# EUR-Lex - 52012PC0093 - EN

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# 52012PC0093

**Proposal for a DECISION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on accounting rules and action plans on greenhouse gas emissions and removals resulting from activities related to land use, land use change and forestry /* COM/2012/093 final - 2012/0042 (COD) */**

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EXPLANATORY MEMORANDUM

1.           CONTEXT OF THE PROPOSAL

The need to act on climate change now

At the end of 2010, in the context of the
United Nations Framework Convention on Climate Change (UNFCCC), it was recognised
that global warming must not exceed the temperatures experienced before the
industrial revolution by more than 2˚ C[1].
This is vital if the negative consequences of human interference with the
climate system are to be limited. Global emissions must therefore start
declining. This long-term goal requires global greenhouse gas emissions to be
reduced by at least 50 % below 1990 levels by 2050[2].

Developed countries as a group should
reduce emissions by 80 to 95 % by 2050 compared to 1990 levels. In the
medium term, the Union has committed to reduce its greenhouse gas emissions by
20 % below 1990 levels by 2020, and by 30 % below if conditions are
right[3].
The land use, land use change and forestry (LULUCF) sector does not form part
of that commitment.

However, Directive 2009/29/EC of the
European Parliament and of the Council of 23 April 2009 amending Directive
2003/87/EC so as to improve and extend the greenhouse gas emission allowance
trading scheme of the Community[4]
(the EU Emission Trading System, ‘EU ETS’) and Decision No 406/2009/EC of the
European Parliament and of the Council of 23 April 2009 on the effort of Member
States to reduce their greenhouse gas emissions to meet the Community’s
greenhouse gas emission reduction commitments up to 2020[5] (the Effort Sharing Decision, ‘ESD’)
note that all sectors of the economy should contribute to reaching the Union’s
greenhouse gas emission reduction target for 2020. Moreover, Article 9 of
Decision No 406/2009/EC invited the Commission to assess the modalities for
including emissions and removals from activities related to LULUCF in the Union
reduction commitment and to make a legislative proposal, as appropriate, whilst
ensuring the permanence and environmental integrity of the contribution of the
sector, and providing for accurate monitoring and accounting.

Following wide consultation of Member
States and stakeholders, and an impact assessment, the Commission accordingly
proposes a Decision to provide, as a first step, a legal framework for robust,
harmonised and comprehensive accounting rules for LULUCF that are designed to
accommodate its specific profile. The proposal establishes a legal
framework for the LULUCF sector which is separate from the frameworks
regulating the existing commitments (the EU ETS and ESD), meaning that the
sector would not formally be included in the 20 % greenhouse gas emission
reduction target at this stage. Only once robust accounting rules and
monitoring and reporting are in place, the LULUCF sector could be formally
included in the Union’s emission reduction targets. To this end, the Commission
has also put forward a proposal to repeal Decision No 280/2004/EC of the
European Parliament and of the Council of 11 February 2004 concerning a
mechanism for monitoring Community greenhouse gas emissions and for
implementing the Kyoto Protocol[6],
replacing it by a Regulation of the European Parliament and of the Council on a
mechanism for monitoring and reporting greenhouse gas emissions and for
reporting other information at national and Union level relevant to climate
change[7].

The role of land use and forestry in
climate change

In the Union, emissions of greenhouse gases
come mainly from energy production and other man-made sources. At the same
time, carbon is absorbed (removed) from the atmosphere through photosynthesis
and stored in trees and associated wood products, and in other plants and
soils. Therefore, appropriate land uses and management practices in forestry
and agriculture can limit emissions of carbon and enhance removals from the
atmosphere. Such practices are covered by the LULUCF sector, which comprises
mostly carbon dioxide (CO2) emissions and removals by terrestrial
ecosystems, generally estimated as carbon stock changes[8]. In 2009, LULUCF removed an
amount of carbon from the atmosphere equivalent to about 9 % of the Union’s
total greenhouse gas emissions in other sectors.

Agriculture, forestry, related industries
and energy are the most important economic sectors relevant for LULUCF and they
can contribute to the reduction of emissions and enhancement of sinks in
several ways. Agricultural measures, aimed at reducing the conversion of
grassland and carbon losses from the cultivation of organic soils, could
include improving agronomic practices such as using different crop species
(e.g. more leguminous crops) and extending crop rotations. Agro-forestry
practices which provide higher soil carbon stocks could contribute by keeping
livestock or growing of food crops on land on which trees are also grown for
timber, energy or other wood products. Organic materials can also be returned
to or left on the land to improve the productivity of croplands and grasslands,
while rewetting, setting aside or not draining organic soils, including peat
land, and restoring degraded soils can have significant mitigation and
biodiversity benefits. In view of this, including cropland and grassland
management into accounting of emissions would be a necessary step towards the
full recognition of the contribution of these activities to meet the climate
challenge commitments.

Forestry also has much potential to
boost mitigation. This includes practices such as
converting non-forest land to forest (i.e. afforestation)[9], avoiding the conversion of
forest to other types of land (i.e. deforestation), storing carbon in existing
forests through longer rotation periods of trees, avoiding clear-felling (e.g.
forest management on thinning or selective logging) and conversion to
undisturbed forests, and more widespread use of prevention measures to limit
the impacts of disturbances such as fires, pests and storms. Equally
importantly, existing forests can be made more productive by spacing rotations
closer to the productive maximum, producing more from low-production forests
and increasing the harvest of timber off-cuts and branch-wood, provided
biodiversity, soil fertility and organic matter can be maintained. An impact
could also be obtained by changing species composition and growth rates.

In addition to the opportunities directly
linked to forestry and agriculture, there are potential mitigation benefits in
the related industries (e.g. pulp and paper, wood processing) and
renewable energy sectors if agricultural land and forests are managed for
production of timber and energy. Whilst carbon is stored in trees and in other
plants and soils, it can also be stored for several decades in products (e.g.
construction wood). Industry and consumer oriented policies can make an
important contribution to increasing the long term
use and recycling of wood and/or the production of pulp, paper and wood
products, thereby replacing more emission-intensive equivalents (e.g. concrete,
steel, plastics made from fossil fuels). In fact, the bio-based industry
can make use of crops grown for material substitution (e.g. hemp and grass for
insulation instead of glass fibre, straw for furniture production, car door
panels made from flax or sisal plants, bio-plastics) or for energy (e.g. using
biomass instead of fossil fuels). Studies show that for each tonne of carbon in
wood products substituted for non-wood products an average greenhouse gas
emission reduction of approximately two tonnes of carbon can be expected[10].

The inclusion of mandatory
accounting for forest management, cropland management and grazing-land
management would make action taken by farmers, foresters and forest-based
industries more apparent and provide the basis for designing policy incentives
to increase their mitigation action. If such efforts are being accounted for,
their overall greenhouse gas impact is more correctly reflected and the
cost-efficiency of reaching emission reduction targets would be improved.

Given the fact that agricultural land use,
forestry and related industries differ greatly between Member States in terms
of their emission potential within the Union no single policy approach will fit
them all. A tailored approach is needed to tackle the different forms of land
uses and forestry practices. The fundamental pre-condition for protecting and
enhancing carbon stocks, and the rate of removals is the provision of a level
playing field between different types of measures in the various sectors in the
Member States (e.g. grazing land management or bio-energy production), through
accurate and harmonised accounting for emissions and removals from the LULUCF
sector.

Current policies are not enough

Although the LULUCF
sector does not yet count towards the Union’s emission reduction target for
2020, it counts in part towards the Union’s commitment under the Kyoto Protocol
(‘Kyoto Protocol’) to the UNFCCC, approved by Council Decision 2002/358/EC [11] for the period
from 2008 to 2012. However, the existing international accounting rules, which
are a mix of voluntary and mandatory practices, have significant drawbacks.
Most importantly, accounting is voluntary for most LULUCF activities, notably
for forest management (representing about 70 % of the sector) and for cropland
and grazing-land management (representing about 17 % of the sector). As a
result, accounting in this first commitment period under the Kyoto Protocol
varies greatly between Member States. Another drawback is the lack of
incentives for climate change mitigation in forestry. Improvements in
accounting are necessary to create a level playing field within the
agricultural, forestry and related industries and energy sectors in the Member
States with a view to ensuring their consistent treatment within the Union’s
internal market.

Robust and harmonised
estimation of emissions and removals in agriculture and forestry requires
investment in monitoring and reporting capacity. Nonetheless, there are still
significant gaps and the accuracy and completeness of the reported data must be
improved, especially as regards data on agricultural soils. Improvements in
monitoring and reporting will therefore not only support accounting but
also provide a robust, clear and visible indicator of progress in agriculture
and forestry.

Fostering synergies
with wider policy objectives is
also important. Incentives do exist to promote the use of bio-energy[12] but currently
there is no coherent approach to climate change mitigation in the LULUCF sector
through measures in agriculture, forestry and related industries.

Indeed, climate change mitigation could play an
increasingly important role in the Common Agricultural Policy (CAP). In the
post-2013 Union rural-development policy, climate change mitigation and
adaptation could be tackled by offering better incentives for carbon
sequestration in agriculture and forestry. Some of them would at the same time
enhance and protect carbon stocks and generate co-benefits for biodiversity and
for adaptation by increasing water-retention capacity and reducing erosion.
Mandatory accounting of associated carbon fluxes would make the positive
contribution of these measures more visible and ensure their full contribution
towards meeting the climate change challenge. Accounting for LULUCF would also
clarify the benefits of sustainable bio-energy by better reflecting related
emissions, in particular those resulting from the combustion of biomass, which
is unaccounted for at the moment. This would strengthen the incentives provided
by sustainability criteria in the context of renewable energy targets.

However, LULUCF is not like other sectors.
Removals and emissions of greenhouse gases in this sector are the result of
relatively slow natural processes. It can take decades before measures such as
afforestation have a significant effect. Therefore, action to increase removals
and reduce emissions in forestry and agriculture should be considered over the
long-term. Moreover, emissions and removals are reversible: such reversals may
be because extreme events such as fires, storms, droughts or pests have had an
impact on forest and land cover or because of management decisions (e.g. to
harvest or plant trees). In addition, annual fluctuations of emissions
and removals in forests are high and can amount to as much as 35 % of the
total annual emissions in some Member States as a result of natural
disturbances and harvesting. This would make it difficult for Member States to
comply with annual targets.

Although emissions and removals from LULUCF
are reported under the UNFCCC and partially accounted under the Kyoto Protocol,
the sector was left out of the Union’s climate commitments under the Climate
and Energy Package due to the recognition of serious deficiencies in
international accounting rules of emissions and removals from this sector. Also,
the expectation at the moment of setting the Union emission reduction target
was that the climate summit in Copenhagen in 2009 would deliver an
international agreement on climate change, including revised accounting rules
for LULUCF, which could then be adopted by the Union. This did not happen on
that occasion.

However, during the 17th
Conference of the Parties of the UNFCCC serving as the meeting of the Parties
to the Kyoto Protocol in Durban in December 2011 progress was made. In this
framework, Decision -/CMP.7 sets out the rules, definitions and modalities for
accounting for the LULUCF sector as of a second commitment period under the
Kyoto Protocol. In particular, accounting for forest management activities,
including for harvested wood products, will be mandatory and definitions for
natural disturbances and wetland drainage and rewetting were established.
Therefore, it is important to proceed at Union level in parallel with the
international processes. A legal proposal on accounting for emissions and
removals from activities related to LULUCF in the Union needs to be in line
with the decisions taken at international level in order to ensure the
appropriate level of coherence; at the same time, however, it should give the
Union a chance to lead by example with a view to an international agreement as
of a second commitment period of the Kyoto Protocol.

The aim of this proposal is therefore to
gradually integrate the LULUCF sector into the Union’s climate policy by means
of a separate legal framework which addresses the sector’s specific profile and
by ensuring a robust and harmonised accounting framework. Most importantly, it
would complete the accounting of anthropogenic greenhouse gas emissions from
all economic activities within the Union. As part of that it would increase the
visibility of ongoing and new mitigation efforts in agriculture, forestry and
related industries and provide a basis for designing adequate policy incentives
(e.g. in the CAP and in view of the Roadmap to a Resource Efficient Europe[13]). Laying down common Union
accounting rules would also level the playing field among Member States. It
would capture the changes in carbon stocks due to the use of domestically
produced biomass, thus completing the accounting of bio-energy at the level of
the economy. This would strengthen the environmental integrity of the Union’s
climate policy. Lastly, it would be an important and necessary move towards a
cost effective pursuit of more ambitious climate targets. To this end, it is
therefore important to establish robust and harmonised accounting rules for the
sector and to ensure their contribution towards meeting the climate change
challenges.

2.           RESULTS OF CONSULTATIONS
WITH THE INTERESTED PARTIES AND IMPACT ASSESSMENTS

Consultations with stakeholders

In early 2010, an expert group on climate
policy for LULUCF was established under the European Climate Change Programme. The
group comprised a wide range of stakeholders: environmental NGOs, trade
associations, experts from public administrations and researchers. The group’s
objective was to define and provide input on critical issues related to the
inclusion of the LULUCF sector in the Union’s climate change mitigation
efforts. This helped define the scope and steer the work of the Commission. The
summary report with the main findings is available on the relevant Commission
websites[14].

An online public consultation was carried
out in 2010 to collect views on the opportunities and challenges related to the
inclusion of the LULUCF sector in the Union’s greenhouse gas emission reduction
commitments[15].
A total of 153 responses were received, representing the views of private
companies, business and industry organisations, individuals and private land
owners, non-governmental organisations, academia and research, and public
authorities. The same questions were subsequently used in a separate
consultation with Member States and 14 responses were received. The following
points can be made based on the data collected through the online public
consultation:

·
most of the respondents believe that land use
activities could contribute to mitigating climate change even in the short term
(until 2020) and in the longer term between 2020 and 2050;

·
the majority replied that the LULUCF sector
should be part of the Union’s greenhouse gas emission reduction targets for
2020, with a tendency in favour of including the sector only if the Union were
to take on a more ambitious commitment;

·
respondents tended to favour a separate
accounting framework for the LULUCF sector, as opposed to inclusion in the EU
ETS or ESD;

·
the majority of respondents also agreed that
there is a need for more harmonisation and standardisation in reporting and
monitoring within the Union;

·
the vast majority of respondents considered the
existing Union and national policies to be insufficient to ensure that land use
activities contribute to climate change mitigation.

The full results of the online public
consultation and the consultation with Member States are available on the
relevant Commission websites[16].

Finally, the Commission also held a
stakeholder meeting on 28 January 2011 in Brussels. Around 75 participants
representing Member States, trade associations, environmental NGOs and research
institutes took part in the discussions. The proceedings are also available on
the relevant Commission websites[17].

Impact assessment

The impact assessment investigated three
key issues that need to be addressed when assessing how LULUCF should be
included in the Union’s greenhouse gas emission reduction commitments, namely
how to:

·
ensure robust accounting rules for emissions and
removals;

·
achieve robust monitoring and reporting;

·
establish the appropriate policy context for
bringing the sector into the Union’s climate change commitments.

Based on the policy context for including
the sector in the Union’s commitments currently regulated by the ESD and the EU
ETS, the impact assessment considered three options for including LULUCF,
namely as part of the ESD, as a separate framework or by delaying inclusion
altogether. Each option addressed the issues of accounting and monitoring. The
potential social, economic and environmental impacts of the various options
were considered in detail.

The impact assessment concluded that there were good
reasons to include LULUCF in the Union’s greenhouse gas emission-reduction
commitments, namely to improve their policy coherence, environmental integrity
and economic efficiency. But this will only be possible if the right policy
context for LULUCF is put in place. The high variability of emissions and
removals in forests means that annual emission reduction targets of the kind that
apply to other sectors are unsuitable. The long lead times needed for
mitigation measures to take effect also set LULUCF apart from most other
sectors. In view of this, the impact assessment indicated that a separate
legal framework for LULUCF would be the preferred option. In terms of
accounting, the suitable options identified included mandatory accounting of
emissions and removals from both forestry and agricultural activities and
giving equal weight to mitigation action irrespective of whether it was taken
in the forestry, agriculture, related industries or energy sectors. This is more
cost-efficient and will ensure a level playing field not only for Member States
but also for the various sectors of the Union’s internal market. It will also
provide a framework of incentives for mitigation action by farmers, foresters
and related industries, ensuring that such action is visible and correctly recorded.
Broad coverage of emissions and removals will also ensure that potential
reversals are reflected in the accounting system. Mitigation actions should nevertheless
not be put on hold. National action plans could be prepared to provide a
strategy and forecast for LULUCF. This would be an intermediate step towards
the sector’s full integration into current policies. Moreover, the impact
assessment also indicated that monitoring and reporting needed to be improved
to underpin the accounting framework and the indicators tracking progress in
agriculture and forestry. The Commission proposes to achieve this through a
separate framework, namely by revising the Monitoring Mechanism Decision. For
reasons of comparability and cost-efficiency, better use could also be made of
Union-wide monitoring instruments such as LUCAS and CORINE.

The full results are presented in the
impact assessment accompanying the proposal.

Summary of the proposal

The main
objective of this Decision is to establish robust and comprehensive accounting
rules for LULUCF as well as to enable future policy development towards the
full inclusion of LULUCF in the Union’s greenhouse gas emission reduction
commitments when the conditions are right. To this end this Decision
establishes a framework for:

·
a mandatory accounting obligation on Member
States as regards greenhouse gas emissions by sources and removals by sinks
associated with agricultural and forestry activities in the LULUCF sector and
voluntary accounting for revegetation and wetland drainage and rewetting;

·
the general accounting rules that must be
applied;

·
the specific accounting rules for afforestation,
reforestation, deforestation, forest management, changes in the harvested wood
products pool, cropland management, grazing land management, revegetation, and
wetland drainage and rewetting;

·
the specific rules for accounting for natural
disturbances;

·
adopting LULUCF Action Plans in Member States
designed to limit or reduce emissions by sources and maintain or increase
removals by sinks associated with LULUCF activities, and for the evaluation of
those plans by the Commission;

·
the Commission’s power to update the definitions
laid down in Article 2 in the light of changes to definitions adopted by the
bodies of the UNFCCC or the Kyoto Protocol or other multilateral agreement
relevant to climate change concluded by the Union, to amend Annex I to add
accounting periods and ensure consistency between those accounting periods and
the relevant periods applicable to Union emission reduction commitments in
other sectors, to amend Annex II with updated reference levels in accordance
with the proposed reference levels submitted by Member States pursuant to
Article 6 subject to corrections made in accordance with this Decision, to
revise the information specified in Annex III in accordance with scientific
progress and to revise the conditions relating to the accounting rules for
natural disturbances laid down in Article 9(2) in the light of scientific
progress or to reflect revisions to acts adopted by UNFCCC or Kyoto Protocol
bodies.

3.           LEGAL ELEMENTS OF THE
PROPOSAL

Legal basis

The legal basis for the legislative
proposal is Article 192(1) of the Treaty on the Functioning of the European
Union. The proposal pursues a legitimate objective within the scope of Article
191(1) of the Treaty on the Functioning of the European Union, namely,
combating climate change. The purpose of the legislative proposal is to ensure
Member States’ accurate and consistent accounting of emissions by sources and
removals by sinks related to LULUCF, and therefore to improve the availability
of information for policy and decision making in the context of the Union’s
climate change commitments and provide incentives for mitigation efforts. This
objective cannot be achieved by less restrictive means than the legislative
proposal.

Subsidiarity principle

For Union action to be justified, the
subsidiarity principle must be respected.

(a)
Transnational nature of the problem (necessity
test)

Climate change is a trans-boundary issue
which requires joint action by Member States. National
actions alone would not achieve compliance with the common
greenhouse gas emission reduction targets set at Union’s
level; they would also neither meet the objectives nor fulfil internationally
agreed commitments. It is therefore necessary for the Union to create an
enabling legal framework to ensure harmonised accounting for the LULUCF sector
wherever possible in order to further its contribution
to the climate change commitments of the Union.

(b)
Effectiveness test (added value)

By reason of its effectiveness, taking
action at Union level would produce clear benefits compared to action at Member
State level. As the overarching climate change commitments are made at the
Union level, it is effective to also develop the required accounting rules at
this level. Moreover, overcoming the problems that have been identified, such
as the need to have accurate and consistent accounting
methodologies for the different LULUCF activities,
requires common rules across all Member States. This can be ensured only at the
Union level.

This legal framework will ensure
effectiveness by employing harmonised and sound accounting and LULUCF Action
Plans, and by enabling a more detailed assessment and evaluation of progress in
Member States. This will ensure the coherence of the Union’s climate policy,
further improve the environmental integrity of the Union’s climate change
commitments and enhance the economic efficiency of the Union’s climate policy.

Proportionality principle

The proposal complies with the
proportionality principle for the following reasons:

It does not go beyond what is necessary in
order to achieve the objectives of improving climate change data quality and
ensuring compliance with international and Union requirements and commitments.

The proposal is proportionate to the Union’s
overall objective of reaching the Union targets enshrined in the Climate and
Energy Package, the Kyoto Protocol, the Copenhagen Accord and the Decisions
1/CP.16, 1/CMP.6 and 2/CMP.6 (‘Cancun Agreements’).

The proposal provides for the
implementation of accounting rules which are similar to, but more robust and
comprehensive than, the ones discussed and employed at international level,
especially with regard to Decision -/CMP.7.

4.           BUDGETARY IMPLICATION

As specified in the financial statement
accompanying this Decision, the Decision will be implemented using the existing
budget and will not have an impact on the multi-annual financial framework.

5.           OPTIONAL ELEMENTS

The proposal includes a provision pursuant
to which the Commission will review the accounting rules in this Decision at
the latest within one year of the end of the first accounting period.

2012/0042 (COD)

Proposal for a

DECISION OF THE EUROPEAN PARLIAMENT
AND OF THE COUNCIL

on accounting rules and action plans on
greenhouse gas emissions and removals resulting from activities related to land
use, land use change and forestry

THE EUROPEAN PARLIAMENT AND THE
COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty on the
Functioning of the European Union, and in particular Article 192(1) thereof,

Having regard to the proposal from the
European Commission,

After transmission of the draft legislative
act to the national Parliaments,

Having regard to the opinion of the
European Economic and Social Committee[18],

Having regard to the opinion of the
Committee of the Regions[19],

Acting in accordance with the ordinary
legislative procedure,

Whereas:

(1)
The Union land use, land use change and forestry
(‘LULUCF’) sector is a net sink that removes from the atmosphere greenhouse
gasses in an amount equivalent to a significant share of total Union emissions.
It results in anthropogenic emissions and removals of greenhouse gases as a
consequence of changes in the quantity of carbon stored in vegetation and
soils. Emissions and removals of greenhouse gases resulting from the LULUCF
sector are not counted towards the Union’s 20 % greenhouse gas emission
reduction targets for 2020 pursuant to Decision No 406/2009/EC of the European
Parliament and of the Council of 23 April 2009 on the efforts of Member States
to reduce their greenhouse gas emissions to meet the Community’s greenhouse gas
emission reduction commitments up to 2020[20]
and Directive 2003/87/EC of the European Parliament and of the Council of 13
October 2003 establishing a scheme for greenhouse gas emission allowance
trading within the Community and amending Council Directive 96/61/EC[21], though they count in part
towards the Union’s quantified emission limitation and reduction target
pursuant to Article 3(3) of the Kyoto Protocol (‘Kyoto Protocol’) to the United
Nations Framework Convention on Climate Change (‘UNFCCC’), approved by Council
Decision 2002/358/EC[22].

(2)
Article 9 of Decision No 406/2009/EC requires
the Commission to assess modalities to include greenhouse gas emissions and
removals resulting from activities related to land use, land use change and
forestry into the Union’s greenhouse gas emission reduction commitment, whilst
ensuring the permanence and environmental integrity of the contribution of the
sector, and providing for accurate monitoring and accounting of the relevant
emissions and removals. This Decision should, therefore, as a first step, set
out accounting rules applicable to greenhouse gas emissions and removals from
the LULUCF sector. To ensure the preservation and enhancement of carbon stocks
in the interim, it should also provide for Member States to adopt LULUCF Action
Plans setting out measures to limit or reduce emissions, and to maintain or
increase removals, from the LULUCF sector.

(3)
The 17th Conference of the Parties of the
UNFCCC, meeting in Durban in December 2011, adopted Decision -/CMP.7 of the
Conference of the Parties serving as the meeting of the Parties to the Kyoto
Protocol (‘Decision -/CMP.7’). That decision set out rules for accounting for
the LULUCF sector as of a second commitment period under the Kyoto Protocol.
This Decision should be in line with that decision to ensure an appropriate
level of coherence between the Union’s internal rules and methodologies agreed
within the UNFCCC. This Decision should also reflect the particularities of the
Union LULUCF sector.

(4)
The LULUCF accounting rules should reflect
efforts made in the agriculture and forestry sectors to enhance the
contribution of changes made to the use of land resources to the reduction of
emissions. This Decision should provide for accounting rules applicable on a
mandatory basis to the forestry activities of afforestation, reforestation,
deforestation and forest management, and to the agricultural activities of
grazing land management and cropland management. It should also provide for
accounting rules applicable on a voluntary basis to revegetation and wetland
drainage and rewetting activities.

(5)
To ensure the environmental integrity of the
accounting rules applicable to the Union LULUCF sector, these rules should be
based on the accounting principles laid down in Decision -/CMP.7, and Decision
16/CMP.1 of the Conference of the Parties serving as the meeting of the Parties
to the Kyoto Protocol.

(6)
The accounting rules should accurately represent
human-induced changes in emissions and removals. In that regard, this Decision
should provide for the use of specific methodologies in respect of different
LULUCF activities. Emissions and removals related to afforestation,
reforestation and deforestation are the direct result of human intervention and
should therefore be accounted for in their entirety. However, given that not
all emissions and removals from forest management are anthropogenic, the
relevant accounting rules should provide for the use of reference levels to
exclude the effects of natural and country-specific characteristics. Reference
levels constitute estimates of the annual net emissions or removals resulting
from forest management within the territory of a Member State for the years
included in an accounting period, and should be set transparently in accordance
with Decision -/CMP.7. They should be updated to reflect improvements to
methodologies or data available in the Member States. The accounting rules
should provide for an upper limit applicable to net greenhouse gas emissions
and removals for forest management that may be entered into accounts, given
underlying uncertainties in the projections on which the reference levels are
based.

(7)
The accounting rules should ensure that Member
States accurately reflect in accounts the time emissions of greenhouse gasses
from harvested wood take place, to provide incentives for the use of harvested
wood products with long life cycles. The first-order decay function applicable
to emissions resulting from harvested wood products should therefore correspond
to equation 12.1 of the 2006 Intergovernmental Panel on Climate Change (‘IPCC’)
Guidelines for National Greenhouse Gas Inventories, and the relevant default
half-life values should be based on Table 3a.1.3 of the 2003 IPCC Good Practice
Guidance for Land Use, Land Use Change and Forestry.

(8)
Since inter-annual fluctuations in greenhouse
gas emissions and removals resulting from agricultural activities are much
smaller than those related to forestry activities, Member States should account
for greenhouse gas emissions and removals from cropland and grazing land
management activities relative to its base year in accordance with their
reviewed initial report on base year emission data as submitted to the UNFCCC pursuant
to Decision 13/CMP.1 of the Conference of the Parties serving as the meeting of
the Parties to the Kyoto Protocol (‘Decision 13/CMP.1’).

(9)
Natural disturbances, such as wildfires, insect
and disease infestations, extreme weather events and geological disturbances,
may result in greenhouse gas emissions or reductions of a temporary nature in
the LULUCF sector, or may cause the reversal of previous removals. As reversal
can also be the result of management decisions, such as decisions to harvest or
plant trees, this Decision should ensure that human-induced reversals of
removals are always accurately reflected in LULUCF accounts. Moreover, this
Decision should provide Member States a limited possibility to exclude
emissions resulting from disturbances that are beyond their control from their
LULUCF accounts. However, the manner in which Member States apply those
provisions should not lead to undue under-accounting.

(10)
Reporting rules on greenhouse gas emissions and
other information relevant to climate change, including information on the
LULUCF sector, fall within the scope of Regulation (EU) No .../... [Commission
proposal for a Regulation of the European Parliament and of the Council on a
mechanism for monitoring and reporting Union greenhouse gas emissions and for
reporting other information at national and Union level relevant to climate
change (COM/2011/0789 final — 2011/0372 (COD)], and are not therefore within
the scope of this Decision.

(11)
Inter-annual fluctuations in emissions and
removals, the frequent need to recalculate certain reported data, and long time
required for changed management practices in agriculture and forestry to have
an effect on the quantity of carbon stored in vegetation and soils would make
LULUCF sector accounts inaccurate and unreliable if compiled on an annual
basis. This Decision should therefore provide for longer and more appropriate
accounting periods.

(12)
Member State LULUCF Action Plans should set out
measures to limit or reduce emissions and to maintain or increase removals from
the LULUCF sector. Each LULUCF Action Plan should contain certain information
as specified in this Decision. Moreover, to promote best practice, an
indicative list of measures that may also be included in those plans should be
set out in Annex to this Decision. The Commission should periodically evaluate
the content and implementation of Member States’ LULUCF Action Plans and, where
appropriate, provide recommendations to enhance Member State action.

(13)
The power to adopt acts in accordance with
Article 290 of the Treaty on the Functioning of the European Union should be
delegated to the Commission to update the definitions laid down in Article 2 in
the light of changes to definitions adopted by the bodies of the UNFCCC or the
Kyoto Protocol or other multilateral agreement relevant to climate change
concluded by the Union, to amend Annex I to add accounting periods and ensure
consistency between those accounting periods and the relevant periods
applicable to Union emission reduction commitments in other sectors, to amend
Annex II with updated reference levels in accordance with the proposed
reference levels submitted by Member States pursuant to Article 6 subject to
corrections made in accordance with this Decision, to revise the information
specified in Annex III in accordance with scientific progress and to revise the
conditions relating to the accounting rules for natural disturbances laid down
in Article 9(2) in the light of scientific progress or to reflect revisions to
acts adopted by the UNFCCC or Kyoto Protocol bodies. It is of particular
importance that the Commission carry out appropriate consultations during its
preparatory work, including at expert level. The Commission, when preparing and
drawing-up delegated acts, should ensure a simultaneous, timely and appropriate
transmission of relevant documents to the European Parliament and Council.

(14)
Since the objectives of the proposed action
cannot, by their very nature, be sufficiently achieved by the Member States
alone and can therefore by reason of scale and effects of the action be better
achieved at Union level, the Union may adopt measures, in accordance with the
principle of subsidiarity as set out in Article 5 of the Treaty on European
Union. In accordance with the principle of proportionality, as set out in that
Article, this Decision does not go beyond what is necessary in order to achieve
those objectives,

HAVE ADOPTED THIS DECISION:

Article 1

Subject
matter and scope

This Decision sets out accounting rules
applicable to emissions and removals resulting from land use, land use change
and forestry activities. It also provides for Member State LULUCF Action Plans
to limit or reduce emissions and to maintain or increase removals, and for the
evaluation of those plans by the Commission.

Article 2

Definitions

1.
For the purposes of this Decision, the following
definitions apply:

(a)
‘emissions’ means anthropogenic greenhouse gas
emissions by sources;

(b)
‘removals’ means anthropogenic greenhouse gas
removals by sinks;

(c)
‘afforestation’ is the direct human-induced
conversion of land that has not been forest for a period of at least 50 years
to forest through planting, seeding and/or the human-induced promotion of
natural seed sources, where the conversion has taken place after 1 January
1990;

(d)
‘reforestation’ is any direct human-induced
conversion of land that is not forest to forest through planting, seeding
and/or the human-induced promotion of natural seed sources, on land that was
covered with forest, but that has been converted to land without forest, where
the conversion has taken place after 1 January 1990;

(e)
‘deforestation’ is the direct human-induced
conversion of forest to land that is not forest, where the conversion has taken
place after 1 January 1990;

(f)
‘forest management’ is any activity resulting
from a system of practices applicable to a forest and aimed at improving any
ecological, economic or social function of the forest;

(g)
‘cropland management’ is any activity resulting
from a system of practices applicable to land on which agricultural crops are
grown and on land that is set aside or temporarily not being used for crop
production;

(h)
‘grazing land management’ is any activity
resulting from a system of practices applicable to land used for livestock
production and aimed at controlling or influencing the quantity and type of
vegetation and livestock produced;

(i)
‘revegetation’ is any direct human-induced
activity intended to increase the carbon stock of any site that covers a
minimum area of 0.05 hectares, through the proliferation of vegetation, where
that activity does not constitute afforestation or reforestation;

(j)
‘carbon stock’ is the quantity of the element
carbon stored in a carbon pool, expressed in millions of tonnes;

(k)
‘wetland drainage and rewetting’ is any activity
resulting from a system for draining or rewetting land that covers a minimum
area of 1 hectare and on which organic soil is present, provided the activity
does not constitute any other activity referred to in Article 3(1), and where
draining is the direct human-induced lowering of the soil water table, and
rewetting is the direct human-induced partial or total reversal of drainage;

(l)
‘source’ is any process, activity or mechanism
that releases a greenhouse gas, an aerosol or a precursor to a greenhouse gas
into the atmosphere;

(m)
‘sink’ is any process, activity or mechanism
that removes a greenhouse gas, an aerosol, or a precursor to a greenhouse gas
from the atmosphere;

(n)
‘carbon pool’ is the whole or part of a biogeochemical
feature or system within the territory of a Member State within which carbon,
any precursor to a greenhouse gas containing carbon or any greenhouse gas
containing carbon is stored;

(o)
‘precursor to a greenhouse gas’ is a chemical
compound that participates in the chemical reactions that produce any of the
greenhouse gases listed in Article 3(2);

(p)
‘harvested wood product’ is any product of wood
harvesting, including wood material and bark, that has left a site where wood
is harvested;

(q)
‘forest’ is an area of land of at least 0.5
hectare, with tree crown cover or an equivalent stocking level of at least 10
per cent of the area, covered with trees with the potential to reach a minimum
height of at least 5 metres at maturity at their place of growth, including
groups of growing young natural trees, or a plantation that has yet to reach a
tree crown cover or equivalent stocking level of at least 10 per cent of the
area or tree height of at least 5 metres, including any area that normally
forms part of the forest area but on which there are temporarily no trees as a
result of human intervention, such as harvesting, or as a result of natural
causes, but which area can be expected to revert to forest;

(r)
‘crown cover’ is the share of a fixed area that
is covered by tree crowns, expressed as a percentage;

(s)
‘stocking level’ is the density of standing and
growing trees on land covered by forest measured in accordance with a
methodology established by the Member State;

(t)
‘natural disturbance’ is any non-anthropogenic
event or circumstance that causes significant emissions in forests or
agricultural soils and the occurrence of which is beyond the control of the
relevant Member State provided the Member State is also objectively unable to
significantly limit the effect of the event or circumstance, even after its
occurrence, on emissions;

(u)
‘half-life value’ is the number of years it
takes for the carbon content of a wood product to decrease to one half of its
initial quantity;

(v)
‘the instantaneous oxidation method’ is an
accounting method that assumes that the release into the atmosphere of the
entire quantity of carbon stored in harvested wood products occurs at the time
when a Member State includes those products into its accounts pursuant to this
Decision;

(w)
‘salvage logging’ is any activity consisting of
recovering timber affected by a natural disturbance and that can still be used
at least in part.

2.
The Commission shall be empowered to adopt
delegated acts in accordance with Article 12 to amend the definitions in
paragraph 1 of this Article for the purpose of updating those definitions in the light of changes to definitions adopted by the
bodies of the UNFCCC or the Kyoto Protocol, or other multilateral agreement
relevant to climate change concluded by the Union.

Article 3

Obligation
to draw up and maintain LULUCF accounts

1.
For each accounting period specified in Annex I,
Member States shall draw up and maintain accounts that accurately reflect all
emissions and removals resulting from the activities on their territory falling
within the following categories of activity:

(a)
afforestation;

(b)
reforestation;

(c)
deforestation;

(d)
forest management;

(e)
cropland management;

(f)
grazing land management.

Member States may also draw up and maintain
accounts that accurately reflect emissions and removals resulting from
revegetation, and wetland drainage and rewetting.

2.
The accounts referred to in paragraph 1 shall
cover emissions and removals of the following greenhouse gases:

(a)
carbon dioxide (CO2);

(b)
methane (CH4);

(c)
nitrous oxide (N2O).

3.
Member States shall include in their accounts a
particular activity referred to in paragraph 1 as of the onset of the activity or
from 1 January 2013, whichever is the later.

Article 4

General
accounting rules

1.
Member States shall, in their accounts referred
to in Article 3(1), denote sources by the positive (+) sign and sinks by the
negative (-) sign.

2.
Emissions and removals resulting from any
activity falling within one or more categories of activity referred to in
Article 3(1) shall only be accounted for under one category.

3.
Member States shall, on the basis of transparent
and verifiable data, determine the areas of land on which an activity falling
within a category referred to in Article 3(1) is conducted. They shall ensure
that all such areas of land are identifiable with precision in the account for
the respective category.

4.
Member States shall include in their accounts
referred to in Article 3(1) any change in the carbon stock of the following
carbon pools:

(a)
above-ground biomass;

(b)
below-ground biomass;

(c)
litter;

(d)
dead wood;

(e)
soil organic carbon;

(f)
harvested wood products.

However, Member States may choose not to
include in their accounts changes in carbon stock for carbon pools listed under
points (a) — (e) of the first subparagraph where the carbon pool is not a
declining sink or a source. Member States shall only consider that a carbon
pool is not a declining sink or a source where this is demonstrated on the
basis of transparent and verifiable data.

5.
Member States shall complete their accounts
referred to in Article 3(1) at the end of each accounting period listed in
Annex I by specifying the total emissions and total removals included in those
accounts during that accounting period.

6.
Member States shall maintain a complete and
accurate record of all methodologies and data used in complying with their
obligations under this Decision.

7.
The Commission shall be empowered to adopt
delegated acts in accordance with Article 12 to amend Annex I to add accounting
periods and to ensure consistency between those accounting periods and the
relevant periods applicable to Union emission reduction commitments in other
sectors.

Article 5

Accounting rules for afforestation, reforestation and deforestation

1.
In accounts relating to reforestation, Member
States shall reflect emissions and removals resulting only from such activities
taking place on those lands that were not forest on 1 January 1990.

2.
Where Member States reflect in their accounts
net changes in carbon dioxide (CO2) emissions and removals resulting
from afforestation, reforestation and deforestation activities, such net
changes shall represent the total removals and emissions for the years in each accounting
period specified in Annex I, calculated by summing up for each year of that
accounting period the carbon stock on 31 December of that year minus the carbon
stock on 1 January in the same year, on the basis of transparent and verifiable
data.

3.
Where Member States reflect in their accounts
methane (CH4) and nitrous oxide (N2O) emissions resulting
from afforestation, reforestation and deforestation activities, such emissions
shall represent the total emissions for the years in each accounting period specified
in Annex I, calculated by summing up the emissions occurring in each year in
that accounting period, on the basis of transparent and verifiable data.

4.
Member States shall continue to draw up and
maintain accounts that reflect emissions and removals resulting from land that
was identified in accounts pursuant to Article 4(3) under afforestation,
reforestation and deforestation even where such activity is no longer conducted
on that land.

5.
Member States shall use the same spatial
assessment unit in calculations to determine the forest falling within
afforestation, reforestation and deforestation.

Article 6

Accounting rules for forest management

1.
In accounts relating to forest management,
Member States shall reflect the emissions and removals resulting from such
activities, calculated as emissions and removals in each accounting period
specified in Annex I, minus the value obtained by multiplying the number of
years in that accounting period by their reference level specified in Annex II.

2.
Where the result of the calculation referred to
in paragraph 1 for an accounting period is negative, Member States shall enter
into their forest management accounts total emissions and removals of no more
than the equivalent of 3.5 per cent of a Member State’s emissions in its base
year, as submitted to the UNFCCC in that Member State’s reviewed initial report
on base year emission data pursuant to the Annex of Decision 13/CMP.1,
excluding emissions and removals from activities referred to in Article 3(1),
multiplied by the number of years in that accounting period.

3.
Member States shall ensure that the calculation
methods they apply in respect of their accounts for forest management
activities are consistent with the calculation methods applied for the
calculation of their reference levels specified in Annex II with regards to the
following aspects:

(a)
carbon pools and greenhouse gases;

(b)
area under forest management;

(c)
harvested wood products;

(d)
natural disturbances.

4.
No later than one year before the end of each
accounting period, Member States shall communicate to the Commission proposed
revised reference levels for the following accounting period in accordance with
the methodology in Decision -/CMP.7 used for calculating the reference levels
set out in that decision.

5.
If there are changes to the relevant provisions
of Decision -/CMP.7, the Member States shall communicate to the Commission
proposed revised reference levels reflecting those changes no later than six
months after the adoption of those changes.

6.
If improved methodologies become available
allowing a Member State to calculate reference levels in a significantly more
accurate manner or where there are significant improvements in the quality of
data available to a Member State, the Member State concerned shall communicate
to the Commission proposed revised reference levels reflecting those changes
without delay.

7.
For the purposes of paragraphs 4, 5 and 6,
Member States shall specify the amount of annual emissions resulting from
natural disturbances which have been included in their proposed revised
reference levels and the manner in which they estimated that amount.

8.
The Commission shall verify the accuracy of
proposed revised reference levels.

9.
The Commission shall be empowered to adopt
delegated acts in accordance with Article 12 to update the reference levels in
Annex II as necessary.

10.
Member States shall reflect in their accounts
for forest management the impact of any amendment to Annex II in respect of
entire relevant accounting period.

Article 7

Accounting rules for harvested wood products

1.
Member States shall reflect in their accounts
pursuant to Article 3(1) emissions from harvested wood products containing
carbon on 1 January 2013 even where such harvested wood products were harvested
prior to this date.

2.
In accounts pursuant to Article 3(1) relating to
harvested wood products, Member States shall reflect emissions resulting from
the following harvested wood products on the basis of calculations in
accordance with the first order decay function and the default half-life values
specified in Annex III:

(a)
paper;

(b)
wood panels;

(c)
sawn wood.

Member States may use country-specific
half-life values instead of the half-life values specified in Annex III
provided that those values are determined by the Member State on the basis of
transparent and verifiable data.

In accounts relating to exported harvested wood
products, Member States may use country-specific half-life values instead of
the half-life values specified in Annex III, provided that those values are
determined by the Member State on the basis of transparent and verifiable data
on the use of those harvested wood products in the importing country.

3.
Where Member States reflect in their accounts
pursuant to Article 3(1) carbon dioxide (CO2) emissions from
harvested wood products in solid waste disposal sites, they shall do so on the
basis of the instantaneous oxidation method.

4.
Where Member States reflect in their accounts
emissions resulting from harvested wood products that were harvested for energy
purposes, they shall do so also on the basis of the instantaneous oxidation
method.

5.
A Member State shall reflect emissions from
harvested wood products in its accounts only where these emissions result from
harvested wood products removed from lands included in the accounts of that
Member State pursuant to Article 3(1).

6.
The Commission shall be empowered to adopt
delegated acts in accordance with Article 12 to revise the information
specified in Annex III in accordance with scientific progress.

Article 8

Accounting
rules for cropland management, grazing land management, revegetation, and
wetland drainage and rewetting

1.
In accounts relating to cropland management and
grazing land management, Member States shall reflect emissions and removals
resulting from such activities, calculated as emissions and removals in each
accounting period specified in Annex I, minus the value obtained by multiplying
the number of years in that accounting period by a Member State’s emissions and
removals resulting from such activities in its base year, as submitted to the UNFCCC
in that Member State’s reviewed initial report on base year emission data
pursuant to the Annex of Decision 13/CMP.1.

2.
Where a Member State elects to draw up and
maintain accounts for revegetation, and/or wetland drainage and rewetting, it shall
apply the calculation method specified in paragraph 1.

In accounts relating to wetland drainage and
rewetting, Member States shall reflect emissions and removals resulting from
that activity on all lands that have been drained since 1990 and all lands that
have been rewetted since 1990.

Article 9

Accounting rules for natural disturbances

1.
Where the conditions set out in paragraph 2 are
met, Member States may exclude non-anthropogenic greenhouse gas emissions by
sources resulting from natural disturbances from calculations relevant to their
accounting obligations pursuant to points (a), (b), (d), (e) and (f) of Article
3(1). If Member States exclude such emissions they shall also exclude any
subsequent removals on lands where those natural disturbances have occurred. However,
non-anthropogenic greenhouse gas emissions by sources resulting from natural
disturbances which have been included in the calculation of their reference
level pursuant to Article 6(4), Article 6(5) or Article 6(6) shall not be
excluded.

2.
Member States may exclude non-anthropogenic
greenhouse gas emissions by sources in accordance with paragraph 1 from
calculations relevant to their accounting obligations pursuant to points (a),
(b) and (d) of Article 3(1) where those non-anthropogenic greenhouse gas
emissions from such natural disturbances in a single year exceed 5 per cent of
the total emissions of a Member State in its base year as submitted to the
UNFCCC in that Member State’s reviewed initial report on base year emission
data pursuant to the Annex of Decision 13/CMP.1 excluding emissions and
removals from activities referred to in Article 3(1), provided that the
following conditions are met:

(a)
the Member State identifies all land areas
excluded from the purpose of the Member States’ accounts pursuant to points
(a), (b) and (d) of Article 3(1), including by their geographical location,
year and types of natural disturbances;

(b)
the Member State estimates the annual
non-anthropogenic greenhouse gas emissions by sources resulting from natural
disturbances and the subsequent removals in the excluded land areas;

(c)
no land-use change has occurred on the excluded
land areas and the Member State uses transparent and verifiable methods and
criteria to identify land-use change on these land areas;

(d)
the Member State, where practicable, undertakes
measures to manage or control the impact of the natural disturbances;

(e)
the Member State, where possible, undertakes
measures to rehabilitate the excluded land areas;

(f)
emissions resulting from harvested wood products
recovered by salvage logging, were not excluded from accounting.

3.
Member States may also separately exclude
non-anthropogenic greenhouse gas emissions by sources in accordance with
paragraph 1 from calculations relevant to their accounting obligations pursuant
to points (e) and (f) of Article 3(1) where those non-anthropogenic greenhouse
gas emissions from such natural disturbances in a single year exceed 5 per cent
of the total emissions of a Member State in its base year as submitted to the
UNFCCC in that Member State’s reviewed initial report on base year emission
data pursuant to the Annex of Decision 13/CMP.1 excluding emissions and
removals from activities referred to in Article 3(1), provided that conditions stipulated
in Article 9(2) are met.

4.
Member States shall include in their accounts
referred to in Article 3(1) emissions resulting from harvested wood products
recovered by salvage logging in accordance with Article 7.

5.
The Commission shall be empowered to adopt
delegated acts in accordance with Article 12 to revise the conditions referred
to in the first subparagraph of paragraph 2 in the light of scientific progress
or to reflect revisions to acts adopted by UNFCCC or Kyoto Protocol bodies.

Article 10

LULUCF
Action Plans

1.
No later than six months after the beginning of
each accounting period specified in Annex I, Member States shall draw up and
transmit to the Commission draft LULUCF Action Plans to limit or reduce
emissions and maintain or increase removals resulting from the activities
referred to in Article 3(1). Member States shall ensure that a broad range of
stakeholders are consulted.

The draft LULUCF Action Plans shall cover the
duration of the relevant accounting period specified in Annex I.

2.
Member States shall include in their draft
LULUCF Action Plans the following information relating to each of the
activities referred to in Article 3(1):

(a)
a description of past trends of emissions and
removals;

(b)
projections for emissions and removals for the
respective accounting period;

(c)
an analysis of the potential to limit or reduce
emissions and to maintain or increase removals;

(d)
a list of measures, including, as appropriate,
those specified in Annex IV, to be adopted in order to pursue the mitigation
potential, where identified in accordance with the analysis referred to in
point (c);

(e)
policies foreseen to implement the measures
referred to in point (d), including a description of the expected effect of
those measures on emissions and removals;

(f)
timetables for the adoption and implementation
of the measures referred to in point (d).

3.
The Commission shall evaluate a Member State’s
draft LULUCF Action Plan within three months of receiving all relevant
information from that Member State. The Commission shall publish the results of
that evaluation and may issue recommendations, as appropriate, with a view to
enhance Member States’ efforts to limit or reduce emissions and maintain or
increase removals.

Member States shall take due account of the
Commission’s findings and shall publish in electronic form and make available
to the public their LULUCF Action Plans within three months of receiving the
Commission’s evaluation.

4.
Member States shall submit to the Commission, by
the date falling in the mid-point of each accounting period specified in Annex
I, and by the end of each accounting period specified in Annex I, a report
describing the progress in the implementation of their LULUCF Action Plans.

5.
The Commission shall evaluate the implementation
by Member States of their LULUCF Action Plans within six months of receiving
the reports referred to in paragraph 4.

The Commission shall publish those reports and
the results of that evaluation and may issue recommendations, as appropriate,
with a view to enhance Member States’ efforts to limit or reduce emissions and
maintain or increase removals. Member States shall take due account of the
Commission’s findings.

Article 11

Review

The Commission shall review the accounting
rules in this Decision at the latest within a year of the end of the first
accounting period specified in Annex I.

Article 12

Exercise
of the delegation

1.
The power to adopt delegated acts is conferred
on the Commission subject to the conditions laid down in this Article.

2.
The delegation of power referred to in Articles
2(2), 4(7), 6(9), 7(6) and 9(4) shall be conferred on the Commission for an
indeterminate period of time from the date of entry into force of this
Decision.

3.
The delegation of power referred to in Articles
2(2), 4(7), 6(9), 7(6) and 9(4) may be revoked at any time by the European
Parliament or by the Council. A decision to revoke shall put an end to the
delegation of the power specified in that decision. It shall take effect the
day following the publication of the decision in the Official Journal of
the European Union or at a later date specified therein. It shall not
affect the validity of any delegated acts already in force.

4.
As soon as it adopts a delegated act, the
Commission shall notify it simultaneously to the European Parliament and to the
Council.

5.
A delegated act adopted pursuant to Articles
2(2), 4(7), 6(9), 7(6) and 9(4) shall enter into force only if no objection has
been expressed either by the European Parliament or the Council within a period
of 2 months of notification of that act to the European Parliament and the
Council or if, before
the expiry of that period, the
European Parliament and the Council have both informed the Commission that they
will not object. That period shall be extended
by 2 months at the initiative of the European Parliament or the Council.

Article 13

This Decision shall enter into force on 1
January 2013.

Article 14

This Decision is addressed to the Member
States.

Done at Brussels, 12.3.2012

For the European Parliament                       For
the Council

The President                                                 The
President

ANNEX I

ACCOUNTING
PERIODS REFERRED TO IN ARTICLE 3(1)

Accounting period || Years

First accounting period || From 1 January 2013 to 31 December 2020

ANNEX II

MEMBER
STATE REFERENCE LEVELS REFERRED TO IN ARTICLE 6

Member State || Gg carbon dioxide (CO2) equivalents per year

Austria || -6516

Belgium || -2499

Bulgaria || -7950

Cyprus || -157

Czech Republic || -4686

Denmark || 409

Estonia || -2741

Finland || -20466

France || -67410

Germany || -22418

Greece || -1830

Hungary || -1000

Ireland || -142

Italy || -22166

Latvia || -16302

Lithuania || -4552

Luxembourg || -418

Malta || -49

The Netherlands || -1425

Poland || -27133

Portugal || -6830

Romania || -15793

Slovakia || -1084

Slovenia || -3171

Spain || -23100

Sweden || -41336

United Kingdom || -8268

ANNEX III

FIRST ORDER DECAY FUNCTION AND DEFAULT HALF-LIFE VALUES REFERRED TO
IN ARTICLE 7

First order
decay function starting with  and
continuing to present year:

,

where:

year

the carbon stock of the harvested wood products pool in the
beginning of year , Gg
C

decay constant of first-order decay given in units of year-1
, where HL is
half-life of the harvested wood products pool in years.)

the inflow to the harvested wood products pool during year , Gg C year-1

carbon stock change of the harvested wood products pool during year  , Gg C year-1,

Default
half-life values (HL):

2
years for paper

25
years for wood panels

35
years for sawn wood.

ANNEX IV

MEASURES THAT MAY BE INCLUDED IN LULUCF ACTION PLANS PURSUANT TO
ARTICLE 10(2)(d)

(a)
Measures related to cropland management such as:

–
improving agronomic
practices by selecting better crop varieties;

–
extending crop rotations and avoiding or
reducing the use of bare fallow;

–
improving nutrient management, tillage/residue
management and water management;

–
stimulating agro-forestry practices and
potential for land cover (use) change;

(b)
Measures related to grazing land management and
pasture improvement such as:

–
preventing the conversion of grassland to
cropland and the reversion of cropland to native vegetation;

–
improving grazing land management by including
changes to the intensity and timing of grazing;

–
increasing productivity;

–
improving nutrient management;

–
improving fire management;

–
introducing more appropriate species and in
particular deep rooted species;

(c)
Measures to improve the management of
agricultural organic soils, in particular, peat lands, such as:

–
incentivising sustainable paludicultural
practices;

–
incentivising adapted agricultural practices,
such as minimising soil disturbance or extensive practices;

(d)
Measures to prevent drainage and to incentivise
rewetting of wetlands;

(e)
Measures related to existing or partly drained
mires, such as:

–
preventing further drainage;

–
incentivising rewetting and restoration of
mires;

–
preventing bog fires;

(f)
Restoration of degraded lands;

(g)
Measures related to forestry activities such as:

–
preventing deforestation;

–
afforestation and reforestation;

–
conservation of carbon in existing forests;

–
enhancing production in existing forests;

–
increasing the harvested wood products pool;

–
enhancing forest management, including through
optimised species composition, tending and thinning, and soil conservation;

(h)
Strengthening protection against natural
disturbances such as fire, pests, and storms.

LEGISLATIVE FINANCIAL STATEMENT

1.           FRAMEWORK OF THE
PROPOSAL/INITIATIVE

1.1.    Title of the proposal/initiative

1.2.    Policy
area(s) concerned in the ABM/ABB structure

1.3.    Nature
of the proposal/initiative

1.4.    Objective(s)

1.5.    Grounds
for the proposal/initiative

1.6.    Duration
and financial impact

1.7.    Management
method(s) envisaged

2.           MANAGEMENT MEASURES

2.1.    Monitoring
and reporting rules

2.2.    Management
and control system

2.3.    Measures
to prevent fraud and irregularities

3.           ESTIMATED FINANCIAL
IMPACT OF THE PROPOSAL/INITIATIVE

3.1.    Heading(s)
of the multiannual financial framework and expenditure budget line(s) affected

3.2.    Estimated
impact on expenditure

3.2.1. Summary of
estimated impact on expenditure

3.2.2. Estimated impact
on operational appropriations

3.2.3. Estimated impact
on appropriations of an administrative nature

3.2.4. Compatibility
with the current multiannual financial framework

3.2.5. Third-party
participation in financing

3.3.    Estimated impact on revenue

LEGISLATIVE FINANCIAL STATEMENT

1.
FRAMEWORK OF THE PROPOSAL/INITIATIVE
1.1.
Title of the proposal/initiative

Decision of the European Parliament and of the Council on accounting
rules and action plans on greenhouse gas emissions and removals resulting from
activities related to land use, land use change and forestry

1.2.
Policy area(s) concerned in the ABM/ABB
structure[23]

ENVIRONMENT AND CLIMATE ACTION [07]

1.3.
Nature of the proposal/initiative

x The proposal/initiative relates to a new action

 ̈ The proposal/initiative relates to a new action
following a pilot project/preparatory action[24]

 ̈ The proposal/initiative relates to the extension of
an existing action

 ̈ The proposal/initiative relates to an action redirected
towards a new action

1.4.
Objectives
1.4.1.
The Commission’s multiannual strategic
objective(s) targeted by the proposal/initiative

The proposal is consistent with the Europe 2020 Strategy and it is
envisaged to contribute towards the realisation of the Union’s emission
reduction targets.

1.4.2.
Specific objective(s) and ABM/ABB activity(ies)
concerned

Specific objective No.

Implementation of EU policy and legislation on climate
action (ABB code 07 12)

ABM/ABB activity(ies) concerned

07 12 01 (Implementation of Union policy and legislation
on climate action)

1.4.3.
Expected result(s) and impact

Specify the effects which the
proposal/initiative should have on the beneficiaries/groups targeted.

The proposal establishes a robust and harmonised legal
framework to account for greenhouse gas (GHG) emissions and removals from
activities related to land use, land use change and forestry (LULUCF) in the
Union, by enabling a detailed assessment of progress in Member States (MS).
More specifically, it would:

- improve the visibility of, and provide incentives for,
mitigation efforts through the enhancement of removals and reduction of
emissions in agriculture and forestry and through the production of harvested
wood products in industry;

- strengthen the environmental integrity of the commitments
by ensuring that emissions and removals are correctly reflected and secure
sustainable and climate-friendly bio-energy production by complementing
existing policy measures; and

- improve the economic efficiency in the pursuit of more
ambitious targets by allowing all sectors to contribute.

Indicators of results and impact

Specify the indicators for monitoring
implementation of the proposal/initiative.

The following indicators correspond to the general,
specific and operational objectives of the proposal:

- trends in emissions and removals;

- number of MS’ non-compliance cases, MS’ LULUCF Action
Plans (LAPs) and reports submitted on time to the Commission, MS submitting on
time their reference levels to the Commission;

- the compliance of the MS’ reports with the requirements
of the proposal;

- completeness of MS’ reports submitted to the Commission
and of degree of application by MS of common accounting rules;

- availability of data and information in the areas
targeted by the proposal..

1.5.
Grounds for the proposal/initiative
1.5.1.
Requirement(s) to be met in the short or long
term

The objectives of this proposal are twofold:

- to ensure robust and harmonised accounting of emissions
and removals from the LULUCF sector in the MS;

- to incentivise mitigation efforts by MS through the
establishment and implementation of LAPs;

1.5.2.
Added value of EU involvement

Taking action at Union level would produce clear benefits
compared with action at MS level alone by reason of its effectiveness. As the
overarching climate change commitments are made at the Union level, it is
effective to also develop the required accounting rules at this level.
Moreover, overcoming the problems identified, such as the need to have accurate
and consistent accounting rules for different LULUCF activities, requires a common
approach across all MS which can be ensured only at the Union level.

This legal framework will ensure effective added value by
employing common and accurate accounting across all MS, establishing LAPs, and
thus by enabling a more detailed assessment and appreciation of progress in MS.
This will ensure the coherence of the Union’s climate policy, improve further
the environmental integrity of the Union’s climate change commitments and
enhance the economic efficiency of the Union’s climate policy.

1.5.3.
Lessons learned from similar experiences in the
past

The proposal is based on experience achieved at international level
and is meant to address the shortcomings of the existing accounting rules under
the Kyoto Protocol (KP). Detailed assessment has been carried out in order to
propose a robust and harmonised accounting framework for LULUCF.

1.5.4.
Coherence and possible synergy with other
relevant instruments

The proposal is consistent with the Europe 2020 Strategy
and the Europe 2020 flagship initiative for a resource-efficient Europe. It is
also complementary with the existing Union climate, energy and social policies.

It also complements the post- 2013 Common Agricultural
Policy (CAP) with regard to implementing the ‘greening components’ and in the
context of Union’s Rural Development Policy, incentives for carbon
sequestration in agriculture and forestry could be significantly improved.
Proper accounting of associated positive carbon fluxes would make the positive
contribution of these policy measures implemented through the CAP more visible.

Accounting for LULUCF would therefore support the
sustainable use of bio-energy and would also provide a robust, clear and
visible indicator of progress in agriculture and forestry. Without
comprehensive mandatory accounting for LULUCF activities, the efforts invested
by MS, farmers and foresters to provide climate change mitigation services will
not be reflected in the Union’s efforts to reach its GHG reduction targets.

1.6.
Duration and financial impact

 ̈ Proposal/initiative
of limited duration

 ̈         Proposal/initiative in effect from
[DD/MM]YYYY to [DD/MM]YYYY

 ̈         Financial impact from YYYY to YYYY

x Proposal/initiative
of unlimited duration

Implementation
is envisaged to start in 1 January 2013, depending on progress with the
legislative process.

1.7.
Management mode(s) envisaged[25]

x Centralised
direct management by the Commission

 ̈ Centralised
indirect management with the delegation of
implementation tasks to:

 ̈         executive agencies

 ̈         bodies set up by the Communities[26]

 ̈         national public-sector
bodies/bodies with public-service mission

 ̈         persons entrusted with the
implementation of specific actions pursuant to Title V of the Treaty on
European Union and identified in the relevant basic act within the meaning of
Article 49 of the Financial Regulation

 ̈ Shared
management with the Member States

 ̈ Decentralised
management with third countries

 ̈ Joint
management with international organisations (to
be specified)

If more than one management mode is indicated, please provide details in
the ‘Comments’ section.

Comments

The MS will be responsible for implementing the
bulk of this proposal. The Commission will assess the information included in
the reports submitted by MS and issue recommendations, where appropriate.

2.
MANAGEMENT MEASURES
2.1.
Monitoring and reporting rules

Specify frequency and conditions.

MS will include information in their LULUCF accounts on
an annual basis and will account for emissions and removals from LULUCF
pursuant to this proposal at the end of each accounting period.

The reports prepared under this proposal will be assessed
by the Commission for each accounting period, based on technical expertise
assistance.

A study would be needed to assess the implementation of
this Decision in the context of the review clause.

2.2.
Management and control system
2.2.1.
Risk(s) identified

As the proposal is a Decision, the implementation risks are limited
because the proposed obligations are based on already established international
rules applied by the MS in the framework of their commitments under the KP.

2.2.2.
Control method(s) envisaged

The measures to address eventual risks will consist of: constructive
dialogue and cooperation with the MS, maintaining contact with the relevant
Commission services, especially in view of ensuring satisfaction of the corresponding
data needs, consulting experts, especially when adopting the delegated acts,
accessing external technical expertise for the corresponding evaluations,
conducting studies when reviewing the legal act, and organising thematic
conferences, where appropriate.

2.3.
Measures to prevent fraud and irregularities

Specify existing or envisaged prevention
and protection measures.

Given the amounts involved and the type of procurement,
this initiative does not present particular risks of fraud. The Commission will
manage and control the work by using all relevant regular tools, such as the
Annual Management Plan of DG CLIMA.

Internal control standards No 2, 7, 8, 9, 11, 12, 13, 15
and 16 are of particular relevance. In addition, the principles laid down in
Council Regulation (EC, Euratom) No 1605/202 (the ‘Financial Regulation’) and
its implementing rules, will be fully applied.

The procurement procedures will be governed by the common
DG CLIMA financial circuit: a partially decentralised circuit which main characteristic
is the hierarchical independence from the AO(s)D of the persons performing
financial initiation and verification.

Moreover, an internal control committee (ENVAC) examines
the procedure leading to the choice of the contractor and verifies the consistency
of the procedures adopted by the Authorising Officers with the rules and
provision of the Financial Regulation and the Implementing Rules for a
combination of a random sample and a risk-based sample of public procurement
contracts.

On top of these measures, for the adoption of delegated
acts it will be ensured that the persons taking part to the expert
consultations are independent and appropriately qualified.

3.
          ESTIMATED FINANCIAL IMPACT OF THE
PROPOSAL/INITIATIVE
3.1.
Heading(s) of the multiannual financial
framework and expenditure budget line(s) affected

·
Existing expenditure budget lines

In order of the Multiannual Financial
Framework headings and budget lines.

Heading of multiannual financial framework || Budget line || Type of expenditure || Contribution

Number [Description ........................................] || Diff./non-diff ([27]) || from EFTA[28] countries || from candidate countries[29] || from third countries || within the meaning of Article 18(1)(aa) of the Financial Regulation

5 || 07 01 02 11 Other management expenditures in support of the ‘Environment and climate action’ policy area || non-diff. || NO || NO || NO || NO

·
New budget lines requested

In order of multiannual financial framework headings and
budget lines.

Heading of multiannual financial framework || Budget line || Type of expenditure || Contribution

Number [Heading ............................................] || Diff./non-diff. || from EFTA countries || from candidate countries || from third countries || within the meaning of Article 18(1)(aa) of the Financial Regulation

[...] || [XX.YY.YY.YY] [...] || [...] || YES/NO || YES/NO || YES/NO || YES/NO

3.2.
Estimated impact on expenditure
3.2.1.
Summary of estimated impact on expenditure

EUR million (to 3 decimal places)

Heading of multiannual financial framework: || Number || Heading 2

DG: CLIMA || || || Year N[30] || Year N+1 || Year N+2 || Year N+3 || Year N+4 || Year N+5 || Year N+6 || TOTAL

Ÿ Operational appropriations || || || || || || || ||

Number of budget line || Commitments || (1) || - || - || - || - || - || - || - || -

Payments || (2) || - || - || - || - || - || - || - || -

Number of budget line || Commitments || (1a) || - || - || - || - || - || - || - || -

Payments || (2a) || - || - || - || - || - || - || - || -

Appropriations of an administrative nature financed from the envelope for specific programmes[31] || || || || || || || ||

Number of budget line 07 01 04 05 (and successive lines) || || (3) || 0 .100 || - || - || 0 .600 || - || - || 0 .600 || 1 .300

TOTAL appropriations for DG CLIMA || Commitments || =1+1a +3 || 0 .100 || - || - || 0 .600 || - || - || 0 .600 || 1 .300

Payments || =2+2a +3 || 0 .100 || - || - || 0 .600 || - || - || 0 .600 || 1 .300

Ÿ TOTAL operational appropriations || Commitments || (4) || || || || || || || ||

Payments || (5) || || || || || || || ||

Ÿ TOTAL appropriations of an administrative nature financed from the envelope for specific programmes || (6) || 0 .100 || - || - || 0 .600 || - || - || 0 .600 || 1 .300

TOTAL appropriations under HEADINGS 1 to 4 of the multiannual financial framework (reference amount) || Commitments || =4+ 6 || 0 .100 || - || - || 0 .600 || - || - || 0 .600 || 1 .300

Payments || =5+ 6 || 0 .100 || - || - || 0 .600 || - || - || 0 .600 || 1 .300

If more than one heading is affected by the proposal /
initiative:

Ÿ TOTAL operational appropriations || Commitments || (4) || || || || || || || ||

Payments || (5) || || || || || || || ||

Ÿ TOTAL appropriations of an administrative nature financed from the envelope for specific programmes || (6) || 0 .100 || || || 0 .600 || || || 0 .600 || 1 .300

TOTAL appropriations under HEADINGS 1 to 4 of the multiannual financial framework (Reference amount) || Commitments || =4+ 6 || 0 .100 || || || 0 .600 || || || 0 .600 || 1 .300

Payments || =5+ 6 || 0 .100 || || || 0 .600 || || || 0 .600 || 1 .300

Heading of multiannual financial framework: || 5 || ’ Administrative expenditure ‘

EUR million (to 3 decimal places)

|| || || Year N || Year N+1 || Year N+2 || Year N+3 || Year N+4 || Year N+5 || Year N+6 || TOTAL

DG: CLIMA ||

Ÿ Human resources || 0 .127 || 0 .127 || 0 .127 || 0 .127 || 0 .127 || 0 .127 || 0 .127 || 0 .889

Ÿ Other administrative expenditure || 0 .348 || 0 .348 || 0 .348 || 0 .348 || 0 .348 || 0 .348 || 0 .348 || 2 .433

TOTAL DG CLIMA || Appropriations || 0 .475 || 0 .457 || 0 .475 || 0 .475 || 0 .475 || 0 .475 || 0 .475 || 3 .322

TOTAL appropriations under HEADING 5 of the multiannual financial framework || (Total commitments = Total payments) || 0 .475 || 0 .475 || 0 .475 || 0 .475 || 0 .475 || 0 .475 || 0 .475 || 3 .322

EUR million (to 3 decimal places)

|| || || Year N[32] || Year N+1 || Year N+2 || Year N+3 || Year N+4 || Year N+5 || Year N+6 || TOTAL

TOTAL appropriations under HEADINGS 1 to 5 of the multiannual financial framework || Commitments || 0 .575 || 0 .475 || 0 .475 || 1 .075 || 0 .475 || 0 .475 || 1 .075 || 4 .622

Payments || 0 .575 || 0 .475 || 0 .475 || 1 .075 || 0 .475 || 0 .475 || 1 .075 || 4 .622

3.2.2.
Estimated impact on operational appropriations

 ̈      The proposal/initiative does not require the use of
operational appropriations

x      The proposal/initiative requires the use of operational
appropriations, as explained below:

Commitment appropriations in EUR million (to 3 decimal
places)

Indicate objectives and outputs ò || || || Year N || Year N+1 || Year N+2 || Year N+3 || Year N+4 || Year N+5 || Year N+6 || TOTAL

OUTPUTS

Type of output[33] || Average cost of the output || Number of outputs || Cost || Number of outputs || Cost || Number of outputs || Cost || Number of outputs || Cost || Number of outputs || Cost || Number of outputs || Cost || Number of outputs || Cost || Total number of outputs || Total cost

SPECIFIC OBJECTIVE: Implementation of EU policy and legislation on climate action (ABB code 07 12)

- Output || Evaluation || 0 .004 || 27 || 0.100 || || || || || 27 || 0.100 || || || || || 27 || 0.100 || 81 || 0 .300

- Output || Study || 0.500 || || || || || || || || || || || || || 1 || 0.500 || 1 || 0 .500

- Output || Review || 0.500 || || || || || || || 1 || 0.500 || || || || || || || 1 || 0 .500

Sub-total for specific objective No 1 || 27 || 0 .100 || 0 || - || 0 || - || 28 || 0.600 || 0 || - || 0 || - || 28 || 0.600 || 83 || 1 .300

TOTAL COST || 0 || 0 .100 || 0 || - || 0 || - || 0 || 0.600 || 0 || - || 0 || - || 0 || 0. 600 || 0 || 1. 300

3.2.3.
Estimated impact on appropriations of an
administrative nature
3.2.3.1.
Summary

 ̈      The proposal/initiative does not require the use of
administrative appropriations

x      The proposal/initiative requires the use of administrative
appropriations, as explained below:

EUR million (to 3
decimal places)

|| Year N [34] || Year N+1 || Year N+2 || Year N+3 || Year N+4 || Year N+5 || Year N+6 || TOTAL

HEADING 5 of the multiannual financial framework || Year N || Year N+1 || Year N+2 || Year N+3 || Year N+4 || Year N+5 || Year N+6 ||

Human resources (1 AD FTE already working in DG CLIMA) || 0 .127 || 0 .127 || 0 .127 || 0 .127 || 0 .127 || 0 .127 || 0 .127 || 0 .889

Other administrative expenditure - 07 01 02 11 01 Missions (5 per year ; 0 0015 M EUR /mission) - 07 01 02 11 02 Conferences (2 per year; 150 participants; ; 0 035 M EUR /conference) - 07 01 02 11 02 Meetings (2 per year ; 168 experts max (28 *6); 1 day ; 0 135 M EUR /meeting) SUBTOTAL || 0 .0075 0 .070 0 .270 0 .348 || 0 .0075 0 .070 0 .270 0 .348 || 0 .0075 0. 070 0 .270 0 .348 || 0 .0075 0. 070 0 .270 0 .348 || 0 .0075 0 .070 0 .270 0 .348 || 0 .0075 0 .070 0 .270 0 .348 || 0 .0075 0 .070 0 .270 0 .348 || 0 .053 0 .490 1 .890 2 .433

Subtotal HEADING 5 of the multiannual financial framework || 0 .475 || 0. 475 || 0 .475 || 0 .475 || 0 .475 || 0 .475 || 0 .475 || 3 .322

Outside HEADING 5[35] of the multiannual financial framework || || || || || || || ||

Human resources || || || || || || || ||

Other expenditure of an administrative nature || || || || || || || ||

Subtotal outside HEADING 5 of the multiannual financial framework || || || || || || || ||

TOTAL || 0 .475 || 0 .475 || 0 .475 || 0 .475 || 0 .475 || 0 .475 || 0 .475 || 3 .322

3.2.4.
Estimated requirements of human resources

 ̈      The proposal/initiative does not require the use of human
resources

x      The proposal/initiative requires the use of human resources,
as explained below:

Estimate to be expressed in full amounts (or
at most to one decimal place)

|| || Year N || Year N+1 || Year N+2 || Year N+3 || Year N+4 || Year N+5 || Year N+6

Ÿ Establishment plan posts (officials and temporary agents) ||

|| 07 01 01 01 (Headquarters and Commission’s Representation Offices) || 0 .127 || 0 .127 || 0 .127 || 0 .127 || 0 .127 || 0 .127 || 0 .127

|| XX 01 01 02 (Delegations) || || || || || || ||

|| XX 01 05 01 (Indirect research) || || || || || || ||

|| 10 01 05 01 (Direct research) || || || || || || ||

|| Ÿ External personnel (in Full Time Equivalent unit: FTE)[36] ||

|| XX 01 02 01 (CA, INT, SNE from the ‘global envelope’) || || || || || || ||

|| XX 01 02 02 (CA, INT, JED, LA and SNE in the delegations) || || || || || || ||

|| XX 01 04 yy [37] || - at Headquarters[38] || || || || || || ||

|| - in delegations || || || || || || ||

|| XX 01 05 02 (CA, INT, SNE — Indirect research) || || || || || || ||

|| 10 01 05 02 (CA, INT, SNE — Direct research) || || || || || || ||

|| Other budget lines (specify) || || || || || || ||

|| TOTAL || 0 .127 || 0 .127 || 0 .127 || 0 .127 || 0 .127 || 0 .127 || 0 .127

XX is the
policy area or budget title concerned.

The human resources required
will be met by staff from the DG who are already assigned to management of the action
and/or have been redeployed within the DG, together if necessary with any
additional allocation which may be granted to the managing DG under the annual
allocation procedure and in the light of budgetary constraints.

Description of
tasks to be carried out:

Officials and temporary agents || Take appropriate action to implement the various requirements upon Commission (e.g. review Member States reports, carry out analysis, monitor the implementation, etc.)

External personnel ||

3.2.5.
Compatibility with the current multiannual
financial framework

x      Proposal/initiative is compatible
with the current multiannual financial framework.

 ̈      Proposal/initiative will entail
reprogramming of the relevant heading in the multiannual financial framework.

 ̈      Proposal/initiative requires
application of the flexibility instrument or revision of the multiannual
financial framework[39].

3.2.6.
Third-party contributions

xThe proposal/initiative does not provide
for co-financing by third parties

The
proposal/initiative provides for the co-financing estimated below:

3.3.
Estimated impact on revenue

x      Proposal/initiative has no financial
impact on revenue.

 ̈      Proposal/initiative has the following
financial impact:

 ̈         on own resources

 ̈         on
miscellaneous revenue

[1]               Decision 1/CP.16 of the Conference of Parties to the
UNFCCC (the ‘Cancún Agreements’).

[2]               Based on the Fourth Assessment Report of the
Intergovernmental Panel on Climate Change (IPCC).

[3]               Conclusions of the European Council of 8/9.3.2007.

[4]               OJ L 140 5.6.2009, p. 63.

[5]               OJ L 140, 5.6.2009, p. 136. .

[6]               OJ L 49, 19.2.2004, p. 1.

[7]               COM(2011) 789 final — 2011/0372 (COD).

[8]               Other greenhouse gases from agricultural activities,
e.g. methane and nitrous oxide from ruminants and fertilisers, do not count
under LULUCF, which deals primarily with carbon emissions and removals in
vegetation and soils. Non-CO2 emissions from agriculture are
included in a separate agriculture inventory.

[9]               There is also a trade-off, namely conversion should
not induce ‘carbon leakage’, i.e. replacement of domestically produced food by
imported food that has a more negative carbon footprint.

[10]             See e.g. Sathre R. and O’Connor J. (2010), ‘A synthesis
of research on wood products and greenhouse gas impacts’, 2nd edition,
Vancouver, B. C. FP Innovations, p 117.

[11]             OJ L 130, 15.5.2002, p. 1.

[12]             Directive 2009/28/EC.

[13]             COM(2011) 571 final.

[14]             http://ec.europa.eu/clima/events/0029/index_en.htm
.

[15]             http://ec.europa.eu/clima/consultations/0003/index_en.htm
.

[16]             http://ec.europa.eu/clima/events/0029/index_en.htm
.

[17]             http://ec.europa.eu/clima/events/0029/index_en.htm
.

[18]             OJ C , , p. .

[19]             OJ C , , p. .

[20]             OJ L 140, 5.6.2009, p. 136.

[21]             OJ L 275, 25.10.2003, p. 32.

[22]             OJ L 130, 15.5.2002, p. 1.

[23]             ABM: Activity-Based Management — ABB: Activity-Based
Budgeting.

[24]             As referred to in Article 49(6)(a) or (b) of the Financial
Regulation.

[25]             Details of management modes and references to the
Financial Regulation may be found on the BudgWeb site: http://www.cc.cec/budg/man/budgmanag/budgmanag_en.html.

[26]             As referred to in Article 185 of the Financial
Regulation.

[27]             Diff. = Differentiated appropriations / Non-Diff. =
Non-differentiated appropriations.

[28]             EFTA: European Free Trade Association. .

[29]             Candidate countries and, where applicable, potential
candidate countries from the Western Balkans.

[30]             Year N is the year in which implementation of the
proposal/initiative starts.

[31]             Technical and/or administrative assistance and
expenditure in support of the implementation of EU programmes and/or actions
(former ‘BA’ lines), indirect research, direct research.

[32]             Year N is the year in which implementation of the
proposal/initiative starts. The proposal is envisaged to enter into force in
2013, depending on progress with the legislative process.

[33]             Outputs are products and services to be supplied (e.g.:
number of student exchanges financed, number of km of roads built, etc.).

[34]             Year N is the year in which implementation of the
proposal/initiative starts. The proposal is envisaged to enter into force in
2013, depending on progress with the legislative process.

[35]             Technical and/or administrative assistance and
expenditure in support of the implementation of EU programmes and/or actions
(former ‘BA’ lines), indirect research, direct research.

[36]             CA= Contract Agent; INT= agency staff (‘Intérimaire’);
JED= ‘Jeune Expert en Délégation’ (Young Experts in Delegations); LA=
Local Agent; SNE= Seconded National Expert; .

[37]             Under the ceiling for external personnel from
operational appropriations (former ‘BA’ lines).

[38]             Essentially for Structural Funds, European Agricultural
Fund for Rural Development (EAFRD) and European Fisheries Fund (EFF).

[39]             See points 19 and 24 of the Interinstitutional
Agreement.