sou · GSB362d2 · 2005-01-01 00:00:00 — Conversion of CERs and ERUs into allowances for use in the Community scheme for the 2008-2012 period and each subsequent five year period 1.During the 2008-2012 period and each subsequent five year period, on being instructed to do so by the Competent Authority, the registry administrator shall: (a)transfer the CERs or ERUs specified by the operator in its registry who initiated the request for conversion from the operator holding account of the operator who initiated the request for conversion to the national holding account; (b)convert an equal quantity of AAUs held in the national holding account into allowances by adding the allowance identifier to the unique serial identification code of each such AAU as set out in ; and (c)transfer those allowances from the national holding account to the operator holding account of the operator who initiated the request for conversion; in accordance with the allowance conversion (2008-2012 onwards) process as set out in . 2.The Community independent transaction log shall record the unique serial identification number of each CER and ERU converted into an allowance in the project conversion table. Transfers of allowances and Kyoto units by account holders 1.The registry administrator shall, in accordance with and subject to the provisions of this Regulation, carry out any transfer within its registry requested by an account holder in accordance with the internal transfer process as set out in and carry out any transfer between registries requested by an account holder in accordance with the external transfer process as set out in the functional and technical specifications for data exchange standards for registry systems under the Kyoto Protocol, elaborated by the Secretariat to the UNFCCC. 2.Allowances may only be transferred from a holding account in a registry to a holding account in a third country registry or CDM Registry, or acquired from a holding account in a third country registry or CDM Registry by a holding account in a registry in accordance with a mutual recognition agreement pursuant to Article 25 of Directive 2003/87/EC. Eligibility and the commitment period reserve 1.If, at any time, a does not meet the eligibility requirements of Decision 16/CP.7, Decision 17/CP.7 or Decision 18/CP.7 of the Conference of the Parties to the UNFCCC it shall instruct the registry administrator not to initiate those transactions requiring such eligibility. 2.When a is approaching its commitment period reserve, recorded in accordance with Decision 18/CP.7 of the Conference of the Parties to the UNFCCC as 90 per cent of the Member States assigned amount or 100 per cent times five of its most recently reviewed inventory, whichever is lowest, the Commission shall notify the . Verified emissions of an installation 1.Upon the verification as satisfactory, in accordance with the detailed requirements established by the pursuant to of Directive 2003/87/EC, of an operators report on the emissions from an installation during a previous year, the verifier shall enter the annual verified emissions for an installation for that year into the section of the verified emissions table designated for that installation for that year in accordance with the verified emissions entry process as set out under . 2.The competent authority may instruct the registry administrator to correct the annual verified emissions for an installation for a specific year, to ensure compliance with the detailed requirements established by the pursuant to of Directive 2003/87/EC, by entering the corrected annual verified emissions for an installation for that year into the section of the verified emissions table designated for that installation for that year in accordance with the verified emissions entry process as set out under . Surrender, reconciliation and cancellation of allowances 1.An operator shall surrender allowances by requesting the registry administrator to transfer a specified number of allowances for a specified year from its operator holding account into the national holding account of that registry, in accordance with the allowance surrender process as set out under . The registry administrator shall enter the number of surrendered allowances into the section of the surrendered allowance table designated for that installation for that year. 2.The issue of force majeure allowances to the operator of an installation in accordance with Article 15(6) shall constitute the surrender of those force majeure allowances. 3.For the years 2005, 2006 and 2007, upon an entry being made into the section of the surrendered allowance table or verified emissions table designated for an installation, the registry administrator shall calculate, for that installation and for each year, the sum of all allowances surrendered from the year 2005 up to and including the current year minus the sum of all verified emissions from the year 2005 up to and including the current year. The registry administrator shall enter the installations figure calculated for each year into the section of the compliance status table designated for that installation. 4.For the years 2008 onwards, upon an entry being made into the section of the surrendered allowance table or verified emissions table designated for an installation, the registry administrator shall calculate, for that installation and for each year, the sum of all allowances surrendered from the year 2008 up to and including the current year minus the sum of all verified emissions from the year 2008 up to and including the current year, plus a correction factor. The correction factor shall be zero if the 2007 figure was greater than zero, but shall be remain as the 2007 figure if the 2007 figure is less than or equal to zero. The registry administrator shall enter the installations figure calculated for each year into the section of the compliance status table designated for that installation. 5.On 1 2006 and on 1 of each year thereafter the registry administrator shall notify the compliance status table to the competent authority. In addition, the registry administrator shall notify any changes to the entries for previous years of the compliance status table to the competent authority. 6.Where, on 1 2006 and on 1 of each year thereafter, no verified emissions figure has been entered into the verified emissions table for an installation for a previous year, the competent authority may estimate a substitute emissions figure under Article 16(1) of Directive 2003/87/EC for the purpose of calculating a figure under paragraphs 3 and 4 above and multiplying it by the relevant excess emissions penalty under Article 16(3) of Directive 2003/87/EC. substitute emissions figure shall not be entered into the verified emissions table. 7.By 30 2006, 2007 and 2008, the registry administrator shall cancel all surrendered allowances and force majeure allowances held in the national holding account pursuant to paragraphs 1 and 2 by transferring these allowances and force majeure allowances from the national holding account to the national retirement account for the 2005-2007 period, in accordance with the allowance cancellation (2005-2007) process as set out in . 8.By 30 2009 and on 30 of each year thereafter, the registry administrator shall cancel allowances, in accordance with the allowance cancellation (2008 onwards) process as set out in , by: (a)converting all surrendered allowances held in the national holding account pursuant to paragraph 1 into AAUs by removing the allowance identifier from the unique serial identification code of each AAU as set out in ; and (b)transferring an equal number of Kyoto units specified by the competent authority from the national holding account to the national retirement account for the relevant period. Cancellation and replacement of allowances 1.On 1 2008, each registry administrator shall cancel and replace allowances held in its registry in accordance with the allowance cancellation and replacement (2005-2007) process as set out in by: (a)transferring all allowances issued for the 2005-2007 period, which have not been surrendered and cancelled pursuant to Article 22 or otherwise cancelled pursuant to Article 24, from their holding accounts to the national cancellation account for the 2005-2007 period; (b)if instructed to do so by the competent authority, issuing a number of replacement allowances specified by the competent authority by converting an equal number of AAUs issued for the 2008-2012 period held in the national holding account period into allowances by adding the allowance identifier to the unique serial identification code of each such AAU as set out in ; and (c)transferring these replacement allowances from the national holding account into the holding accounts specified by the competent authority from which allowances were transferred under paragraph 1(a). 2.On 1 in 2013 and on 1 in the first year of each subsequent five year period, each registry administrator shall cancel and replace all allowances held in its registry in accordance with the allowance cancellation and replacement (2008-2012 onwards) process as set out in by: (a)transferring all allowances issued for the preceding five-year period, which have not been surrendered and cancelled pursuant to Article 22 or otherwise cancelled pursuant to Article 24, from their holding accounts to the national holding account; (b)converting these allowances into AAUs by removing the allowance identifier from the unique serial identification code of each allowance as set out in ; (c)issuing an equal number of replacement allowances by converting AAUs issued for the current period held in the national holding account into allowances by adding the allowance identifier to the unique serial identification code of each such AAU as set out in ; and (d)transferring these replacement allowances from the national holding account into the holding accounts from which allowances were transferred under paragraph 2(a). Voluntary cancellation of allowances and Kyoto units 1.The registry administrator shall carry out any request made at any time by an account holder in its registry pursuant to paragraph 2 to paragraph 5 to voluntarily cancel allowances or Kyoto units held in any of its holding accounts. 2.During the 2005-2007 period, allowances shall be voluntarily cancelled in accordance with the allowance cancellation (2005-2007) process as set out in by transferring the number of allowances specified by the operator or person initiating the voluntary cancellation request from their holding account to the national cancellation account for the 2005-2007 period. 3.During the 2005-2007 period, Kyoto units shall be voluntarily cancelled in accordance with the cancellation process as set out in the functional and technical specifications for data exchange standards for registry systems under the Kyoto Protocol, elaborated by the Secretariat to the UNFCCC by transferring the number of Kyoto units specified by the operator or person initiating the voluntary cancellation request from their holding account to the appropriate national cancellation account for the 2008-2012 period. 4.During the 2008-2012 period and subsequent five-year periods, allowances shall be voluntarily cancelled in accordance with the allowance cancellation (2008 onwards) process as set out in by: (a)converting the number of allowances specified by the operator or person initiating the voluntary cancellation request into AAUs by removing the allowance identifier from the unique serial identification code of each AAU as set out in ; (b)transferring these AAUs from the holding account of the operator or person initiating the voluntary cancellation request to the appropriate national cancellation account. 5.During the 2008-2012 period and subsequent five-year periods, Kyoto units shall be voluntarily cancelled in accordance with the cancellation process as set out in the functional and technical specifications for data exchange standards for registry systems under the Kyoto Protocol, elaborated by the Secretariat to the UNFCCC by transferring the number of Kyoto units specified by the operator or person initiating the voluntary cancellation request from their holding account to the appropriate national cancellation account. 6.Allowances or Kyoto units held in a national cancellation account may not be transferred to any other account in the registries system or to any account in the CDM registry or a third country registry. Retirement of Kyoto units 1.At any time, if instructed to do so by the competent authority, the registry administrator shall transfer the quantity and types of Kyoto units specified by the competent authority which have not already been retired pursuant to Article 22(8) to the appropriate national retirement account in its registry in accordance with the retirement process as set out in the functional and technical specifications for data exchange standards for registry systems under the Kyoto Protocol, elaborated by the Secretariat to the UNFCCC. 2.Kyoto units held in a national retirement account may not be transferred to any other account in the registries system or to any account in the CDM registry or a third country registry. Registry systems security, authentication and access rights 1.Each registry shall comply with the security standards set out in . 2.The Community independent transaction log shall comply with the security standards set out in . 3.From 1 January 2005 until the communication link between the Community independent transaction log and UNFCCC independent transaction log is established, the identity of each registry shall be authenticated by the Community independent transaction log using digital certificates as specified in . The Commission, or an entity designated by it, shall act as the certification authority for all digital certificates. 4.After the communication link between the Community independent transaction log and the UNFCCC independent transaction log is established, the Member States and the Community shall use the digital certificates issued by the UNFCCC, or an entity designated by it, to authenticate their registries and the Community independent transaction log to the UNFCCC independent transaction log. 5.All users of a registry, comprising its competent authority, its registry administrator, each account holder and verifier shall have the access to the accounts within the registries which they are entitled to access through a secure area of the website for that registry. The registry administrator shall issue each such user with a username and password to permit the level of access to which they are entitled. Registry administrators may apply additional security requirements at their discretion if they are compatible with the provisions of this Regulation. 6.Users may only access the secure area of the registry website by using the username and password issued to them under paragraph 5. The registry administrator may assume that a user who has entered a matching user name and password is the user registered under that username and password, until such point that the user informs the registry administrator that the security of their password has been compromised and requests a replacement. The registry administrator shall promptly issue such replacement passwords. In addition to issuing replacement passwords, the registry administrator shall require each user to change their password every two months at a minimum. 7.The registry administrator shall ensure that the secure area of the registry website is accessible to any computer using a widely available internet browser. Communications between the users referred to in paragraph 5 and the secure area of the registry website shall be encrypted in accordance with the security standards in . 8.The registry administrator shall take all necessary steps to ensure that unauthorised access to the secure area of the registry website does not occur. 9.The registry administrator may only suspend an account holders password to any accounts to which it would otherwise have access if the account holder has, or the registry administrator has reasonable grounds to believe the account holder has: (a)attempted to access accounts which it is not authorised to access; (b)repeatedly attempted to access an account using the wrong user name and password; or (c)attempted, or is attempting, to undermine the security of the registry or the registries system. 10.Where access to an operator holding account has been suspended pursuant to paragraph 9 or pursuant to Article 27(2) between and in any year from 2006 onwards the registry administrator shall, if so requested by the account holder and following submission of the account holder's identity by means of supporting evidence, surrender the number of allowances specified by the account holder in accordance with the allowance surrender process as set out in . Availability and reliability of registries and the Community independent transaction log 1.The Central Administrator and each registry administrator shall: (a)take all reasonable steps to ensure that the registry is available for access by account holders 24 hours a day, 7 days a week, and that the communication link between the registry and the Community independent transaction log is maintained 24 hours a day, 7 days a week, thereby providing backup hardware and software in the event of a breakdown in operations of the primary hardware and software; (b)ensure that the registry and Community independent transaction log incorporate robust systems and procedures for the safeguarding of all data, and the prompt recovery of all data and operations in the event of a disaster; (c)keep interruptions to the operation of the registry and Community independent transaction log to a minimum. 2.Subject to their obligations set out in paragraph 1, the Central Administrator may suspend access to the Community independent transaction log and a registry administrator may suspend access to its registry if there is a breach of security of the Community independent transaction log or of a registry which threatens the integrity of the Community independent transaction log or of a registry or the integrity of the registries system and the back-up facilities under paragraph 1 are similarly affected. 3.If the registry administrator becomes aware that it is necessary to suspend either access to accounts or other operations of the registry, it shall give all account holders within the registry, the Central Administrator and other registry administrators such prior notice of the suspension as is reasonably practicable. If the Central Administrator becomes aware that it is necessary to suspend access to operations of the Community independent transaction log, it shall give all registry administrators such prior notice of the suspension as is reasonably practicable. Such notices shall include the likely duration of the suspension and shall be clearly displayed on that registrys public web site or on the Community independent transaction log's public web site. 4.Each registry administrator shall establish a testing area within which any new version or release of a registry can be tested in accordance with the testing procedures as set out in so as to ensure that: (a)any testing procedures on a new version or release of a registry are completed without reducing the availability to account holders of the version or release of the registry which currently has a communication link with the Community independent transaction log or UNFCCC independent transaction log; and (b)any communication link between a new version or release of a registry and the Community independent transaction log or UNFCCC independent transaction log is established with minimum disruption to its account holders. 5.The Central Administrator shall establish a testing area so as to facilitate testing procedures referred to in paragraph 4(b). 1.The Central Administrator shall coordinate changes in the functional and technical specifications of this Regulation with registry administrators and the Secretariat to the UNFCCC before their implementation. 2.If, as a result of a change to the functional and technical specifications of this Regulation, a new version or release of a registry is required, each registry administrator shall successfully complete the testing procedures as set out in before a communication link is established between the new version or release of that registry and the Community independent transaction log or UNFCCC independent transaction log. 3.Each registry administrator shall continuously monitor the availability, reliability and efficiency of its registry in order to ensure a level of performance which meets the requirements of this Regulation. If, as a result of this monitoring, a new version or release of a registry is required, each registry administrator shall successfully complete the testing procedures as set out in before a communication link is established between the new version or release of that registry and the Community independent transaction log or UNFCCC independent transaction log. 1.Each registry administrator shall make available the reports listed in at the frequencies and to the recipients set out in via its registry web site. Registry administrators shall not release additional information held in the registry. 2.The Central Administrator shall make available the reports listed in at the frequencies and to the recipients set out in via the Community independent transaction log web site. The Central Administrator shall not release additional information held in the Community independent transaction log. 3.Neither the Community independent transaction log nor registries shall require account holders to submit price information concerning allowances or Kyoto units. 1.The Central Administrator and each registry administrator shall store records concerning all processes, operators and persons as set out in , , , and for 15 years or until any questions of implementation relating to them have been resolved, whichever is the later. 2.Records shall be stored in accordance with the data logging standards as set out in . Registry administrators may charge account holders a reasonable fee for the and maintenance of their accounts. Registry administrators shall not differentiate any such fees on the basis of account type or the location of an account holder within the Community. such fees shall be clearly displayed on that registry's public web site. Registry administrators shall not charge account holders for transactions. This Regulation shall enter into force on the day following that of its publication in the . This Regulation shall be binding in its entirety and directly applicable in all Member States. Done at , [date]. For the Commission [] Member of the Commission Table of Annexes: : Hardware and software requirements of registries and the Community independent transaction log............................. : Accounts and tables to be contained in registries and the Community independent transaction log............................. : Information concerning each operator holding account to be provided to the registry administrator ....................... : Information concerning each person holding account to be provided to the registry administrator ....................... : terms and conditions for account holders............... : Definitions of identifiers .................................................. : Processes concerning accounts and verified emissions with response codes ........................................................... : Processes concerning transactions with response : Reconciliation process with response codes ................... : XML documents and XML tags........................................