# Commission Decision of 5 September 2013 concerning national implementation measures for the transitional free allocation of            greenhouse gas emission allowances in accordance with Article 11(3) of Directive 2003/87/EC of the European Parliament and            of the Council (notified under document C(2013) 5666) (Text with EEA relevance) (2013/448/EU)         

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U.K.

# Commission Decision

# of 5 September 2013

# concerning national implementation measures for the transitional free allocation of greenhouse gas emission allowances in                        accordance with Article 11(3) of Directive 2003/87/EC of the European Parliament and of the Council                     

# (notified under document C(2013) 5666)

# (Text with EEA relevance)

# (2013/448/EU)

THE EUROPEAN COMMISSION,

Having regard to the Treaty of 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 Articles 10a and 11 thereof,                        

Whereas:

(1)Auctioning is the rule for the allocation of emission allowances from 2013 onwards to operators of installations within the                              scope of the emissions trading scheme of the Union (EU ETS). However, eligible operators will continue to receive free allowances                              between 2013 and 2020. The amount of allowances that each such operator receives is determined on the basis of Union-wide                              harmonised rules set out in Directive 2003/87/EC and Commission Decision 2011/278/EU(2).

(2)Member States were required to submit to the Commission by 30 September 2011 their National Implementation Measures (NIMs)                              comprising, among other mandatory information, a list of installations covered by Directive 2003/87/EC on their territory                              and the preliminary amount of free allowances to be allocated between 2013 and 2020 calculated on the basis of the Union-wide                              harmonised rules.

(3)Article 18 of the Act concerning the conditions of accession of the Republic of Croatia and the adjustments to the Treaty                              on European Union, the Treaty on the Functioning of the European Union and to the Treaty establishing the European Atomic                              Energy Community(3) provides for transitional measures applying in respect of Croatia and set out in Annex V to this Act. Pursuant to point 10                              of that Annex V, Croatia is required to ensure that operators comply with Directive 2003/87/EC for the whole year 2013. Likewise,                              operators of eligible installations receive free allocation for the whole year 2013 to allow them full compliance with the                              EU ETS and its principle of annual monitoring, reporting and verification of emissions and surrender of emission allowances.                              Accordingly, Croatia submitted the NIMs to the Commission in accordance with Article 11(1) of Directive 2003/87/EC and Article                              15(1) of Decision 2011/278/EU.

(4)To ensure data quality and comparability, the Commission provided an electronic template for the submission of the NIMs. All                              Member States submitted in this or in a similar format a list of installations, a table containing all relevant data per installation                              and a methodology report setting out the data collection process conducted by Member States’ authorities.

(5)Given the wide range of information and data submitted, the Commission first analysed the completeness of all the NIMs. Where                              the Commission noted that submissions were incomplete, it requested additional information from the Member States concerned.                              In reply to those requests, the relevant authorities submitted additional relevant information in order to complete the submitted                              NIMs.

(6)The NIMs, including the preliminary total annual amounts of emission allowances to be allocated for free between 2013 and                              2020, have then been evaluated against the criteria contained in Directive 2003/87/EC, notably Article 10a thereof, and in                              Decision 2011/278/EU, taking into account the Commission's guidance documents to Member States endorsed by the Climate Change                              Committee on 14 April 2011. Where applicable, account has been taken of the guidance on interpretation of Annex I to Directive                              2003/87/EC.

(7)The Commission carried out an in-depth compliance assessment of the NIMs for each individual Member State. As part of that                              comprehensive assessment, the Commission analysed the consistency of the data itself and the consistency of the data with                              the harmonised allocation rules. First, the Commission examined the eligibility of installations for free allocation, the                              division of installations into subinstallations and their boundaries. The Commission then analysed the application of the                              correct benchmark values to the relevant subinstallations. Considering that for product-benchmark subinstallations Decision                              2011/278/EU lays down, in principle, for each product one benchmark, the Commission paid particular attention to the application                              of the benchmark value to the final product produced in accordance with the product definition and the system boundaries set                              out in Annex I to Decision 2011/278/EU. Furthermore, given the significant impact on allocations, the Commission analysed                              in detail the calculation of the historical activity levels of installations, cases of significant capacity changes during                              the baseline period as well as cases of installations starting operation during the baseline period, the calculation of the                              preliminary number of emission allowances to be allocated free of charge taking into account the exchangeability of fuel and                              electricity, the carbon leakage status as well as heat exports to private households. Further statistical analyses and plausibility                              checks using indicators such as, for example, proposed allocation per historical activity level compared to benchmark values                              or historical activity level compared to production capacity helped in identifying additional potential irregularities in                              the application of the harmonised allocation rules.

(8)On the basis of the results of that assessment, the Commission carried out a detailed assessment of installations where potential                              irregularities in the application of the harmonised allocation rules were identified, seeking further clarification from the                              competent authorities of the Member State concerned.

(9)In the light of the results of that compliance assessment, the Commission considers the NIMs of Belgium, Bulgaria, Denmark,                              Estonia, Ireland, Greece, Spain, France, Croatia, Italy, Cyprus, Latvia, Lithuania, Luxembourg, Hungary, Malta, the Netherlands,                              Austria, Poland, Portugal, Romania, Slovenia, Slovakia, Finland, Sweden and the United Kingdom to be compatible with Directive                              2003/87/EC and Decision 2011/278/EU. The installations included in the NIMs by these Member States have been found eligible                              for free allocation and no inconsistencies with regard to the preliminary total annual amounts of emission allowances allocated                              free of charge proposed by each of these Member States could be detected.

(10)But, in the light of the results of the assessment, the Commission finds that certain aspects of the NIMs submitted by the                              Czech Republic and Germany are incompatible with the criteria contained in Directive 2003/87/EC and in Decision 2011/278/EU,                              taking into account the Commission’s guidance documents to Member States endorsed by the Climate Change Committee on 14 April                              2011.

(11)The Commission notes that Germany has proposed that seven installations receive an increase in the level of free allocation                              of emission allowances because it considers this would avoid undue hardship. In accordance with Article 10a of Directive 2003/87/EC                              and Decision 2011/278/EU, the preliminary amounts of free allocation to be submitted as part of the NIMs are calculated on                              the basis of harmonised Union-wide rules. Decision 2011/278/EU does not provide for the adjustment which Germany would wish                              to make on the basis of Article 9(5) of the German Greenhouse Gas Emissions Trading Act — TEHG of 28 July 2011. Whereas until                              2012, free allocation of emission allowances was organised nationally, for the period as of 2013 the legislator intentionally                              established fully-harmonised rules for free allocation to installations, so that all installations are treated in the same                              manner. Any unilateral change to the preliminary amounts of free allocation calculated by Member States on the basis of Decision                              2011/278/EU would undermine this harmonised approach. Germany has not substantiated that the allocation for the installations                              in question calculated on the basis of Decision 2011/278/EU was manifestly inappropriate having regard to the objective of                              full harmonisation of allocations to be achieved. Assigning more free allowances to some installations would distort or threaten                              to distort competition and has cross-border effects given Union-wide trade in all sectors covered by Directive 2003/87/EC.                              In the light of the principle of equal treatment of installations under the EU ETS and of Member States, the Commission finds                              that it is therefore appropriate to object to the preliminary amounts of free allocation to certain installations contained                              in the German NIMs and listed in point A of Annex I.

(12)The Commission finds that the NIMs proposed by Germany also contravene Decision 2011/278/EU because the application of the                              product benchmark for hot metal in the cases listed in point B of Annex I to this Decision is inconsistent with the relevant                              rules. In this regard, the Commission observes that in the German NIMs, in cases of basic oxygen furnace (BOF) steelmaking                              processes and where hot metal from the blast furnace is not refined to steel within the same installation, but exported for                              further processing, no free allocation of emission allowances is provided to the operator of the installation with the blast                              furnace for the production of the hot metal. Instead, the free allocation is provided to the installation where the steel                              refining takes place.

(13)The Commission notes that for the purposes of allocating emission allowances, product benchmarks have been laid down in Decision                              2011/278/EU taking into account the product definitions and the complexity of the production processes that allow for verification                              of production data and a uniform application of the product benchmarks across the Union. For the application of the product                              benchmarks, installations are divided into sub-installations, a product benchmark sub-installation being defined as inputs,                              outputs and corresponding emissions relating to the production of a product for which a benchmark has been set in Annex I                              to Decision 2011/278/EU. Benchmarks are thus established for products and not for processes. Accordingly, a benchmark has                              been developed for hot metal, with the product defined as liquid iron saturated with carbon for further processing. The fact                              that the system boundaries for the hot metal benchmark set out in Annex I to Decision 2011/278/EU comprise the BOF cannot                              permit Member States to disregard that allocations should take place for the production of a given product. This consideration                              is corroborated by the fact that the benchmark values should cover all production-related direct emissions. However, it is                              the production of hot metal in the blast furnace that mainly causes emissions while the process of refining the hot metal                              to steel in the BOF converter is relatively low in emissions. Accordingly, the benchmark value would be much lower, if it                              also covered installations importing hot metal and refining it in the BOF converter to steel. Moreover, in the light of the                              overall scheme for allocation set up by Decision 2011/278/EU, in particular with regard to the rules on significant capacity                              changes, the allocation proposed by Germany cannot be regarded as consistent. The Commission therefore finds that due to the                              lack of a corresponding sub-installation that would allow for the determination of the allocation in accordance with Article                              10 of Decision 2011/278/EU, installations importing hot metal for further processing cannot be regarded eligible for receiving                              free allocation on the basis of the hot metal benchmark for the amount of hot metal imported. The Commission therefore objects                              to the preliminary total annual amounts of free allocation proposed for the installations listed in point B of Annex I to                              this Decision.

(14)With regard to the application of the benchmark for hot metal in the NIMs as proposed by the Czech Republic, the Commission                              notes that the allocation to the installation listed under point C with the identifier CZ-existing-CZ-73-CZ-0134-11/M does                              not correspond to the value of the hot metal benchmark multiplied by the relevant product-related historical activity level                              as submitted in the NIMs and is therefore not in line with Article 10(2)(a) of Decision 2011/278/EU. The Commission therefore                              objects to the allocation to this installation unless this error is corrected. Furthermore, the Commission notes that the                              allocation to the installation listed under point C with the identifier CZ-existing-CZ-52-CZ-0102-05 takes account of processes                              that are covered by the system boundaries of the hot metal benchmark. The installation, however, does not produce, but imports                              hot metal. Due to the lack of production of hot metal in the installation with the identifier CZ-existing-CZ-52-CZ-0102-05,                              and thus a lack of a corresponding product benchmark sub-installation that would allow for the determination of the allocation                              in accordance with Article 10 of Decision 2011/278/EU, the proposed allocation is not consistent with the allocation rules                              and may give rise to double counting. The Commission therefore objects to the allocation to the installations listed in point                              C of Annex I to this Decision.

(15)The Commission notes that the installations referred to in point D of Annex I to this Decision receive an allocation on the                              basis of a process emissions sub-installation for the production of zinc in the blast furnace and related processes. In this                              regard, the Commission notes that the emissions covered by the process emissions sub-installation are already covered by the                              product benchmark sub-installation for hot metal on the basis of which one of the installations also receives an allocation                              and are thus double counted. The product benchmark sub-installation for hot metal clearly covers inputs, outputs and corresponding                              emissions relating to the production of hot metal in the blast furnace and all related processes as set out in Annex I to                              Decision 2011/278/EU, including slag treatment. The NIMs proposed by Germany therefore contravene Article 10(8) of Decision                              2011/278/EU and the obligation to avoid double-counting of emissions because certain emissions are accounted for twice in                              the allocation to these installations. The Commission therefore objects to the allocation to these installations on the basis                              of a process emissions sub-installation for the production of zinc in the blast furnace and related processes.

(16)The Commission also notes that the list of installations set out in the German NIMs is incomplete and therefore contravenes                              Article 11(1) of Directive 2003/87/EC. The list does not include installations producing polymers, in particular S-PVC and                              E-PVC, and vinyl chloride monomer (VCM) with the quantities of allowances intended to be allocated to each of these installations                              situated within the territory of Germany, to which that Directive applies and which are referred to in Section 5.1 of the                              Commission’s guidance on the interpretation of Annex I to Directive 2003/87/EC, endorsed by the Climate Change Committee on                              18 March 2010. In this regard, the Commission is aware of the opinion brought forward by Germany that the production of polymers,                              in particular S-PVC and E-PVC, and VCM is not covered by Annex I to Directive 2003/87/EC. The Commission considers that polymers,                              including S-PVC and E-PVC, and VCM, satisfy the definition of the relevant activity (production of bulk organic chemicals)                              in Annex I to Directive 2003/87/EC. Accordingly, in close cooperation with Member States and the industry sectors concerned                              corresponding product benchmarks for S-PVC, E-PVC and VCM were derived as set out in Annex I to Decision 2011/278/EU.

(17)The Commission notes that the fact that the German list of installations is incomplete has undue effects on the allocation                              on the basis of the heat benchmark subinstallation for installations listed in point E of Annex I to this Decision exporting                              heat to installations producing bulk organic chemicals. Whereas only heat exports to an installation or other entity not covered                              by Directive 2003/87/EC give rise to free allocation on the basis of the heat benchmark subinstallation, in the German NIMs,                              heat exports to installations carrying out activities within the scope of Annex I to Directive 2003/87/EC are taken into account                              for the allocation to installations listed in point E of Annex I to this Decision. Consequently, the proposed allocations                              to the installations listed in point E of Annex I are not consistent with the allocation rules. The Commission therefore objects                              to the allocation to the installations listed in point E of Annex I to this Decision.

(18)In accordance with Articles 9 and 9a of Directive 2003/87/EC, the Commission published by Decision 2010/634/EU(4) the absolute Union-wide quantity of allowances for the period from 2013 to 2020. In this regard, the quantity taken into                              account pursuant to Article 9 of Directive 2003/87/EC is based on the total quantities of allowances issued by the Member                              States in accordance with the Commission decisions on their National Allocation Plans for the period from 2008 to 2012. However,                              after the end of the trading period from 2008 to 2012, additional information and more accurate data has become available                              to the Commission in particular with regard to the quantity of allowances issued to new entrants from the Member States’ New                              Entrant Reserves and on the use of allowances in Member States’ set-asides for Joint Implementation projects established pursuant                              to Article 3 of Commission Decision 2006/780/EC(5). Furthermore, with regard to the adjustment of the Union-wide quantity of allowances pursuant to Article 9a of Directive                              2003/87/EC, and in particular paragraphs 1 and 4 thereof, account should be taken of the latest scientific data with regard                              to the global warming potential of greenhouse gases, Commission Decisions C(2011) 3798 and C(2012) 497 to accept the unilateral                              inclusion of additional greenhouse gases and activities by Italy and the United Kingdom pursuant to Article 24 of Directive                              2003/87/EC as well as the exclusion of installations with low emissions from the EU ETS by Germany, Spain, France, Italy,                              the Netherlands, Slovenia and the United Kingdom, pursuant to Article 27 of Directive 2003/87/EC.

(19)In addition, the absolute Union-wide quantity of allowances should take account of the accession of Croatia to the European                              Union as well as the extension of the EU ETS to the EEA-EFTA States. Pursuant to point 8 of Annex III to the Act concerning                              the conditions of accession of the Republic of Croatia and the adjustments to the Treaty on European Union, the Treaty on                              the Functioning of the European Union and to the Treaty establishing the European Atomic Energy Community, the quantity taken                              into account pursuant to Article 9 of Directive 2003/87/EC is increased as a result of Croatia's accession by the quantity                              of allowances that Croatia shall auction pursuant to Article 10(1) of Directive 2003/87/EC. The incorporation into the European                              Economic Area (EEA) Agreement of Directive 2009/29/EC of the European Parliament and of the Council(6) and Decision 2011/278/EU as amended by Commission Decision 2011/745/EU(7) by Decision of the EEA Joint Committee No 152/2012(8) implies an increase of the total quantity of allowances in the EU ETS as a whole under Articles 9 and 9a of Directive 2003/87/EC.                              It is therefore necessary to take account of the relevant figures provided by the EEA-EFTA States in Part A of the Appendix                              to that Directive in the EEA Agreement.

(20)Decision 2010/634/EU should therefore be amended accordingly.

(21)In 2014 and each subsequent year, the total quantity of allowances determined for 2013 on the basis of Articles 9 and 9a of                              Directive 2003/87/EC decreases by a linear factor of 1,74 % from 2010, amounting to 38 264 246 allowances.

(22)Article 10a(5) of Directive 2003/87/EC limits the maximum annual quantity of allowances that is the basis for calculating                              allocations free of charge to installations not covered by Article 10a(3) of Directive 2003/87/EC. This limit is composed                              of two elements referred to in points (a) and (b) of Article 10a(5) of Directive 2003/87/EC, each of which has been determined                              by the Commission on the basis of the quantities determined pursuant to Articles 9 and 9a of Directive 2003/87/EC, data publicly                              available in the Union registry and information provided by Member States, in particular with regard to the share of emissions                              from electricity generators and other installations not eligible for free allocation referred to in Article 10a(3) of Directive                              2003/87/EC as well as verified emissions in the period from 2005 to 2007 from installations only included in the EU ETS from                              2013 onwards, where available, taking into account the latest scientific data with regard to the global warming potential                              of greenhouse gases.

(23)The limit set by Article 10a(5) of Directive 2003/87/EC may not be exceeded, and this is ensured by the application of an                              annual cross-sectoral correction factor which, if necessary, reduces the number of free allowances in all installations eligible                              for free allocation in a uniform manner. Member States have to take this factor into account when deciding on the basis of                              preliminary allocations and this Decision on the final annual amounts of allocation to installations. Article 15(3) of Decision                              2011/278/EU requires the Commission to determine the cross-sectoral correction factor, which is done through comparing the                              sum of the preliminary total annual amounts of free allocation submitted by Member States to the limit set by Article 10a(5)                              in the manner set out in Article 15(3) of Decision 2011/278/EU.

(24)Following the incorporation into the EEA Agreement of Directive 2009/29/EC by Decision of the EEA Joint Committee No 152/2012,                              the limit set by Article 10a(5) of Directive 2003/87/EC, the harmonised allocation rules and the cross-sectoral correction                              factor are to be applied within the EEA-EFTA countries. It is therefore necessary to take into account the preliminary annual                              amounts of emission allowances allocated free of charge over the period 2013 to 2020 fixed by the decisions of the EFTA Surveillance                              Authority of 10 July 2013 concerning the NIMs of Iceland, Liechtenstein and Norway.

(25)The limit set by Article 10a(5) of Directive 2003/87/EC is 809 315 756 allowances in 2013. In order to derive this limit,                              the Commission first collected from Member States and the EEA-EFTA countries information on whether installations qualify                              as an electricity generator or other installation covered by Article 10a(3) of Directive 2003/87/EC. The Commission then determined                              the share of emissions in the period from 2005 to 2007 from the installations not covered by that provision, but included                              in the EU ETS in the period from 2008 to 2012. The Commission then applied this share of 34,78289436 % to the quantity determined                              on the basis of Article 9 of Directive 2003/87/EC (1 976 784 044 allowances). To the result of this calculation, the Commission                              then added 121 733 050 allowances, based on the average annual verified emissions in the period from 2005 to 2007 of relevant                              installations taking into account the revised scope of the EU ETS as of 2013. In this respect, the Commission used information                              provided by Member States and the EEA-EFTA countries for the adjustment of the cap. Where annual verified emissions for the                              period 2005-2007 were not available, the Commission extrapolated, to the extent possible, the relevant emission figures from                              verified emissions in later years by applying the factor of 1,74 % in reverse direction. The Commission consulted and obtained                              confirmation from Member States’ authorities on information and data used in this respect. The limit set by Article 10a(5)                              of Directive 2003/87/EC compared to the sum of the preliminary annual amounts of free allocation without application of the                              factors referred to in Annex VI to Decision 2011/278/EU gives the annual cross-sectoral correction factor as set out in Annex                              II to this Decision.

(26)Given the improved overview of the number of allowances that will be allocated free of charge that results from this Decision,                              the Commission is able to better estimate the amount of allowances to be auctioned in accordance with Article 10(1) of Directive                              2003/87/EC. Taking into account the limit set by Article 10a(5) of Directive 2003/87/EC, the allocation in respect of heat                              production pursuant to Article 10a(4) set out in the table below and the size of the new entrants’ reserve, the Commission                              estimates that the amount of allowances to be auctioned in the period from 2013 to 2020 is 8 176 193 157.

(27)The following table sets out the annual allocation in respect of heat production pursuant to Article 10a(4) of Directive 2003/87/EC:YearFree allocation under Article 10a(4) of Directive 2003/87/EC2013104 326 872201493 819 860201584 216 053201675 513 746201767 735 206201860 673 411201954 076 655202047 798 754

(28)Member States should, on the basis of the NIMs, the cross-sectoral correction factor and the linear factor, proceed to the                              determination of the final annual amount of emission allowances allocated free of charge for each year over the period from                              2013 to 2020. The final annual amount of free emission allowances should be determined by Member States in accordance with                              this Decision, Directive 2003/87/EC, Decision 2011/278/EU and with other relevant provisions of Union law. Likewise, the EEA                              EFTA States should proceed to the determination of the final annual amount of allowances allocated free of charge for each                              year from 2013 to 2020 in accordance with Article 10(9) of Decision 2011/278/EU to installations on their territory on the                              basis of their NIMs, the cross-sectoral correction factor and the linear factor.

(29)The Commission considers that the allocation of allowances free of charge to installations covered by the EU ETS on the basis                              of Union-wide harmonised rules does not confer a selective economic advantage to undertakings with the potential to distort                              competition and affect intra-Union trade. Member States are obliged under Union law to allocate allowances for free and cannot                              choose to auction the relevant quantities instead. Member States’ decisions with regard to the allocation of allowances free                              of charge cannot therefore be considered as involving State aid in the sense of Articles 107 and 108 TFEU,

HAS ADOPTED THIS DECISION:

## CHAPTER IU.K.**NATIONAL IMPLEMENTING MEASURES**

## Article 1U.K.

1.The inscription of the installations listed in Annex I to this Decision on the lists of installations covered by Directive                        2003/87/EC submitted to the Commission pursuant to Article 11(1) of Directive 2003/87/EC and the corresponding preliminary                        total annual amounts of emission allowances allocated free of charge to these installations is rejected.                  

2.No objections are raised should a Member State amend the preliminary total annual amounts of emission allowances submitted                        for the installations in its territory included in the lists referred to in paragraph 1 and listed in point A of Annex I to                        this Decision before determining the final total annual amount for each year from 2013 to 2020 in accordance with Article                        10(9) of Decision 2011/278/EU to the extent that the amendment consists of excluding any increase in allocation that is not                        provided for in that Decision.                  

No objections are raised should a Member State amend the preliminary total annual amounts of emission allowances allocated                     for free to installations in its territory included in the lists referred to in paragraph 1 and listed in point B of Annex                     I to this Decision before determining the final total annual amount for each year from 2013 to 2020 in accordance with Article                     10(9) of Decision 2011/278/EU to the extent that the amendment consists of excluding any allocation on the basis of the hot                     metal benchmark to installations importing hot metal as defined in Annex I to Decision 2011/278/EU for further processing.                     Where this leads to an increase of the preliminary total annual amount of emission allowances in an installation producing                     and exporting hot metal to an installation listed in point B of Annex I to this Decision, no objections are raised should                     the Member State concerned amend the preliminary total annual amount of this installation producing and exporting hot metal                     accordingly.                  

No objections are raised should a Member State amend the preliminary total annual amounts of emission allowances allocated                     free of charge to installations in its territory included in the lists referred to in paragraph 1 and listed in point C of                     Annex I to this Decision before determining the final total annual amount for each year from 2013 to 2020 in accordance with                     Article 10(9) of Decision 2011/278/EU to the extent that the amendment consists of bringing the allocation in line with Article                     10(2)(a) of Decision 2011/278/EU and excluding any allocation for processes that are covered by the system boundaries of the                     product benchmark for hot metal as defined in Annex I to Decision 2011/278/EU to an installation not producing, but importing                     hot metal that would otherwise lead to double counting.                  

No objections are raised should a Member State amend the preliminary total annual amounts of emission allowances allocated                     free of charge to installations in its territory included in the lists referred to in paragraph 1 and listed in point D of                     Annex I to this Decision before determining the final total annual amount for each year from 2013 to 2020 in accordance with                     Article 10(9) of Decision 2011/278/EU to the extent that the amendment consists of excluding any allocation on the basis of                     a process emissions sub-installation for the production of zinc in the blast furnace and related processes. Where this leads                     to an increase of the preliminary allocation under the fuel or heat benchmark sub-installation in an installation with a blast                     furnace and listed in point D of Annex I to this Decision, no objections are raised should the Member State concerned amend                     the preliminary total annual amount of this installation accordingly.                  

No objections are raised should a Member State amend the preliminary total annual amounts of emission allowances allocated                     free of charge to installations in its territory included in the lists referred to in paragraph 1 and listed in point E of                     Annex I to this Decision before determining the final total annual amount for each year from 2013 to 2020 in accordance with                     Article 10(9) of Decision 2011/278/EU to the extent that the amendment consists of excluding any allocation for heat exported                     to installations producing polymers, such as S-PVC and E-PVC, and VCM.                  

3.Any amendment referred to in paragraph 2 shall be notified to the Commission as soon as possible, and a Member State may not                        proceed to the determination of the final total annual amount for each year from 2013 to 2020 in accordance with Article 10(9)                        of Decision 2011/278/EU until acceptable amendments have been made.                  

## Article 2U.K.

Without prejudice to Article 1, no objections are raised with regard to the lists of installations covered by Directive 2003/87/EC                     submitted by Member States pursuant to Article 11(1) of Directive 2003/87/EC and the corresponding preliminary total annual                     amounts of emission allowances allocated for free to these installations.                  

## CHAPTER IIU.K.**TOTAL QUANTITY OF ALLOWANCES**

## Article 3U.K.

Article 1 of Decision 2010/634/EU is replaced by the following:

## ‘Article 1

On the basis of Articles 9 and 9a of Directive 2003/87/EC, the total quantity of allowances to be issued from 2013 onwards                        and annually decreased in a linear manner pursuant to Article 9 of Directive 2003/87/EC, is 2 084 301 856 allowances.’                  

## CHAPTER IIIU.K.**CROSS-SECTORAL CORRECTION FACTOR**

## Article 4U.K.

The uniform cross-sectoral correction factor referred to in Article 10a(5) of Directive 2003/87/EC and determined in accordance                     with Article 15(3) of Decision 2011/278/EU is set out in Annex II to this Decision.                  

## Article 5U.K.

This Decision is addressed to the Member States.

Done at Brussels, 5 September 2013.

*For the Commission*                            

Connie Hedegaard                            

*Member of the Commission*                            

## ANNEX IU.K.

### POINT AU.K.

#### **Installation Identifier as submitted in the NIMs**U.K.

DE000000000000010

DE000000000000563

DE000000000000978

DE000000000001320

DE000000000001425

DE-new-14220-0045

DE-new-14310-1474

### POINT BU.K.

#### **Installation Identifier as submitted in the NIMs**U.K.

DE000000000000044

DE000000000000053

DE000000000000056

DE000000000000059

DE000000000000069

### POINT CU.K.

#### **Installation identifier as submitted in the NIMs**U.K.

CZ-existing-CZ-73-CZ-0134-11/M

CZ-existing-CZ-52-CZ-0102-05

### POINT DU.K.

#### **Installation Identifier as submitted in the NIMs**U.K.

DE-new-14220-0045

DE000000000001320

### POINT EU.K.

#### **Installation Identifier as submitted in the NIMs**U.K.

DE000000000000005

DE000000000000762

DE000000000001050

DE000000000001537

DE000000000002198

## ANNEX IIU.K.

1

OJ L 275, 25.10.2003, p. 32.                           

2

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 (OJ L 130, 17.5.2011, p. 1).                           

3

OJ L 112, 24.4.2012, p. 21.                           

4

Commission Decision 2010/634/EU of 22 October 2010 adjusting the Union-wide quantity of allowances to be issued under the                              Union Scheme for 2013 and repealing Decision 2010/384/EU (OJ L 279, 23.10.2010, p. 34).                           

5

Commission Decision 2006/780/EC of 13 November 2006 on avoiding double counting of greenhouse gas emission reductions under                              the Community emissions trading scheme for project activities under the Kyoto Protocol pursuant to Directive 2003/87/EC of                              the European Parliament and of the Council (OJ L 316, 16.11.2006, p. 12).                           

6

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 greenhouse gas emission allowance trading scheme of the Community (OJ L 140, 5.6.2009, p. 63).                           

7

Commission Decision 2011/745/EU of 11 November 2011 amending Decisions 2010/2/EU and 2011/278/EU as regards the sectors and                              subsectors which are deemed to be exposed to a significant risk of carbon leakage (OJ L 299, 17.11.2011, p. 9).                           

8

Decision of the EEA Joint Committee No 152/2012 of 26 July 2012 amending Annex XX (Environment) to the EEA Agreement (OJ L 309, 8.11.2012, p. 38).