central administrator shall also act as the administrator of the Union's KP registry, which is part of the Union registry.
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− ### Article 6 — European Union transaction log
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− **1.** A European Union Transaction Log (EUTL), to take the form of a standardised electronic database, is established, pursuant to Article 20 of Directive 2003/87/EC, for transactions within the scope of this Regulation. The EUTL shall also serve to record all information relating to the holdings a…
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− **2.** The central administrator shall operate and maintain the EUTL in accordance with the provisions of this Regulation.
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− **3.** The central administrator shall ensure that the EUTL is capable of checking and recording all processes referred to under this Regulation, and has regard to the functional and technical specifications for data exchange standards for registry systems under the Kyoto Protocol elaborated pursuan…
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− **4.** The central administrator shall ensure that the EUTL is capable of recording all processes described in Chapters 3 of Title I and Titles II, III and IV.
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− ### Article 7 — Communication links between registries, the ITL and the EUTL
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− **1.** The central administrator and Member States shall ensure that the Union Registry and KP registries maintain a communication link with the ITL for the purposes of communicating transactions with Kyoto units.
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− **2.** The central administrator shall ensure that the EUTL maintains a communication link with the ITL for the purposes of recording and checking transfers referred to in paragraph 1. All proposed transfers involving a KP registry shall be processed and checked by the EUTL before the transfer is re…
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− **3.** The central administrator shall ensure that the Union Registry maintains a direct communication link with the EUTL for the purposes of checking and recording transactions with allowances, AEAs or portions of the credit entitlements and the account management processes set out in Chapter 3 of …
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− **4.** The central administrator shall ensure that the Union Registry maintains a communication link with the registries of greenhouse gas emissions trading systems with whom a linking agreement is in force in accordance with Article 25 of Directive 2003/87/EC for the purposes of communicating trans…
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− ### Article 8 — National administrators and KP registry administrators
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− **1.** Each Member State shall designate a national administrator. Notwithstanding Article 13(2), the Member State shall access and administer pursuant to Article 11 its own accounts and the accounts in the Union Registry under its jurisdiction through its national administrator as defined in Annex …
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− **2.** The Member States and the Commission shall ensure that there is no conflict of interest amongst national administrators, the central administrator and account holders.
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− **3.** Each Member State shall notify the Commission of the identity and contact details of its national administrator, including an emergency telephone number to be used in the case of a security incident.
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− **4.** The Commission shall coordinate the implementation of this Regulation with the national administrators of each Member State and the central administrator. In particular, the Commission shall consult the Administrators' Working Group of the Climate Change Committee on issues and procedures rel…
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− **5.** The central administrator, the competent authorities and national administrators shall only perform processes necessary to carry out their respective functions as set out in Directive 2003/87/EC, Decision No 280/2004/EC and Decision No 406/2009/EC and the measures adopted pursuant to their pr…
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− ## Section 1 / **General provisions applicable to all accounts**
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− ### Article 9 — Accounts
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− **1.** Member States and the central administrator shall ensure that each KP registry and the Union Registry contain accounts as specified in Annex I.
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− **2.** Each account type may hold the unit types as set out in Annex I.
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− ### Article 10 — Account status
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− **1.** Accounts shall be in one of the following status: open, blocked, excluded or closed.
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− **2.** No processes may be initiated from blocked accounts, except for the processes specified in Articles 25, 31, 35, 67, 77, 81 and 82.
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− **3.** No processes may be initiated from closed accounts. A closed account may not be re-opened, and may not acquire units.
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− **4.** Upon exclusion of an installation from the Union scheme pursuant to Article 27 of Directive 2003/87/EC, the national administrator shall set the corresponding operator holding account to excluded status for the duration of the exclusion.
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− **5.** Upon notification from the competent authority that an aircraft operator's flights are no longer included in the Union scheme in accordance with Annex I to Directive 2003/87/EC in a given year, the national administrator shall set the corresponding aircraft operator holding account to exclude…
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− **6.** No processes may be initiated from excluded accounts, except for the processes specified in Articles 25 and 68 and the processes specified in Articles 35 and 67 corresponding to the period where the account status was not set to excluded.
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− ### Article 11 — The administering of accounts
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− **1.** Every account shall have an administrator who shall be responsible for administering the account on behalf of a Member State or on behalf of the Union.
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− **2.** The administrator of an account shall be determined for each account type as set out in Annex I.
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− **3.** The administrator of an account shall open, suspend, limit access to, or close an account, change its status, approve authorised representatives, permit changes to account details that require the approval of the administrator, and initiate transactions as requested by the account holder in a…
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− **4.** The administrator may require the account holders and its representatives to agree to comply with reasonable terms and conditions consistent with this Regulation having regard to the issues set out in Annex II.
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− **5.** Accounts shall be governed by the laws and fall under the jurisdiction of the Member State of their administrator and the units held in them shall be considered to be situated in that Member State's territory.
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− ### Article 12 — Notifications from the central administrator
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− The central administrator shall notify the account representatives and the national administrator of the initiation and completion or termination of any process related to the account, and of the change of status of the account, through an automated mechanism described in the data exchange and techn…
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− ## Section 2 / **Opening and updating accounts**
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− ### Article 13 — Opening accounts administered by the central administrator
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− **1.** The central administrator shall open all ETS management accounts in the Union Registry, the Union's KP accounts, the EU AEA Total Quantity Account, the ESD Deletion Account and one ESD Compliance Account for each Member State for each year of the compliance period within 20 working days of th…
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− **2.** The national administrator designated pursuant to Article 8(1) shall act as authorised representative of the ESD Compliance Accounts, unless the relevant Member State nominates another person.
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− **3.** Each Member State shall provide the central administrator the information set out in Table VIII-I of Annex VIII for each authorised representative and additional representative of the ESD Compliance Accounts.
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− ### Article 14 — Opening national administrative platform accounts in the Union Registry
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− **1.** From 1 January 2014, a national administrator may submit a request for opening a national administrative platform account in the Union Registry. This request shall be submitted to the central administrator. The national administrator shall provide information as required by the central admini…
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− **2.** Within 20 working days of the receipt of a complete set of information in accordance with paragraph 1, the central administrator shall open a national administrative platform account in the Union Registry or shall inform the national administrator of the refusal to open the account if the lev…
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− **3.** The national administrator designated pursuant to Article 8(1) shall act as the authorised representative of the national administrative platform account.
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− ### Article 15 — Opening an auction delivery account in the Union Registry
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− **1.** An auctioneer, a clearing system or a settlement system as defined in the Regulation (EU) No 1031/2010 or an auction platform appointed pursuant to Article 26 or Article 30 of that Regulation may submit to a national administrator a request for an auction delivery account in the Union Registr…
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− **2.** Within 20 working days of the receipt of a complete set of information in accordance with paragraph 1 of this Article and Article 24, the national administrator shall open the auction delivery account in the Union Registry or inform the person requesting the account of the refusal to open the…
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− ### Article 16 — Opening operator holding accounts in the Union Registry
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− **1.** Within 20 working days of the entry into force of a greenhouse gas emissions permit, the relevant competent authority or the operator shall provide the relevant national administrator with the information set out in Annex VI and shall request the national administrator to open an operator hol…
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− **2.** Within 20 working days of the receipt of a complete set of information in accordance with paragraph 1 of this Article and Article 24, the national administrator shall open an operator holding account for each installation in the Union Registry or inform the prospective account holder of the r…
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− ### Article 17 — Opening aircraft operator holding accounts in the Union Registry
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− **1.** Within 20 working days from the approval of the monitoring plan of an aircraft operator, the competent authority or aircraft operator shall provide the relevant national administrator with the information set out in Annex VII and shall request the national administrator to open an aircraft op…
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− **2.** Each aircraft operator shall have one aircraft operator holding account.
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− **3.** Aircraft operators performing aviation activities with total annual emissions lower than 25 000 tonnes of carbon dioxide equivalent per year or operating fewer than 243 flight per period for three consecutive four-month period may mandate a natural person or a legal entity to open an aircraft…
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− **4.** Within 40 working days of the receipt of a complete set of information in accordance with paragraph 1 of this Article and Article 24, the national administrator shall open an aircraft operator holding account for each aircraft operator in the Union Registry or inform the prospective account h…
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− **5.** The status of aircraft operator holding accounts shall be changed from blocked to open following the entry of verified emissions pursuant to paragraphs 1 to 5 of Article 35and a compliance status figure greater than or equal to 0 calculated pursuant to Article 37(1). The status of the account…
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− ### Article 18 — Opening person holding and trading accounts in the Union Registry
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− **1.** A request for opening a person holding account or trading account in the Union Registry shall be submitted to the national administrator by the prospective account holder. The prospective account holder shall provide information as required by the national administrator, which shall include, …
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− **2.** The Member State of the national administrator may require as a condition for opening a person holding or trading account that the prospective account holders have their permanent residence or registration in the Member State of the national administrator administering the account.
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− **3.** The Member State of the national administrator may require as a condition for opening a person holding or trading account that prospective account holders are registered for value added tax (VAT) in the Member State of the national administrator of the account.
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− **4.** Within 20 working days of the receipt of a complete set of information in accordance with paragraph 1 of this Article and Article 24, the national administrator shall open a person holding account or trading account in the Union Registry or inform the prospective account holder of the refusal…
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− ### Article 19 — Opening national holding accounts in the Union Registry
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− The competent authority of a Member State shall instruct the national administrator to open a national holding account in the Union Registry within 20 working days of the receipt of the information set out in Annex III.
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− ### Article 20 — Opening external trading platform accounts in the Union Registry
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− **1.** External trading platforms may submit a request for opening an external trading platform account in the Union Registry. This request shall be submitted to the national administrator. The person requesting the account shall provide information as required by the national administrator. This in…
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− **2.** National administrators shall ensure that external trading platforms have regard to the technical and security requirements described in the data exchange and technical specifications provided for in Article 105.
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− **3.** Within 20 working days of the receipt of a complete set of information in accordance with paragraph 1 of this Article and Article 24, the national administrator shall open an external trading platform account in the Union Registry or inform the central administrator or the person requesting t…
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− **4.** The approval of an additional authorised representative shall not be required pursuant to Article 23(3) to initiate a transaction for transactions initiated by external trading platforms.
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− ### Article 21 — Opening verifier accounts in the Union Registry
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− **1.** A request for opening a verifier account in the Union Registry shall be submitted to the national administrator. The person requesting the account shall provide information as required by the national administrator including the information set out in Annexes III and V.
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− **2.** Within 20 working days of the receipt of a complete set of information in accordance with paragraph 1 of this Article and Article 24, the national administrator shall open the verifier account in the Union Registry or inform the prospective account holder of the refusal to open the account, p…
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− ### Article 22 — Refusal to open an account
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− **1.** The national administrator shall verify whether the information and documents provided for account opening are complete, up-to-date, accurate and true.
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− **2.** A national administrator may refuse to open an account:(a) if the information and documents provided are incomplete, out-of-date or otherwise inaccurate or false;(b) if the prospective account holder, or, if it is a legal person, any of the directors of the prospective account holder, is unde…
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− **3.** If the national administrator refuses to open an account, the person requesting the account opening may object to the relevant authority under national law, who shall either instruct the national administrator to open the account or uphold the refusal in a reasoned decision, subject to requir…
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− ### Article 23 — Authorised representatives
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− **1.** Each account, with the exception of the verifier account, shall have at least two authorised representatives. A verifier account shall have at least one authorised representative. The authorised representatives shall initiate transactions and other processes on behalf of the account holder.
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− **2.** In addition to the authorised representatives specified in paragraph 1, accounts may also have authorised representatives with ‘view only’ access to the account.
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− **3.** Accounts may have one or more additional authorised representatives. The approval of an additional authorised representative is required, in addition to the approval of an authorised representative, in order to initiate a transaction, except for:(a) transfers to an account on the trusted acco…
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− **4.** Account holders may enable their accounts to be accessed through an external trading platform. Such account holders shall nominate a person who is already the authorised representative of an external trading platform account as an authorised representative.
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− **5.** If an authorised representative cannot access the Union Registry for technical or other reasons, the national administrator may initiate transactions on behalf of the authorised representative upon request, provided that the national administrator allows such requests and that access was not …
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− **6.** The data exchange and technical specifications may set a maximum number of authorised representatives and additional authorised representatives for each account type.
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− **7.** Authorised representatives and additional authorised representatives shall be natural persons over 18 years of age. All authorised representatives and additional authorised representatives of a single account shall be different persons but the same person can be an authorised representative o…
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− ### Article 24 — Nominating and approval of authorised representatives and additional authorised representatives
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− **1.** When requesting the opening of an account, the prospective account holder shall nominate a number of authorised representatives and additional authorised representatives in accordance with Article 23.
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− **2.** When nominating an authorised representative or additional authorised representative, the account holder shall provide information as required by the administrator. That information shall include, at a minimum, the information set out in Annex VIII.
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− **3.** Within 20 working days of the receipt of a complete set of information required in accordance with paragraph 2, the national administrator shall approve an authorised representative or additional authorised representative, or inform the account holder of its refusal. Where evaluation of the n…
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− **4.** The national administrator shall verify whether the information and documents provided for nominating an authorised representative or additional authorised representative are complete, up-to-date, accurate and true.
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− **5.** A national administrator may refuse to approve an authorised representative or additional authorised representative:(a) if the information and documents provided are incomplete, out-of-date or otherwise inaccurate or false;(b) if the prospective representative is under investigation or has be…
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− **6.** If the national administrator refused to approve an authorised representative or additional authorised representative, the account holder may object through the relevant authority under national law, who shall either instruct the national administrator to approve the representative or uphold …
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− ### Article 25 — Updating of account information and information on authorised representatives
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− **1.** All account holders shall notify the national administrator within 10 working days of changes to the information submitted for the opening of an account. In addition, account holders shall confirm to the national administrator by 31 December each year that the information for their account re…
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− **2.** Aircraft operators shall notify the administrator of their account within 10 working days if they have undergone a merger involving two or more aircraft operators or if they have split into two or more aircraft operators.
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− **3.** The notification of change shall be supported by information as required by the national administrator in conformity with this Section. Within 15 working days of the receipt of such a notification and supporting information, the relevant national administrator shall approve the update of the …
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− **4.** At least once every three years, the national administrator shall review whether the information submitted for the opening of an account remains complete, up-to-date, accurate and true, and shall request that the account holder notify any changes as appropriate.
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− **5.** The account holder of an operator holding account may only sell or divest of its operator holding account together with the installation linked to the operator holding account.
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− **6.** Subject to paragraph 5, no account holder may sell or divest of the ownership of its account to another person.
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− **7.** An authorised representative or additional authorised representative may not transfer its status as such to another person.
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− **8.** An account holder may request the removal of an authorised representative from an account. Upon receipt of the request the national administrator shall suspend the access of the authorised representative or additional authorised representative. Within 10 working days of the receipt of the req…
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− **9.** An account holder may nominate new authorised representatives or additional authorised representatives in accordance with Article 24.
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− **10.** If the administering Member State of an aircraft operator changes in accordance with the procedure set out in Article 18a of Directive 2003/87/EC or due to the enlargement of the Union, the central administrator shall update the national administrator of the corresponding aircraft operator h…
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− **11.** Subject to paragraph 10, the Member State responsible for managing an account shall not change.
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− ### Article 26 — Trusted account list
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− **1.** Auction delivery accounts, holding accounts and trading accounts may have a trusted account list in the Union Registry.
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− **2.** Accounts held by the same account holder shall be automatically included on the trusted account list.
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− **3.** Changes to the trusted account list shall be initiated and completed through the procedure set out in Article 39 for transfers specified in Section 6 of Chapter 2 of Title II. The change shall be confirmed by an additional authorised representative, or, if no additional authorised representat…
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− ## Section 3 / **Closure of accounts**
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− ### Article 27 — Closure of accounts
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− Subject to Article 32(1), within 10 working days of the receipt of a request from the account holder of an account other than those specified in Articles 28, 29, 30 and 31, the administrator shall close the account.
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− ### Article 28 — Closure of operator holding accounts
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− **1.** The competent authority shall notify the national administrator within 10 working days of the revocation or suspension of a greenhouse gas emissions permit or knowledge of installation closure. Within ten working days of such a notification, the national administrator shall record the relevan…
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− **2.** The national administrator may close an operator holding account by 30 June of the year following the year of closure of the installation, revocation or suspension of the greenhouse gas emissions permit if the relevant installation has surrendered an amount of allowances equal to or greater t…
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− ### Article 29 — Closure of aircraft operator holding accounts
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− Aircraft operator holding accounts shall only be closed by the national administrator if instructed by the competent authority to do so because the competent authority has discovered that the aircraft operator merged into another aircraft operator or the aircraft operator has ceased all its operatio…
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− ### Article 30 — Closure of verifier accounts
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− **1.** Within ten working days of the receipt of a request from a verifier to close its account, the national administrator shall close the verifier account.
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− **2.** The competent authority may also instruct the national administrator to close a verifier account where one of the following conditions is fulfilled:(a) the verifier's accreditation has expired or has been withdrawn,(b) the verifier ceased operation.
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− ### Article 31 — Closure of the ESD Compliance Account
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− **1.** The central administrator shall close an ESD Compliance Account not earlier than one month after the determination of the compliance status figure for that account pursuant to Article 79 and not later than 21 December, and after prior notice to the account holder.
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− **2.** The central administrator shall ensure that the Union Registry carries out a transfer of all international credits, tCERs and lCERs used pursuant to Article 81 to the relevant KP retirement account.
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− **3.** Where the direct transfer to the relevant KP retirement account is prohibited by the rules on transactions applicable to the ITL elaborated under the Kyoto Protocol, the international credits, the tCERs and the lCERs which have been used for compliance shall be transferred first to a dedicate…
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− **4.** On closure of the ESD Compliance Account, the central administrator shall ensure that the Union Registry transfers the AEAs remaining in the ESD Compliance Account to the ESD Deletion Account.
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− ### Article 32 — Positive balance on accounts under closure
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− **1.** If there is a positive balance of allowances or Kyoto units on an account which an administrator is to close in accordance with Articles 27, 28 and 29, the administrator shall request the account holder to specify another account to which such allowances or Kyoto units shall be transferred. I…
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− **2.** If there is a positive balance of allowances or Kyoto units on an account to which access was suspended in accordance with Article 34, the competent authority may require that the allowances and Kyoto units are transferred immediately to the relevant national account.
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− ### Article 33 — Closure of accounts and removal of authorised representative on the administrator's initiative
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− **1.** If the situation giving rise to the suspension of access to accounts pursuant to Article 34 is not resolved within a reasonable period despite repeated notifications, the competent authority may instruct the national administrator to close, or in the case of operator holding accounts or aircr…
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− **2.** If a person holding account or trading account has a zero balance and no transactions have been recorded for a period of one year, the national administrator may notify the account holder that the person holding account or trading account will be closed within 40 working days unless the natio…
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− **3.** The national administrator shall close an operator holding account upon instruction from the competent authority on the basis that there is no reasonable prospect of further allowances being surrendered.
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− **4.** The national administrator may remove an authorised representative or an additional authorised representative if it considers that the approval of the authorised representative or an additional authorised representative should have been refused in accordance with Article 24(3), and in particu…
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− **5.** The account holder may object to the change of account status of an account in accordance with paragraph 1 or the removal of an authorised representative or additional authorised representative in accordance with paragraph 4 with the authority competent under national law within 30 calendar d…
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− ## Section 4 / **Suspension of access to accounts**
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− ### Article 34 — Suspension of access to accounts
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− **1.** An administrator may suspend the access of an authorised representative or an additional authorised representative to any account in the registry or to processes to which that authorised representative would otherwise have access if the administrator has reasonable grounds to believe that the…
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− **2.** An administrator may suspend the access of all authorised representatives or additional authorised representatives of a specific account where one of the following conditions is fulfilled:(a) the account holder died without a legal successor or ceased to exist as a legal person;(b) the accoun…
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− **3.** An administrator may suspend the access of all authorised representatives or additional authorised representatives to a specific account and the possibility to initiate processes from that account:(a) for a maximum period of four weeks if the administrator has reasonable grounds to believe th…
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− **4.** The national administrator may suspend access to an account if it considers that the opening of the account should have been refused in accordance with Article 22 or that the account holder no longer meets the requirements for the opening of the account.
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− **5.** The administrator of the account shall reverse the suspension immediately once the situation giving rise to the suspension is resolved.
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− **6.** The account holder may object to the suspension of its access in accordance with paragraphs 1 and 3 to the competent authority or the relevant authority under national law within 30 calendar days, who shall either instruct the national administrator to reinstate access or uphold the suspensio…
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− **7.** The competent authority or the Commission may also instruct the national administrator or central administrator to implement a suspension for one of the grounds set in paragraphs 1, 2, 3 and 4.
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− **8.** A national law enforcement authority of the Member State of the administrator may also request the administrator to implement a suspension on the basis of and in accordance with national law.
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− **9.** When access to an external trading platform account is suspended, the administrator shall also suspend access enabled for the external trading platform to user accounts in accordance with Article 23(4). When access of authorised representatives and additional authorised representatives of an …
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− **10.** Where the holder of an operator holding account or aircraft operator holding account is prevented from surrendering in the 10 working days preceding the surrender time-limit laid down in Article 12(2a) and (3) of Directive 2003/87/EC due to suspension in accordance with this Article, the nat…
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− ## *CHAPTER 1* / ***Verified emissions and compliance***
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− ### Article 35 — Verified emissions data for an installation or aircraft operator
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− **1.** Whenever required by national law, each operator and aircraft operator shall select a verifier from the list of verifiers registered with the national administrator administering its account. If an operator or aircraft operator is also a verifier, it may not select itself as verifier.
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− **2.** The national administrator, the competent authority or, upon decision of the competent authority, the account holder or the verifier shall enter emissions data for the previous year by 31 March.
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− **3.** Annual emissions data shall be submitted using the format set out in Annex IX.
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− **4.** Upon the satisfactory verification in accordance with Article 15(1) of Directive 2003/87/EC of an operator’s report on the emissions from an installation during a previous year, or of an aircraft operator's report on the emissions from all aviation activities it performed during a previous ye…
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− **5.** The emissions approved in accordance with paragraph 4 shall be marked as verified in the Union Registry by the national administrator or the competent authority. The competent authority may decide that instead of the national administrator, the verifier shall be responsible for marking emissi…
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− **6.** The competent authority may instruct the national administrator to correct the annual verified emissions for an installation or an aircraft operator to ensure compliance with Articles 14 and 15 of Directive 2003/87/EC, by entering the corrected verified or estimated emissions for that install…
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− **7.** Where, on 1 May of each year, no verified emissions figure has been recorded in the Union Registry for an installation or an aircraft operator for a previous year or the verified emissions figure was proven to be incorrect, any substitute emissions figure estimate entered in the Union Registr…
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− ### Article 36 — Blocking of accounts due to a failure to submit verified emissions
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− **1.** If, on 1 April of each year, the annual verified emissions of an installation or aircraft operator for the preceding year have not been recorded in the Union Registry, the central administrator shall ensure that the Union Registry sets the corresponding operator holding account or aircraft op…
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− **2.** When all overdue verified emissions of the installation or aircraft operator for that year have been recorded in the Union Registry, the central administrator shall ensure that the Union Registry sets the account to open status.
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− ### Article 37 — Calculation of compliance status figures
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− **1.** The central administrator shall ensure that on 1 May of each year, the Union Registry indicates the compliance status figure for the preceding year for every installation and aircraft operator with an open or blocked operator or aircraft operator holding account by calculating the sum of all …
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− **2.** The correction factor referred to in paragraph 1 shall be zero if the compliance status figure of the last year of the previous period was greater than zero, but shall remain the same as the compliance status figure of the last year of the previous period if this figure is less than or equal …
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− **3.** The central administrator shall ensure that the Union Registry records the compliance status figure for every installation and aircraft operator for each year.
− 
− ## Section 1 / **General**
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− ### Article 38
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− Only transactions expressly provided for in this Regulation for each account type shall be initiated by that account type.
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− ### Article 39 — Execution of transfers
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− **1.** For all transactions specified in this Chapter that are not initiated by an external trading platform, an out of band confirmation shall be required by the Union Registry before the transaction can be initiated. A transaction shall only be initiated where an additional authorised representati…
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− **2.** For all transfers specified in Article 64 and Section 8 of this Chapter, the transfer shall be initiated immediately if it is confirmed between 10:00 and 16:00 Central European Time between Monday and Friday inclusive, with the exception of public holidays in the Member States deciding to sus…
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− A transfer confirmed at any other time shall be initiated on the same day Monday to Friday with the exception of public holidays as referred to in the first subparagraph, at 10:00 Central European Time, if it is confirmed before 10:00 Central European Time, or on the following day, Monday to Friday …
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− **3.** For all transfers of allowances and Kyoto units specified in Articles 64 and 65, and for all transfers specified in Article 66 to accounts not indicated on the trusted list of the trading account holder, a delay of 26 hours shall apply between initiation and the transfer being communicated fo…
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− **4.** If an account representative suspects that a transfer was initiated fraudulently, at the latest two hours before the end of the delay provided in paragraph 3 the account representative may request the national administrator or the central administrator where appropriate to cancel the transfer…
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− **5.** Upon initiation pursuant to paragraphs 1 and 2, a notification shall be sent to all account representatives indicating the proposed initiation of the transfer.
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− ### Article 40 — Nature of allowances and finality of transactions
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− **1.** An allowance or Kyoto unit shall be a fungible, dematerialised instrument that is tradable on the market.
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− **2.** The dematerialized nature of allowances and Kyoto units shall imply that the record of the Union Registry shall constitute prima facie and sufficient evidence of title over an allowance or Kyoto unit, and of any other matter which is by this Regulation directed or authorised to be recorded in…
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− **3.** The fungibility of allowances and Kyoto units shall imply that any recovery or restitution obligations that may arise under national law in respect of an allowance or Kyoto unit shall only apply to the allowance or Kyoto unit in kind.
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− Subject to Article 70 and the reconciliation process provided for in Article 103, a transaction shall become final and irrevocable upon its finalisation pursuant to Article 104. Without prejudice to any provision of or remedy under national law that may result in a requirement or order to execute a …
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− An account holder or a third party shall not be prevented from exercising any right or claim resulting from the underlying transaction that they may have in law, including to recovery, restitution or damages, in respect of a transaction that has become final in the Union Registry, for instance in ca…
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− **4.** A purchaser and holder of an allowance or Kyoto unit acting in good faith shall acquire title to an allowance or Kyoto unit free of any defects in the title of the transferor.
− 
− ## Section 2 / **Creation of allowances**
− 
− ### Article 41 — Creation of allowances
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− **1.** The central administrator may create an EU Total Quantity Account, an EU Aviation Total Quantity Account, an EU Auction Account, an EU Aviation Auction Account, an EU Credit Exchange Account and an EU International Credit Account as appropriate, and shall create or cancel accounts and allowan…
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− **2.** The Commission shall, at an appropriate time or at appropriate times, instruct the central administrator to create a number of general allowances in total equivalent to the number determined in accordance with Article 2(1) of Commission Decision 2010/670/EU (4) on, or for transfer to, account…
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− **3.** The central administrator shall ensure that the Union Registry assigns each allowance a unique unit identification code upon its creation.
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− **4.** Allowances which are created as from 1 January 2018 pursuant to the National Allocation Table or the international credit entitlement table of a Member State which has notified the European Council of its intention to withdraw from the Union pursuant to Article 50 of the Treaty on European Un…
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− From the day following the one on which both ratification instruments concerning the Withdrawal Agreement have been deposited, allowances created for 2019 and 2020 shall not be identified with a country code if compliance with Directive 2003/87/EC for emissions taking place during these years is req…
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− ## Section 3 / **Account transfers before auctions and allocation**
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− ### Article 42 — Transfer of general allowances to be auctioned
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− **1.** The central administrator shall, in a timely manner, transfer on behalf of the relevant auctioneer appointed in accordance with Regulation (EU) No 1031/2010, general allowances from the EU Total Quantity Account into the EU Auction Account in a quantity corresponding to the annual volumes det…
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− **2.** In case of adjustments to the annual volumes in accordance with Article 14 of Regulation (EU) No 1031/2010, the central administrator shall transfer a corresponding quantity of general allowances from the EU Total Quantity Account to the EU Auction Account, or from the EU Auction Account to t…
− 
− ### Article 43 — Transfer of general allowances to be allocated free of charge
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− The central administrator shall, in a timely manner, transfer general allowances from the EU Total Quantity Account into the EU Allocation Account in a quantity corresponding to the sum of the allowances allocated free of charge according to the national allocation tables of each Member State.
− 
− ### Article 44 — Transfer of general allowances for the new entrant reserve
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− **1.** The central administrator shall, in a timely manner, transfer general allowances from the EU Total Quantity Account to the EU New Entrant Reserve Account in a quantity corresponding to five percent of the Union-wide quantity of allowances determined by decisions adopted pursuant to Articles 9…
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− **2.** If the Union-wide quantity of allowances is increased by a decision adopted pursuant to Articles 9 and 9a of Directive 2003/87/EC, the central administrator shall transfer further general allowances from the EU Total Quantity Account to the EU New Entrant Reserve Account in a quantity corresp…
− 
− **3.** If the Union-wide quantity of allowances is decreased by a decision adopted pursuant to Articles 9 and 9a of Directive 2003/87/EC, the central administrator shall delete general allowances on the EU New Entrant Reserve Account in a quantity corresponding to five percent of the decrease of the…
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− **4.** In the case of allocation to new entrants or allocation to new entrants following a significant capacity extension pursuant to Articles 19 and 20 of Decision 2011/278/EU, the resulting final amount of allowances allocated free of charge to the operator for the whole trading period, which is e…
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− ### Article 45 — Transfer of aviation allowances to be auctioned
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− **1.** The central administrator shall, in a timely manner, transfer on behalf of the relevant auctioneer appointed in accordance with the Regulation (EU) No 1031/2010, aviation allowances from the EU Aviation Total Quantity Account to the EU Aviation Auction Account in a quantity corresponding to t…
− 
− **2.** In case of adjustments to the annual volumes in accordance with Article 14 of Regulation (EU) No 1031/2010, the central administrator shall transfer a corresponding quantity of aviation allowances from the EU Aviation Total Quantity Account to the EU Aviation Auction Account, or from the EU A…
− 
− ### Article 46 — Transfer of aviation allowances to be allocated free of charge
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− **1.** The central administrator shall, in a timely manner, transfer aviation allowances from the EU Aviation Total Quantity Account to the EU Aviation Allocation Account in a quantity corresponding to the number of aviation allowances to be allocated free of charge determined by the Commission's de…
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− **2.** If the number of aviation allowances to be allocated free of charge is increased by a decision pursuant to Article 3e(3) of Directive 2003/87/EC, the central administrator shall transfer further aviation allowances from the EU Aviation Total Quantity Account to the EU Aviation Allocation Acco…
− 
− **3.** If the number of aviation allowances to be allocated free of charge is decreased by a decision pursuant to Article 3e(3) of Directive 2003/87/EC, the central administrator shall delete aviation allowances on the EU Aviation Allocation Account in a quantity corresponding to the decrease of the…
− 
− ### Article 47 — Transfer of aviation allowances to the special reserve
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− **1.** The central administrator shall, in a timely manner, transfer aviation allowances from the EU Aviation Total Quantity Account to the EU Special Reserve Account in a quantity corresponding to the number of aviation allowances in the special reserve determined by the decision adopted pursuant t…
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