# EUR-Lex - 52011PC0789 - EN

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# 52011PC0789

**Proposal for 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 /* COM/2011/0789 final - 2011/0372 (COD) */**

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|| EUROPEAN COMMISSION ||

Brussels, 23.11.2011

COM(2011) 789 final

2011/0372
(COD)

Proposal for 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

{SEC(2011) 1406 final}

{SEC(2011) 1407 final}

EXPLANATORY MEMORANDUM

1.
CONTEXT OF THE PROPOSAL

Following broad consultation of Member
States and stakeholders, and an impact assessment, the Commission proposes
revising the monitoring mechanism established under Decision No 280/2004/EC of
the European Parliament and of the Council[1]
by replacing that Decision. The proposal seeks to improve the existing
monitoring and reporting system to ensure compliance with Union and Member
State commitments and obligations under current and future international
climate change agreements, to fulfil the legal requirements of the Climate and
Energy Package, and to support the development of climate mitigation and adaptation
instruments at Union level.

The Commission proposes replacing Decision
No 280/2004/EC by a Regulation on account of the broader scope of the
legislation, the increased number of addressees, the highly technical and
harmonised nature of the monitoring mechanism, and to facilitate its
implementation.

·
Grounds for and objectives of the proposal

The objective of the United Nations
Framework Convention on Climate Change (UNFCCC), which was approved on behalf
of the European Community by Council Decision No 94/69/EC[2]of 15 December 1993 concerning
the conclusion of the United Nations Framework Convention on Climate Change, is
to stabilise greenhouse gas (GHG) concentrations in the atmosphere at a level
that would prevent dangerous anthropogenic interference with the climate
system. To meet this objective the overall global annual mean surface
temperature increase should not exceed 2oC above pre-industrial levels. The
fourth Intergovernmental Panel on Climate Change (IPCC) Assessment Report shows
that, to reach this objective, global emissions of greenhouse gases must peak
by 2020.

The Kyoto Protocol, which was ratified by
the Union on 31 May 2002[3],
entered into force on 16 February 2005. The Protocol sets binding targets for
reducing or limiting greenhouse gas emissions for the Union and the Member
States (except Malta and Cyprus). The European Council of March 2007 also made
a firm commitment to reduce the EU's overall greenhouse gas emissions by at
least 20% below 1990 levels by 2020, and by 30% provided that other developed
countries commit themselves to comparable emission reductions and economically
more advanced developing countries contribute according to their respective
capabilities. The Climate and Energy package agreed in December 2008 converted
the 20% reduction targets into law. These targets also appear in Decision
2/CP.15 ("the Copenhagen Accord"), which the Union and the Member
States endorsed on 28 January 2010.

The objective of Decision No 280/2004/EC,
referred to hereafter as the "Monitoring Mechanism Decision," was to
establish a mechanism for monitoring all anthropogenic emissions by sources and
removals by sinks of greenhouse gases not controlled by the Montreal Protocol;
evaluating Member States' progress on their obligations under the UNFCCC and
the Kyoto Protocol; implementing the reporting requirements under the UNFCCC
and the Kyoto Protocol; and ensuring the timeliness, completeness, accuracy, consistency,
comparability and transparency of reporting by the Union and the Member States
to the UNFCCC Secretariat.

The aims of the proposed revision are to:

–
reflect in the Monitoring Mechanism Regulation
reporting obligations arising from the UNFCCC, the Kyoto Protocol and
subsequent decisions adopted there under with regards to GHG emissions and financial
and technology support provided to developing countries;

–
help the Union and the Member States meet their mitigation
commitments and implement the Climate and Energy package;

–
support the development of new Union climate
change mitigation and adaptation instruments.

This proposal also makes improvements to
the monitoring and reporting requirements on GHG emissions resulting from six
years of experience with Decision No 280/2004/EC and its implementing
provisions, namely Decision No 2005/166/EC[4],
and experience in implementing various UNFCCC requirements.

·
General context

The need to revise the Monitoring Mechanism
Decision is based on the following reasons.

–
Decision No 280/2004/EC concerning a mechanism
for monitoring Community greenhouse gas emissions and for implementing the
Kyoto Protocol and its implementing provisions are the main monitoring,
reporting, and verification instruments on GHG emissions. They set out the
details for reporting anthropogenic GHG emissions by sources and removals by
sinks, for providing information on national programmes to reduce emissions, on
GHG emission projections, and on climate change policies and measures in
accordance with the UNFCCC.

–
Six years of experience in implementing these
two decisions and experience gained during international negotiations and in
implementing various UNFCCC requirements have shown that there are areas where
significant improvements could be made. In addition, the need to step up
mitigation action at EU and Member State level and to fulfil new and upcoming
international and domestic commitments, including the Europe 2020 strategy,
requires an improved monitoring and reporting system.

–
To address the concerns about the growing threat
of global climate change resulting from increasing concentrations of greenhouse
gases in the atmosphere, the Union is implementing and planning a series of
mitigation policies and actions. Creating a solid monitoring, evaluation,
reporting, and verification framework for GHG emissions is an important part of
this process as it enables the EU to more effectively develop and implement
future policies and to assess and demonstrate that it is meeting its
commitments.

–
At the Conference of the Parties (COP) under the
UNFCCC in Copenhagen (COP 15), the Union and the Member States committed to
providing significant fast-start and long-term climate financing and
technological support to developing countries. At COP 16 in Cancun, countries
agreed (paragraph 40 of Decision 1/CP.16) that each developed country under the
UNFCCC shall enhance reporting on the provision of financial, technological and
capacity-building support to developing country Parties. Enhanced reporting is
essential for the recognition of the Union’s and the Member States' efforts in
fulfilling their commitments.

More specifically, the revision of the
Monitoring Mechanism Decision will attempt to address the following issues:

(1)
The existing monitoring and reporting system for
GHG emissions and mitigation actions is not adequate to implement new
requirements resulting from new legislation and new international developments
under the UNFCCC;

The Climate and Energy package agreed
between the Council and the European Parliament in 2009 introduced new
requirements on monitoring and reporting for Member States. These need to be
incorporated into the existing monitoring and reporting system to enter into
effect. The "Cancun Agreements" (Decision 1/CP.16) under the UNFCCC
also require enhanced reporting on emissions and mitigation actions in the
follow-up to the Kyoto Protocol.

(2)
There is insufficient data available at EU level
to support future policy development and implementation;

In a number of areas/sectors of great
significance in reducing GHG emissions and taking action at EU level, there is
currently no, or insufficient data collected to underpin effective policy
design and implementation. These areas are: a) maritime transport; b) aviation;
c) land-use, land-use change and forestry (LULUCF), and d) adaptation.

(3)
The current monitoring and reporting system
addresses GHG emissions and mitigation actions and does not take into
consideration nor does it ensure compliance with new commitments under the
UNFCCC related to the provision of financial and technological support to
developing countries;

The Union made an international commitment
to provide developing countries with significant fast-start and long-term
climate financing and technological support. Transparent and comprehensive
information on the type and amount of support provided is essential to ensure
the Union's visibility, the efficient delivery of the Union's climate change
message and credibility vis-à-vis our international partners. The problems
identified above have often led to severe criticism by other countries that the
Union and its Member States are not fulfilling their commitments and need to be
resolved.

(4)
Additional data and information are needed to
monitor progress towards emissions limitation targets, in particular under the
Europe 2020 strategy;

The Europe 2020 strategy, the Union's new
integrated economic policy strategy for growth and jobs, includes Union and
national emissions limitation targets as headline targets.

(5)
There is an observed lack of transparency,
timeliness, consistency, completeness and comparability of the information
currently reported under the Monitoring Mechanism Decision;

The relatively high rate of non-compliance
cases over the last years indicates that the transparency, accuracy,
consistency and efficiency of the existing monitoring and reporting system
could be improved.

(6)
Experience has shown that there is an urgent
need for simplifying and streamline the current reporting requirements.

Experience in implementing the Monitoring Mechanism
Decision has shown that certain reporting requirements did not deliver as
expected or the information was not used as anticipated. It has also shown that
links between reporting instruments could be improved.

·
Existing provisions in the area of the
proposal

The monitoring mechanism is currently
established under Decision No 280/2004/EC, which will be repealed under this
proposal.

·
Consistency with the other policies and
objectives of the Union

The revision of the Monitoring Mechanism
Decision:

–
contributes to the overall objectives of the
Climate and Energy package to reduce global GHG emissions, is consistent with
the individual legal instruments adopted as part of the package, and aims to improve
the implementation of additional policies in areas not yet sufficiently covered
by the package;

–
is in line with the discussions under the UNFCCC
on the future measurement, reporting, and verification (MRV) systems for
emissions, actions and provision of financial support both in terms of the
issues proposed to be covered and the reporting areas selected for enhancement;

–
is in line with the Europe 2020 strategy which
includes the commitment to limit emissions as one of its headline targets and
which requires that updated and recent information be made available on climate
change action to monitor the progress made by the Member States and the Union;

–
is in line with the simplification and better
regulation objectives of the Union, as the revision builds on experience in
implementation and the feedback received from stakeholders. The revision aims to
address the weaknesses and problems identified and to simplify reporting
requirements, as applicable. New requirements are aligned with and have
thoroughly taken into consideration existing reporting streams and information
needs.

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

·
Consultation methods, main sectors
targeted and general profile of respondents

In addition to expert meetings and
workshops, an online public stakeholder consultation covering all aspects of
the planned revision of Decision No 280/2004 was launched from 7 March 2011 to
29 April 2011. The on-line questionnaire was accessible from the DG Climate
Action and "Your Voice" websites. The questionnaire was made
available in all official languages and due care was taken to inform
stakeholders. Responses were received from private individuals, national
administrations, non-governmental organisations, private companies, industry
groups and a research institution.

·
Outcome of the online public consultation
process

The data collected through the online
stakeholder consultation suggest that EU citizens have a keen interest in
climate change information and support further improvements to the reporting system,
in particular with regard to the comprehensiveness and transparency of
information. Overall, respondents found that, despite a relatively good amount
and quality of information and data on climate change, there is still scope for
improvement and the majority of respondents considered that it would be worth
improving the requirements in all the areas considered in this impact assessment.
The results of the consultation are available online[5].

·
Member States' consultation

Two workshops, a series of technical and sector-specific
expert meetings and a number of projects were conducted in 2009, 2010 and 2011
to inform Member States on the revision of the Monitoring Mechanism Decision. At
these meetings, the Member States agreed that there was a need to revise the
Monitoring Mechanism Decision to take into account developments at Union and
international level, and lessons learned through its implementation. Member
States were, however, concerned about any resulting increase in administrative
burden.

Seven Member States (Finland, Germany,
Hungary, Netherlands, Slovakia, Spain and Sweden) volunteered to provide
information on the administrative burden/costs. These Member States were
consulted twice via questionnaires. However, only 5 (Finland, Germany, Hungary,
Netherlands and Sweden) provided answers to the second questionnaire. The low
response rate to the second questionnaire is mostly due to the fact that the
questions dealt primarily with new provisions that will come in under the new
Monitoring Mechanism Regulation. Thus Member States found it difficult to
estimate the potential administrative burden. As a follow-up, and in accordance
with the advice of the Impact Assessment Steering Group, Member States representatives
were contacted by phone and email to obtain additional data or to clarify the
information submitted. This process generated the final administrative burden
data that underpin the impact assessment.

·
Impact assessment

The impact assessment investigated several
issues, including:

–
EU review and compliance cycle under the Effort
Sharing Decision;

–
Reporting requirements for emissions from
international maritime transport;

–
Reporting requirements related to the non-CO2
impacts of aviation on the global climate;

–
Reporting requirements on adaptation;

–
Additional reporting requirements on LULUCF;

–
Reporting requirements on financial and
technology support provided to developing countries;

–
Consistency with other EU legal instruments
targeting air pollutants and improvements based on past experience with
implementation.

The impact assessment considered various
policy options for each of these issues. The potential economic and
environmental impacts have been considered in detail. The detailed evaluation
of the options is set out in the impact assessment accompanying the proposal
which will be available at the following address: http://ec.europa.eu/clima/studies/g-gas/index_en.htm.

·
Summary of the proposed action

The main objective of this Regulation is to
help the Union and its Member States meet their national, Union, and
international commitments and goals and to further develop policy through
transparent, accurate, consistent, comparable and complete reporting.

Existing international reporting
requirements already necessitate annual reporting of GHG emissions and
reporting on other climate-related information (projections, mitigation
actions, support provided to developing countries, adaptation) every 4 years.
However, such reporting has long been considered insufficient and there has
been a strong international push to enhance and add to the existing reporting
requirements as well as to increase reporting frequency. This is particularly
vital in these critical times where economic developments are having a marked
impact on mitigation policy development and where providing early warning
signals can significantly influence a country's ability to take action and can
ensure that sustainable economic growth remains decoupled from GHG emissions.
These very considerations were translated into concrete requirements in the
recent international agreements in Cancun (Decision 1/CP.16) which indeed
require a wealth of robust, comprehensive information (on projections,
mitigation actions, support provided to developing countries) on a 2-year basis
so as to underpin the commitments that Parties have decided to undertake. The
international requirements complement also recently established requirements at
the EU level through the climate and energy package where again there is clear
acknowledgment of the need for better and more recent data and information.
Finally, collecting more up-to-date information from Member States,
particularly on their GHG projections and mitigation actions, will contribute
to the implementation of the Europe 2020 strategy which includes the European
and national emissions limitation targets as headline targets. In this context,
this Regulation is proposing the enhancement of the monitoring, reporting and
review framework within the EU thus enabling implementation of domestic and
international commitments and enabling implementation of current policies and
effective further policy development.

Given the uncertainties linked to a post-Kyoto
Protocol climate regime and the need for an annual compliance cycle for the
implementation of the ESD, this
proposal includes setting up a Union level review process of the GHG data
submitted by the Member States hence ensuring that compliance with the ESD targets is assessed in a comprehensive,
transparent, credible and timely manner, as stipulated in the Climate and
Energy package.

The proposal takes a prudent approach to
reporting on emissions from international maritime transport and the LULUCF
sector where policy discussions, both within the Union and internationally, are
ongoing. It ensures that the monitoring mechanism provides an adequate
framework for setting detailed reporting requirements at a later stage when a
concrete policy outcome is reached, be it at international or Union level. This
ensures coherence with a future policy framework, avoids duplicating efforts and
ensures that the Union is able to implement the detailed requirements most
efficiently.

The proposal ensures coherence with
existing Union policy on the non-CO2 climate impacts of aviation, as
it requires for the Commission to assess biennially those impacts on the basis
of the latest available emission data and scientific advancements. This
approach differs from those explored in the impact assessment and reflects the
useful input received by other Commission services during the interservice
consultation process. It was included in the proposal as it was deemed to achieve
equivalent benefits at a significantly lower administrative burden.

With regard to reporting on projections,
policies and measures the proposal requires annual reporting so as to enable
the annual assessment of the commitments made by the EU at the national and
international level but also so as to enable early and effective corrective
action. It should be noted that many Member States are already reporting
updated information every year if they consider that the information submitted
during the previous year is obsolete. The proposal takes a pragmatic approach
in that it does not request for duplicative background information to be
submitted to the Commission but rather seeks to ensure that the existing
technical background reports are made available for the public's information.

With regard to finance and technology
support, the proposal enhances reporting on the basis of common methods, in
line with the Union's obligation to provide transparent and complete
information on the financial and technology support it provides to developing
countries.

Annual reporting on adaptation action will
help identify the action taken by Member States and develop a Union-wide
adaptation strategy. It will also provide information and data to the EU
Clearinghouse Mechanism, which will be a useful tool for national, regional and
local policy makers. In line with the impact assessment, this is an efficient
option as it involves a limited administrative burden but ensures that the
Union is better able to meet its international reporting obligations.

Lastly, the proposal enhances existing
national systems in the Member States to address reporting on projections,
policies and measures and provides consistency with other legal instruments
targeting air pollutants. This is an efficient way forward as, despite the
related burden, it will lead in the long-run to better compliance,
simplification and lower costs. The proposal also includes better quality assurance
/ quality control provisions and introduces streamlined reporting formats and
guidance to increase the quality and completeness of the data provided and to
simplify existing reporting requirements without imposing an undue
administrative burden.

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 (mitigation and adaptation). The purpose of the
proposal is to improve the availability of information for Union policy and
decision-making and the coordination and consistency of Union and Member State
reporting under the UNFCCC. This objective cannot be achieved by less
restrictive means. It does not affect the current general division of
responsibilities between the Union and the Member States on monitoring, data
collection and reporting as established under the Monitoring Mechanism
Decision.

·
Subsidiarity principle

For EU action to be justified, the
subsidiarity principle must be respected:

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

The transnational nature of climate change
is an important element in determining whether Union action is necessary.
Domestic action alone would not achieve compliance with internationally agreed
commitments and would not suffice to meet the objectives and the targets set
under the Effort Sharing Decision. It is therefore necessary for the Union to create
an enabling framework to meet international and Union requirements, ensuring
harmonised reporting wherever possible. Improving reporting efficiency, which
requires co-ordination across a range of instruments, and the timeliness and
quality of reporting under the UNFCCC in compiling data from all 27 Member
States, also require Union-level coordination.

(b)
Effectiveness test (added value)

Besides the fact that most of the proposed
revisions arise from existing or upcoming Union and international requirements,
action at Union level would produce clear benefits compared to action at national
level due to its effectiveness. As the overarching commitments are made at the
Union level, it is more effective to develop the required reporting instruments
at the Union level. In addition, overcoming the identified problems, such as the
quality and timeliness of Union and Member States reporting, requires
coordinating data and methods across all 27 Member States, which is more
effective at Union level.

Experience, in particular with reporting on
GHG emissions to the UNFCCC, has shown that the Monitoring Mechanism Decision
has contributed significantly to facilitating and enforcing good quality
reporting. The additional checks and analyses of Member State data under the
Monitoring Mechanism Decision has led to better quality reporting to the
UNFCCC, has proactively assisted Member States in fulfilling their commitments
and has also contributed greatly to limiting non-compliance cases under the
UNFCCC. The added level of compliance enforcement engendered by the possibility
for the Commission to initiate infringement procedures has also been
instrumental.

It is expected that extending reporting under
the revised Monitoring Mechanism to new areas covered by the UNFCCC, such as
finance and technology support, will yield similar significant benefits.
Reporting under the revised Monitoring Mechanism will provide a more detailed
assessment and appreciation of Member States' data and will ensure that gaps
and weaknesses are clearly identified and concrete action is taken to address
them which are two areas of reporting that are crucial to the Union's
international credibility. In addition, reporting under the revised Monitoring
Mechanism will ensure at least some common minimum standards, since the
information has been reported in a rather inconsistent manner. Lastly, the
application of infringement procedures will be important to ensure that any
remaining issues are dealt internally within the Union as opposed to the UNFCCC
where the political and legal implications could be significant.

With regard to reporting on adaptation, the
revised Monitoring Mechanism will have similar benefits to those mentioned
above with the added advantage that it will also provide a platform to share
best practices. As adaptation is a problem shared by all Member States,
centralising the reporting of information will be beneficial to understanding
adaptation needs, and to identifying best practices and gaps that could be
addressed, either through action at Union level or though cooperation among the
Member States.

·
Proportionality principle

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

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

The proposal is proportionate to the
Union's overall objective of reaching its Kyoto greenhouse gas emission
reduction targets, the Union targets enshrined in the Climate and Energy
package, the Copenhagen Accord, and Decision 1/CP.16 ("Cancun
Agreements").

The proposal provides for the
implementation of a monitoring mechanism that is similar, in practices and
procedures, to the one already implemented under Decision No 280/2004/EC.

4.
BUDGETARY IMPLICATION

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

5.
OPTIONAL ELEMENTS

·
Review/revision/sunset clause

The proposal includes a provision allowing
the Commission to review this Regulation in the context of future decisions
relating to the UNFCCC and the Kyoto Protocol or other Union legislation. Where
necessary, the Commission will propose amendments to this Regulation to the
European Parliament and to the Council, amend existing delegated acts or adopt
new ones.

2011/0372 (COD)

Proposal for 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

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[6],

Having regard to the opinion of the
Committee of the Regions[7],

Acting in accordance with the ordinary
legislative procedure,

Whereas:

(1)
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[8] established a framework for
monitoring anthropogenic greenhouse gas emissions by sources and greenhouse gas
removals by sinks, evaluating progress towards meeting commitments in respect
of these emissions and implementing monitoring and reporting requirements under
the United Nations Framework Convention on Climate Change ('UNFCCC')[9] and the Kyoto Protocol[10] in the European Union. To take
into account recent and future developments at international level relating to
the UNFCCC and the Kyoto Protocol, and to implement new monitoring and
reporting requirements mandated by Union legislation, that Decision should be
replaced. Decision No 280/2004/EC should be replaced by a Regulation on account
of the broader scope of the legislation, the inclusion of additional categories
of persons to which obligations are addressed, the more complex and highly
technical nature of provisions introduced, the increased need for uniform rules
applicable throughout the Union, and to facilitate implementation.

(2)
The ultimate objective of the UNFCCC is to
stabilise greenhouse gas concentrations in the atmosphere at a level that would
prevent dangerous anthropogenic interference with the climate system. To meet
that objective, the overall global annual mean surface temperature increase
should not exceed 2°C above pre-industrial levels.

(3)
There is a need for thorough monitoring and
reporting, and regular assessment of Union and Member State greenhouse gas
emissions and of their efforts to address climate change.

(4)
Decision 1/CP.15 of the Conference of the
Parties to the UNFCCC ('Decision 1/CP.15' or the 'Copenhagen Accord') and Decision
1/CP.16 of the Conference of the Parties to the UNFCCC ('Decision 1/CP.16' or the
'Cancun Agreements') contributed significantly to progress in addressing the challenges
raised by climate change in a balanced manner. Those decisions introduced new monitoring
and reporting requirements that apply to the implementation of ambitious emission
reductions to which the Union and its Member States have committed, and provided
support to developing countries. Those decisions also recognised the importance
of addressing adaptation with the same priority as mitigation. Decision 1/CP.16
also requires that developed countries elaborate low-carbon development
strategies or plans. Such strategies or plans are expected to contribute
towards building a low-carbon society and ensure continued high growth and
sustainable development. This Regulation should facilitate, through its
delegated acts, the implementation of these and future monitoring and reporting
requirements arising from further decisions or the approval of an international
agreement under the UNFCCC.

(5)
The Climate and Energy package adopted in 2009,
in particular Decision No 406/2009/EC 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[11] and Directive 2009/29/EC of 23
April 2009 amending Directive 2003/87/EC to improve and extend the greenhouse
gas emission allowance trading scheme of the Community[12], marks another firm commitment
by the Union and the Member States to significantly reduce their greenhouse gas
emissions. The Union's system for monitoring and reporting emissions also
should be updated in the light of new requirements under that legislation.

(6)
The UNFCCC commits the Union and its Member
States to develop, regularly update, publish and report to the Conference of
the Parties national inventories of anthropogenic emissions by sources and
removals by sinks of all greenhouse gases not controlled by the Montreal Protocol
of 1987 on substances that deplete the ozone layer to the Vienna
Convention for the Protection of the Ozone Layer (the 'Montreal Protocol')[13], using comparable
methodologies agreed by the Conference of the Parties.

(7)
Article 5(1) of the Kyoto Protocol requires the
Union and the Member States to establish and maintain a national system for
estimating anthropogenic emissions by sources and removals by sinks of all
greenhouse gases not controlled by the Montreal Protocol, with a view to ensuring
the implementation of other provisions of the Kyoto Protocol. Decision 1/CP.16
also requires the establishment of national arrangements to estimate
anthropogenic emissions by sources and removals by sinks of all greenhouse
gases not controlled by the Montreal Protocol. This Regulation should enable
the implementation of both those requirements.

(8)
Experience with implementing Decision No
280/2004/EC has shown the need to increase synergies and coherence with
reporting under other legal instruments, in particular with 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[14],
with the Regulation (EC) No 166/2006 of the European Parliament and of the
Council of 18 October 2006 concerning the establishment of a European Pollutant
Release and Transfer Register and amending Council Directives 91/689/EEC and
96/61/EC[15],
with the Directive 2001/81/EC of the European Parliament and of the Council of
23 October 2001 on national emission ceilings for certain atmospheric
pollutants[16],
with  the Regulation (EC) No 842/2006 of the European Parliament and of the
Council of 17 May 2006 on certain fluorinated greenhouse gases[17], and with the Regulation (EC)
No 1099/2008 of the European Parliament and of the Council of 22 October 2008[18] on energy statistics. While
streamlining reporting requirements will require amending individual legal
instruments, the use of consistent data to report greenhouse gas emissions is essential
to ensure the quality of emissions reporting.

(9)
The Fourth Assessment Report by the
Intergovernmental Panel on Climate Change (IPCC) identified a global warming potential
for nitrogen trifluoride ('NF3') which is approximately 17 000 times
that of CO2. NF3 is increasingly being used in the
electronics industry to replace perfluorocarbons ('PFCs') and sulphur
hexafluoride (SF6). In accordance with Article 191(2) of the Treaty
on the Functioning of the European Union, Union environment policy must be
based on the precautionary principle. That principle requires monitoring NF3
to assess the level of emissions in the Union and, if required, to define
mitigation actions.

(10)
Data currently reported in the national
greenhouse gas inventories and the national and Union registries are not
sufficient to determine, at Member State level, the CO2 civil
aviation emissions at national level that are not covered by Directive
2003/87/EC. In adopting reporting obligations, the Union should not impose
burdens on Member States and small and medium-sized enterprises ('SMEs') that
are disproportionate to the objectives pursued. CO2 emissions from flights
not covered by Directive 2003/87/EC represent only a very minor part of the total
greenhouse gas emissions, and establishing a reporting system for these
emissions would be unduly burdensome in the light of existing requirements for
the wider sector pursuant to Directive 2003/87/EC. Therefore, CO2
emissions from IPCC source category '1.A.3.A civil aviation' should be treated
as being equal to zero for the purposes of Articles 3 and 7(1) of Decision No
406/2009/EC.

(11)
Whilst emissions and removals of greenhouse
gases related to land use, land-use change and forestry ('LULUCF') count
towards the Union's emissions reduction target under the Kyoto Protocol, they
are not part of the 20% target for 2020 under the Climate and Energy package.
Decision No 406/2009/EC and Directive 2003/87/EC require the Commission to
assess ways to include LULUCF in the 2020 target. The timing of this work was
made conditional on the outcome of the negotiations on an international agreement
on climate change. In the absence of such an agreement at the end of 2010, the
Commission may make a proposal with the aim of the proposed act entering into
force from 2013. This Regulation should enable the implementation of the
reporting requirements of an international agreement or of such Union
legislation.

(12)
The Union and the Member States should strive to
provide the most up-to-date information on their greenhouse gas emissions, in
particular under the framework of the Europe 2020 strategy and its specified
timelines. This Regulation should enable such estimates to be prepared in the
shortest timeframes possible by using statistical and other information.

(13)
Requirements for the monitoring and reporting of
emissions from maritime transport by Member States should be adopted in a
manner which is complementary and consistent with any requirements agreed at
the UNFCCC or, to the extent possible, with requirements applied to vessels as
determined in the context of the International Maritime Organisation ('IMO') or
through a Union measure addressing GHG emissions from maritime transport. Such
monitoring and reporting would allow for an improved understanding of these
emissions and would support effective policy implementation.

(14)
The experience gained by implementing Decision
No 280/2004/EC demonstrated the need to improve the transparency, accuracy,
consistency, completeness and comparability of information reported on policies,
measures and projections. Decision No 406/2009/EC requires that Member States report
their projected progress towards meeting their obligations under that Decision,
including information on national policies, measures and national projections.
The Europe 2020 strategy set an integrated economic policy agenda requiring the
Union and the Member States to make further efforts on the timely reporting of climate
change policies and measures and their projected effects on emissions. Creating
national systems at Union and Member State level coupled with better guidance on
reporting should significantly contribute towards those goals. To ensure the
Union meets its international and internal reporting requirements on greenhouse
gas projections and evaluate its progress towards meeting its international and
internal commitments and obligations, the Commission should also prepare and
use greenhouse gas projection estimates.

(15)
Improved information from Member States is needed
to monitor their progress and action in adapting to climate change. This
information is needed to devise a comprehensive Union adaptation strategy
following the White paper entitled ‘Adapting to climate change: Towards a
European framework for action’.[19]
Reporting of information on adaptation will enable Member States to exchange
best practices and evaluate their needs and level of preparedness to deal with
climate change.

(16)
Under Decision 1/CP.15, the Union and the Member
States committed to providing substantial climate financing to support
adaptation and mitigation actions in developing countries. In accordance with
paragraph 40 of Decision 1/CP.16, each developed country Party to the UNFCCC must
enhance reporting on the provision of financial, technological and
capacity-building support to developing country Parties. Enhanced reporting is
essential to recognise Union and Member State efforts to meet their
commitments. Decision 1/CP.16 also established a new Technology Mechanism to
enhance international technology transfer. This Regulation should ensure that robust
up-to-date information on technology transfer activities to developing countries
is made available.

(17)
As a result of amendments carried within Directive
2008/101/EC[20],
Directive 2003/87/EC now applies the scheme for greenhouse gas emission trading
within the Union also to aviation activities. This Directive contains
provisions on the use of auctioning revenues, on reporting on the use of auctioning
revenues by Member States, and on the actions taken to auction aviation
allowances under Article 3d(1) or (2) of that Directive, to monitor that 100 %
of those revenues or an equivalent amount is used for the purpose of one or
more of the actions referred to in Article 3d(4) of Directive 2003/87/EC. As a
result of amendments carried within Directive 2009/29/EC, Directive 2003/87/EC also
now contains reporting requirements on the use of auctioning revenues, of which
at least 50 % should be used for the purpose of one or more of the activities
referred to in Article 10(3) of Directive 2003/87/EC. Transparency on the use
of revenues generated from the auctioning of allowances under Directive 2003/87/EC
is key to underpin Union commitments. Reporting on the use of those revenues should
provide evidence of the actual disbursed amounts, of whether revenues are
allocated for disbursement by means of direct project investments, investment
funds, or fiscal or financial support policies and the type and reference of
those policies, projects or funds.

(18)
The UNFCCC commits the Union and its Member
States to develop, regularly update, publish and report to the Conference of
the Parties national communications and biennial reports using the guidelines,
methodologies, and formats agreed upon by the Conference of the Parties.
Decision 1/CP.16 calls for enhanced reporting on mitigation targets and on the
provision of financial, technological and capacity-building support to
developing country parties.

(19)
Decision No 406/2009/EC converted the current
annual reporting cycle into an annual commitment cycle requiring a
comprehensive review of Member States’ greenhouse gas inventories in a shorter
time frame than the current UNFCCC inventory review, to enable the use of
flexibilities and the application of corrective action at the end of each
relevant year, as necessary. Given the uncertainties about the future
developments under the UNFCCC and the Kyoto Protocol, setting up a Union-level
review process of the greenhouse gas inventories submitted by Member States is
required to ensure that compliance with the obligations under Decision No
406/2009/EC is assessed in a credible, consistent, transparent and timely
manner.

(20)
A number of technical elements related to the
reporting of greenhouse gas emissions from sources and removals by sinks, such
as Global Warming Potentials (GWPs), the scope of greenhouse gases reported and
methodological guidance from the IPCC to be used to prepare national greenhouse
gas inventories, are currently being discussed under the UNFCCC process.
Revisions of those methodological elements in the context of the UNFCCC process
and subsequent recalculations of the time-series of greenhouse gas emissions
may change the level and trends of greenhouse gas emissions. The Commission
should monitor such developments at international level and, where necessary,
propose revising this Regulation to ensure consistency with the methodologies
used in the context of the UNFCCC process.

(21)
Greenhouse gas emissions across reported time-series
should be estimated using the same methods. The underlying activity data and
emission factors should be obtained and used in a consistent manner, ensuring
that changes in emission trends are not introduced as a result of changes in
estimation methods or assumptions. Recalculations should be performed in
accordance with agreed guidelines and should be carried out with a view to
improve the consistency, accuracy and completeness of the reported time-series,
and the implementation of more detailed methods. Where the methodology or
manner in which underlying activity data and emission factors are gathered has
changed, Member States should recalculate inventories for the reported time-series
and evaluate the need for recalculations based on the reasons provided in the
agreed guidelines, in particular for key categories. This Regulation should lay
down if and under which conditions the effects of such recalculations are taken
into account.

(22)
Aviation has an impact on the global climate
through releases of carbon dioxide (CO2) but also through other
emissions and mechanisms, including nitrogen oxides emissions and cirrus cloud enhancement. In the light of the
rapidly developing scientific understanding of these impacts, an updated
assessment of the non-CO2 impacts of aviation on the global climate
should be performed regularly in the context of this Regulation.

(23)
The European Environment Agency (EEA) aims to
support sustainable development and to help achieve significant and measurable
improvement in Europe’s environment by providing timely, targeted, relevant and
reliable information to policy-makers, public institutions and the public. The
EEA should assist the Commission, as appropriate, with monitoring and reporting
work, especially in the context of the Union's inventory system and its
projections, policies and measures system, in conducting the annual expert
review of Member States’ inventories, evaluating progress towards its emission
reduction commitments, climate change impacts, vulnerability and adaptation,
and in communicating sound climate information to the public.

(24)
The Commission should follow the implementation
of monitoring and reporting requirements under this Regulation and future developments
under the UNFCCC and the Kyoto Protocol to ensure consistency. In this respect,
where appropriate, the Commission should repeal or amend provisions of this
Regulation.

(25)
In order to ensure uniform conditions for
the implementation of Article 20(5) of this Regulation, implementing powers
should be conferred on the Commission. In order to establish harmonised
reporting requirements to monitor greenhouse gas emissions and other
information relevant to climate change policy, 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 in respect of the revision of Annex I of this
Regulation, Member States' reporting on LULUCF and maritime transport, Member
States' national systems, the expert review of Member States' inventory data,
the detailed requirements on the content, structure, format and submission
processes of Member States' reporting as well as the repeal and amendment of
certain obligations pursuant to this Regulation. It is of particular importance
that the Commission carry out 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 the Council.

(26)
Since the objectives of the proposed action, as
set out in Article 1 of this Regulation, cannot, by their very nature, be
sufficiently achieved by the Member States 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 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 Regulation does not go beyond
what is necessary to achieve those objectives,

HAVE ADOPTED THIS REGULATION:

Chapter 1

Subject matter, scope and definitions

Article 1

Subject matter

This Regulation establishes a mechanism
for:

(a)
ensuring the timeliness, transparency, accuracy,
consistency, comparability and completeness of reporting by the Union and its
Member States to the UNFCCC Secretariat;

(b)
reporting and verifying information relating to commitments
pursuant to the UNFCCC and the Kyoto Protocol and to decisions adopted there under
and evaluating progress towards meeting those commitments;

(c)
monitoring and reporting all anthropogenic
emissions by sources and removals by sinks of greenhouse gases not controlled by
the Montreal Protocol on substances that deplete the ozone layer in the Member
States;

(d)
monitoring, reporting, reviewing and verifying
greenhouse gas emissions and other information pursuant to Article 6 of
Decision No 406/2009/EC;

(e)
reporting CO2 emissions from maritime
transport;

(f)
monitoring and reporting the use of revenues
generated by auctioning allowances under Article 3d(1), (2) or 10(1) of
Directive 2003/87/EC, pursuant to Articles 3d(4) and 10(3) of that Directive;

(g)
monitoring and reporting on the actions taken by
Member States to adapt to the inevitable consequences of climate change;

(h)
evaluating progress by the Member States towards
meeting their obligations under Decision No 406/2009/EC;

(i)
gathering information and data necessary to
support future Union climate change policy formulation and assessment.

Article 2

Scope

This Regulation shall apply to:

(a)
the Union's and its Member States' low-carbon
development strategies and any updates thereof in accordance with Decision
1/CP.16;

(b)
emissions of greenhouse gases listed in Annex I from
sectors and sources and the removals by sinks covered by the national
greenhouse gas inventories pursuant to Article 4, paragraph 1(a), of the UNFCCC
and emitted within the territories of the Member States;

(c)
greenhouse gas emissions falling within the
scope of Article 2(1) of Decision No 406/2009/EC;

(d)
greenhouse gas emissions from marine vessels
calling at Member States’ seaports;

(e)
the non-CO2 related climate impacts associated
with emissions from civil aviation;

(f)
the Union's and its Member States' projections
of anthropogenic greenhouse gas emissions by sources and removals by sinks, and
the Member States' policies and measures;

(g)
aggregate, project-specific and country-specific
financial and technological support to developing countries;

(h)
the use of revenues from auctioning allowances pursuant
to Articles 3d(1) and (2) and 10(1) of Directive 2003/87/EC;

(i)
Member States’ action at national and regional
level to adapt to climate change.

Article 3

Definitions

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

(1)
‘global warming potential’ of a gas means the
total contribution to global warming resulting from the emission of one unit of
that gas relative to one unit of the reference gas, carbon dioxide, which is
assigned a value of 1;

(2)
‘national inventory system’ means a system of
institutional, legal and procedural arrangements established within a Member
State for estimating anthropogenic emissions by sources and removals by sinks
of greenhouse gases not covered by the Montreal Protocol, and for reporting and
archiving inventory information in accordance with Decision 19/CMP.1 of the Conference
of the Parties to the UNFCCC serving as the meeting of the Parties to the Kyoto
Protocol ('Decision 19/CMP.1') or other relevant decisions pursuant to the UNFCCC
or the Kyoto Protocol;

(3)
‘competent inventory authorities’ means any
authority or authorities entrusted under a Member State's national inventory
system with the task of compiling the greenhouse gas inventory;

(4)
‘quality assurance’ or ‘QA’ means a planned
system of review procedures to ensure that data quality objectives are met and
that the best possible estimates and information is reported to support the
effectiveness of the quality control programme and to assist Member States;

(5)
‘quality control’ or ‘QC’ means a system of
routine technical activities to measure and control the quality of the
information and estimates compiled with the purpose of ensuring data integrity,
correctness and completeness, identifying and addressing errors and omissions,
documenting and archiving data and other material used, and recording all QA
activities;

(6)
‘indicator’ means a quantitative or qualitative
factor or variable that contributes to better understanding progress in
implementing policies and measures and greenhouse gas emission trends;

(7)
‘assigned amount unit’ or ‘AAU’ is a unit issued
pursuant to the relevant provisions in the annex to Decision 13/CMP.1 of the
Conference of the Parties to the UNFCCC serving as the meeting of the Parties
to the Kyoto Protocol ('Decision 13/CMP.1');

(8)
‘removal unit’ or ‘RMU’ means a unit issued
pursuant to the relevant provisions in the Annex to Decision 13/CMP.1 or in
other relevant decisions of UNFCCC or Kyoto Protocol bodies;

(9)
‘emission reduction unit’ or ‘ERU’ means a unit
issued pursuant to the relevant provisions in the annex to Decision 13/CMP.1
and relevant decisions adopted pursuant to the UNFCCC or the Kyoto Protocol;

(10)
‘certified emission reduction’ or ‘CER’ means a
unit issued pursuant to Article 12 of the Kyoto Protocol and requirements
thereunder, as well as the relevant provisions in the annex to Decision 13/CMP.1;

(11)
‘national registry’ means a registry in the form
of a standardised electronic database which includes data on the issue,
holding, transfer, acquisition, cancellation and retirement of ERUs, CERs, AAUs
and RMUs and the carry-over of ERUs, CERs and AAUs;

(12)
‘policies and measures’ means all political,
administrative, and legislative instruments which aim to implement commitments
under Article 4, paragraphs 2(a) and (b), of the UNFCCC including those that do
not have the limitation and reduction of greenhouse gas emissions as a primary
objective;

(13)
‘national system for policies and measures and
projections’ means a system of institutional, legal and procedural arrangements
established within a Member State for reporting policies and measures and for
preparing and reporting projections of anthropogenic greenhouse gas emissions
by sources and removals by sinks as required by Article 13 of this Regulation;

(14)
‘ex-ante assessment of policies and measures’
means an evaluation of the projected future effects of a policy or measure;

(15)
‘ex-post assessment of policies and measures’
means an evaluation of the past effects of a policy or measure;

(16)
‘projections without measures’ means projections
of anthropogenic greenhouse gas emissions by sources and removals by sinks that
exclude the effects of all policies and measures which are planned, adopted or
implemented after the year chosen as the starting point for the relevant
projection;

(17)
‘projections with measures’ means projections of
anthropogenic greenhouse gas emissions by sources and removals by sinks that encompass
the effects, in terms of greenhouse gas emission reductions, of policies and
measures that have been adopted and implemented;

(18)
‘projections with additional measures’ means
projections of anthropogenic greenhouse gas emissions by sources and removals
by sinks that encompass the effects in terms of greenhouse gas emission
reductions of policies and measures which have been adopted and implemented to
mitigate climate change as well as policies and measures which are planned;

(19)
‘sensitivity analysis’ means an investigation of
a model algorithm or an assumption to quantify how sensitive or stable the model
output data are in relation to variations in the input data or underlying
assumptions. It is carried out by varying input values or model equations and
observing how the model output varies correspondingly;

(20)
‘climate change mitigation-related aid’ means
support for activities in developing countries that contribute to the objective
of stabilising greenhouse gas concentrations in the atmosphere at a level that
would prevent dangerous anthropogenic interference with the climate system;

(21)
‘climate change adaptation-related aid’ means
support for activities in developing countries that are intended to reduce the
vulnerability of human or natural systems to the impact of climate change and
climate-related risks, by maintaining or increasing the developing countries'
adaptive capacity and resilience;

(22)
‘technical corrections’ means adjustments of the
national greenhouse gas inventory estimates made in the context of the review
pursuant to Article 20 of this Regulation when submitted inventory data are
incomplete or are prepared in a way that is not consistent with international
or Union rules or guidelines and that are intended to replace originally
submitted estimates;

(23)
‘recalculations’, consistent with the UNFCCC
reporting guidelines on annual inventories, means a procedure for re-estimating
anthropogenic greenhouse gas emissions by sources and removals by sinks of
previously submitted inventories as a consequence of changes in methodologies,
changes in the manner in which emission factors and activity data are obtained
and used, or the inclusion of new source and sink categories.

Chapter 2

Low-carbon development strategies

Article 4

Low-carbon development strategies

1.
Member States, and the Commission on behalf of
the Union, shall each devise and implement a low-carbon development strategy to
contribute to:

(a)
the transparent and accurate monitoring of the
actual and projected progress made by Member States, including the contribution
made by Union measures, in fulfilling the Union’s and the Member States’
commitments under the UNFCCC to limit or reduce anthropogenic greenhouse gas
emissions;

(b)
meeting the greenhouse gas emission reduction
commitments of Member States under Decision No 406/2009/EC and achieving
long-term emission reductions and enhancements of removals by sinks in all
sectors in line with the Union’s objective to reduce emissions by 80 to 95% by
2050 compared to 1990 levels, in the context of
necessary reductions, according to the IPCC, by developed countries as a group.

2.
Member States shall submit to the Commission
their low-carbon development strategy one year after the entry into force of
this Regulation or in accordance with any timetable agreed internationally in
the context of the UNFCCC process.

3.
The Commission and the Member States shall make available
to the public forthwith their respective low-carbon development strategies and any
updates thereof.

Chapter 3

Reporting on historical greenhouse gas
emissions and removals

Article 5

National inventory systems

1.
Member States shall establish, operate and seek
to continuously improve national inventory systems to estimate anthropogenic emissions
by sources and removals by sinks of greenhouse gases listed in Annex I to this
Regulation and to ensure the timeliness, transparency, accuracy, consistency,
comparability and completeness of their greenhouse gas inventories.

2.
Member States shall ensure that their competent
inventory authorities have access to, and that their national inventory system provides
that their competent authorities shall have access to:

(a)
data and methods reported for activities and
installations under Directive 2003/87/EC for the purpose of preparing national
greenhouse gas inventories to ensure consistency of the reported greenhouse gas
emissions under the Union’s emissions trading scheme and in the national greenhouse
gas inventories;

(b)
data collected through the reporting systems on
fluorinated gases in the various sectors, set up under Article 6(4) of
Regulation (EC) No 842/2006 for the purpose of preparing national greenhouse
gas inventories;

(c)
emissions, underlying data and methodologies
reported by facilities under Regulation (EC) No 166/2006 for the purpose of
preparing national greenhouse gas inventories;

(d)
data reported under Regulation (EC) No 1099/2008.

3.
Member States shall ensure that their competent inventory
authorities, and that their national inventory system provides that their competent
inventory authorities:

(a)
make use of the reporting systems established
under Article 6(4) of Regulation (EC) No 842/2006 to improve the estimation of
fluorinated gases in the greenhouse gas inventories;

(b)
are able to undertake the annual consistency
checks referred to in points (l) and (m) of Article 7(1) of this Regulation;

Article 6

Union inventory system

A Union inventory system to ensure the
timeliness, transparency, accuracy, consistency, comparability and completeness
of national inventories with regard to the Union greenhouse gas inventory is
hereby established. The Commission shall administer, maintain and seek to
continuously improve this system, which shall include:

(a)
a quality assurance and quality control
programme, which shall include setting quality objectives and drafting an
inventory quality assurance and quality control plan. The Commission shall
assist Member States in implementing their quality assurance and quality
control programmes;

(b)
a procedure to estimate, in consultation with
the Member State concerned, any data missing from its national inventory;

(c)
an annual expert review of Member States’
greenhouse gas inventories.

Article 7

Greenhouse gas inventories

1.
Member States shall determine and report to the
Commission by 15 January of each year ('year X'):

(a)
their anthropogenic emissions of greenhouse
gases listed in Annex I to this Regulation and the anthropogenic emissions of
greenhouse gases referred to in Article 2(1) of Decision No 406/2009/EC for the
year X-2. Without prejudice to the reporting of the greenhouse gases listed in
Annex I to this Regulation, the carbon dioxide (CO2) emissions from IPCC
source category '1.A.3.A civil aviation' shall be considered equal to zero for
the purposes of Articles 3 and 7(1) of Decision No 406/2009/EC;

(b)
data on their anthropogenic emissions of carbon
monoxide (CO), sulphur dioxide (SO2), nitrogen oxides (NOx) and
volatile organic compounds (VOC) as also reported pursuant to Article 7 of
Directive 2001/81/EC, for the year X-2;

(c)
their anthropogenic greenhouse gas emissions by
sources and removals of CO2 by sinks resulting from LULUCF, for the
year X-2;

(d)
their anthropogenic greenhouse gas emissions by
sources and removals of CO2 by sinks resulting from LULUCF
activities pursuant to the Kyoto Protocol and information on the accounting of
these greenhouse gas emissions and removals from land use, land-use change and
forestry activities, in accordance with Article 3, paragraph 3, and, where Member
States decide to make use of it, Article 3, paragraph 4, of the Kyoto Protocol,
and relevant decisions thereunder, for the years between 2008 and X-2. Member
States that elected to account for cropland management, grazing land management
or revegetation under Article 3, paragraph 4, of the Kyoto Protocol shall in
addition report greenhouse gas emissions by sources and removals by sinks for
each such activity for the year 1990;

(e)
any changes to the information referred to in points
(a) to (d) for the years between 1990 and the year X-3, indicating the reasons
for these changes;

(f)
information on indicators, for the year X-2;

(g)
information from its national registry on the
issue, acquisition, holding, transfer, cancellation, withdrawal and carry-over
of AAUs, RMUs, ERUs and CERs, for the year X-1;

(h)
summary information on concluded transfers pursuant
to Article 3(4) and (5) of Decision No 406/2009/EC, for the year X-1;

(i)
information on the use of joint implementation,
the clean development mechanism and international emissions trading, pursuant
to Articles 6, 12 and 17 of the Kyoto Protocol, or any other flexible mechanism
provided for in other instruments adopted by the Conference of the Parties to
the UNFCCC or the Conference of the Parties to the UNFCCC serving as the
meeting of the Parties to the Kyoto Protocol, to meet their quantified emission
limitation or reduction commitments pursuant to Article 2 of Decision No
2002/358/EC[21]
and the Kyoto Protocol or any future commitments under the UNFCCC or the Kyoto
Protocol, for the year X-2;

(j)
information on the steps taken to improve
inventory estimates, in particular in areas of the inventory that have been
subject to adjustments or recommendations following expert reviews;

(k)
the actual or estimated allocation of the
verified emissions reported by installations and operators under Directive
2003/87/EC to the source categories of the national greenhouse gas inventory
and the ratio of those verified emissions to the total reported greenhouse gas
emissions in these source categories, for the year X-2;

(l)
the results of the checks performed on the
consistency of the emissions reported in the greenhouse gas inventories, for
the year X-2, with:

(i)         the
verified emissions reported under Directive 2003/87/EC;

(ii)        the
facility-level emissions reported under Regulation (EC) No 166/2006;

(m)
the results of the checks performed on the
consistency of the activity, background data and assumptions used to estimate
emissions in preparation of the greenhouse gas inventories, for the year X-2, with:

(i)         the
data and assumptions used to prepare inventories of air pollutants under
Directive 2001/81/EC;

(ii)        the
data reported under Article 6(1) of Regulation (EC) No 842/2006;

(iii)       the
energy data reported pursuant to Article 4 and Annex B of Regulation (EC) No
1099/2008;

(n)
a description of any changes to their national
inventory system;

(o)
a description of any changes to the national
registry;

(p)
any other elements of the national greenhouse
gas inventory report needed to prepare the Union greenhouse gas inventory
report, such as information on the Member States’ quality assurance and quality
control plan, a general uncertainty evaluation, and a general assessment of
completeness.

In the first
reporting year under this Regulation Member States shall inform the Commission
on their intention to make use of the provisions under Article 3(4) and (5) of
Decision No 406/2009/EC.

2.
Member States shall communicate to the
Commission by 15 March each year a complete and up-to-date national inventory
report. Such report shall contain all of the information stipulated in
paragraph 1 of this Article and any subsequent updates to that information;

3.
Member States shall submit to the UNFCCC
Secretariat each year by 15 April national inventories containing information identical
to that submitted to the Commission in accordance with paragraph 2 of this
Article.

4.
The Commission shall, in cooperation with the
Member States, annually compile a Union greenhouse gas inventory and a Union
greenhouse gas inventory report and submit them to the UNFCCC Secretariat each
year by 15 April.

5.
The Commission shall be empowered to adopt
delegated acts in accordance with Article 29 of this Regulation to:

(a)
add or delete substances to or from the list of
greenhouse gases in Annex I to this Regulation;

(b)
set out monitoring and reporting requirements on
LULUCF, in accordance with any new international agreement or a legislative act
adopted in accordance with Article 9 of Decision No 406/2009/EC.

Article 8

Approximated greenhouse gas inventories

Member States shall by 31 July each year ('year
X') submit to the Commission approximated greenhouse gas inventories for the year
X-1. The Commission shall, on the basis of the Member States’ approximated
greenhouse gas inventories or, where necessary on the basis of its own
estimates, annually compile a Union approximated greenhouse gas inventory. The
Commission shall make this information available to the public each year by 30
September.

Article 9

Procedures for completing emission
estimates

1.
The Commission shall perform an initial check of
the data submitted by Member States under Article 7(1) of this Regulation for
completeness and potential problems. It shall send the results to Member States
within 6 weeks from the submission deadline. Member States shall respond to any
questions raised by the initial check by 15 March, together with the final
inventory submission for the year X-2.

2.
Where a Member State does not respond to the
questions raised by the Commission or does not submit complete inventory
estimates required to compile the Union inventory by 15 March, the Commission
shall prepare estimates to be used instead of the relevant estimates in the
Member State’s inventory. The Commission shall use, for this purpose, methods consistent
with the guidelines applicable for drafting the national greenhouse gas
inventories.

Article 10

Reporting CO2 emissions from
maritime transport

1.
The Commission shall be empowered to adopt a delegated
act in accordance with Article 29 of this Regulation to specify the requirements
for the monitoring and reporting of CO2 emissions from maritime
transport relating to marine vessels calling at Member States' seaports. The
monitoring and reporting requirements adopted shall be consistent with
requirements agreed at the UNFCCC and, to the extent possible, with
requirements applied to vessels in the context of the IMO or through Union legislation
addressing GHG emissions from maritime transport. To the extent possible,
monitoring and reporting requirements shall minimise Member States' workload
including through the use of centralised data collection and maintenance.

2.
Where an act has been adopted pursuant to
paragraph 1, Member States shall determine and report to the Commission by 15
January each year ('year X') for the year X-2, the CO2 emissions
from maritime transport pursuant to that act.

Chapter 4

Registries

Article 11

Establishment and operation of
registries

1.
The Union and the Member States shall set up and
maintain registries to accurately account for the issue, holding, transfer,
acquisition, cancellation and withdrawal of AAUs, RMUs, ERUs and CERs and the
carry-over of AAUs, RMUs, ERUs and CERs. Member States may also use these
registries to accurately account for the units referred to in Article 11a(5) of
Directive 2003/87/EC.

2.
The Union and the Member States may maintain
their registries in a consolidated system, together with one or more other
Member States.

3.
The data referred to in paragraph 1 of this
Article shall be made available to the central administrator designated pursuant
to Article 20 of Directive 2003/87/EC.

4.
The Commission shall be empowered to adopt a
delegated act in accordance with Article 29 of this Regulation to set up the
Union registry referred to in paragraph 1 of this Article.

Article 12

Retirement of units under the Kyoto
Protocol

1.
Member States shall, following the completion of
the review of their national inventories under the Kyoto Protocol for each year
of the first commitment period under the Kyoto Protocol, including the
resolution of any implementation issues, retire from the registry AAUs, RMUs,
ERUs and CERs equivalent to their net emissions during that year.

2.
In respect of the last year of the commitment
period under the Kyoto Protocol, Member States shall retire units from the
registry prior to the end of the additional period for fulfilling commitments set
out in Decision 11/CMP.1 of the Conference of the Parties to the UNFCCC serving
as the meeting of the Parties to the Kyoto Protocol.

Chapter 5

Reporting on policies and measures and
on projections of anthropogenic greenhouse gas emissions by sources and
removals by sinks

Article 13

National systems for policies, measures
and projections

1.
Member States and the Commission shall set up, by
one year after the entry into force of this Regulation, operate and seek to
continuously improve national systems for reporting on policies and measures and
for preparing and reporting on projections of anthropogenic greenhouse gas
emissions by sources and removals by sinks. These national systems shall
include all institutional, legal and procedural arrangements established within
a Member State and the Union for evaluating policy and making projections of
anthropogenic greenhouse gas emissions by sources and removals by sinks.

2.
They shall aim to ensure the timeliness,
transparency, accuracy, consistency, comparability and completeness of the
information reported on policies and measures and projections of anthropogenic
greenhouse gas emissions by sources and removals by sinks, as referred to in
Articles 14 and 15 of this Regulation, including the use and application of
data, methods and models, and the implementation of quality assurance and quality
control activities and sensitivity analysis.

Article 14

Reporting on policies and measures

1.
Member States shall provide the Commission by 15
March each year ('year X') with:

(a)
a description of their national system for
reporting on policies and measures and for preparing and reporting on
projections of anthropogenic greenhouse gas emissions by sources and removals
by sinks pursuant to Article 13(1) of this Regulation, or information on any
changes made to that system where such a description has already been provided;

(b)
any additional information or updates relevant
to their low-carbon development strategies referred to in Article 4 of this
Regulation and progress in implementing these strategies;

(c)
information on national policies and measures, and
on implementation of Union policies and measures that limit or reduce
greenhouse gas emissions by sources or enhance removals by sinks, presented on
a sectoral basis for each greenhouse gas referred to in Annex I to this
Regulation. This information shall make cross references with applicable national
or Union policies, particularly those on air quality, and shall include:

(i)         the
objective of the policy or measure and a short description of the policy or
measure;

(ii)        the
type of policy instrument;

(iii)       the
status of implementation;

(iv)       indicators
to monitor and evaluate progress over time;

(v)        quantitative
estimates of the effects on emissions by sources and            removals by
sinks of greenhouse gases broken down into:

–
the results of ex-ante assessment of the effects
of each policy and measure. Estimates shall be provided for a sequence of 4
future years ending with 0 or 5 immediately following year X, with a
distinction between greenhouse gas emissions covered by Directive 2003/87/EC
and those covered by Decision No 406/2009/EC;

–
the results of ex-post assessment of the effects
of each policy and measure on the mitigation of climate change where available,
with a distinction between greenhouse gas emissions covered by Directive
2003/87/EC and those covered by Decision No 406/2009/EC.

(vi)       estimates
of the projected costs of policies and measures, as well as estimates, as
appropriate, of the realised costs of policies and measures;

(vii)      all
references to the assessment and the underpinning technical reports referred to
in paragraph 2 of this Article;

(d)
information on implemented or planned policies
and measures intended to implement relevant Union legislation and information
on national compliance and enforcement procedures;

(e)
the information referred to in point (d) of Article
6(1) of Decision No 406/2009/EC;

(f)
information on the extent to which the Member
State’s action constitutes a significant element of the efforts undertaken at
national level as well as the extent to which the projected use of joint
implementation, the clean development mechanism and international emissions
trading is supplemental to domestic action in accordance with the relevant
provisions of the Kyoto Protocol and the decisions adopted there under.

2.
Member States shall make available to the public,
in electronic form, any assessment of the costs and effects of national policies
and measures, and any information on the implementation of Union policies and
measures that limit or reduce greenhouse gas emissions by sources or enhance
removals by sinks along with any technical reports that underpin these
assessments. These should include descriptions of the models and methodological
approaches used, definitions and underlying assumptions.

Article 15

Reporting on projections

1.
Member States shall report to the Commission by
15 March each year ('year X') national projections of anthropogenic greenhouse
gas emissions by sources and removals by sinks, organised by gas and by sector.
Those projections shall include quantitative estimates for a sequence of 4
future years ending with 0 or 5 immediately following year X. National
projections shall take into consideration any policies and measures adopted at
Union level and include:

(a)
projections without measures, projections with
measures, and projections with additional measures;

(b)
total greenhouse gas projections and separate
estimates for the projected greenhouse gas emissions for the emission sources
covered by Directive 2003/87/EC and by Decision No 406/2009/EC;

(c)
a clear identification of the national, regional
and Union policies and measures included in the projections of anthropogenic
greenhouse gas emissions by sources and removals by sinks. Where such policies
and measures are not included, this shall be clearly stated and explained;

(d)
results of the sensitivity analysis performed
for the projections;

(e)
all relevant references to the assessment and
the technical reports that underpin these assessments referred to in paragraph
3 of this Article.

2.
Where a Member State does not submit complete
projection estimates by 15 March each year, the Commission may prepare
estimates as required to compile Union projections.

3.
Member States shall make available to the public,
in electronic form, their national projections of greenhouse gas emissions by
sources and removals by sinks along with any technical reports that underpin
these projections. These should include descriptions of the models and methodological
approaches used, definitions and underlying assumptions.

Chapter 6

Reporting on other information relevant
for climate change

Article 16

Reporting on national adaptation
actions

Member States shall report to the
Commission by 15 March each year, information on their implemented or planned actions
to adapt to climate change, in particular, on national or regional adaptation
strategies and on adaptation measures. This information shall include the
budget allocation by policy sector and, for each adaptation measure, the main
objective, the type of instrument, the status of implementation and the
climate-change impact category (such as flooding, sea level rise, extreme
temperatures, droughts, and extreme weather events).

Article 17

Reporting on financial and
technology support provided to developing countries

Member States shall, based on the best data
available, report to the Commission by 15 March each year ('year X'):

(a)
information on financial support committed and
disbursed to developing countries under the UNFCCC for the year X-1, on
financial support committed for the year X and on the planned provision of
support. The information reported shall include:

(i)         whether
the financial resources that the Member State has provided to developing countries
are new and additional in the context of the UNFCCC and how this was calculated;

(ii)        information
on any financial resources allocated by the Member State related to the
implementation of the UNFCCC by type of channel such as bilateral, regional or
other multilateral channels;

(iii)       quantitative
information on financial flows based on the so-called "Rio markers for
climate change mitigation-related aid and climate change adaptation-related aid"
(the 'Rio markers') introduced by the OECD Development Assistance Group and
methodological information concerning the implementation of the climate change
Rio markers methodology;

(iv)       detailed
information on assistance provided by both the public and private sectors, as
appropriate, to developing countries that are particularly vulnerable to the
effects of climate change in adapting to those climate change effects;

(v)        detailed
information on assistance provided by both the public and private sectors, as
appropriate, to developing countries to mitigate greenhouse gas emissions;

(b)
information on activities by the Member State related
to technology transfer to developing countries under the UNFCCC and on
technologies transferred for the year X-1, information on planned activities
related to technology transfer to developing countries under the UNFCCC and on
technologies to be transferred for the year X and subsequent years. It should include
information on whether the technology transferred was used for mitigating or
adapting to the effects of climate change, recipient country, amount of support
provided, and type of technology transferred.

Article 18

Reporting on the use of auctioning
revenues and project credits

1.
Member States shall submit to the Commission by
15 March each year ('year X') for the year X-1:

(a)
a detailed justification as mentioned in Article
6(2) of Decision No 406/2009/EC;

(b)
information on the use of revenues during the
year X-1 generated by the Member State by auctioning allowances pursuant to
Article 10(1) of Directive 2003/87/EC. This information shall also include
specific and detailed information on the use of 50 % of the revenues, and resulting
action taken, specifying the category of such actions taken in accordance with
Article 10(3) of Directive 2003/87/EC and indicating the relevant beneficiary country
or region;

(c)
information on the use of all revenues generated
by the Member State by auctioning aviation allowances pursuant to Article 3d(1)
or (2) of Directive 2003/87/EC;

(d)
information referred to in point (b) of Article
6(1) of Decision No 406/2009/EC and information on how their purchasing policy
enhances the achievement of an international agreement on climate change.

2.
For Member States which choose to use an amount
equivalent to the generated auctioning revenues for purposes pursuant to
Article 3d(4) and 10(3) of Directive 2003/87/EC, the requirements in points (b)
and (c) of paragraph 1 of this Article apply to this amount.

3.
Auctioning revenues not disbursed at the time a
Member State submits a report to the Commission pursuant to this Article shall
be quantified and reported in reports for subsequent years.

4.
Member States shall make available to the public
the reports submitted to the Commission pursuant to this Article.

Article 19

Biennial reports and national
communications

1.
The Union and the Member States shall submit
biennial reports in accordance with Decision 1/CP.16 and national
communications in accordance with Article 12 of the UNFCCC to the UNFCCC
Secretariat.

2.
Member States shall also submit national
communications and biennial reports to the Commission.

Chapter 7

Union expert review of greenhouse gas
emissions

Article 20

Expert inventory review

1.
The Commission shall carry out an initial expert
review of national inventory data submitted by Member States pursuant to
Article 7(2) of this Regulation to determine the annual emission allocation
provided in the fourth subparagraph of Article 3(2) of Decision No 406/2009/EC.

2.
Starting with the data reported for the year
2013, the Commission shall conduct an annual expert review of national inventory
data submitted by Member States pursuant to Article 7(2) of this Regulation with
a view to monitoring Member States’ achievement of their greenhouse gas
emission reduction or limitation pursuant to Article 3 of Decision No
406/2009/EC, and any other greenhouse gas emission reduction or limitation
targets set out in Union legislation.

3.
The initial and annual expert reviews shall
involve:

(a)
checks to verify the transparency, accuracy,
consistency, comparability and completeness of information submitted;

(b)
checks to identify cases where inventory data is
prepared in a manner inconsistent with UNFCCC guidance documentation or Union rules;
and

(c)
where appropriate, calculating the resulting technical
corrections necessary.

4.
The Commission shall be empowered to adopt delegated
acts in accordance with Article 29 of this Regulation to determine rules for
the conduct of the expert reviews referred to in paragraphs 1 and 2 of this
Article, including the tasks set out in paragraph 3 of this Article.

5.
The Commission shall adopt an implementing act to
determine the total sum of emissions for the relevant year arising from the
corrected inventory data for each Member State upon completion of the relevant annual
review.

6.
The data for each Member State as recorded in
the registries set up pursuant to Article 11 of Decision No 406/2009/EC and
Article 19 of Directive 2003/87/EC as at the date falling one month from the
date of publication of an implementing act adopted pursuant to paragraph 5 of
this Article, including changes to such data arising as a result of that Member
State making use of the flexibilities by that Member State pursuant to Articles
3 and 5 of Decision No 406/2009/EC, shall be relevant for the application of
Article 7(1) of Decision No 406/2009/EC.

Article 21

Addressing the effects of
recalculations

1.
When the annual expert review of inventory data
relating to the year 2020 has been completed pursuant to Article 20 of this
Regulation, the Commission shall calculate in accordance with the formula set
out in Annex II to this Regulation, the recalculated sum of greenhouse gas
emissions for each Member State.

2.
Without prejudice to Article 31(2) of this
Regulation, the Commission shall use amongst others the recalculated sum
referred to in paragraph 1 of this Article when proposing the targets for
emission reductions or limitations for each Member State for the period after
2020 pursuant to Article 14 of Decision No 406/2009/EC.

3.
The Commission shall forthwith publish the
results of calculations made pursuant to paragraph 1 of this Article.

Chapter 8

Evaluation of progress towards Union and
international commitments

Article 22

Evaluation of progress

1.
The Commission shall annually assess, based on
the information reported in Articles 7, 8, 11 and 15 to 18 of this Regulation,
and in consultation with the Member States, the progress made by the Union and
its Member States to meet the following, with a view to determining whether
sufficient progress has been made:

(a)
commitments under Article 4 of the UNFCCC and
Article 3 of the Kyoto Protocol as further set out in decisions adopted by the
Conference of the Parties to the UNFCCC, or by the Conference of the Parties to
the UNFCCC serving as the meeting of the Parties to the Kyoto Protocol;

(b)
obligations set out in Article 3 of Decision No
406/2009/EC.

2.
The Commission shall biennially assess
aviation's overall impact on the global climate including through non-CO2
emissions, such as from nitrogen oxides, and effects, such as cirrus cloud
enhancement, based on the emission data provided by Member States pursuant to
Article 7 of this Regulation, and improve this quantification by reference to
scientific advancements and air traffic data, as appropriate.

3.
The Commission shall submit a report summarising
the conclusions of the assessments provided for in paragraphs 1 and 2 of this
Article to the European Parliament and the Council by 31 October of every year.

Article 23

Report on the additional period for
fulfilling commitments under the Kyoto Protocol

The Union and each Member State shall
submit a report to the UNFCCC Secretariat on the additional period for
fulfilling commitments referred to in paragraph 3 of Decision 13/CMP.1 upon the
expiry of that period.

Chapter 9

Cooperation and support

Article 24

Cooperation between the Member States
and the Union

Member States and the Union shall cooperate and coordinate fully with each other in relation to
obligations under this Regulation concerning:

(a)
compiling the Union greenhouse gas inventory and
the Union greenhouse gas inventory report, pursuant to Article 7(4) of this
Regulation;

(b)
preparing the Union national communication pursuant
to Article 12 of the UNFCCC and biennial report pursuant to Decision 1/CP.16;

(c)
review and compliance procedures under the
UNFCCC and the Kyoto Protocol in accordance with any applicable decision under
the UNFCCC or the Kyoto Protocol as well as the Union’s procedure to review
Member States greenhouse gas inventories referred to in Article 20 of this
Regulation;

(d)
any adjustments pursuant to Article 5, paragraph
2, of the Kyoto Protocol or following the Union review process referred to in
Article 20 of this Regulation or other changes to inventories and inventory
reports submitted, or to be submitted, to the UNFCCC Secretariat;

(e)
compiling the Union approximated greenhouse gas
inventory, pursuant to Article 8 of this Regulation;

(f)
reporting in relation to the retirement of AAUs,
CERs, ERUs or RMUs after the additional period referred to in paragraph 14 of
Decision 13/CMP.1 for fulfilling commitments pursuant to Article 3, paragraph
1, of the Kyoto Protocol.

Article 25

Role of the European Environment Agency

The European Environment Agency shall
assist the Commission in its work to comply with Articles 6 to 10, 13 to 20, 22
and 23 of this Regulation in accordance with its annual work programme. This
shall include assistance with:

(a)
compiling the Union greenhouse gas inventory and
preparing the Union greenhouse gas inventory report;

(b)
performing quality assurance and quality control
procedures to prepare the Union greenhouse gas inventory;

(c)
preparing estimates for data not reported in the
national greenhouse gas inventories;

(d)
conducting the annual expert review;

(e)
compiling the Union approximated greenhouse gas
inventory;

(f)
compiling the information reported by Member
States on projections and policies and measures;

(g)
performing quality assurance and quality control
procedures on the information reported by Member States on projections and
policies and measures;

(h)
preparing estimates for data on projections not
reported by the Member States;

(i)
compiling data as required for the annual report
to the European Parliament and the Council prepared by the Commission;

(j)
disseminating information collected under this
Regulation, including maintaining and updating a database on Member States’
mitigation policies and measures, and a clearinghouse on impacts,
vulnerabilities and adaptation to climate change.

Chapter 10

Delegation

Article 26

Detailed reporting requirements

The Commission shall be
empowered to adopt delegated acts in accordance with Article 29 of this Regulation
to set out detailed reporting rules, including rules on the content, structure,
format and submission processes for Member States' reporting of information
pursuant to Articles 4, 5, 7, 8 and 13 to 19 of this Regulation.

Article 27

Requirements on national systems

The Commission shall be empowered to adopt delegated
acts in accordance with Article 29 of this Regulation to set out requirements
on the establishment, operation and functioning of the Member States' national
systems pursuant to Articles 5 and 13 of this Regulation.

Article 28

Repeal or amendment of obligations

The Commission shall be empowered to adopt
delegated acts in accordance with Article 29 of this Regulation to repeal
Articles 4 to 7, 10 to 12, 14, 15, 17 and 19 of this Regulation, or any part
thereof, or to amend those same Articles, should it conclude that international
or other developments give rise to a situation where the obligations pursuant
to those Articles are no longer necessary, not proportionate to the
corresponding benefits or not consistent with or duplicative of reporting
requirements under the UNFCCC. Any act adopted pursuant to this Article shall
not make Union and international reporting obligations, as a whole, more
onerous for Member States.

Article 29

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 7,
10, 11, 20 and 26 to 28 of this Regulation shall be conferred on the Commission
for an indeterminate period of time from the date of entry into force of the
Regulation.

3.
The European Parliament or the Council may
revoke the delegation of power referred to in Articles 7, 10, 11, 20, and 26 to
28 of this Regulation at any time. A decision of revocation shall end 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 7,
10, 11, 20 or 26 to 28 of this Regulation 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.

Chapter 11

Final Provisions

Article 30

Committee procedure

The
Commission shall be assisted by a Climate Change Committee. That committee
shall be a committee within the meaning of Regulation (EU) No 182/2011[22].

Article 31

Review

1.
The Commission shall regularly review the
conformity of the monitoring and reporting provisions under this Regulation
with future decisions relating to the UNFCCC and the Kyoto Protocol or other
Union legislation.

2.
If, during the commitment period under Decision No
406/2009/EC, there is a change in the international rules relating to the
estimation of greenhouse gas emissions for the preparation of greenhouse gas
inventories, the Commission shall assess to what extent the new rules apply for
the purposes of Decision No 406/2009/EC.

Article 32

Repeal

Decision No 280/2004/EC is repealed.

References to the repealed Decision shall
be construed as references to this Regulation and shall be read in accordance with the
correlation table in Annex III.

Article 33

Entry into force

This Regulation shall enter into force on
the twentieth 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,

For the European Parliament                       For
the Council

The President                                                 The
President

ANNEX I

Greenhouse Gases

Carbon dioxide
(CO2)

Methane (CH4)

Nitrous Oxide (N2O)

Sulphur
hexafluoride (SF6 )

Nitrogen
trifluoride (NF3)

Hydrofluorocarbons
(HFCs):

HFC-23         CHF3

HFC-32         CH2F2

HFC-41         CH3F

HFC-125       CHF2CF3

HFC-134       CHF2CHF2

HFC-134a     CH2FCF3

HFC-143       CH2FCHF2

HFC-143a     CH3CF3

HFC-152       CH2FCH2F

HFC-152a     CH3CHF2

HFC-161       CH3CH2F

HFC-227ea   CF3CHFCF3

HFC-236cb   CF3CF2CH2F

HFC-236ea   CF3CHFCHF2

HFC-236fa    CF3CH2CF3

HFC-245fa    CHF2CH2CF3

HFC-245ca   CH2FCF2CHF2

HFC-365mfc CH3CF2CH2CF3

HFC-43-10mee CF3CHFCHFCF2CF3
or (C5H2F10)

Perfluorocarbons (PFCs):

PFC-14, Perfluoromethane, CF4

PFC-116, Perfluoroethane, C2F6

PFC-218, Perfluoropropane, C3F8

PFC-318, Perfluorocyclobutane, c-C4F8

Perfluorocyclopropane c-C3F6

PFC-3-1-10, Perfluorobutane, C4F10

PFC-4-1-12, Perfluoropentane, C5F12

PFC-5-1-14, Perfluorohexane, C6F14

PFC-9-1-18, C10F18

ANNEX II

The Recalculated Sum of Greenhouse
Gas Emissions by Member State Referred to in Article 21(1)

The recalculated sum of
greenhouse gas emissions by Member State shall be calculated according to the
following formula:

Where:

–
ti,2012 is the Member State's annual
emission allocation as determined pursuant to the fourth paragraph of Article
3(2) and Article 10 of Decision No 406/2009/EC;

–
ti,2022 is the Member State's annual
emission allocation for year i pursuant to the fourth paragraph of Article 3(2)
and Article 10 of Decision No 406/2009/EC as it would have been calculated if
reviewed inventory data submitted in 2022 had been used as an input;

–
ei,j is the Member State's greenhouse
gas emissions for year i as established pursuant to acts adopted by the
Commission pursuant to Article 20(5) following the expert inventory review in
year j.

ANNEX III

Correlation Table

Decision No 280/2004/EC || This Regulation

Article 1 || Article 1

Article 2(1) || Article 4(1)

Article 2(2) || -

Article 2(3) || Article 4(3)

Article 3(1) || Article 7(1) and Article 7(2)

Article 3(2) || Article 14(1) and Article 15(1)

Article 3(3) || Article 26, Article 27, Article 28, Article 29

Article 4(1) || Article 6

Article 4(2) || Article 6

Article 4(3) || Article 25

Article 4(4) || Article 5(1)

Article 5(1) || Article 22(1)

Article 5(2) || Article 22(3)

Article 5(3) || -

Article 5(4) || -

Article 5(5) || Article 23

Article 5(6) || -

Article 5(7) || Article 25

Article 6(1) || Article 11(1)

Article 6(2) || Article 11(3)

Article 7(1) || -

Article 7(2) || Article 12(1) and Article 12(2)

Article 7(3) || -

Article 8(1) || Article 24

Article 8(2) || Article 7(3)

Article 8(3) || -

Article 9(1) || Article 30

Article 9(2) || -

Article 9(3) || -

Article 10 ||

Article 11 || Article 32

Article 12 || Article 33

LEGISLATIVE FINANCIAL STATEMENT FOR PROPOSALS

1.           FRAMEWORK OF THE
PROPOSAL/INITIATIVE

1.1.        Title of the
proposal/initiative

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

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

ENVIRONMENT AND CLIMATE ACTION [07]

1.3.        Nature of the
proposal/initiative

 ̈ 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

x 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

This proposal is entrenched in the Europe 2020 Strategy for smart,
sustainable and inclusive growth. It directly contributes to achieving one of
the five headline targets set by the Strategy, to achieve the target of 20 %
emission reduction by 2020.

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

Specific objective:

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

ABM/ABB activities concerned:

07 12 01 (Implementation of EU 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.

It is necessary to amend the existing monitoring mechanism to
implement certain climate change policies and to deliver benefits to all citizens
and businesses, in particular with regards to enhancing air quality, securing
energy supply, promoting green economic growth and innovation. This proposal
will also help increase the EU’s credibility internationally by providing high
quality information on the action taken to combat climate change. By collecting
this information, this proposal will also ensure that the EU is better prepared
to face any future climate change related challenges.

1.4.4.     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:

- Number of non-compliance cases identified at EU level or under the
UNFCCC;

- Number of reports submitted on time to the Commission and/or the
UNFCCC;

- The consistency of the EU level reports with those submitted by
the Member States as shown in the EU and UNFCCC reviews;

- The consistency of the emissions data reported by the Member States
under MMD and other reporting instruments as shown in the EU and UNFCCC
reviews;

- The completeness of MS reports submitted to the Commission and
under the UNFCCC when compared to existing requirements;

- Use by the Member States of common reporting methodologies and
formats when reporting on financial and technology support;

- Use by the Member States of domestic and international
methodological and reporting guidelines;

- The completeness of Member State reports submitted to the
Commission and the UNFCCC compared to existing requirements;

- Use by the Member States of common reporting practices and formats
for projections, policies, measures and actual emissions;

- The availability of data and information and the creation of new
information flows 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 short-term objective of this proposal is to significantly
contribute to the EU emission reduction objective for 2020 and the achievement
of the EU 2020 Strategy. The proposal has also a long-term objective, namely to
achieve emission reductions within the EU beyond 2020.

In the short term, the Commission will need to launch procurement
procedures to obtain the technical assistance required to implement the
proposal, in particular for the expert inventory review provided for in Article
20 of the proposal.

1.5.2.     Added value of EU
involvement

Some of the provisions included in this proposal need to be
implemented at EU level because this is required under EU law, namely Decision
No 406/2009/EC and revised Directive 2003/87/EC.

As the overarching climate commitments are made at EU level, it is
also more effective to develop the required reporting instruments at EU level.
Furthermore, overcoming the identified problems, such as consistency and
timeliness of EU and Member States’ reporting to the United Nations Framework
Convention on Climate Change, requires the coordination of data and methods
across all 27 Member States which can be carried out more effectively at EU level.

1.5.3.     Lessons learned from
similar experiences in the past

The proposal takes into consideration lessons learned in implementing
Decision No 280/2004/EC and the feedback received from stakeholders. The
proposal aims to address the weaknesses and problems identified and to simplify
the reporting requirements, as applicable. In particular, experience in
implementing the MMD has shown that certain reporting requirements did not
deliver the expected results (e.g. indicators requested), or the information was
not used as anticipated. These requirements are therefore amended to ensure
that the reporting is meaningful and purposeful. New requirements are aligned
with existing reporting streams and information needs.

1.5.4.     Coherence and possible
synergy with other instruments

The proposal is closely related to the Europe 2020 Strategy and the
Europe 2020 flagship initiative for a resource-efficient Europe. It is
consistent and complementary with EU climate, energy and social policies.

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 likely to start in 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 Member
States will be responsible for implementing the bulk of this proposal. The
Commission will provide guidance to the Member States and will assess the
reports submitted by them. It will check, review and compile some of the
information included in these reports.

2.           MANAGEMENT MEASURES

2.1.        Monitoring and reporting
rules

Specify frequency
and conditions.

Compliance of the reports requested under the proposal with domestic
and international requirements will demonstrate whether the proposal achieves
its objectives.

The reports prepared under the proposal will continue to be assessed
at EU and/or international level annually, every 2 and/or every 4 years. The
assessment of actual emissions will continue to be comprehensive and conducted
by experts at both EU and international level. The goal of the assessment is to
help improve reporting and to assess compliance with targets and commitments.
The assessment of all other climate data and information is now proposed to be
conducted also on an annual basis at EU level with the focus being on
completeness and compliance with guidance, while at international level this
assessment will be made every 2 and/or every 4 years. Again, the assessment is
conducted by experts and the goal is to assess compliance and identify areas
for further improvement.

2.2.        Management and control
system

2.2.1.     Risk(s) identified

As the proposal is a regulation, it does not involve national
transposition. The risks related to implementation of this regulation are
limited because the proposed mechanism is a continuation and improvement of the
current mechanism.

2.2.2.     Control method(s) envisaged

The measures taken to address such risks will be the same as now: increased
dialogue and cooperation with the Member States, notably through the Climate
Change Committee and its working groups, the use of comitology and technical
assistance from the European Environment Agency.

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 its regular tools, such as DG CLIMA’s Annual
Management Plan.

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 DG CLIMA
financial circuit: a partially decentralised circuit which features
hierarchical independence from the AO(s)D of the persons performing financial
initiation and verification.

An internal control committee (ENVAC) will also examine the process
of selecting the contractor and verify the consistency of the procedures
adopted by the Authorising Officers with the rules of the Financial Regulation
and the Implementing Rules for a combination of a random sample and a
risk-based sample of public procurement contracts.

In addition to these measures, delegated acts will also lay down
technical guidelines governing the expert reviews referred to in Article 20.
These guidelines will ensure that the persons conducting the expert reviews 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
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

2 || 07.12.01 [Implementation of Union policy and legislation on climate action] || Diff. || NO || NO || NO || NO

5 || 07.01.02.11 [Other management expenditure] || Non-diff || NO || NO || NO || NO

· New budget lines requested — NO

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

THE PROPOSAL WILL BE IMPLEMENTED USING THE
EXISTING BUDGET AND WILL NOT HAVE AN IMPACT ON THE MULTIANNUAL FINANCIAL
FRAMEWORK.

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 || ... enter as many years as necessary to show the duration of the impact (see point 1.6) || TOTAL

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

Number of budget line 07.12.01 || Commitments || (1) || 0.2540 || 1.6310 || 1.631 || 1.631 || 1.631 || 1.631 || 1.631 || 10.04

Payments || (2) || 0.2540 || 1.256 || 1.631 || 1.631 || 1.631 || 1.631 || 1.631 || 9.665

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

Number of budget line || || (3) || || || || || || || ||

TOTAL appropriations for DG <CLIMA> || Commitments || =1+1a +3 || 0.2540 || 1.6310 || 1.631 || 1.631 || 1.631 || 1.631 || 1.631 || 10.04

Payments || =2+2a +3 || 0.2540 || 1.256 || 1.631 || 1.631 || 1.631 || 1.631 || 1.631 || 9.665

Ÿ TOTAL operational appropriations || Commitments || (4) || 0 .2540 || 1. 6310 || 1. 631 || 1. 631 || 1. 631 || 1. 631 || 1 .631 || 10.04

Payments || (5) || 0.2540 || 1.256 || 1.631 || 1.631 || 1.631 || 1.631 || 1.631 || 9.665

Ÿ TOTAL appropriations of an administrative nature financed from the envelope for specific programmes || (6) || || || || || || || ||

TOTAL appropriations under HEADING <2> of the multiannual financial framework || Commitments || =4+ 6 || 0.2540 || 1.631 || 1.631 || 1.631 || 1.631 || 1.631 || 1.631 || 10.04

Payments || =5+ 6 || 0.2540 || 1.256 || 1.631 || 1.631 || 1.631 || 1.631 || 1.631 || 9.665

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

Ÿ TOTAL operational appropriations || Commitments || (4) || 0.2540 || 1.631 || 1.631 || 1.631 || 1.631 || 1.631 || 1.631 || 10,04

Payments || (5) || 0.2540 || 1.256 || 1.631 || 1.631 || 1.631 || 1.631 || 1.631 || 9,665

Ÿ TOTAL appropriations of an administrative nature financed from the envelope for specific programmes || (6) || 0 || 0 || 0 || 0 || 0 || 0 || 0 || 0

TOTAL appropriations under HEADINGS 1 to 4 of the multiannual financial framework (Reference amount) || Commitments || =4+ 6 || 0.2540 || 1.631 || 1.631 || 1.631 || 1.631 || 1.631 || 1.631 || 10,04

Payments || =5+ 6 || 0.2540 || 1.256 || 1.631 || 1.631 || 1.631 || 1.631 || 1.631 || 9,665

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 || ... enter as many years as necessary to show the duration of the impact (see point 1.6) || TOTAL

DG: <CLIMA> ||

Ÿ Human resources || 0.254 || 0.508 || 0.508 || 0.508 || 0.508 || 0.508 || 0.508 || 3.302

Ÿ Other administrative expenditure || 0.275 || 0.275 || 0.275 || 0.275 || 0.275 || 0.275 || 0.275 || 1.925

TOTAL DG <CLIMA> || Appropriations || 0.529 || 0.783 || 0.783 || 0.783 || 0.783 || 0.783 || 0.783 || 5.227

TOTAL appropriations under HEADING 5 of the multiannual financial framework || (Total commitments = Total payments) || 0.529 || 0.783 || 0.783 || 0.783 || 0.783 || 0.783 || 0.783 || 5.227

EUR million (to 3 decimal places)

|| || || Year N[32] || Year N+1 || Year N+2 || Year N+3 || ... enter as many years as necessary to show the duration of the impact (see point 1.6) || TOTAL

TOTAL appropriations under HEADINGS 1 to 5 of the multiannual financial framework || Commitments || 0.783 || 2.414 || 2.414 || 2.414 || 2.414 || 2.414 || 2.414 || 15.267

Payments || 0.783 || 2.039 || 2.414 || 2.414 || 2.414 || 2.414 || 2.414 || 14.892

3.2.2.     Estimated impact on
operational appropriations

–
 ̈  The proposal/initiative does not require the use of new
operational appropriations (the initiative is part of the current financial
framework)

–
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 || ... enter as many years as necessary to show the duration of the impact (see point 1.6) || 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 || Technical assistance || 0.717 || 2 || 0.254 || 2 || 1.631 || 2 || 1.631 || 2 || 1.631 || 2 || 1.631 || 2 || 1.631 || 2 || 1.631 || 14 || 10.04

Sub-total for specific objective || 1 || 0.254 || 1 || 1.631 || 1 || 1.631 || 1 || 1.631 || 1 || 1.631 || 1 || 1.631 || 1 || 1.631 || 7 || 10.04

TOTAL COST || 1 || 0.254 || 1 || 1.631 || 1 || 1.631 || 1 || 1.631 || 1 || 1.631 || 1 || 1.631 || 1 || 1.631 || 7 || 10.04

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: (the initiative is part of the current
financial framework)

The needs for administrative appropriations
shall be covered by the allocation already granted for managing this action
and/or redeployed within the DG, supplemented as the case may be by any
additional allocation granted to the managing DG in the framework of the annual
allocation procedure, subject to budgetary constraints.

EUR million (to 3
decimal places)

|| Year N [34] || Year N+1 || Year N+2 || Year N+3 || ... enter as many years as necessary to show the duration of the impact (see point 1.6) || TOTAL

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

Human resources || 0.254[35] || 0.508 || 0.508 || 0.508 || 0.508 || 0.508 || 0.508 || 3.302

Other administrative expenditure || 0.275[36] || 0.275 || 0.275 || 0.275 || 0.275 || 0.275 || 0.275 || 1. .925

Subtotal HEADING 5 of the multiannual financial framework || 0. 529 || 0 .783 || 0 .783 || 0 .783 || 0. 783 || 0 .783 || 0 .783 || 5. 227

Outside HEADING 5[37] of the multiannual financial framework || || || || || || || ||

Human resources || 0 || 0 || 0 || 0 || 0 || 0 || 0 || 0

Other expenditure of an administrative nature || 0 || 0 || 0 || 0 || 0 || 0 || 0 || 0

Subtotal outside HEADING 5 of the multiannual financial framework || 0 || 0 || 0 || 0 || 0 || 0 || 0 || 0

TOTAL || 0.529 || 0.783 || 0.783 || 0.783 || 0.783 || 0.783 || 0.783 || 5.227

3.2.3.2.  Estimated requirements of
human resources

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

–
x The proposal/initiative requires the use of the currently allocated
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 || ... enter as many years as necessary to show the duration of the impact (see point 1.6)

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

|| 07 01 01 01 (Headquarters and Commission’s Representation Offices) || 254000[38] || 508000 || 508000 || 508000 || 508000 || 508000 || 508000

|| 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)[39] ||

|| 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 [40] || - at Headquarters[41] || || || || || || ||

|| - 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 || 254000 || 508000 || 508000 || 508000 || 508000 || 508000 || 508000

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 granted to the managing DG under the
annual allocation procedure, subject to budgetary constraints.

Description of
tasks to be carried out:

Officials and temporary agents || Take action to implement the Commission’s requirements (e.g. review MS reports, carry out analysis, monitor implementation.)

External personnel ||

3.2.4.     Compatibility with the
current multiannual financial framework

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

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

Explain what reprogramming is required,
specifying the budget lines concerned and the corresponding amounts.

....

–
 ̈  Proposal/initiative requires application of the flexibility
instrument or revision of the multiannual financial framework[42].

Explain what is required, specifying the
headings and budget lines concerned and the corresponding amounts.

........

3.2.5.     Third-party contributions

–
x The proposal/initiative does not provide for co-financing by third
parties

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

Appropriations in EUR million (to 3 decimal places)

|| Year N || Year N+1 || Year N+2 || Year N+3 || ... enter as many years as necessary to show the duration of the impact (see point 1.6) || Total

Specify the co-financing body || || || || || || || ||

TOTAL appropriations cofinanced || || || || || || || ||

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

EUR million (to 3 decimal places)

Budget revenue line: || Appropriations available for the ongoing budget year || Impact of the proposal/initiative[43]

Year N || Year N+1 || Year N+2 || Year N+3 || ... insert as many columns as necessary in order to reflect the duration of the impact (see point 1.6)

Article ............. || || || || || || || ||

For miscellaneous
assigned revenue, specify the budget expenditure line(s) affected.

....

Specify the method for
calculating the impact on revenue.

....

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

[2]               OJ L 33, 7.2.1994, p.11.

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

[4]               OJ L 55, 1.3.2005, p.57.

[5]               http://ec.europa.eu/clima/consultations/0008/index_en.htm

[6]               OJ C,, p. .

[7]               OJ C,, p. .

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

[9]               OJ L 33, 7.2.1994, p.13.

[10]             OJ L 130, 15.5.2002, p.4.

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

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

[13]             OJ L 297, 31.10.1988, p.21.

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

[15]             OJ L 33, 4.2.2006, p. 1.

[16]             OJ L 309, 27.11.2001, p. 22.

[17]             OJ L 161, 14.6.2006, p. 1.

[18]             OJ L 304, 4.11.2008, p. 1.

[19]             COM(2009) 147 final.

[20]             OJ L 8, 13.1.2009, p. 3.

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

[22]             OJ L 55, 28.2.2011, p.13.

[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. The currently best estimate for N is 2013.

[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.

[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.

[35]             Each annual
amount on this line includes 0,127M€ corresponding to staff members working on
the implementation of Decision No 280/2004/EC (that is repealed under the
Proposal).

[36]             The annual amounts on this line correspond to existing
costs related to the implementation of Decision No 280/2004/EC (that is
repealed under the Proposal).

[37]             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.

[38]             Each annual amount on this line includes 0,127M€
corresponding to staff members working on the implementation of Decision No
280/2004/EC (that is repealed under the Proposal).

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

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

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

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

[43]             As regards traditional own resources (customs duties,
sugar levies), the amounts indicated must be net amounts, i.e. gross amounts
after deduction of 25 % for collection costs.