# Commission Regulation (EU) No 1123/2013Show full title

Commission Regulation (EU) No 1123/2013 of 8 November 2013 on determining international credit entitlements pursuant to Directive            2003/87/EC of the European Parliament and of the Council (Text with EEA relevance)         

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U.K.

# Commission Regulation (EU) No 1123/2013                     

# of 8 November 2013

# on determining international credit entitlements pursuant to Directive 2003/87/EC of the European Parliament and of the Council

# (Text with EEA relevance)

THE EUROPEAN COMMISSION,

Having regard to the Treaty on the Functioning of the European Union,

Having regard to 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(1), and in particular Article 11a(8) thereof,                        

Whereas:

(1)The Protocol to the United Nations Framework Convention on Climate Change (the Kyoto Protocol) establishes two mechanisms                              for the creation of international credits that Parties may use to offset emissions. Joint Implementation (JI) provides for                              the creation of emission reduction units (ERUs), whereas the Clean Development Mechanism (CDM) provides for the creation of                              certified emission reductions (CERs).

(2)The national allocation plans of Member States adopted pursuant to Article 9 of Directive 2003/87/EC provide for the use by                              operators of certain quantities of CERs and ERUs to comply with their obligations to surrender allowances as referred to in                              Article 12 of Directive 2003/87/EC in respect of the period 2008 to 2012.

(3)Article 11a of Directive 2003/87/EC provides for continued use of CERs and ERUs issued under the Kyoto Protocol in the emissions                              trading scheme set up by Directive 2003/87/EC, in the period from 2013 to 2020 and includes provisions related to the levels                              allowed by category of operator and aircraft operator to comply with their obligations to surrender allowances under Article                              12 of Directive 2003/87/EC. Article 11a(8) sets out certain minimum entitlements, expressed in percentage levels, of international                              credit use by operators and aircraft operators in the period from 2008 to 2020 and foresees measures to determine the exact                              percentage limits.

(4)Directive 2003/87/EC provided for linking the Kyoto Protocol’s project based mechanisms with the emission trading scheme in                              order to increase the cost-effectiveness of achieving reductions of global greenhouse gas emissions. In view of the number                              of allowances valid for the period 2013 to 2020 issued pursuant to the second sub paragraph of Article 13(2) of Directive                              2003/87/EC, the entitlements to use international credits should be set at the minimum levels specified in the first and third                              subparagraphs of Article 11a(8). As a consequence the overall limit on the use of international credits provided for in the                              fifth subparagraph of Article 11a(8) of Directive 2003/87/EC will be respected and the second subparagraph and the second                              sentence of the fourth subparagraph of Article 11a(8) of Directive 2003/87/EC will not apply herein. Any residual entitlement                              for 2012 from aircraft operators is maintained in accordance with Articles 11a(2), (3) and (4) of Directive 2003/87/EC.

(5)Operators of stationary installations with a significant capacity extension pursuant to Article 20 of Commission Decision                              2011/278/EU of 27 April 2011 determining transitional Union-wide rules for harmonised free allocation of emission allowances                              pursuant to Article 10a of Directive 2003/87/EC of the European Parliament and of the Council(2) should be entitled to be treated either as existing operators or as new entrants.

(6)Articles 58 to 61 of Commission Regulation (EU) No 389/2013 of 2 May 2013 establishing a Union Registry pursuant to Directive                              2003/87/EC of the European Parliament and of the Council, Decisions No 280/2004/EC and No 406/2009/EC of the European Parliament                              and of the Council and repealing Commission Regulations (EU) No 920/2010 and (EU) No 1193/2011(3) provide details for the practical implementation of entitlement limits set out herein.

(7)The measures provided for in this Regulation are in accordance with the opinion of the Climate Change Committee,

HAS ADOPTED THIS REGULATION:

# Article 1U.K.

1.Each operator of a stationary installation which received a free allocation or an entitlement to use international credits                        in the period from 2008 to 2012 shall be entitled to use international credits during the period 2008 to 2020 up to the amount                        allowed in the period from 2008 to 2012, or to an amount corresponding to a maximum of 11 % of its allocation in the period                        from 2008 to 2012, whichever is the higher.                  

2.Each operator of a stationary installation which received neither a free allocation nor an entitlement to use international                        credits in the period from 2008 to 2012 and, by derogation from paragraph 1, each operator of a stationary installation within                        the meaning of the first two indents of Article 3(h) of Directive 2003/87/EC shall be entitled to use international credits                        in the period from 2008 to 2020 up to a maximum of 4,5 % of its verified emissions in the period from 2013 to 2020.                  

3.Each operator of a stationary installation with a significant capacity extension pursuant to Article 20 of Decision 2011/278/EU                        shall be entitled to use international credits during the period from 2008 to 2020 up to the amount allowed to it in the period                        from 2008 to 2012, or to an amount corresponding to a maximum of 11 % of their allocation during the period from 2008 to 2012,                        or up to a maximum of 4,5 % of their verified emissions during the period from 2013 to 2020, whichever is the higher.                  

4.Each operator of a stationary installation which received a free allocation for the period from 2008 to 2012 and carrying                        out activities not listed in Annex I of Directive 2003/87/EC as amended by Regulation (EC) No 219/2009 of the European Parliament                        and of the Council(4), but listed in Annex I of Directive 2003/87/EC as amended by Directive 2009/29/EC of the European Parliament and of the Council(5) shall be entitled to use international credits during the period from 2008 to 2020 up to the amount allowed to them from                        the period from 2008 to 2012, or to an amount corresponding to a maximum of 11 % of their allocation during the period from                        2008 to 2012, or up to a maximum of 4,5 % of their verified emissions during the period from 2013 to 2020, whichever is the                        higher.                  

5.Each aircraft operator shall be entitled to use international credits up to a maximum of 1,5 % of its verified emissions during                        the period from 2013 to 2020, without prejudice to any residual entitlement from 2012.                  

# Article 2U.K.

1.Member States shall calculate and publish the international credit entitlement for each of its operators in accordance with                        Article 1(1) and notify the Commission in accordance with Article 59 of Regulation (EU) No 389/2013 one month after the date                        of the entry into force of this Regulation.                  

2.For each of the operators referred to in Article 1(2) and aircraft operators referred to in Article 1(5) an international                        credit entitlement is calculated on the basis of verified emissions and updated annually. For the operators referred to in                        Article 1(3) and 1(4) an updated international credit entitlement will be calculated according to the higher of the entitlement                        calculated in Article 1(1) or 4,5 % of verified emissions for the period from 2013 to 2020. Once verified emissions are approved,                        Member States shall notify the Commission of the changes to international credit entitlement in accordance with Article 59                        of Regulation (EU) No 389/2013.                  

# Article 3U.K.

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

This Regulation shall be binding in its entirety and directly applicable in all Member States.

Done at Brussels, 8 November 2013.

*For the Commission*                            

*The President*                            

José Manuel Barroso                            

1

OJ L 275, 25.10.2003, p. 32.                           

2

OJ L 130, 17.5.2011, p. 1-45.                           

3

OJ L 122, 3.5.2013, p. 1.                           

4

OJ L 87, 31.3.2009, p. 109.                           

5

OJ L 140, 5.6.2009, p. 63.