Commission Delegated Regulation (EU) 2019/331 of 19 December 2018 determining transitional Union-wide rules for harmonised free allocation of emission allowances pursuant to Article 10a of Directive 2003/87/EC

This Regulation shall apply to the free allocation of emission allowances under Chapter III (Stationary installations) of Directive 2003/87/EC as regards the allocation periods as from 2021, with the exception of transitional free allocation of emission allowances for the modernisation of electricity generation pursuant to Article 10c of Directive 2003/87/EC.

For the purposes of this Regulation, the following definitions apply:

(1) ‘incumbent installation’ means any installation carrying out one or more activities listed in Annex I to Directive 2003/87/EC or an activity included in the European Union Emissions Trading System (EU ETS) for the first time in accordance with Article 24 of that Directive, which obtained a greenhouse gas emission permit before or on: (a) 30 June 2019 for the period 2021-2025, (b) 30 June 2024 for the period 2026-2030;

(2) ‘product benchmark sub-installation’ means inputs, outputs and corresponding emissions relating to the production of a product for which a benchmark has been set in Annex I;

(3) ‘heat benchmark sub-installation’ means inputs, outputs and corresponding emissions not covered by a product benchmark sub-installation relating to the production of measurable heat or the import of measurable heat from an installation covered by the EU ETS other than installations covered by the EU ETS only for the purposes of Articles 14 and 15 of Directive 2003/87/EC, or both, which is: (a) consumed within the installation’s boundaries for the production of products, for the production of mechanical energy other than used for the production of electricity, for heating or cooling other than the consumption for the production of electricity; or (b) exported to an installation or other entity not covered by the EU ETS other than district heating with the exception of the export for the production of electricity;

(4) ‘district heating’ means the distribution of measurable heat for the purpose of heating or cooling of space or of production of domestic hot water, through a network, to buildings or sites not covered by EU ETS with the exception of measurable heat used for the production of products and related activities or the production of electricity;

(5) ‘district heating sub-installation’ means inputs, outputs and corresponding emissions not covered by a product benchmark sub-installation relating to the production, the import from an installation covered by the EU ETS, or both, of measurable heat which is exported for the purposes of district heating;

(6) ‘fuel benchmark sub-installation’ means inputs, outputs and corresponding emissions not covered by a product benchmark sub-installation, relating to the production of non-measurable heat, by fuel combustion or from electricity, for the primary purpose of the generation of heat, consumed for the production of products, for the production of mechanical energy other than used for the production of electricity, for heating or cooling other than the consumption for the production of electricity, and including safety flaring;

(7) ‘measurable heat’ means a net heat flow transported through identifiable pipelines or ducts using a heat transfer medium, such as, in particular, steam, hot air, water, oil, liquid metals and salts, for which a heat meter is or could be installed;

(8) ‘heat meter’ means a thermal energy meter (MI-004) within the meaning of Annex VI to Directive 2014/32/EU of the European Parliament and of the Council (1) or any other device to measure and record the amount of thermal energy produced based upon flow volumes and temperatures;

(9) ‘non-measurable heat’ means all heat other than measurable heat;

(10) ‘process emissions sub-installation’ means greenhouse gas emissions listed in Annex I to Directive 2003/87/EC other than carbon dioxide, which occur outside the system boundaries of a product benchmark listed in Annex I to this Regulation, or carbon dioxide emissions, which occur outside the system boundaries of a product benchmark listed in Annex I to this Regulation, as a direct and immediate result of any of the following processes and emissions stemming from the combustion of waste gases for the purpose of the production of measurable heat, non-measurable heat or electricity, provided that emissions that would have occurred from the combustion of an amount of natural gas, equivalent to the technically usable energy content of the combusted incompletely oxidised carbon, are subtracted: (a) the chemical, electrolytic or pyrometallurgical reduction of metal compounds in ores, concentrates and secondary materials for a primary purpose other than the generation of heat; (b) the removal of impurities from metals and metal compounds for a primary purpose other than the generation of heat; (c) the decomposition of carbonates, excluding those for flue gas scrubbing for a primary purpose other than the generation of heat; (d) chemical syntheses of products and intermediate products where the carbon bearing material participates in the reaction, for a primary purpose other than the generation of heat; (e) the use of carbon containing additives or raw materials for a primary purpose other than the generation of heat; (f) the chemical or electrolytic reduction of metalloid oxides or non-metal oxides such as silicon oxides and phosphates for a primary purpose other than the generation of heat;

(11) ‘waste gas’ means a gas containing incompletely oxidised carbon in a gaseous state under standard conditions which is a result of any of the processes listed in point (10), where ‘standard conditions’ means temperature of 273,15 K and pressure conditions of 101 325 Pa defining normal cubic metres (Nm3) according to Article 3(50) of Regulation (EU) No 601/2012;

(12) ‘start of normal operation’ means the first day of operations;

(13) ‘safety flaring’ means the combustion of pilot fuels and highly fluctuating amounts of process or residual gases in a unit open to atmospheric disturbances which is explicitly required for safety reasons by relevant permits for the installation;

(14) ‘baseline period’ means the five calendar years preceding the time-limit for submission of data to the Commission pursuant to Article 11(1) of Directive 2003/87/EC;

(15) ‘allocation period’ means the five-year period starting from 1 January 2021 and each subsequent period of five years;

(16) ‘uncertainty’ means a parameter, associated with the result of the determination of a quantity, that characterises the dispersion of the values that could reasonably be attributed to the particular quantity, including the effects of systematic as well as of random factors, expressed in per cent, and describes a confidence interval around the mean value comprising 95 % of inferred values taking into account any asymmetry of the distribution of values;

(17) ‘merger’ means a fusion of two or more installations already holding greenhouse gas permits provided that they are technically connected, operate on the same site and the resulting installation is covered by one greenhouse gas permit;

(18) ‘split’ means a division of an installation into two or more installations that are covered by separate greenhouse gas permits and are run by different operators.

In addition to designating a competent authority or authorities in accordance with Article 18 of Directive 2003/87/EC, Member States shall make the appropriate administrative arrangements for the implementation of the rules of this Regulation.

1. The operator of an installation eligible for free allocation pursuant to Article 10a of Directive 2003/87/EC may submit to the competent authority an application for free allocation for an allocation period. That application shall be submitted before 30 May 2019 as regards the first allocation period and every five years thereafter.

Member States may set an alternative time-limit for the submission of such applications, which, however, may not be later or earlier than one month compared to the time-limit provided for in the first subparagraph.

2. An application for free allocation submitted pursuant to paragraph 1 shall be accompanied by the following particulars:(a) a baseline data report verified as satisfactory in accordance with measures adopted pursuant to Article 15 of Directive 2003/87/EC containing data for the installation, and its sub-installations as specified in Article 10 and Annexes I and II to this Regulation, taking into account, for the calculation of historical activity levels for specific product benchmarks, Annex III to this Regulation, containing each parameter listed in Annex IV to this Regulation and covering the baseline period relating to the allocation period to which the application relates;(b) the monitoring methodology plan which formed the basis for the baseline data report and the verification report, in accordance with Annex VI;▼M1(ba) where relevant, the climate-neutrality plan in accordance with Article 10a(1), fifth subparagraph, and Article 10b(4) of Directive 2003/87/EC;▼M1(c) a verification report issued in accordance with measures adopted pursuant to Article 15 of Directive 2003/87/EC on the baseline data report.▼B

1. Upon application by a new entrant, the Member State concerned shall determine on the basis of this Regulation the amount of allowances to be allocated free of charge to that operator's installation once it has started normal operation.

2. The operator shall divide the installation concerned in sub-installations in accordance with Article 10. The operator shall submit to the competent authority, in support of the application referred to in paragraph 1, all relevant information and a new entrant data report containing each parameter listed in sections 1 and 2 of Annex IV for each sub-installation separately, for the first calendar year after the start of normal operation, together with the monitoring methodology plan as referred to in Article 8 and the verification report issued in accordance with measures adopted pursuant to Article 15 of Directive 2003/87/EC, and shall specify to the competent authority the date of start of normal operation.

3. Where an application by a new entrant fulfils all the conditions laid down in paragraph 2, and follows the allocation rules laid down in Articles 17 to 22, the competent authority shall approve it, as well as the specified date of start of normal operation.

4. Competent authorities shall only accept data submitted pursuant to this Article that has been verified as satisfactory by a verifier, in accordance with the requirements set out in measures adopted pursuant to Article 15 of Directive 2003/87/EC.

The operator of an installation, applying for or receiving free allocation pursuant to Article 10a of Directive 2003/87/EC shall monitor the data to be submitted as listed in Annex IV to this Regulation, based on a monitoring methodology plan approved by the competent authority.

1. Operators shall determine complete and consistent data and ensure that there are no overlaps between sub-installations and no double counting. Operators shall apply the determination methods laid down in Annex VII, exercise due diligence and use data sources representing highest achievable accuracy pursuant to section 4 of Annex VII.

2. By way of derogation from paragraph 1, the operator may use other data sources in accordance with sections 4.4 to 4.6 of Annex VII, if any of the following conditions is met:(a) the use of most accurate data sources pursuant to section 4 of Annex VII is technically not feasible;(b) the use of most accurate data sources pursuant to section 4 of Annex VII would incur unreasonable costs;(c) based on a simplified uncertainty assessment identifying major sources of uncertainty and estimating their associated levels of uncertainty, the operator demonstrates to the satisfaction of the competent authority that the associated level of accuracy of the data source proposed by the operator is equivalent to or better than the level of accuracy of most accurate data sources pursuant to section 4 of Annex VII.

3. Operators shall keep complete and transparent records of all data listed in Annex IV, and supporting documents, for at least 10 years from the date of the submission of the application for free allocation. The operator shall, upon request, make those data and documents available to the competent authority and to the verifier.

1. The operator of an installation applying for free allocation pursuant to Articles 4(2)b and 5(2) shall draw up a monitoring methodology plan containing, in particular, a description of the installation and its sub-installations, the production processes and a detailed description of monitoring methodologies and data sources. The monitoring methodology plan shall comprise a detailed, complete and transparent documentation of all relevant data collection steps, and shall contain at least the elements laid down in Annex VI.

2. For each parameter listed in Annex IV, the operator shall select a monitoring method based on the principles laid down in Article 7 and on the methodological requirements laid down in Annex VII. Based on the risk assessment in accordance with Article 11(1) and control procedures referred to in Article 11(2), when selecting monitoring methods, the operator shall give preference to monitoring methods that give most reliable results, minimise the risk of data gaps, and are least prone to inherent risks, including control risks. The selected method shall be documented in the monitoring methodology plan.

3. Where Annex VI makes a reference to a procedure, and for the purposes of Article 12(3) of Regulation (EU) No 601/2012, the operator shall establish, document, implement and maintain such a procedure separately from the monitoring methodology plan. The operator shall make any written documentation of the procedures available to the competent authority upon request.

4. The operator shall submit the monitoring methodology plan to the competent authority for approval by the date set in Article 4(1). Member States may set an earlier time-limit for the submission of the monitoring methodology plan and may require the monitoring methodology plan to be approved by the competent authority before submission of an application for free allocation.

5. Where an operator applies for free allocation but has renounced it for a previous allocation period, the operator shall submit the monitoring methodology plan for approval not later than six months before the time-limit for submission of the application pursuant to Article 4(1).

1. The operator shall regularly check whether the monitoring methodology plan reflects the nature and functioning of the installation and whether it can be improved. To this end, the operator shall take account of any recommendations for improvements included in the relevant verification report.

2. The operator shall modify the monitoring methodology plan in any of the following situations:(a) new emissions or activity levels occur due to new activities carried out or due to the use of new fuels or materials not yet contained in the monitoring methodology plan;(b) the use of new measuring instrument types, new sampling or analysis methods or new data sources, or other factors, lead to higher accuracy in the determination of reported data;(c) data resulting from the previously applied monitoring methodology has been found incorrect;(d) the monitoring methodology plan is not, or no longer, in conformity with the requirements of this Regulation;(e) it is necessary to implement recommendations for improvement of the monitoring methodology plan contained in a verification report.

3. The operator shall notify any intended modification of the monitoring methodology plan to the competent authority without undue delay. However, a Member State may allow the operator to notify, by 31 December of the same year or by another date set by the Member State, intended modifications of the monitoring methodology plan that are not significant within the meaning of paragraph 5.

4. Any significant modification of the monitoring methodology plan within the meaning of paragraph 5 shall be subject to approval by the competent authority. Where the competent authority considers that a modification that has been notified by the operator as significant is not significant, it shall inform the operator thereof.

5. The following modifications of the monitoring methodology plan of an installation shall be considered significant:(a) modifications resulting from changes to the installation, in particular new sub-installations, changes to the boundaries of existing sub-installations or closures of sub-installations;(b) a switch from a monitoring methodology laid down in sections 4.4 to 4.6 of Annex VII to another methodology laid down in those sections;(c) the change of a default value or estimation method laid down in the monitoring methodology plan;(d) changes requested by the competent authority to ensure conformity of the monitoring methodology plan with the requirements of this Regulation.

6. The operator shall keep records of all modifications of the monitoring methodology plan. In each record, the following shall be specified:(a) a transparent description of the modification;(b) a justification for the modification;(c) the date of notification of the intended modification to the competent authority;(d) the date of acknowledgement, by the competent authority, of the receipt of the notification referred to paragraph 3, where available, and the date of the approval or provision of information referred to in paragraph 4;(e) the starting date of implementation of the modified monitoring methodology plan.

1. For the purposes of data reporting and of monitoring, the operator shall divide each installation eligible for the free allocation of emission allowances under Article 10a of Directive 2003/87/EC into sub-installations. For this purpose, the installation's inputs, outputs and emissions shall be assigned to one or more sub-installations by establishing, where relevant, a method for quantifying specific fractions of relevant inputs, outputs or emissions to be assigned to individual sub-installations.

2. For attributing the installation's inputs, outputs and emissions to sub-installations, the operator shall carry out the following steps in the descending order:(a) if any of the products as specified for product benchmarks listed in Annex I are produced in the installation, the operator shall attribute the related inputs, outputs and emissions to the product benchmark sub-installations, as applicable, applying rules set out in Annex VII;(b) if inputs, outputs and emissions qualifying for heat benchmark or district heating sub-installations are relevant at the installation, and do not qualify for any of the sub-installations referred to in point (a), the operator shall attribute them to heat benchmark sub-installations or to district heating sub-installation, as applicable, applying the rules set out in Annex VII;(c) if inputs, outputs and emissions qualifying for fuel benchmark sub-installations are relevant at the installation, and do not qualify for any of the sub-installations referred to in points (a) or (b), the operator shall attribute them to fuel benchmark sub-installations, as applicable, applying the rules set out in Annex VII;(d) if inputs, outputs and emissions qualifying for process emissions sub-installations are relevant at the installation, and do not qualify for any of the sub-installations referred to in points (a), (b) or (c), the operator shall attribute them to process emissions sub-installations, as applicable, applying the rules set out in Annex VII.

2a. For product benchmark sub-installations, where relevant, the operator shall clearly distinguish, based on CN codes, and provide evidence to the satisfaction of the competent authority, whether or not the relevant process serves the production of goods listed in Annex I to Regulation (EU) 2023/956 of the European Parliament and Council (2).

3. For heat benchmark sub-installations, fuel benchmark sub-installations and process emissions sub-installations, the operator shall clearly distinguish, based on NACE and PRODCOM codes, whether or not the relevant process serves a sector or subsector deemed to be at risk of carbon leakage as determined in accordance with Article 10b(5) of Directive 2003/87/EC. In addition, the operator shall distinguish the amount of measurable heat which is exported for the purposes of district heating, from the measurable heat which does not serve a sector or subsector deemed to be at risk of carbon leakage, as determined in accordance with Article 10b(5) of Directive 2003/87/EC.

In addition, the operator shall clearly distinguish, based on CN codes, and provide evidence to the satisfaction of the competent authority, whether or not the relevant process serves the production of goods listed in Annex I to Regulation (EU) 2023/956.

4. ►M1 Where an installation included in the EU ETS has produced and exported measurable heat to an installation or other entity not included in the EU ETS, the operator shall consider that the relevant process of the heat benchmark sub-installation for this heat does not serve a sector or subsector deemed to be at risk of carbon leakage as determined in accordance with Article 10b(5) of Directive 2003/87/EC, unless the operator provides evidence to the satisfaction of the competent authority that the consumer of the measurable heat belongs to a sector or subsector deemed to be at risk of carbon leakage, as determined in accordance with Article 10b(5) of Directive 2003/87/EC.** ◄ **

For distinguishing measurable heat attributable to the district heating sub-installation, the operator shall provide evidence to the satisfaction of the competent authority that the measurable heat is exported to district heating.

In addition, where an installation included in the EU ETS has produced and exported measurable heat to an installation or other entity not included in the EU ETS, the operator shall provide evidence on the quantity of measurable heat used to produce goods listed in Annex I to Regulation (EU) 2023/956. Unless the operator provides such evidence to the satisfaction of the competent authority, that heat shall be considered as used to produce goods listed in Annex I of that Regulation.

5. By carrying out the division in accordance with paragraphs 1 and 2, the operator shall ensure all of the following:(a) each of the installation's physical products is attributed to one sub-installation without any omission or double counting;(b) 100 % of the quantity of all the installation's source streams and emissions as listed in the installation's monitoring plan approved in accordance with Regulation (EU) No 601/2012 are attributed to sub-installations without any omission or double counting, unless they relate to any process non-eligible for free allocation such as the production of electricity in the installation, flaring other than safety flaring which is not covered by a product benchmark sub-installation, or the production of measurable heat exported to other EU ETS installations;(c) 100 % of the quantity of net measurable heat eligible for free allocation produced within the installation, or imported or exported by the installation, as well as quantities transferred between sub-installations, are attributed to sub-installations without any omission or double counting;▼M1(d) for all measurable heat produced, imported or exported by sub-installations, it is documented whether the measurable heat was produced within an EU ETS installation, imported from other heat producing processes, imported from non-EU ETS entities or imported from EU ETS installations covered by the EU ETS only for the purposes of Articles 14 and 15 of Directive 2003/87/EC;▼B(e) where electricity is produced within the installation, the quantities produced within product benchmark sub-installations are attributed to these sub-installations without any omission or double counting;▼M1 —————▼B(g) where a sub-installation has outputs of carbon containing materials in the form of exported fuels, products, by-products, feedstocks for other sub-installations or installations, or waste gases, those outputs are attributed to sub-installations without any omission or double counting, if not covered by point (b);(h) CO2 emissions occurring outside the system boundaries of a product benchmark sub-installation resulting from processes listed in points (a) to (f) of Article 2(10) are assigned to a process emissions sub-installation to the extent that it can be demonstrated to the satisfaction of the competent authority that these emissions are direct and immediate results of any of the processes listed in Article 2(10) and that they do not result from the subsequent oxidation of incompletely oxidised carbon in a gaseous state under standard conditions;(i) where CO2 emissions from the combustion of waste gas not serving the purpose of the production of measurable heat, non-measurable heat or electricity occur outside the system boundaries of a product benchmark sub-installation as a result of the processes listed in points (a) to (f) of Article 2(10), 75 % of the quantity of the carbon content of the waste gas shall be considered as converted to CO2, and assigned to a process emissions sub-installation;▼M1(j) for avoiding any double counting, products of a production process returned into the same production process are deducted from annual activity levels, in line with product definitions laid down in Annex I.▼M1 —————▼B

1. The operator shall identify sources of risks of errors in the data flow from primary data to final data in the baseline data report and shall establish, document, implement and maintain an effective control system to ensure that the reports resulting from data flow activities do not contain misstatements and are in conformity with the monitoring methodology plan and in compliance with this Regulation.

The operator shall make the risk assessment pursuant to the first subparagraph available to the competent authority upon request. The operator shall also make it available for the purposes of verification.

2. For the purpose of the first subparagraph of paragraph 1, the operator shall establish, document, implement and maintain written procedures for data flow activities as well as for control activities, and include references to those procedures in the monitoring methodology plan in accordance with Article 8(3).

3. Control activities referred to in paragraph 2 shall include, where applicable:(a) quality assurance of the relevant measurement equipment;(b) quality assurance of information technology systems ensuring that the relevant systems are designed, documented, tested, implemented, controlled and maintained in a way that ensures processing reliable, accurate and timely data in accordance with the risks identified in accordance with paragraph 1;(c) segregation of duties in the data flow activities and control activities, as well as management of necessary competencies;(d) internal reviews and validation of data;(e) corrections and corrective action;(f) control of out-sourced processes;(g) keeping records and documentation including the management of document versions.

4. For the purposes of paragraph 3(a), the operator shall ensure that all relevant measuring equipment is calibrated, adjusted and checked at regular intervals including prior to use, and checked against measurement standards traceable to international measurement standards, where available, and proportionate to the risks identified.

Where components of the measuring systems cannot be calibrated, the operator shall identify those in the monitoring methodology plan and propose alternative control activities.

When the equipment is found not to comply with required performance, the operator shall promptly take necessary corrective action.

5. For the purposes of paragraph 3(d), the operator shall review and validate data resulting from the data flow activities referred to in paragraph 2.

Such review and validation of the data shall include:

(a) a check as to whether the data are complete;

(b) a comparison of the data that the operator has determined over the preceding baseline period and, in particular, consistency checks based on time series of greenhouse gas efficiency of each sub-installation;

(c) a comparison of data and values resulting from different operational data collection systems, in particular for production protocols, sales figures and stock figures of products to which product benchmarks relate;

(d) comparisons and completeness checks of data at installation and sub-installation level for ensuring that the requirements laid down in Article 10(5) are fulfilled.

6. For the purposes of paragraph 3(e), the operator shall ensure that, where data flow activities or control activities are found not to function effectively, or not to respect the rules set in the documentation of procedures for those activities, corrective action is taken and affected data is corrected without undue delay.

7. For the purposes of paragraph 3(f), where the operator outsources one or more data flow activities or control activities referred to in paragraph 1, the operator shall proceed to all of the following:(a) check the quality of the outsourced data flow activities and control activities in accordance with this Regulation;(b) define appropriate requirements for the outputs of the outsourced processes as well as the methods used in those processes;(c) check the quality of the outputs and methods referred to in point (b) of this paragraph;(d) ensure that outsourced activities are carried out such that those are responsive to the inherent risks and control risks identified in the risk assessment referred to in paragraph 1.

8. The operator shall monitor the effectiveness of the control system, including by carrying out internal reviews and taking into account the findings of the verifier during the verification of reports for the purposes of Article 4(2).

When the operator finds the control system ineffective or not commensurate with the risks identified, it shall seek to improve the control system and update the monitoring methodology plan or the underlying written procedures for data flow activities, risk assessments and control activities, as appropriate.

1. Where for technical reasons it is temporarily not feasible to apply the monitoring methodology plan as approved by the competent authority, the operator shall apply a method based on alternative data sources listed in the monitoring methodology plan for the purpose of performing corroborative checks in accordance with Article 10(5), or, if such an alternative is not contained in the monitoring methodology plan, an alternative method which provides the highest achievable accuracy according to the generic data sources and their hierarchy laid down in section 4 of Annex VII, or a conservative estimation approach, until the conditions for application of the approved monitoring methodology plan have been restored.

The operator shall take all necessary measures to achieve a prompt application of the approved monitoring methodology plan.

2. Where data relevant for the baseline data report are missing, for which the monitoring methodology plan does not list alternative monitoring methods or alternative data sources for corroborating data or for closing the data gap, the operator shall use an appropriate estimation method for determining conservative surrogate data for the respective time period and missing parameter, in particular, based on best industry practice, recent scientific and technical knowledge, and shall provide due justification for the data gap and the use of those methods in an annex to the baseline data report.

3. Where a temporary deviation from the approved monitoring methodology plan occurs in accordance with paragraph 1, or where data relevant for the report referred to in Article 4(2)(a) or Article 5(2) are found to be missing, the operator shall without undue delay develop a written procedure for avoiding this type of data gap in the future and modify the monitoring methodology plan in accordance with Article 9(3). Furthermore, the operator shall assess whether and how the control activities referred to in Article 11(3) need to be updated and shall modify those control activities and the relevant written procedures, as appropriate.

Member States may require operators and verifiers to use electronic templates or specific file formats for the submission of baseline data reports, monitoring methodology plans and verification reports as referred to in Article 4(2) and of new entrant data reports, monitoring methodology plans and verification reports as referred to in Article 5(2).

1. The list pursuant to Article 11(1) of Directive 2003/87/EC shall be submitted to the Commission using an electronic template provided by the Commission and shall identify all installations covered by the EU ETS, including installations covered by the EU ETS only for the purposes of Articles 14 and 15 of that Directive, small installations that may be excluded from the EU ETS pursuant to Articles 27 and 27a of that Directive and installations that will be included under the EU ETS pursuant to Article 24 of that Directive.

2. The list referred to in paragraph 1 shall contain the following information for each incumbent installation applying for free allocation:▼M1(a) an identification of the installation and its boundaries using the installation identification code in the Union Registry;▼B(b) activity information and information on eligibility for free allocation;(c) an identification of each sub-installation of an installation;(d) for each sub-installation, the annual activity level and annual emissions in each year of the relevant baseline period;▼M1(da) the competent authority’s assessment on the reduction of free allocation of 20 % in accordance with Article 22a and Article 22b(1), where applicable;(db) the fulfilment of the conditions related to the additional 30 % free allocation pursuant to Article 22b(3), where applicable;▼M1(e) for each sub-installation, information on whether it belongs to a sector or subsector deemed to be at risk of carbon leakage as determined in accordance with Article 10b(5) of Directive 2003/87/EC, including the PRODCOM codes of the products produced, where applicable;▼M1(ea) for each sub-installation, information on whether the goods produced are listed in Annex I to Regulation (EU) 2023/956, using the CN codes of these goods produced, where applicable;▼B(f) for each sub-installation, the data reported in accordance with Annex IV.

3. Upon receipt of the list referred to in paragraph 1, the Commission shall assess the inclusion of each installation in the list and the related data submitted in accordance with paragraph 2.

4. Where the Commission does not reject an installation's inclusion in that list, the data shall be used for the calculation of the revised benchmark values as referred to in Article 10a(2) of Directive 2003/87/EC.

5. Member States shall determine and notify the preliminary annual amounts per installation of free allowances, using the revised benchmark values for the relevant allocation period, as determined in accordance with Article 16(2) to (7) and Articles 19 to 22.

6. Once the preliminary annual amounts of free allowances for the relevant allocation period are notified, the Commission shall determine any factor established pursuant to Article 10a(5) of Directive 2003/87/EC by comparing the sum of the preliminary annual amounts of free allowances to installations in each year over the relevant allocation period applying the factors as determined in Annex V to this Regulation with the annual amount of allowances that is calculated in accordance with Article 10a(5) and (5a) of Directive 2003/87/EC for installations, taking into account the relevant share of the annual Union-wide total quantity, as determined pursuant to Article 10(1) and Article 10a(5) of Directive 2003/87/EC as well as the exemption of the 10 % most efficient sub-installations as determined pursuant to Article 16(8), second subparagraph, of this Regulation. The determination shall take into account inclusions pursuant to Article 24 of Directive 2003/87/EC and exclusions pursuant to Articles 27 and 27a of that Directive, as appropriate.

7. Once the factor established pursuant to in Article 10a(5) of Directive 2003/87/EC is determined, the Member States shall determine and submit to the Commission the final annual amount of emission allowances allocated free of charge for each year over the relevant allocation period in accordance with Article 16(8).

8. Upon request, each Member State shall make the reports and plans received on the basis of Article 4(2) available to the Commission.

9. Member States shall ensure that excess allowances allocated to operators are duly returned. Where operators do not return the excess allowances, the competent authority shall request the national registry administrator to deduct the amount of excess allowances from the quantity of allowances to be allocated to the operator. Member States shall inform the Commission of any such requests.

1. Member States shall assess the baseline data reports and verification reports submitted in accordance with Article 4(2) to ensure conformity with the requirements of this Regulation. Where appropriate, the competent authority shall ensure that operators correct any non-conformities or any errors that impact on the determination of the historical activity levels. The competent authority may request operators to submit more data in addition to the information and documents to be provided in accordance with Article 4(2).

2. On the basis of the assessed baseline data reports and verification reports, Member States shall determine historical activity levels of each sub-installation and installation for the relevant baseline period. Member States may only decide to determine historical activity levels where data relating to an installation has been verified as satisfactory or if they are satisfied that the data gaps leading to the verifier's opinion are due to exceptional and unforeseeable circumstances that could not have been avoided even if all due care had been exercised.

3. The product-related historical activity level shall, for each product for which a product benchmark has been determined as referred to in Annex I, refer to the median of annual historical production of that product in the installation concerned during the baseline period.

4. The heat-related historical activity level shall refer to the median of annual historical import from an installation covered by the EU ETS, other than installations covered by the EU ETS only for the purposes of Articles 14 and 15 of Directive 2003/87/EC, production, or both, during the baseline period, of net measurable heat consumed within the installation’s boundaries for the production of products, for the production of mechanical energy other than used for the production of electricity, for heating or cooling with the exception of the consumption for the production of electricity, or exported to an installation or other entity not covered by the EU ETS with the exception of the export for the production of electricity expressed as terajoule per year.

The district heating-related historical activity level shall refer to the median of annual historical import from an installation covered by the EU ETS, other than EU ETS installations covered by the EU ETS only for the purposes of Articles 14 and 15 of Directive 2003/87/EC, production, or both, during the baseline period, of measurable heat which is exported for the purposes of district heating expressed as terajoule per year.

5. The fuel-related historical activity level shall refer to the median of annual historical consumption of energy used for the primary purpose of the production of non-measurable heat consumed for the production of products, for the production of mechanical energy other than used for the production of electricity, for heating or cooling with the exception of the consumption for the production of electricity, and including safety flaring, during the baseline period expressed as terajoule per year.

6. For process emissions, which occurred in relation with the production of products in the installation concerned during the baseline period, the process-related historical activity level shall refer to the median of annual historical process emissions expressed as tonnes of carbon dioxide equivalent.

7. For the purposes of the determination of the median values referred to in paragraphs 3 to 6, only calendar years during which the installation has been operating for at least one day shall be taken into account.

If a sub-installation has been operating for less than two calendar years during the relevant baseline period, the historical activity level shall be the activity level of the first calendar year of operation after the calendar year where the start of normal operation occurs of this sub-installation.

If a sub-installation has been operating for less than one calendar year after the start of normal operation during the baseline period, the historical activity level shall be determined when the activity level report for the first calendar year after the calendar year where the start of normal operation occurs is submitted.

8. By way of derogation from paragraph 3, Member States shall determine the product-related historical activity level for products to which the product benchmarks referred to in Annex III apply on the basis of the median of annual historical production according to the formulas set out in that Annex.

1. Where the operator of an incumbent installation has submitted a valid application for free allocation in accordance with Article 4, the Member State concerned shall, based on the data collected in accordance with Article 14, calculate, for each year, the number of emission allowances allocated free of charge from 2021 onwards as regards the first allocation period and every five years thereafter.

2. For the purpose of the calculation referred to in paragraph 1, Member States shall first determine the preliminary annual number of emission allowances allocated free of charge for each sub-installation separately, as follows:(a) for product benchmark sub-installations, the preliminary annual number of emission allowances allocated free of charge for a given year shall correspond to the value of that product benchmark for the relevant allocation period, adopted in accordance with Article 10a(2) of Directive 2003/87/EC, multiplied by the relevant product-related historical activity level;(b) for heat benchmark sub-installations, the preliminary annual number of emission allowances allocated free of charge for a given year shall correspond to the value of the heat benchmark for measurable heat for the relevant allocation period, adopted in accordance with Article 10a(2) of Directive 2003/87/EC, multiplied by the heat-related historical activity level for the consumption or export to non-ETS installations or other entities of measurable heat other than district heating;(c) for district heating sub-installations, the preliminary annual number of emission allowances allocated free of charge for a given year shall correspond to the value of the heat benchmark for measurable heat for the relevant allocation period, adopted in accordance with Article 10a(2) of Directive 2003/87/EC, multiplied by the district heating-related historical activity level;▼M1(d) for fuel benchmark sub-installations, the preliminary annual number of emission allowances allocated free of charge for a given year shall correspond to the value of the fuel benchmark for the relevant five-year period, adopted in accordance with Article 10a(2) of Directive 2003/87/EC, multiplied by the fuel-related historical activity level for the energy consumed;(e) for process emissions sub-installations, the preliminary annual number of emission allowances allocated free of charge for a given year shall correspond to the process-related historical activity level multiplied by 0,97 for the years until 31 December 2027 and by 0,91 for the years 2028 and onwards.▼B

If a sub-installation has been operating for less than one calendar year after the start of normal operation during the baseline period, the preliminary allocation for the relevant alloction period shall be determined after the historical activity level has been reported.

3. ►M1 For the purpose of Article 10b(4) of Directive 2003/87/EC, the factors determined in Annex V to this Regulation shall be applied to the preliminary annual number of emission allowances allocated free of charge determined for each sub-installation pursuant to paragraph 2 of this Article for the year concerned where the processes in those sub-installations serve sectors or subsectors deemed not to be at risk of carbon leakage as determined in accordance with Article 10b(5) of Directive 2003/87/EC.** ◄ **

By way of derogation from the first subparagraph, for district heating sub-installations, the factor to be applied shall be 0,3.

4. Where the processes in the sub-installations referred to in paragraph 2 serve sectors or subsectors deemed to be at risk of carbon leakage as determined in accordance with Article 10b(5) of Directive 2003/87/EC, the factor to be applied shall be 1.

4a. Where the processes in the sub-installations referred to in paragraph 2 serve the production of goods listed in Annex I to Regulation (EU) 2023/956, the preliminary annual number of emission allowances allocated free of charge determined for each sub-installation pursuant to paragraph 2 for the year concerned shall be multiplied by the relevant CBAM factor set out in Article 10a(1a), second subparagraph, of Directive 2003/87/EC.

5. The preliminary annual number of emission allowances allocated free of charge for sub-installations that received measurable heat from sub-installations producing products covered by the nitric acid benchmark shall be reduced by the annual historical consumption of that heat during the relevant baseline periods, multiplied by the value of the heat benchmark for this measurable heat for the relevant allocation period, adopted in accordance with Article 10a(2) of Directive 2003/87/EC.

From 2026, the preliminary annual number of emission allowances allocated free of charge for product benchmark sub-installations for the relevant allocation period shall be reduced by the annual historical emissions stemming from waste gases flared, with the exception of safety flaring, and not used for the purpose of the production of measurable heat, non-measurable heat or electricity.

6. The preliminary annual amount of emission allowances allocated free of charge for each installation shall be the sum of all sub-installations' preliminary annual numbers of emission allowances allocated free of charge calculated in accordance with paragraphs 2 to 5.

Where an installation encompasses sub-installations producing pulp (short fibre kraft pulp, long fibre kraft pulp, thermo-mechanical pulp and mechanical pulp, sulphite pulp or other pulp not covered by a product benchmark) exporting measurable heat to other technically connected sub-installations, the preliminary amount of emission allowances allocated free of charge shall, without prejudice to the preliminary annual numbers of emission allowances allocated free of charge for other sub-installations of the installation concerned, only take into account the preliminary annual number of emission allowances allocated free of charge, to the extent that pulp products produced by this sub-installation are placed on the market and not processed into paper in the same or other technically connected installations.

7. When determining the preliminary annual amount of emission allowances allocated free of charge for each installation, Member States and operators shall ensure that emissions or activity levels are not double-counted and that the allocation is not negative. In particular, where an intermediate product that is covered by a product benchmark according to the definition of the respective system boundaries set out in Annex I is imported by an installation, emissions shall not be double-counted when determining the preliminary annual amount of emission allowances allocated free of charge for both installations concerned.

8. The final annual amount of emission allowances allocated free of charge for each incumbent installation shall be the preliminary annual amount of emission allowances allocated free of charge for each installation determined in accordance with paragraph 6 of this Article, multiplied by the factor as determined in accordance with Article 14(6) of this Regulation.

By way of derogation from the first subparagraph, the final annual amount of emission allowances allocated free of charge shall be 100 % of the preliminary annual amount of emission allowances allocated free of charge to each installation whose sub-installations with greenhouse gas emission levels below the average of the 10 % most efficient sub-installations for the relevant benchmarks in the period referred to in Article 10a(2), third subparagraph, point (c), of Directive 2003/87/EC, cover more than 60 % of the preliminary annual amount of emission allowances allocated free of charge for this installation.

9. For the purpose of the calculations referred to in paragraphs 1 to 8, the number of allowances for sub-installations and installations shall be expressed as the nearest integer.

Member States shall determine historical activity levels of each new entrant and its sub-installations as follows:

(a) the product-related historical activity level shall be, for each product for which a product benchmark has been determined as referred to in Annex I to this Regulation or pursuant to Article 24 of Directive 2003/87/EC, the activity level of the first calendar year after the calendar year where the start of normal operation occurs for the production of this product of the sub-installation concerned;

(b) the heat-related historical activity level shall be the activity level of the first calendar year after the calendar year where the start of normal operation occurs for the import from an installation covered by the EU ETS, other than installations covered by the EU ETS only for the purposes of Articles 14 and 15 of Directive 2003/87/EC, production, or both, of measurable heat consumed within the installation’s boundaries for the production of products, for the production of mechanical energy other than used for the production of electricity, for heating or cooling with the exception of the consumption for the production of electricity, or exported to an installation or other entity not covered by the EU ETS with the exception of the export for the production of electricity;

(c) the district heating-related historical activity level shall be the activity level of the first calendar year after the calendar year where the start of normal operation occurs for the import from an installation covered by the EU ETS other than installations covered by the EU ETS only for the purposes of Articles 14 and 15 of Directive 2003/87/EC, production, or both, of measurable heat which is exported for the purposes of district heating;

(d) the fuel-related historical activity level shall be the activity level of the first calendar year after the calendar year where the start of normal operation occurs for the consumption of energy used for the primary purpose of the production of non-measurable heat consumed for the production of products, for the production of mechanical energy other than used for the production of electricity, for heating or cooling with the exception of the consumption for the production of electricity, and including safety flaring, of the installation concerned;

(e) the process emissions-related activity level shall be the activity level of the first calendar year after the calendar year where the start of normal operation occurs for the production of process emissions of the process unit;

(f) by way of derogation from point (a), the product-related historical activity level for products to which the product benchmarks referred to in Annex III apply shall be the activity level of the first calendar year after the calendar year where the start of normal operation occurs for the production of this product of the sub-installation concerned, determined by applying the formulas set out in that Annex.

1. For the purposes of the free allocation of emission allowances to new entrants, Member States shall calculate the preliminary annual number of emission allowances allocated free of charge as of the start of normal operation of the installation for each sub-installation separately, as follows:(a) for each product benchmark sub-installation, heat benchmark sub-installation and fuel benchmark sub-installation, the preliminary annual number of emission allowances allocated free of charge for a given year shall correspond to the value of that benchmark for the relevant period multiplied by the relevant historical activity level;▼M1(b) for each process emissions sub-installation, the preliminary annual number of emission allowances allocated free of charge for a given year shall correspond to the process-related historical activity level multiplied by 0,97 for the years until 31 December 2027 and by 0,91 for the years 2028 and onwards.

Article 16(3), (4), (4a), (5) and (7) shall apply mutatis mutandis to the calculation of the preliminary annual number of emission allowances allocated free of charge to new entrants.

2. The preliminary annual number of emission allowances allocated free of charge for the calendar year where the start of normal operation occurs shall correspond to the value of the applicable benchmark value for each sub-installation multiplied by the activity level of that year.

3. The preliminary annual amount of emission allowances allocated free of charge for each installation shall be the sum of all sub-installations' preliminary annual numbers of emission allowances allocated free of charge calculated in accordance with paragraphs 1 and 2. The second subparagraph of Article 16(6) shall apply.

4. Member States shall notify to the Commission without delay the annual amount of emission allowances per installation allocated free of charge to new entrants.

Emission allowances from the new entrants reserve created pursuant to Article 10a(7) of Directive 2003/87/EC shall be allocated by the Commission on a first come, first served basis as from receipt of that notification.

The Commission may reject the preliminary annual amount of emission allowances allocated free of charge to a specific installation.

5. The final annual amount of emission allowances allocated free of charge shall correspond to the preliminary annual amount of emission allowances allocated free of charge for each installation determined in accordance with paragraphs 1 to 4 annually adjusted by the linear factor referred to in Article 9 of Directive 2003/87/EC, using the preliminary annual amount of emission allowances allocated free of charge for the installation concerned for the first year of the relevant allocation period as a reference.

6. For the purpose of the calculations referred to in paragraphs 1 to 5, the number of allowances for sub-installations and installations shall be expressed as the nearest integer.

By way of derogation from Article 16(2), point (a), and Article 18(1), point (a), the preliminary annual number of emission allowances allocated free of charge for a product benchmark sub-installation and relating to the production of high value chemicals (HVC) shall correspond to the value of the steam cracking product benchmark for the relevant allocation period multiplied by the historical activity level determined in accordance with Annex III. To the result of that calculation, 1,78 tonnes of carbon dioxide per tonne of hydrogen times the median historical production of hydrogen from supplemental feed expressed in tonnes of hydrogen, 0,24 tonnes of carbon dioxide per tonne of ethylene times the median historical production of ethylene from supplemental feed expressed in tonnes of ethylene, and 0,16 tonnes of carbon dioxide per tonne of HVC times the median historical production of other high value chemicals than hydrogen and ethylene from supplemental feed expressed in tonnes of HVC, shall be added.

By way of derogation from Article 16(2), point (a), and Article 18(1), point (a), the preliminary annual number of emission allowances allocated free of charge for a sub-installation and relating to the production of vinyl chloride monomer (VCM) shall correspond to the value of the VCM benchmark for the relevant allocation period multiplied by the historical activity level for VCM production expressed as tonnes and multiplied by the quotient of the direct emissions for the production of VCM including emissions from net imported heat, calculated on the basis of the historical net heat import expressed as terajoules times the value of the heat benchmark for the relevant allocation period, over the baseline period referred to in Article 15(2) or of the first calendar year after the calendar year where the start of normal operation occurs referred to in Article 17, point (a), as appropriate, expressed as tonnes of carbon dioxide equivalent and the sum of those direct emissions and the hydrogen-related emissions for the production of VCM over the baseline period referred to in Article 15(2) or of the first calendar year after the calendar year where the start of normal operation occurs referred to in Article 17, point (a), as appropriate, expressed as tonnes of carbon dioxide equivalent calculated on the basis of the historical heat consumption stemming from hydrogen combustion expressed as terajoules times the value of the heat benchmark for the relevant allocation period.

Where a product-benchmark sub-installation encompasses measurable heat imported from an installation or other entity not included in the EU ETS or only included for the purposes of Articles 14 and 15 of Directive 2003/87/EC, the preliminary annual number of emission allowances allocated free of charge for the product benchmark sub-installation concerned determined pursuant to Article 16(2), point (a), or Article 18(1), point (a), as appropriate, shall be reduced by the amount of heat historically imported from an installation or other entity not included in the EU ETS or only included for the purposes of Articles 14 and 15 of that Directive in the year concerned multiplied by the value of the heat benchmark for measurable heat for the relevant allocation period.

1. The final annual amount of emission allowances allocated free of charge, determined pursuant to Article 16(8) of this Regulation to the installation referred to in Article 10a(1), third subparagraph, of Directive 2003/87/EC, shall be reduced by 20 % in accordance with Article 10a(1) of that Directive if the operator cannot demonstrate to the satisfaction of the competent authority that all recommendations under Article 8 of Directive 2012/27/EU of the European Parliament and of the Council (3) have been implemented.

By way of derogation from the first subparagraph, no such reduction shall apply if the operator can demonstrate to the satisfaction of the competent authority that any of the following conditions apply:

(a) the pay-back time for the relevant investments of a recommendation exceeds three years;

(b) the investment costs for the implementation of a recommendation exceed either of the following thresholds: (i) 5 % of the installation’s annual turnover or 25 % of the installation’s profit, calculated on the basis of the corresponding annual averages over the three calendar years prior to the date on which the application for free allocation shall be submitted in accordance with Article 4; (ii) 50 % of the average annual economic equivalent of the amount reduced in accordance with the first subparagraph from the final annual amount of emission allowances allocated free of charge pursuant to Article 16(8) calculated based on the average price of allowances on the common auction platform in the relevant calendar year preceding the application referred to in Article 4(2);

(c) other measures have been implemented during or after the relevant baseline period which lead to greenhouse gas emission reductions within the installation equivalent to those recommended by the energy audit report or the certified energy management system under Article 8 of Directive 2012/27/EU;

(d) the recommendations would not lead to energy savings within the system boundaries of the industrial process carried out at the installation;

(e) the installation-specific operating conditions, including planned or unplanned periods of maintenance, based on which the pay-back period referred to under point (a) was determined, have not occurred yet;

(f) the recommendations of the audit report or of the certified energy management system were not issued during the first four years of the relevant baseline period.

2. The operator shall establish, implement, document and maintain a procedure for implementing recommendations and, where applicable, demonstrating the application of the conditions as referred to in paragraph 1.

3. The verifier shall check as part of the verification of the baseline data report referred to in Article 4(2) whether the recommendations referred to in paragraph 1, first subparagraph, are implemented and whether the conditions set out in paragraph 1, second subparagraph, are met, where applicable.

Where relevant, the verifier shall check, as part of the verification of the annual activity level report in accordance with Article 7 of Commission Implementing Regulation (EU) 2018/2067 (4), whether the recommendations referred to in paragraph 1, first subparagraph, are implemented and whether the conditions set out in paragraph 1, second subparagraph, are met, where applicable.

4. The competent authority shall only consider the recommendations referred to in paragraph 1, first subparagraph, as implemented where all of the following conditions are met:(a) the operator demonstrates the completion of the implementation of those recommendations;(b) the verifier has confirmed the completion referred to in point (a) in accordance with paragraph 3.

1. For the purposes of Article 10a(1), fifth subparagraph, of Directive 2003/87/EC, the final annual number of emission allowances allocated free of charge, determined pursuant to Article 16(8) of this Regulation, shall be reduced by 20 % for an installation with product benchmark sub-installations where the greenhouse gas emission levels of at least one of those product-benchmark sub-installations were higher than the 80th percentile of emission levels for the relevant product benchmarks in the years 2016 and 2017.

By way of derogation from the first subparagraph, no such reduction shall apply if the following conditions are fulfilled:

(a) the operator of an installation referred to in the first subparagraph has submitted a climate-neutrality plan for its activities covered by Directive 2003/87/EC to the competent authority by 30 May 2024, or as appropriate, pursuant to Article 4 of this Regulation as part of the application for free allocation;

(b) the achievement of the targets and milestones referred to in Article 10b(4), third subparagraph, point (b), of Directive 2003/87/EC has been confirmed by the verification carried out in accordance with Article 10b(4), fourth subparagraph, of that Directive;

(c) the competent authority has checked and deemed compliant the content and format of the climate-neutrality plan pursuant to paragraph 4.

2. Paragraph 1, first subparagraph, shall not apply where the relevant product benchmark sub-installation does not contribute to more than 20 % of the sum of all sub-installations’ preliminary annual numbers of emission allowances allocated free of charge in respect of the period from 2021 to 2025, calculated in accordance with Article 16, paragraphs 2 to 5.

3. For the purposes of Article 10b(4), second, third and fourth subparagraphs, of Directive 2003/87/EC, the preliminary annual number of emission allowances allocated free of charge to a district heating sub-installation, calculated in accordance with Article 16, paragraphs 2 and 3, of this Regulation, shall be increased by 30 % of the number calculated in accordance with paragraph 2 of Article 16, where the operator of a district heating sub-installation has submitted an application in accordance with Article 4 of this Regulation and where, in respect of the period until the end of 2025 or in respect of the period from 2026 to 2030, all of the following conditions are met:(a) the installation or district heating company is located in a Member State that meets the criteria set out in Article 10b(4), second subparagraph, of Directive 2003/87/EC and as referred to in Annex VIII;(b) the installation or district heating company invested a volume at least equivalent to the economic value of the additional number of free allowances for the period from 2026 to 2030, in accordance with the intermediate targets and milestones as set out in the climate-neutrality plan to measure, by 31 December 2025 and by 31 December of each fifth year thereafter, progress made towards reaching climate-neutrality;(c) the investment referred to under point (b) leads to significant emission reductions before 2030;(d) the installation or district heating company submits a climate neutrality plan by 30 May 2024 pursuant to Article 4(1) or as appropriate, for its activities covered by Directive 2003/87/EC;(e) the achievement of the targets and milestones referred to in Article 10b(4), third subparagraph, point (b), of Directive 2003/87/EC is confirmed by the verification carried out in accordance with Article 10b(4), fourth subparagraph, of that Directive;(f) the competent authority has checked and deemed compliant the content and format of the climate-neutrality plan pursuant to paragraph 4.

For the purposes of point (b), the economic value of the additional 30 % allowances shall be determined by multiplying the additional number of free allowances over the period from 2026 to 2030 by the average price of allowances on the common auction platform in the calendar year preceding the application referred to in Article 4(2) and multiplied by the factor determined in accordance with Article 14(6), as applicable to the installation.

For the purposes of point (c), emission reductions are significant where the specific emissions, expressed as tonnes of CO2 per terajoules of district heating supplied, of the installation or district heating company are reduced below the average specific emissions during the relevant baseline period with an emission reduction rate equivalent to the application of the linear reduction factors referred to in Article 9 of Directive 2003/87/EC, starting from the mid-point of the relevant baseline period.

4. The competent authority shall check, by 30 September 2024, that the content and format of the climate-neutrality plans referred to in paragraphs 1 and 3 of this Article comply with Implementing Regulation (EU) 2023/2441.

The 20 % reduction referred to in Articles 22a and 22b shall be applied to an installation only once in the relevant allocation period.

1. The operators shall, at periods specified in the climate-neutrality plan referred to in Article 22b and whenever necessary, evaluate the effectiveness of the climate-neutrality plan regarding greenhouse gas emissions reductions and implement corrective actions where appropriate to ensure that the milestones and targets are met. Any update shall only affect future milestones and targets.

2. Where the climate-neutrality plan is updated with respect to milestones and targets, the operator shall submit the updated plan to the competent authority without undue delay.

1. Competent authorities shall publish the climate-neutrality plan submitted pursuant to Article 22b.

2. If an operator considers that the climate-neutrality plan contains commercially sensitive elements which, if disclosed, would harm its commercial interests, the operator may request the competent authority not to publish those elements. Where the request is justified the competent authority shall publish the climate-neutrality plan without those elements.

1. Operators shall inform the relevant competent authority of any change related to the operation of an installation which has an impact on the installation's allocation. Member States may set a time-limit for that notification and may require the use of electronic templates or specific file formats.

2. After assessing the relevant information, the competent authority shall submit to the Commission all relevant information, including the revised final annual amount of emission allowances allocated free of charge for the installation concerned.

The competent authority shall submit the relevant information pursuant to the first subparagraph using an electronic system operated by the Commission.

3. The Commission may reject the revised final annual amount of emission allowances allocated free of charge for the installation concerned.

4. The Commission shall adopt a Decision based on the notification received, shall inform the relevant competent authority and shall introduce the changes, where appropriate, into the Union Registry set up pursuant to Article 19 of Directive 2003/87/EC and the transaction log, referred to in Article 20 of that Directive.

1. An operator that has been granted free allocation of allowances may renounce it in respect of all or certain sub-installations at any time during the relevant allocation period by submitting an application to the competent authority.

2. After assessing the relevant information, the competent authority shall submit to the Commission the revised final annual amount of emission allowances allocated free of charge for the installation concerned as described in Article 23(2).

The revised allocation shall concern the calendar years following the year of the application referred to in the paragraph 1.

3. The Commission shall adopt a Decision as regards the renunciation and shall follow the procedure referred to Article 23(4).

4. The operator shall have no right to withdraw its application referred to in paragraph 1 the same allocation period.

1. The operators of new installations resulting from a merger or a split shall provide the following documentation to the competent authority, as appropriate:(a) names, addresses and contact data of the operators of the previously separate or single installations;(b) names, addresses and contact data of the operators of the newly formed installation;(c) a detailed description of the boundaries of the installation parts concerned if applicable;(d) the permit identifier and the identification code of the newly formed installation(s) in the Union Registry.

2. Installations resulting from mergers or splits shall submit to the competent authority the reports referred to in Article 4(2). If the installations before the merger or split were new entrants, operators shall report to the competent authority the data from the start of normal operation.

3. Mergers or splits of installations, including splits within the same corporate group shall be assessed by the competent authority. The competent authority shall notify the Commission of the change of operators.

Based on the data received pursuant to paragraph 2, the competent authority shall determine the historical activity levels in the baseline period for each sub-installation of each newly formed installation after the merger or split. In the case that a sub-installation is split into two or more sub-installations, the historical activity level and allocation to the sub-installations after the split shall be based on the historical activity levels in the baseline period of the respective technical units of the installation before the split.

5. The Commission shall review each allocation of allowances of the installations after mergers or splits and communicate the results of that assessment to the competent authority.

1. An installation is deemed to have ceased operations where any of the following conditions is met:▼M1(a) the relevant greenhouse gas emissions permit has expired or been withdrawn, including if the installation no longer meets the thresholds of the activities listed in Annex I to Directive 2003/87/EC;▼B(b) the installation is no longer operating and it is technically impossible to resume operation.

2. Where an installation has ceased operations, the Member State concerned shall not issue emission allowances to that installation for the remainder of the calendar year following the day of cessation of operations. Such adjustments shall be made on a pro-rata basis.

3. Member States may suspend the issuance of the emission allowances to installations that have suspended operations as long as it is not established whether they will resume operations.

Decision 2011/278/EU is repealed with effect from 1 January 2021. However, it shall continue to apply to allocations relating to the period prior to 1 January 2021.

This Regulation shall enter into force on the day following that of its publication in the Official Journal of the European Union.