02004R2216 — EN — 15.10.2010 — 004.001

This text is meant purely as a documentation tool and has no legal effect. The Union's institutions do not assume any liability for its contents. The authentic versions of the relevant acts, including their preambles, are those published in the Official Journal of the European Union and available in EUR-Lex. Those official texts are directly accessible through the links embedded in this document

►B COMMISSION REGULATION (EC) No 2216/2004 of 21 December 2004 for a standardised and secured system of registries pursuant to Directive 2003/87/EC of the European Parliament and of the Council and Decision No 280/2004/EC of the European Parliament and of the Council (Text with EEA relevance) (OJ L 386 29.12.2004, p. 1)

Amended by:









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COMMISSION REGULATION (EC) No 2216/2004

of 21 December 2004

for a standardised and secured system of registries pursuant to Directive 2003/87/EC of the European Parliament and of the Council and Decision No 280/2004/EC of the European Parliament and of the Council

(Text with EEA relevance)

TABLE OF CONTENTS Chapter I Subject matter and definitions Chapter II Registries and transaction logs Chapter III Contents of the registries Section 1 Reporting and Confidentiality Section 2 Accounts Section 3 Party accounts Section 4 Operator holding accounts Section 5 Person holding accounts Section 6 Tables Section 7 Codes and identifiers Chapter IV Checks and processes Section 1 Blocking of accounts Section 2 Automated checks and the data reconciliation process Section 3 Execution and finalisation of processes Chapter V Transactions Section 1 Allocation and issue of allowances for the 2005-2007 period Section 2 Allocation and issue of allowances for the 2008-2012 period and each subsequent five year period Section 3 Transfers and eligibility Section 4 Verified emissions Section 5 Surrender of allowances Section 6 Cancellation and retirement Section 7 Cancellation and replacement Section 8 Voluntary cancellation and retirement Chapter Va Operation of registries of member states which do not have aaus Chapter VI Security standards, authentication and access rights Chapter VII Availability and reliability of information Chapter VIII Records and fees Chapter IX Final provisions Annex I Annex II Annex III Annex IV Annex V Annex VI Table VI-1: Unit Identification Code Table VI-2: Valid Initial Unit Type – Supplementary Unit Type Table VI-3: Account Identification Code Table VI-4: Permit Identification Code Table VI-5: Account Holder Identification Code Table VI-6: Installation Identification Code Table VI-7: Correlation Identification Code Annex VII Annex VIII Table VIII-1: Message Sequence Diagram for Processes concerning an Account or Verified Emissions Table VIII-2: Status Diagram for Processes concerning an Account or Verified Emissions Table VIII-3: Components and Functions for Processes concerning an Account or Verified Emissions Table VIII-4: MgmtOfAccountWS Component Table VIII-5: MgmtOfAccountWS.CreateAccount() function Table VIII-6: MgmtOfAccountWS.UpdateAccount() function Table VIII-7: MgmtOfAccountWS.CloseAccount() function Table VIII-8: MgmtOfAccountWS.UpdateVerifiedEmissions() function Table VIII-9: MgmtOfAccountWS.ReceiveAccountOperationOutcome() function Table VIII-10: AccountManagement Component Table VIII-11: ManagementOfAccount.ValidateAccountCreation() function Table VIII-12: ManagementOfAccount.CreateAccount() function Table VIII-13: AccountManagement.ValidateAccountUpdate() function Table VIII-14: ManagementOfAccount.UpdateAccount() function Table VIII-15: ManagementOfAccount.ValidateAccountClosure() function Table VIII-16: ManagementOfAccount.CloseAccount() Table VIII-17: ManagementOfAccount.ValidateVerifiedEmissionsUpdate() Table VIII-18: ManagementOfAccount.UpdateVerifiedEmissions Table VIII-19: Secondary Checks Annex IX Table IX-1: Tertiary Checks Annex X Table X-1: Secondary Checks Annex XI Annex XIa Table XIa-1: Components and Functions for Processes concerning automatic national allocation plan table changes Table XIa-2: NAPTableManagementWS Component Table XIa-3: NAPTableManagementWS.AddNEInstallationtoNAP() function Table XIa-4: NAPTableManagementWS.IncreaseAllocationtoNEInstallationinNAPIncreaseallocationtoNEInstallationinNAP() function Table XIa-5: NAPTableManagementWS RemoveNAPallocationofclosingInstallation() function Table XIa-6: NAPTableManagementWS receiveNapManagementOutcome () function Table XIa-6a: NAPTableManagementWS IncreaseNAPallocationReserve () function Table XIa-6b: NAPTableManagementWS RemoveNAPallocationReserve () function Table XIa-7: Processes concerning NAP Table changes Annex XII Table XII-1: Community Independent Transaction Log Response Codes Annex XIII Annex XIV Annex XV Annex XVI







CHAPTER I

SUBJECT MATTER AND DEFINITIONS

Article 1

Subject matter

This Regulation lays down general provisions, functional and technical specifications and operational and maintenance requirements concerning the standardised and secured registries system consisting of registries, in the form of standardised electronic databases containing common data elements, and the Community independent transaction log. It also provides for an efficient communication system between the Community independent transaction log and the UNFCCC independent transaction log.

Article 2

Definitions

For the purposes of this Regulation, the definitions laid down in Article 3 of Directive 2003/87/EC shall apply. The following definitions shall also apply:

(a) ‘2005-2007 period’ means the period from 1 January 2005 to 31 December 2007 as referred to in Article 11(1) of Directive 2003/87/EC;

(b) ‘2008-2012 period and subsequent five-year periods’ means the period from 1 January 2008 to 31 December 2012 plus consecutive five-year periods as referred to in Article 11(2) of Directive 2003/87/EC;

(c) ‘account holder’ means a person who holds an account in the registries system;

(d) ‘assigned amount’ means the amount of greenhouse gas emissions in tonnes of carbon dioxide equivalent calculated in accordance with the emission levels determined pursuant to Article 7 of Decision No 280/2004/EC;

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(e) ‘assigned amount unit’ (AAU) means a unit issued pursuant to Article 7(3) of Decision No 280/2004/EC or by a Party to the Kyoto Protocol;

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(f) ‘authorised representative’ means a natural person authorised to represent the Central Administrator, a registry administrator, an account holder or a verifier pursuant to Article 23;

(g) ‘CDM registry’ means the clean development mechanism registry established, operated and maintained by the executive board of the clean development mechanism pursuant to Article 12 of the Kyoto Protocol and the decisions adopted pursuant to the UNFCCC or the Kyoto Protocol;

(h) ‘Central Administrator’ means the person designated by the Commission pursuant to Article 20 of Directive 2003/87/EC to operate and maintain the Community independent transaction log;

(i) ‘Community independent transaction log’ means the independent transaction log provided for in Article 20(1) of Directive 2003/87/EC for the purpose of recording the issue, transfer and cancellation of allowances, and established, operated and maintained in accordance with Article 5;

(j) ‘competent authority’ means the authority or authorities designated by a Member State pursuant to Article 18 of Directive 2003/87/EC;

(k) ‘discrepancy’ means an irregularity detected by the Community independent transaction log or UNFCCC independent transaction log whereby the proposed process does not conform to the requirements specified under Directive 2003/87/EC as elaborated in this Regulation and the requirements elaborated pursuant to the UNFCCC or the Kyoto Protocol;

(l) ‘force majeure allowance’ means a force majeure allowance issued pursuant to Article 29 of Directive 2003/87/EC;

(m) ‘inconsistency’ means an irregularity detected by the Community independent transaction log or UNFCCC independent transaction log whereby the information regarding allowances, accounts or Kyoto units provided by a registry as part of the periodic reconciliation process differs from the information contained in either independent transaction log;

(n) ‘Kyoto unit’ means an AAU, RMU, ERU or CER;

(o) ‘process’ means any one of the processes referred to in Article 32;

(p) ‘registry’ means a registry established, operated and maintained pursuant to Article 6 of Decision No 280/2004/EC, incorporating a registry established pursuant to Article 19 of Directive 2003/87/EC. ►M1 Special provisions are applicable to registries referred to in Article 63a; ◄

(q) ‘registry administrator’ means the competent authority, persons or person, designated by the Member State or the Commission, that operates and maintains a registry in accordance with the requirements of Directive 2003/87/EC, Decision No 280/2004/EC and this Regulation;

(r) ‘removal unit’ (RMU) means a unit issued pursuant to Article 3 of the Kyoto Protocol;

(s) ‘temporary CER’ (tCER) is a CER issued for an afforestation or reforestation project activity under the CDM which, subject to the decisions adopted pursuant to the UNFCCC or the Kyoto Protocol, expires at the end of the commitment period following the one during which it was issued;

(t) ‘long-term CER’ (lCER) is a CER issued for an afforestation or reforestation project activity under the CDM which, subject to the decisions adopted pursuant to the UNFCCC or the Kyoto Protocol, expires at the end of the crediting period of the afforestation or reforestation project activity under the CDM for which it was issued;

(u) ‘third country registry’ means a registry established, operated and maintained by a country listed in Annex B to the Kyoto Protocol which has ratified the Kyoto Protocol and is not a Member State;

(v) ‘transaction’ means the issue, transfer, acquisition, surrender, cancellation and replacement of allowances and the issue, transfer, acquisition, cancellation and retirement of ERUs, CERs, AAUs and RMUs and carry-over of ERUs, CERs and AAUs;

(w) ‘UNFCCC independent transaction log’ means the independent transaction log established, operated and maintained by the Secretariat of the United Nations Framework Convention on Climate Change;

(x) ‘verifier’ means a competent, independent, accredited verification body with responsibility for performing and reporting on the verification process, in accordance with the detailed requirements established by the Member State pursuant to Annex V of Directive 2003/87/EC;

(y) ‘year’ means a calendar year, defined according to Greenwich Mean Time.







CHAPTER II

REGISTRIES AND TRANSACTION LOGS

Article 3

Registries

1. A registry in the form of a standardised electronic database shall be established by each Member State and the Commission by the day after the entry into force of this Regulation.

2. Each registry shall incorporate the hardware and software set out in Annex I, be accessible via the Internet, and conform to the functional and technical specifications required by this Regulation.

3. Each registry shall be capable of executing correctly all the processes concerning verified emissions and accounts set out in Annex VIII, the reconciliation process set out in Annex X and all the administrative processes set out in Annex XI by the day after the entry into force of this Regulation.

Each registry shall be capable of executing correctly all the processes concerning allowances and Kyoto units set out in Annex IX by the day after the entry into force of this Regulation, with the exception of the processes with process types 04-00, 06-00, 07-00 and 08-00.

Each registry shall be capable of executing correctly the processes concerning allowances and Kyoto units with process types 04-00, 06-00, 07-00 and 08-00 set out in Annex IX by 31 March 2005.

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Each registry shall be capable of executing correctly all the processes concerning automatic national allocation plan table changes set out in Annex XIa from 1 February 2008.

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Article 4

Consolidated registries

A Member State or the Commission may establish, operate and maintain their registry in a consolidated manner together with one or more other Member States or the Community, provided that its registry remains distinct.

Article 5

The Community independent transaction log

1. The Community independent transaction log shall be established by the Commission in the form of a standardised electronic database by the day after the entry into force of this Regulation.

2. The Community independent transaction log shall incorporate the hardware and software set out in Annex I, be accessible via the Internet, and conform to the functional and technical specifications required by this Regulation.

3. The Central Administrator designated pursuant to Article 20 of Directive 2003/87/EC shall operate and maintain the Community independent transaction log in accordance with the provisions of this Regulation.

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4. The Central Administrator shall provide the administrative processes referred to in Annex XI in order to facilitate the integrity of the data within the registries system and shall provide the processes related to automatic national allocation plan table changes referred to in Annex XIa to ensure that national allocation plan tables reflect the number of allowances issued and allocated to installations.

5. The Central Administrator shall only perform processes concerning allowances, verified emissions, automatic national allocation plan table changes, accounts or Kyoto units where necessary to carry out its functions as Central Administrator.

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6. The Community independent transaction log shall be capable of executing correctly all the processes concerning allowances, verified emissions, accounts or Kyoto units set out in Annex VIII and Annex IX by the day after the entry into force of this Regulation.

The Community independent transaction log shall be capable of executing correctly the reconciliation process set out in Annex X and the administrative processes set out in Annex XI by the day after the entry into force of this Regulation.

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The Community independent transaction log shall be capable of executing correctly all the processes concerning automatic national allocation plan table changes set out in Annex XIa from 1 February 2008.

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Article 6

Communication link between registries and the Community independent transaction log

1. A communication link between each registry and the Community independent transaction log shall be established by 31 December 2004.

The Central Administrator shall activate the communication link after the testing procedures set out in Annex XIII and the initialisation procedures set out in Annex XIV have been completed successfully and notify the relevant registry administrator thereof.

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2. From 1 February 2008 until the communication link referred to in Article 7 has been established, all processes concerning allowances, verified emissions, automatic national allocation plan table changes, and accounts shall be completed through the exchange of data via the Community independent transaction log.

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3. The Commission may instruct the Central Administrator to temporarily suspend a process referred to in Annexes VIII and IX initiated by a registry if that process is not being executed in accordance with Articles 32 to 37.

The Commission may instruct the Central Administrator to temporarily suspend the communication link between a registry and the Community independent transaction log or to suspend all or some of the processes referred to in Annexes VIII and IX, if that registry is not operated and maintained in accordance with the provisions of this Regulation.

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4. The Central Administrator may establish a restricted communication link between the CITL and the registry of an Accession Country for the purposes of enabling such registries to communicate with the UNFCCC independent transaction log through the CITL and to record verified emissions data of operators in the CITL. Such registries must successfully complete all testing and initialisation procedures required of registries.

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Article 7

Communication link between the independent transaction logs

1. A communication link between the Community independent transaction log and the UNFCCC independent transaction log shall be considered as established when these systems are linked on the basis of a decision taken by the Central Administrator after consulting the Climate Change Committee. The Central Administrator shall establish and maintain such a link when (a) all registries have successfully completed the UNFCCC initialisation procedure; and (b) the Community independent transaction log and the UNFCCC independent transaction log are able to provide the necessary functionality and to link to each other.

2. If the conditions provided for in paragraph 1 are not met, the Commission may, subject to the majority support of the Climate Change Committee, instruct the Central Administrator to establish and maintain such a link.

3. After having established the link described in 1., all processes concerning allowances, verified emissions, accounts, automatic national allocation plan table changes and Kyoto units shall be completed through the exchange of data via the UNFCCC independent transaction log and thereon to the Community independent transaction log.

4. The Commission shall evaluate and report to the Climate Change Committee on options for connecting registries, the UNFCCC independent transaction log and the Community independent transaction log different from the one described in 3.In particular it shall be considered whether all processes concerning allowances and Kyoto units shall be completed through the exchange of data via the Community independent transaction log and thereon to the UNFCCC independent transaction log and all processes concerning verified emissions, accounts and automatic national allocation plan table changes shall be completed through the exchange of data via the Community independent transaction log.

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5. Six months after the establishment of the first communication link referred to in paragraph 4, the Commission shall review the functional and technical specifications for data exchange standards for registry systems under the Kyoto Protocol elaborated pursuant to Decision 24/CP.8 of the Conference of the Parties to the UNFCCC, and if it finds that they provide for the possibility of the establishment of a communication link between registries and the UNFCCC international transaction log to be established via the Community independent transaction log, thereby allowing a simplification of the architecture of the registries system, it shall promptly propose an amendment to this Regulation with the purpose of simplifying the architecture of the registries system.

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6. The decisions referred to in paragraphs 1 and 2 shall, where possible be adopted at least three months prior to their implementation.

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Article 7a

Should the communication link between the transaction logs referred to in Article 7 be established after allowances for the 2008-12 period have been issued in accordance with Article 11 of Directive 2003/87/EC, registry administrators shall, upon completion of the connection, replace any allowances in their registry with an equal amount of allowances recognised as assigned amount units by the UNFCCC international transaction log.

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Article 8

Registry administrators

1. Each Member State and the Commission shall designate a registry administrator to operate and maintain its registry in accordance with the provisions of this Regulation.

Member States and the Commission shall ensure that there is no conflict of interest between the registry administrator and its account holders or between the registry administrator and the Central Administrator.

2. Each Member State shall notify the Commission of the identity and contact details of the registry administrator for its registry by 1 September 2004 in accordance with the initialisation procedures set out in Annex XIV.

3. The Member States and the Commission shall retain ultimate responsibility and authority for the operation and maintenance of their registries.

4. The Commission shall coordinate the implementation of the requirements of this Regulation with the registry administrators of each Member State and the Central Administrator.







CHAPTER III

CONTENTS OF THE REGISTRIES







SECTION 1

Reporting and Confidentiality

Article 9

Reporting

1. Each registry administrator shall make available the information listed in Annex XVI at the frequencies and to the recipients set out in Annex XVI in a transparent and organised manner via his registry web site. Registry administrators shall not release additional information held in the registry.

2. The Central Administrator shall make available the information listed in Annex XVI at the frequencies and to the recipients set out in Annex XVI in a transparent and organised manner via the Community independent transaction log web site. The Central Administrator shall not release additional information held in the Community independent transaction log.

3. Each web site shall allow the recipients of the reports listed in Annex XVI to query those reports using search facilities.

4. Each registry administrator is responsible for the accuracy of the information that originates from his registry and is made available via the Community independent transaction log website.

5. Neither the Community independent transaction log nor registries shall require account holders to submit price information concerning allowances or Kyoto units.

Article 10

Confidentiality

1. All information, including the holdings of all accounts and all transactions made, held in the registries and the Community independent transaction log shall be considered confidential for any purpose other than the implementation of the requirements of this Regulation, Directive 2003/87/EC or national law.

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2. The following entities may obtain data stored in the registries and the CITL: (a) the law enforcement and tax authorities of a Member State; (b) the European Anti-fraud Office of the European Commission; (c) Europol; (d) registry administrators of Member States.

2a. Transaction data may be provided to the entities listed under paragraph 2. upon their request to the Central Administrator or to a registry administrator if such requests are justified and necessary for the purposes of investigation, detection and prosecution of fraud, tax administration or enforcement, money laundering, terrorism financing or serious crime.

2b. An entity receiving data in accordance with paragraph 2a shall ensure that the data received is only used for the purposes stated in the request in accordance with paragraph 2a and is not made available deliberately or accidentally to persons not involved in the intended purpose of the data use. This provision shall not preclude these entities to make the data available to other entities listed in paragraph 2, if this is necessary for the purposes stated in the request made in accordance with paragraph 2a.

2c. Upon their request, the Central administrator may provide access to anonymised transaction data to the entities listed in paragraph 2. for the purpose of looking for suspicious transaction patterns. Entities with such access may notify suspicious transaction patterns to other entities listed in paragraph 2.

2d. Registry administrators shall make available through secure means to all other registry administrators the names and identities of persons whom they refused to open an account for, or whom refused to nominate as an authorised representative or additional authorised representative.

2e. Registry administrators may decide to notify to national law enforcement authorities all transactions that involve a number of units above the amount determined by the registry administrator and to notify any account that is involved in a number of transactions within a 24-hour period that is above an amount determined by the registry administrator.

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3. Each competent authority and registry administrator shall only perform processes concerning allowances, verified emissions, automatic national allocation plan table changes, accounts or Kyoto units where necessary to carry out their functions as competent authority or registry administrator.

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SECTION 2

Accounts

Article 11

Accounts

1. From 1 January 2005 onwards, each registry shall contain at least one Party holding account created in accordance with Article 12.

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2. From 1 January 2005 onwards each Member State registry shall contain one operator holding account for each installation created in accordance with Article 15 and at least one personal holding account for each person created in accordance with Article 19.

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3. From 1 January 2005 onwards, each registry shall contain one retirement account and one cancellation account for the 2005-2007 period and one cancellation account for the 2008-2012 period, created in accordance with Article 12.

4. From 1 January 2008 and from 1 January of the first year of each subsequent five-year period, each registry shall contain one retirement account and the cancellation and replacement accounts required by the relevant decisions adopted pursuant to the UNFCCC or the Kyoto Protocol for the 2008-2012 period and for each subsequent five-year period, created in accordance with Article 12.

5. Unless otherwise provided, all accounts shall be capable of holding allowances and Kyoto units.

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6. The account holder of a person holding account, a verifier account or an aircraft operator holding account may not sell or divest of the ownership of its account to another person. The account holder of an operator holding account may only sell or divest of its operator holding account together with the installation linked to the operator holding account.

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SECTION 3

Party accounts

Article 12

Creation of Party accounts

1. The relevant body of the Member State and the Commission shall submit an application to their respective registry administrator for the creation in their registries of the accounts referred to in Article 11(1), (3) and (4).

The applicant shall provide the registry administrator with the information reasonably required by the registry administrator. That information shall include the information set out in Annex IV.

2. Within 10 days of the receipt of an application in accordance with paragraph 1 or the activation of the communication link between the registry and the Community independent transaction log, whichever is the later, the registry administrator shall create the account in the registry in accordance with the account creation process set out in Annex VIII.

3. The applicant referred to in paragraph 1 shall notify its registry administrator within 10 days of any changes in the information provided to its registry administrator pursuant to paragraph 1. Within 10 days of the receipt of such a notification the registry administrator shall update that information in accordance with the account update process set out in Annex VIII.

4. The registry administrator may require the applicants referred to in paragraph 1 to agree to comply with reasonable terms and conditions addressing the issues set out in Annex V.

Article 13

Closure of Party accounts

Within 10 days of the receipt of an application from the relevant body of a Member State or from the Commission to close a Party holding account, its registry administrator shall close the account in accordance with the account closure process set out in Annex VIII.

Article 14

Notification

The registry administrator shall immediately notify the account holder of the creation or update of his Party accounts and of the closure of his Party holding accounts.







SECTION 4

Operator holding accounts

Article 15

Creation of operator holding accounts

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1. Within 14 days of the entry into force of each greenhouse gas emissions permit issued to the operator of an installation where the installation has not previously been covered by such a permit or the activation of the communication link between the registry and the Community independent transaction log, whichever is the later, the competent authority, or the operator where the competent authority so requires, shall provide the registry administrator of the Member State registry with the information set out in Annex III.

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2. Within 10 days of the receipt of the information in paragraph 1 or the activation of the communication link between the registry and the Community independent transaction log, whichever is the later, the registry administrator shall create an operator holding account referred to in Article 11(2) for each installation in its registry in accordance with the account creation process set out in Annex VIII.

3. The competent authority, or the operator where the competent authority so requires, shall notify the registry administrator within 10 days of any changes in the information provided to the registry administrator pursuant to paragraph 1. Within 10 days of the receipt of such a notification the registry administrator shall update the operator’s details in accordance with the account update process set out in Annex VIII.

4. The registry administrator may require operators to agree to comply with reasonable terms and conditions addressing the issues set out in Annex V.

Article 16

Holding of Kyoto units in operator holding accounts

An operator holding account shall be capable of holding Kyoto units where authorised by Member State or Community legislation.

Article 17

Closure of operator holding accounts

1. The competent authority shall notify the registry administrator within 10 days of a greenhouse gas emissions permit being revoked or surrendered for an installation that is, as a result, not covered by any such permit. Without prejudice to paragraph 2, the registry administrator shall close all operator holding accounts relating to that revocation or surrender in accordance with the account closure process set out in Annex VIII on 30 June the year after the revocation or surrender took place if the relevant installation’s entry in the latest year of the compliance status table is greater than or equal to zero. If the relevant installation’s entry in the latest year of the compliance status table is less than zero, the registry administrator shall close its account the day after the entry is greater than or equal to zero or the day after the competent authority has instructed the registry administrator to close the account because there is no reasonable prospect of further allowances being surrendered by the installation’s operator.

2. If there is a positive balance of allowances or Kyoto units in an operator holding account which the registry administrator is to close in accordance with paragraph 1, the registry administrator shall first request the operator to specify another account within the registry system to which such allowances or Kyoto units shall then be transferred. If the operator has not responded to the registry administrator’s request within 60 days, the registry administrator shall transfer the balance to the Party holding account.

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3. Where the competent authority has notified the registry administrator of the revocation or surrender of a greenhouse gas emissions permit belonging to an installation related to an account which has an entry in the relevant national allocation plan table submitted in accordance with Article 44, the registry administrator shall, prior to closing the account, propose to the Central Administrator the following changes to the national allocation plan table: (a) deleting from the national allocation plan table and replacing with a null any allowances in the national allocation plan table that were not yet allocated to the installation until the proposed national allocation plan table change; (b) adding an equivalent number of allowances to the part of the national allocation plan table representing the quantity of allowances not allocated to existing installations.

The proposal shall be submitted to, and checked and implemented automatically by the Community independent transaction log in accordance with the processes set out in Annex XIa.

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Article 18

Notification

The registry administrator shall immediately notify the account holder of the creation, update or closure of his operator holding account.







SECTION 5

Person holding accounts

Article 19

Creation of person holding accounts

1. An application for the creation of a person holding account shall be submitted to the registry administrator of the registry concerned.

The applicant shall provide the registry administrator with the information reasonably required by the registry administrator. That information shall include the information set out in Annex IV.

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2. Within 10 days of the receipt of an application in accordance with paragraph 1 the registry administrator shall create a person holding account in its registry in accordance with the account creation process set out in Annex VIII or inform the person requesting the account opening that it refuses to open the account.

3. The applicant shall notify the registry administrator within 10 days of any changes in the information provided to the registry administrator pursuant to paragraph 1. Within 10 days of the receipt of such a notification the registry administrator shall update the person’s details in accordance with the account update process set out in Annex VIII or refuse updating and inform the account holder thereof.

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4. The registry administrator may require the applicants referred to in paragraph 1 to agree to comply with reasonable terms and conditions addressing the issues set out in Annex V.

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5. If the registry administrator refused opening the account or refused updating information related to the account, the person requesting the account opening may object to this refusal with the competent authority, who shall either instruct the registry administrator to open the account or uphold the refusal in a reasoned decision. Reasons for refusing the opening an account may be that the person requesting the account opening is under investigation for being involved in fraud involving allowances or Kyoto units, money laundering, terrorist financing or other serious crimes to which the account may be an instrument, or any other reason set out in national law.

6. The registry administrator may require that EU persons requesting the account opening have their permanent residence or registration in the Member State of the registry.

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Article 20

Holding of Kyoto units in person holding accounts

A person holding account shall be capable of holding Kyoto units where authorised by Member State or Community legislation.

Article 21

Closure of person holding accounts

1. Within 10 days of the receipt of an application from a person to close a person holding account, the registry administrator shall close the account in accordance with the account closure process set out in Annex VIII.

2. If a person holding account has a zero balance and no transactions have been recorded during a period of 12 months, the registry administrator shall notify the account holder that the person holding account shall be closed within 60 days unless the registry administrator receives within that period a request from the account holder that the person holding account be maintained. If the registry administrator does not receive any such request from the account holder, it shall close the account in accordance with the account closure process set out in Annex VIII.

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Article 21a

Closure of accounts and removal of authorised representative on the administrator's initiative

1. If the situation giving rise to the suspension of access to accounts pursuant to Article 67 is not resolved within a reasonable period despite repeated notifications, the competent authority may instruct the registry administrator to close those person holding accounts where access is suspended.

2. The account holder may object to the closure of its account in accordance with paragraph 1 with the competent authority within 30 calendar days, who shall either instruct the registry administrator to reinstate the account or uphold the closure in a reasoned decision.

3. If there is a positive balance of allowances or Kyoto units on an account which the registry administrator is to close after suspension in accordance with Article 67(1), the registry administrator shall first request the account holder to specify another account administered by the same administrator to which such allowances or Kyoto units shall then be transferred. If the account holder has not responded to the administrator’s request within 40 working days, the administrator may transfer the allowances or Kyoto units to its national allowance holding account.

4. If there is a positive balance of allowances or Kyoto units on an account which was suspended in accordance with Article 67(1b), the competent authority may require in its instruction in accordance with paragraph 1 that these allowances or Kyoto units are moved immediately to the relevant national allowance holding account and KP Party holding account.

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Article 22

Notification

The registry administrator shall immediately notify each account holder of the creation, update or closure of his person holding account.

Article 23

Authorised representatives

1. Each account holder shall appoint a primary and a secondary authorised representative for each account created in accordance with Articles 12, 15 and 19. Requests to the registry administrator to carry out processes shall be submitted by an authorised representative on behalf of the account holder.

2. Each Member State and the Commission may allow account holders in its registry to nominate an additional authorised representative whose agreement is required in addition to the agreement of the primary or secondary authorised representative to submit a request to their registry administrator to carry out one or more of the processes pursuant to Articles 49(1), 52, 53 and 62.

3. Each verifier shall appoint at least one authorised representative to enter or approve the entry of the annual verified emissions for an installation into the verified emissions table in accordance with Article 51(1).

4. Each registry administrator and the Central Administrator shall appoint at least one authorised representative to operate and maintain their registry and the Community independent transaction log on behalf of that administrator.

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5. Authorised representatives must be natural persons over 18 years. All authorised representatives and additional authorised representatives of a single account must be different persons but the same person can be an authorised representative or an additional authorised representative on more than one account. The registry administrator may require that at least one of the authorised representatives of operator holding accounts or person holding accounts must be a permanent resident in the Member State of the registry.

6. When nominating an authorised representative or additional authorised representative, the account holder shall provide the information required by the registry administrator. That information shall include at least the documents and identification information on the nominee set out in Annex IVa.

7. The registry administrator shall evaluate the information received and if it finds it satisfactory, it shall approve the nominee within 20 working days of receiving the information or inform the person requesting the account opening that it refuses the approval. Where the evaluation of the nominee information requires more time, the registry administrator may once extend the evaluation process by up to 20 additional working days, and notify the extension to the account holder.

8. If the registry administrator refused to approve an authorised representative or additional authorised representative, the person requesting the account opening may object to this refusal with the competent authority, who shall either instruct the registry administrator to carry out the approval or uphold the refusal in a reasoned decision. Reasons for refusing the approval may be that the person nominated as authorised representative or additional authorised representative is under investigation for being involved in fraud involving allowances or Kyoto units, money laundering, terrorist financing or other serious crimes to which the account may be an instrument, or any other reason set out in national law.

9. An authorised representative or additional authorised representative may not transfer its status as such to another person.

10. The registry administrator may remove an authorised representative or an additional authorised representative if it considers that the approval of the authorised representative or an additional authorised representative should have been refused in accordance with paragraph 7. and in particular if it discovers that the documents and identification information provided in upon nomination were fraudulent or erroneous. The account holder may object to this removal with the competent authority who shall either instruct the registry administrator to re-approve the authorised representative or an additional authorised representative or uphold the removal in a reasoned decision. Reasons for removal of an authorised representative or an additional authorised representative may be that he or she is convicted for being involved in fraud involving allowances or Kyoto units, money laundering, terrorist financing or other serious crimes to which the account may be an instrument, or any other reason set out in national law.

▼B







SECTION 6

Tables

Article 24

Tables

1. From 1 January 2005 onwards, each Member State registry shall contain one verified emissions table, one surrendered allowances table, and one compliance status table.

Each registry may contain additional tables for other purposes.

2. The Community independent transaction log shall contain one national allocation plan table for each Member State for the 2005-2007 period, the 2008-2012 period and for each subsequent five-year period.

The Community independent transaction log may contain additional tables for other purposes.

3. The tables in each Member State registry shall contain the information set out in Annex II. The operator holding accounts and person holding accounts shall contain the information set out in Annex XVI.

The national allocation plan table in the Community independent transaction log shall contain the information set out in Annex XIV.







SECTION 7

Codes and identifiers

Article 25

Codes

Each registry shall contain the input codes set out in Annex VII and the response codes set out in Annex XII in order to ensure the correct interpretation of information exchanged during each process.

Article 26

Account identification codes and alphanumeric identifiers

Before creating an account the registry administrator shall assign to each account a unique account identification code and the alphanumeric identifier specified by the account holder as part of the information given under Annexes III and IV respectively. Before creating an account, the registry administrator shall also assign to the account holder a unique account holder identification code comprising the elements set out in Annex VI.







CHAPTER IV

CHECKS AND PROCESSES







SECTION 1

Blocking of accounts

Article 27

Blocking of operator holding accounts

1. If, on 1 April of each year starting in 2006, an installation’s annual verified emissions for the preceding year have not been entered into the verified emissions table in accordance with the verified emissions entry process set out in Annex VIII, the registry administrator shall block the transfer of any allowances out of the operator holding account for that installation.

2. When the installation’s annual verified emissions for the year referred to in paragraph 1 have been entered into the verified emissions table, the registry administrator shall unblock the account.

3. The registry administrator shall immediately notify the relevant account holder and the competent authority of the blocking and unblocking of each operator holding account.

4. Paragraph 1 shall not apply to the surrender of allowances pursuant to Article 52 or the cancellation and replacement of allowances pursuant to Articles 60 and 61.







SECTION 2

Automated checks and the data reconciliation process

▼M1

Article 28

Detection of discrepancies by the Community independent transaction log

1. The Central Administrator shall ensure that the Community independent transaction log conducts the automated checks set out in Annexes VIII, IX, XI and XIa for all processes concerning allowances, verified emissions, accounts, automatic national allocation plan table changes and Kyoto units to ensure that there are no discrepancies.

2. If the automated checks referred to in paragraph 1 identify a discrepancy in a process under Annexes VIII, IX, XI and XIa, the Central Administrator shall immediately inform the registry administrator or administrators concerned by returning an automated response detailing the exact nature of the discrepancy using the response codes set out in Annexes VIII, IX, XI and XIa.

Upon receiving such a response code for a process under Annex VIII, Annex IX or Annex XIa, the registry administrator of the initiating registry shall terminate that process and inform the Community independent transaction log.

The Central Administrator shall not update the information contained in the Community independent transaction log.

The registry administrator or administrators concerned shall immediately inform the relevant account holders that the process has been terminated.

▼B

Article 29

Detection of inconsistencies by the Community independent transaction log

1. ►M1 ◄ The Central Administrator shall ensure that the Community independent transaction log periodically initiates the data reconciliation process set out in Annex X. For that purpose the Community independent transaction log shall record all processes concerning allowances, accounts, automatic national allocation plan table changes and Kyoto units.

Through that process, the Community independent transaction log shall check that the holdings of Kyoto units and allowances in each account in a registry are identical to the records held in the Community independent transaction log.

2. If an inconsistency is detected during the data reconciliation process, the Central Administrator shall immediately inform the registry administrator or administrators concerned. If the inconsistency is not resolved, the Central Administrator shall ensure that the Community independent transaction log does not allow any further process under Annex VIII and Annex IX concerning any of the allowances, accounts or Kyoto units which are the subject of the earlier inconsistency to proceed.

▼M1

3. Upon the request of the Central Administrator, the registry administrator shall provide a copy of the verified emissions table in its registry to the Central Administrator. The Central Administrator shall check that the verified emissions table of the registry is identical to the records held in the Community independent transaction log. If a difference is detected the Central Administrator shall immediately inform the registry administrator, and request it to eliminate the difference through the verified emissions update process set out in Annex VIII.

The Community independent transaction log shall record all changes to the verified emissions table.

▼B

Article 30

Detection of discrepancies and inconsistencies by the UNFCCC independent transaction log

1. If the UNFCCC independent transaction log, following an automated check, informs the registry administrator or administrators concerned of a discrepancy in a process, the registry administrator of the initiating registry shall terminate the process and inform the UNFCCC independent transaction log thereof. The registry administrator or administrators concerned shall immediately inform the relevant account holders that the process has been terminated.

2. If the UNFCCC independent transaction log has detected an inconsistency, the Central Administrator shall ensure that the Community independent transaction log does not allow any further process under Annex VIII and Annex IX concerning any of the Kyoto units which are the subject of the earlier inconsistency, and which is not subject to the UNFCCC independent transaction log’s automated checks, to proceed.

Article 31

Registry automated checks

Prior to and during the execution of all processes the registry administrator shall ensure that appropriate automated checks are conducted within the registry, in order to detect discrepancies and thereby terminate processes in advance of automated checks being conducted by the Community independent transaction log or UNFCCC independent transaction log.







SECTION 3

Execution and finalisation of processes

▼M1

Article 32

Processes

Each process shall follow the complete sequence for message exchanges for that type of process as set out in Annexes VIII, IX, X, XI, and Annex XIa. Each message shall conform to the format and informational requirements described using web services description language as elaborated pursuant to the UNFCCC or the Kyoto Protocol.

Article 33

Identification codes

The registry administrator shall assign to each process referred to in Annexes VIII and XIa a unique correlation identification code and to each process referred to in Annex IX a unique transaction identification code.

Each such identification code shall comprise the elements set out in Annex VI.

Article 34

Finalisation of processes concerning accounts, automatic national allocation plan table changes and verified emissions

When there is a communication link established between the two independent transaction logs and if all processes concerning accounts, automatic national allocation plan table changes and verified emissions are completed through the exchange of data via the UNFCCC independent transaction log, these shall be final when both independent transaction logs successfully inform the initiating registry that they have not detected any discrepancies in the proposal sent by the initiating registry.

In all other cases than those referred to in the first paragraph, all processes concerning accounts, automatic national allocation plan table changes and verified emissions shall be final when the Community independent transaction log successfully informs the initiating registry that it has not detected any discrepancies in the proposal sent by the initiating registry.

▼M1

Article 34a

Manual reversal of finalised transactions initiated in error

1. If an account holder or a registry administrator acting on behalf of the account holder unintentionally or erroneously initiated a transaction under Articles 52, 53, 58 or 62(2), it may propose to its registry administrator to carry out a manual reversal of the transaction in a written request duly signed by the authorised representative or representatives of the account holder that are able to initiate a transaction and posted within five working days of the finalisation of the transaction or the entry into force of this Regulation whichever is the later. The request shall contain a statement indicating that the transaction was initiated erroneously or unintentionally.

2. The registry administrator may notify the Central Administrator of the request and its intention to carry out a specific manual intervention in its database in order to reverse the transaction, within 30 calendar days of its decision on reversing the transaction, but not later than 60 calendar days of the finalisation of the transaction or the entry into force of this Regulation, whichever is the later.

The Central Administrator shall, within 30 calendar days of its receipt of the registry administrator’s notification under the first subparagraph of paragraph 2 carry out a manual intervention in the Community independent transaction log database that is corresponding to the one specified in the notification of the registry administrator if:

(a) the notification was posted within the deadline indicated in the first subparagraph of paragraph 2;

(b) the proposed manual intervention only reverses the effects of the transaction considered to have been initiated unintentionally or erroneously and does not involve reversing the effects of later transactions involving the same allowances or Kyoto units.

▼M3

2a. If a registry administrator unintentionally or erroneously initiated an allocation under Article 46 that resulted in allocating allowances to an installation that was not operating anymore at the time of the allocation transaction, the competent authority may notify its request to the Central Administrator to carry out a manual intervention in order to reverse the transaction within the deadlines set out in paragraph 2.

▼M1

3. The registry administrator may not reverse transactions pursuant to Article 52 and 53 if as a result, an operator would become non-compliant for a previous year.

▼B

Article 35

Finalisation of processes concerning transactions within registries

All processes referred to in Annex IX, except the external transfer process, shall be final when both independent transaction logs inform the initiating registry that they have not detected any discrepancies in the proposal sent by the initiating registry and the initiating registry has successfully sent confirmation to both independent transaction logs that it has updated its records in accordance with its proposal.

However, prior to the communication link between the Community independent transaction log and the UNFCCC independent transaction log being established, all processes referred to in Annex IX, except the external transfer process, shall be final when the Community independent transaction log informs the initiating registry that it has not detected any discrepancies in the proposal sent by the initiating registry and the initiating registry has successfully sent confirmation to the Community independent transaction log that it has updated its records in accordance with its proposal.

Article 36

Finalisation of the external transfer process

The external transfer process shall be final when both independent transaction logs inform the acquiring registry that they have not detected any discrepancies in the proposal sent by the initiating registry and the acquiring registry has successfully sent confirmation to both independent transaction logs that it has updated its records in accordance with the initiating registry’s proposal.

However, prior to the communication link between the Community independent transaction log and the UNFCCC independent transaction log being established, the external transfer process shall be final when the Community independent transaction log informs the acquiring registry that it has not detected any discrepancies in the proposal sent by the initiating registry and the acquiring registry has successfully sent confirmation to the Community independent transaction log that it has updated its records in accordance with the initiating registry’s proposal.

Article 37

Finalisation of the reconciliation process

The reconciliation process referred to in Annex X shall be final when all inconsistencies between the information contained in a registry and the information contained in the Community independent transaction log for a specific time and date have been resolved, and the reconciliation process has been successfully re-initiated and completed for that registry.







CHAPTER V

TRANSACTIONS

▼M3 —————

▼B







SECTION 2

Allocation and issue of allowances for the 2008-2012 period and each subsequent five year period

Article 44

National allocation plan table for the 2008-2012 period and each subsequent five year period

1. By 1 January 2007 and by 1 January 12 months before the start of each subsequent five year period, each Member State shall notify to the Commission its national allocation plan table, corresponding to the decision taken under Article 11 of Directive 2003/87/EC. If the national allocation plan table is based upon the national allocation plan notified to the Commission which was not rejected under Article 9(3) of Directive 2003/87/EC or on which the Commission has accepted proposed amendments, the Commission shall instruct the Central Administrator to enter the national allocation plan table into the Community independent transaction log in accordance with the initialisation procedures set out in Annex XIV.

▼M1

2. A Member State shall notify each correction to its national allocation plan together with each corresponding correction in its national allocation plan table to the Commission. If the correction to the national allocation plan table is based upon the national allocation plan notified to the Commission which was not rejected under Article 9(3) of Directive 2003/87/EC or on which the Commission has accepted amendments and that correction results from improvements in data, the Commission shall instruct the Central Administrator to enter the corresponding correction into the national allocation plan table held in the Community independent transaction log.

All such corrections relating to new entrants shall be made in accordance with the automatic national allocation plan table change process as set out in Annex XIa to this Regulation.

All such corrections not relating to new entrants shall be made in accordance with the initialisation procedures as set out in Annex XIV to this Regulation.

In all other cases, the Member State shall notify the correction to its national allocation plan to the Commission and if the Commission does not reject this correction in accordance with the procedure in Article 9(3) of Directive 2003/87/EC, the Commission shall instruct the Central Administrator to enter the corresponding correction into the national allocation plan table held in the Community independent transaction log in accordance with the initialisation procedures set out in Annex XIV to this Regulation.

▼B

3. The registry administrator shall, subsequent to any correction made pursuant to paragraph 2 which occurs after allowances have been issued under Article 45 and which reduces the total quantity of allowances issued under Article 45 for the 2008-2012 period or subsequent five-year periods, convert the number of allowances specified by the competent authority into AAUs by removing the allowance element from the unique unit identification code of each such AAU comprising the elements set out in Annex VI.

The correction shall take place in accordance with the correction to allowances process set out in Annex IX.

Article 45

Issue of allowances

After the national allocation plan table has been entered into the Community independent transaction log and, subject to Article 44(2), by 28 February of the first year of the 2008-2012 period and by 28 February of the first year of each subsequent five-year period, the registry administrator shall issue the total quantity of allowances set out in the national allocation plan table into the Party holding account by converting an equal quantity of AAUs held in that holding account into allowances.

This conversion shall take place through adding the allowance element to the unique unit identification code of each such AAU, comprising the elements set out in Annex VI.

The issue of allowances for the 2008-2012 period and each subsequent five-year period shall take place in accordance with the allowance issue (2008-2012 onwards) process set out in Annex IX.

▼M1

Article 46

Allocation of allowances to operators

Without prejudice to Articles 44(2) and 47, by 28 February 2008 and by 28 February in each year thereafter, the registry administrator shall transfer from the Party holding account to the relevant operator holding account the proportion of the total quantity of allowances issued by any registry administrator under Article 45 which has been allocated to the corresponding installation for that year in accordance with the relevant section of the national allocation plan table.

Where foreseen for an installation in the national allocation plan of the Member State, the registry administrator may transfer that proportion at a later date of each year.

Allowances shall be allocated in accordance with the allowance allocation process set out in Annex IX.

▼B

Article 47

Surrender of allowances on instruction of the competent authority

If instructed to do so by the competent authority pursuant to Article 16(1) of Directive 2003/87/EC, the registry administrator shall surrender part or all of the proportion of the total quantity of allowances issued under Article 45 which has been allocated to an installation for a specific year, by entering the number of surrendered allowances into the section of the surrendered allowance table designated for that installation for that year. These surrendered allowances shall remain in the Party holding account.

Allowances surrendered on instruction of the competent authority shall be surrendered in accordance with the allowance allocation process set out in Annex IX.

▼M1

Article 48

Allocation of allowances to new entrants

If instructed to do so by the competent authority, the registry administrator shall transfer a proportion of allowances issued by any registry administrator under Article 45 that are in the Party holding account to the operator holding account of a new entrant in accordance with the relevant section of the national allocation plan table for that new entrant for the year in question.

Allowances shall be transferred in accordance with the allowance allocation process set out in Annex IX.

▼M1

Article 48a

Allocation of allowances following their sale by Member State

If instructed to do so by the competent authority following a sale of allowances held by a Member State, the registry administrator shall transfer a quantity of allowances from the Party holding account to the person holding account or operator holding account of the buyer of allowances.

Allowances transferred within the same registry shall be transferred in accordance with the ‘internal transfer’ process set out in Annex IX. Allowances transferred from one registry to another will be transferred in accordance with the ‘external transfer (2008 to 2012 onwards)’ process set out in Annex IX.

▼B







SECTION 3

Transfers and eligibility

Article 49

Transfers of allowances and Kyoto units by account holders

1. The registry administrator shall carry out any transfer between holding accounts referred to in Article 11(1) and (2): (a) within its registry as requested by an account holder in accordance with the internal transfer process set out in Annex IX; ▼M3 ————— ▼B (c) between registries as requested by an account holder for allowances issued for the 2008-2012 period and subsequent five-year periods and Kyoto units in accordance with the external transfer (2008-2012 onwards) process set out in Annex IX.

2. Allowances may only be transferred from an account in a registry to an account in a third country registry or the CDM Registry, or acquired from an account in a third country registry or the CDM Registry by an account in a registry, where an agreement has been concluded in accordance with Article 25(1) of Directive 2003/87/EC and such transfers are in accordance with any provisions relating to the mutual recognition of allowances under that agreement drawn up by the Commission pursuant to Article 25(2) of Directive 2003/87/EC.

Article 50

Eligibility and the commitment period reserve

1. ►M1 ◄ When a communication link is established between the UNFCCC independent transaction log and the Community independent transaction log in accordance with Article 7 of this Regulation a Member State may not transfer or acquire ERUs or AAUs, until 16 months have elapsed since the submission of its report in accordance with Article 7(1) of Decision No 280/2004/EC, unless the Secretariat to the UNFCCC has informed that Member State that compliance procedures will not be commenced.

Pursuant to Article 8 of Decision No 280/2004/EC, if the Secretariat to the UNFCCC informs a Member State that it does not meet the requirements allowing it to transfer or acquire ERUs or AAUs, or use CERs, the relevant body of the Member State shall instruct the registry administrator not to initiate those transactions requiring such eligibility.

▼M1

2. When, from 1 January 2008 onwards, the holdings of ERUs, CERs, AAUs and RMUs valid for the relevant five-year period in the Party holding accounts, operator holding accounts, person holding accounts and retirement accounts in a Member State become less than 1 per cent higher than the commitment period reserve, calculated as 90 per cent of the Member State's assigned amount or 100 per cent of five times its most recently reviewed inventory, whichever is the lowest, the Central Administrator shall notify that Member State.

▼B







SECTION 4

Verified emissions

▼M1

Article 51

Verified emissions of an installation

1. Upon the verification as satisfactory, in accordance with the detailed requirements established by the Member State pursuant to Annex V of Directive 2003/87/EC, of an operator's report on the emissions from an installation during a previous year, each verifier, including those competent authorities acting as verifiers shall enter or approve the entry of the annual verified emissions for that installation for that year into the section of the verified emissions table designated for that installation for that year in accordance with the verified emissions update process set out in Annex VIII to this Regulation.

2. The registry administrator may prohibit the entry of the annual verified emissions for an installation until the competent authority has received the verified emissions report submitted by operators pursuant to Article 14(3) of Directive 2003/87/EC for that installation, and enabled the registry to receive the annual verified emissions.

3. The competent authority may instruct the registry administrator to correct the annual verified emissions for an installation for a previous year to ensure compliance with the detailed requirements established by the Member State pursuant to Annex V to Directive 2003/87/EC, by entering the corrected annual verified emissions for that installation for that year into the section of the verified emissions table designated for that installation for that year in accordance with the verified emissions update process set out in Annex VIII to this Regulation.

4. If the competent authority instructs the registry administrator to correct the annual verified emissions for an installation for a previous year after the deadline specified in Article 6(2) of Directive 2003/87/EC for surrendering allowances equal to the emissions of that previous year, the Central Administrator shall only allow such a correction if it was informed of the competent authority’s decision on the new compliance status applicable to the installation as a result of the correction of the verified emissions.

▼B







SECTION 5

Surrender of allowances

Article 52

Surrender of allowances

An operator shall surrender allowances for an installation by requesting or, where provided in Member State legislation, be deemed to have requested, the registry administrator to:

(a) transfer a specified number of allowances for a specified year from the relevant operator holding account into the Party holding account of that registry;

(b) enter the number of transferred allowances into the section of the surrendered allowance table designated for that installation for that year.

The transfer and entry shall take place in accordance with the allowance surrender process set out under Annex IX.

Article 53

The use of CERs and ERUs

The use of CERs and ERUs by an operator in accordance with Article 11a of Directive 2003/87/EC in respect of an installation shall take place through an operator requesting the registry administrator to:

(a) transfer a specified number of CERs or ERUs for a specified year from the relevant operator holding account into the Party holding account of that registry;

(b) enter the number of transferred CERs and ERUs into the section of the surrendered allowance table designated for that installation for that year.

▼M3

The registry administrator shall only accept requests to surrender CERs and ERUs up to the percentage of allocation to each installation specified by Member State legislation. The CITL shall reject any request to surrender CERs and ERUs that would surpass the maximum allowed amount of CERs and ERUs to be surrendered in the Member State, or that would result in surrendering CERs or ERUs that are barred from surrendering in accordance with Article 11a of Directive 2003/87/EC.

▼B

The transfer and entry shall take place in accordance with the allowance surrender process set out under Annex IX.

▼M3

A CER or ERU that was already surrendered may not be surrendered again nor transferred to an operator or person holding account in the EU ETS.

Surrendered CERs and ERUs shall only be transferred into a retirement account.

▼M3 —————

▼M1

Article 55

Calculation of compliance status figures

Upon an entry being made into the section of the surrendered allowance table or verified emissions table designated for an installation, the registry administrator shall determine the following:

(a) for the years 2005, 2006 and 2007, the compliance status figure for that installation and for each year by calculating the sum of all allowances surrendered pursuant to Articles 52, 53 and 54 for the 2005 to 2007 period minus the sum of all verified emissions in the current five-year period up to and including the current year;

(b) for the year 2008 and each year thereafter, the compliance status figure for that installation and for each year by calculating the sum of all allowances surrendered pursuant to Articles 52, 53 and 54 for the current period minus the sum of all verified emissions from the year 2008 up to and including the current year, plus a correction factor.

The correction factor referred to in point (b) shall be zero if the 2007 figure was greater than zero, but shall remain as the 2007 figure if the 2007 figure is less than or equal to zero.

▼B

Article 56

Entries into the compliance status table

1. The registry administrator shall enter the installation’s compliance status figure calculated in accordance with Article 55 for each year into the section of the compliance status table designated for that installation.

2. On 1 May 2006 and on 1 May of each year thereafter the registry administrator shall notify the compliance status table to the competent authority. In addition, the registry administrator shall notify any changes to the entries for previous years of the compliance status table to the competent authority.

▼M1

Article 57

Entries into the verified emissions table

Where, on 1 May 2006 and on 1 May of each year thereafter, no verified emissions figure has been entered into the verified emissions table for an installation for a previous year, any substitute emissions figure determined pursuant to Article 16(1) of Directive 2003/87/EC which has not been calculated as closely as possible in accordance with the detailed requirements established by the Member State pursuant to Annex V of Directive 2003/87/EC shall not be entered into the verified emissions table.

▼B







SECTION 6

Cancellation and retirement

▼M3 —————

▼M1

Article 59

Cancellation and retirement of surrendered allowances for the 2008 to 2012 period and subsequent periods

1. By 30 June 2009 and 30 June of each year thereafter, the registry administrator shall cancel allowances surrendered for the 2008 to 2012 period and each subsequent five year period, by: (a) converting a number of allowances issued for that five-year period and held in the Party holding account, equal to the total number of allowances surrendered pursuant to Article 52 as entered in the surrendered allowance table since 1 January of the first year of the relevant period until 31 May of the subsequent year and since 1 June of the preceding year until 31 May of each of the subsequent years, into AAUs by removing the allowance element from the unique unit identification code of each such AAU comprising the elements set out in Annex VI in accordance with the ‘conversion of surrendered allowances for retirement (2008 to 2012 onwards)’ process set out in Annex IX; and (b) transferring a number of Kyoto units of the type specified by the competent authority, with the exception of Kyoto units resulting from projects referred to in Article 11a(3) of Directive 2003/87/EC, equal to the total number of allowances surrendered pursuant to Articles 52 and 53 as entered in the surrendered allowance table since 1 January of the first year of the relevant period until 31 May of the subsequent year and from 1 June of the preceding year until 31 May of each of the subsequent years, from the Party holding account to the retirement account for the relevant period in accordance with the ‘retirement of surrendered allowances (2008 to 2012 onwards)’ process set out in Annex IX.

2. After 30 June 2013 and 30 June of the year after the end of each subsequent five-year period, the registry administrator may retire any allowances not yet allocated to operators by converting them into AAUs through removing the allowance element from the unique unit identification code of each such AAU comprising the elements set out in Annex VI in accordance with the ‘conversion of unallocated allowances for retirement (2008 to 2012 onwards)’ process set out in Annex IX and transferring them from the Party holding account to the retirement account for the relevant period in accordance with the ‘retirement of unallocated allowances (2008 to 2012 onwards)’ process set out in Annex IX.

▼M3 —————

▼B







SECTION 8

Voluntary cancellation and retirement

Article 62

Voluntary cancellation of allowances and Kyoto units

1. The registry administrator shall carry out any request from an account holder pursuant to Article 12(4) of Directive 2003/87/EC to voluntarily cancel allowances or Kyoto units held in any of his holding accounts. The voluntary cancellation of allowances and Kyoto units shall take place in accordance with paragraphs 2 and 3.

▼M3 —————

▼B

3. For Kyoto units and allowances issued for the 2008-2012 period and subsequent five-year periods the registry administrator shall transfer the number of Kyoto units or allowances specified by the account holder from his account to the appropriate cancellation account for the 2008-2012 period and subsequent five-year periods in accordance with the cancellation (2008-2012 onwards) process set out Annex IX.

4. Allowances or Kyoto units held in a cancellation account may not be transferred to any other account in the registries system or to any account in the CDM registry or in a third country registry.

Article 63

Retirement of Kyoto units

▼M1

1. If instructed by the relevant body of the Member State, the registry administrator shall transfer any quantity and types of Kyoto units specified by that body which have not already been retired pursuant to Article 59 from the Party holding account to the appropriate retirement account in his registry in accordance with the ‘retirement of Kyoto units (2008 to 2012 onwards)’ process set out in Annex IX.

▼B

2. An operator or person shall not be able to transfer allowances from his operator or person holding account into a retirement account.

3. Kyoto units held in a retirement account may not be transferred to any other account in the registries system or to any account in the CDM registry or in a third country registry.

▼M1







CHAPTER VA

OPERATION OF REGISTRIES OF MEMBER STATES WHICH DO NOT HAVE AAUS

Article 63a

Operation of registries of Member States which do not have AAUs

1. Member States that are not able to issue AAUs due to reasons other than being determined to be ineligible to transfer and acquire ERUs and AAUs, and use CERs in accordance with the provisions of Decision 11/CMP.1 of the Kyoto Protocol to the UNFCCC shall establish, operate and maintain their registries in a consolidated manner with the Community registry. Articles 3(3), 4, 6(1), 11(1), (3) and (4), 30(1), 34, 35, 36, 44(3), 45, 49(1), 59, 60, 61, 65 shall not apply to those registries.

2. From 1 January 2008, the registries operated in accordance with paragraph 1 shall be capable of executing the processes applicable to them in Annexes VIII, IX, X, XI and XIa.

Article 63b

Communication link between registries operated in accordance with Article 63a and the Community independent transaction log

Registries operated in accordance with Article 63a shall communicate with the Community independent transaction log through a communication link established by the Community registry.

The Central Administrator shall activate the communication link after the testing procedures set out in Annex XIII and the initialisation procedures set out in Annex XIV have been completed successfully and notify the administrator of the Community registry thereof.

Article 63c

Registries operated in accordance with Article 63a: detection of discrepancies and inconsistencies by the UNFCCC independent transaction log

The UNFCCC independent transaction log shall inform a registry operated in accordance with Article 63a of any discrepancy detected in a process which that registry has initiated through the administrator of the Community registry.

The registry operated in accordance with Article 63a shall terminate the process and the administrator of the Community registry shall inform the UNFCCC independent transaction log thereof. The administrator of the registry operated in accordance with Article 63a, and any other registry administrators concerned shall immediately inform the relevant account holders that the process has been terminated.

Article 63d

Registries operated in accordance with Article 63a: Finalisation of processes concerning accounts, verified emissions and automatic national allocation plan table changes

When there is a communication link established between the two independent transaction logs and if processes concerning accounts, verified emissions and automatic national allocation plan table changes are directed through the UNFCCC independent transaction log, those processes shall be final when both independent transaction logs successfully inform the Community registry that they have not detected any discrepancies in the proposal initiated by the registry operated in accordance with Article 63a.

In all cases different from those referred to in the first paragraph, all processes referred to in Annexes VIII and XIa shall be final when the Community independent transaction log successfully informs the Community registry that it has not detected any discrepancies in the proposal initiated by the registry operated in accordance with Article 63a.

Article 63e

Registries operated in accordance with Article 63a: finalisation of processes concerning transactions within registries

All processes referred to in Annex IX, except the external transfer process, shall be final when both independent transaction logs inform the Community registry that they have not detected any discrepancies in the proposal initiated by the registry operated in accordance with Article 63a and the Community registry has successfully sent confirmation to both independent transaction logs that the registry operated in accordance with Article 63a has updated its records in accordance with its proposal.

However, prior to the communication link between the Community independent transaction log and the UNFCCC independent transaction log being established, all processes referred to in Annex IX, except the external transfer process, shall be final when the Community independent transaction log informs the Community registry that it has not detected any discrepancies in the proposal initiated by the registry operated in accordance with Article 63a and the Community registry has successfully sent confirmation to the Community independent transaction log that the registry operated in accordance with Article 63a has updated its records in accordance with its own proposal.

Article 63f

Registries operated in accordance with Article 63a: finalisation of the external transfer process

The external transfer process involving a registry operated in accordance with Article 63a shall be final when both independent transaction logs inform the acquiring registry (or the Community registry if the acquiring registry is a registry operated in accordance with Article 63a) that they have not detected any discrepancies in the proposal sent by the initiating registry (or the Community registry if the initiating registry is a registry operated in accordance with Article 63a) and the acquiring registry (or the Community registry if the acquiring registry is a registry operated in accordance with Article 63a) has successfully sent confirmation to both independent transaction logs that the acquiring registry has updated its records in accordance with the initiating registry’s proposal.

However, prior to the communication link between the Community independent transaction log and the UNFCCC independent transaction log being established, the external transfer process involving a registry operated in accordance with Article 63a shall be final when the Community independent transaction log informs the acquiring registry (or the Community registry if the acquiring registry is a registry operated in accordance with Article 63a) that it has not detected any discrepancies in the proposal sent by the initiating registry (or the Community registry if the initiating registry is a registry operated in accordance with Article 63a) and the acquiring registry (or the Community registry if the acquiring registry is a registry operated in accordance with Article 63a) has successfully sent confirmation to the Community independent transaction log that it has updated its records in accordance with the initiating registry’s proposal.

Article 63g

Registries operated in accordance with Article 63a: Authentication

Registries operated in accordance with Article 63a shall be authenticated to the UNFCCC independent transaction log through the Community registry with the digital certificates issued by the Secretariat to the UNFCCC, or an entity designated by it.

However, until the communication link between the Community independent transaction log and UNFCCC independent transaction log is established, they shall be authenticated to the Community independent transaction log through the Community registry using digital certificates and usernames and passwords as specified in Annex XV. The Commission, or an entity designated by it, shall act as the certification authority for all digital certificates and shall distribute the usernames and passwords.

Article 63h

Special provisions concerning certain obligations of registry administrators of registries operated in accordance with Article 63a

The obligations provided for in Article 71 and Article 72(2) and (3) shall, as regards registry administrators of registries operated in accordance with Article 63a, be carried out by the administrator of the Community Registry.

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Article 63i

Registries operated in accordance with Article 63a: accounts

1. Registries operated in accordance with Article 63a shall contain at least two Party holding accounts created in accordance with Article 12.

2. One of the Party holding accounts shall be called the gateway deposit account. Only the gateway deposit account shall hold allowances with an initial unit type of 1.

3. Operator and personal holding accounts in registries operated in accordance with Article 63a shall be capable of holding allowances with an initial unit type of 1, allowances with an initial unit type of 0 and a supplementary unit type of 4, and, where authorised by Member State or Community legislation, CERs or ERUs. Account holders of these accounts shall not be allowed to initiate any transactions with allowances of an initial unit type of 1, with the exception of their conversion to allowances of an initial unit type of 0 and a supplementary unit type of 4, and their external transfer to registries not operated in accordance with Article 63a.

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Article 63j

Registries operated in accordance with Article 63a: national allocation plan table for the 2008 to 2012 period and each subsequent five-year period

Registries operated in accordance with Article 63a shall, subsequent to any correction to the national allocation plan table made pursuant to Article 44(2) which occurs after allowances have been issued under Article 45 and which reduces the total quantity of allowances issued under Article 45 for the 2008 to 2012 period or subsequent five-year periods, transfer the number of allowances specified by the competent authority from the holding accounts referred to in Articles 11(2) and 63i and in which the allowances are held to the cancellation account of the Community registry for the relevant period.

Article 63k

Registries operated in accordance with Article 63a: issue of allowances

The administrator of a registry operated in accordance with Article 63a shall after the national allocation plan table has been entered into the Community independent transaction log and, subject to Article 44(2), by 28 February of the first year of the 2008 to 2012 period and by 28 February of the first year of each subsequent five-year period, issue the total quantity of allowances set out in the national allocation plan table into the Party holding account.

When issuing such allowances the registry administrator shall assign a unique unit identification code to each allowance comprising the elements set out in Annex VI, whereby the initial unit type shall be 0 and the supplementary unit type shall be 4.

Allowances shall be issued in accordance with the allowance issue (registries referred to in Article 63a) process set out in Annex IX.

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Article 63l

Registries operated in accordance with Article 63a: transfers of allowances between operator holding accounts in registries operated in accordance with Article 63a and other registries

1. The registries operated in accordance with Article 63a shall carry out any transfer of allowances of an initial unit type of 0 and a supplementary unit type of 4 between a holding account within its registry or between two registries operated in accordance with Article 63a as requested by the account holder using the internal transfer process set out in Annex IX.

2. The registries operated in accordance with Article 63a shall not carry out any transfer of allowances of an initial unit type of 0 and a supplementary unit type of 4 to registries not operated in accordance with Article 63a.

3. The registries operated in accordance with Article 63a shall carry out any transfer of allowances of an initial unit type of 1 to registries not operated in accordance with Article 63a as requested by the account holder using the external transfer process set out in Annex IX.

4. The registries operated in accordance with Article 63a shall not carry out any transfer of allowances of an initial unit type of 1 to other holding accounts in the registry or to other registries operated in accordance with Article 63a, with the exception of transfers during the conversion of allowances with an initial unit type of 1 to allowances with an initial unit type of 0 and a supplementary unit type of 4.

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Article 63la

Conversion of allowances

1. The registry administrator of a registry operated in accordance with Article 63a shall carry out any conversion of an allowance of an initial unit type of 1 held in its registry into an allowance of an initial unit type of 0 and a supplementary unit type of 4 as requested by an account holder using the conversion of allowances to supplementary unit type 4 process by: (a) transferring the allowance to be converted to the gateway deposit account of the registry; and (b) issuing an equal amount of allowance with an initial unit type of 0 and a supplementary unit type of 4 to the account where the allowances to be converted were transferred from.

2. Where the registry administrator of a registry operated in accordance with Article 63a receives a request from an account holder to convert allowances with an initial unit type of 0 and a supplementary unit type of 4 into allowances of an initial unit type of 1, it shall verify whether the amount requested to be converted is lower than or equal to the balance of the gateway deposit account. If the amount requested to be converted is higher than the balance of the gateway deposit account, the registry administrator shall refuse to carry out the transaction. In other cases, the registry administrator shall carry out the transaction as requested by the account holder using the conversion of allowances to initial unit type of 1 process by: (a) transferring the allowances requested to be converted into the cancellation account; and (b) transferring an equal amount of allowances with an initial unit type of 1 to the account where the allowances to be converted were transferred from.

3. The administrator of the Community registry may convert AAUs into allowances of an initial unit type of 1 and shall transfer all such converted allowances into a gateway deposit account. Any allowances remaining in gateway deposit accounts after 30 June of the year following the end of the 2008-12 period and subsequent periods shall be transferred to the Community registry.

4. The Central Administrator shall make available to administrators of registries operated in accordance with Article 63a the data exchange format necessary for exchanging data between such registries and transaction logs concerning the conversions referred to in paragraphs 1 and 2.

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Article 63m

Registries operated in accordance with Article 63a: cancellation under Article 58 or Article 62

When carrying out a cancellation and retirement in accordance with Article 58 or a voluntary cancellation in accordance with Article 62, the administrator of a registry operated in accordance with Article 63a shall carry out the cancellation by transferring allowances as required under Article 58 or 62 into the cancellation account or the retirement account of the Community registry.

Article 63n

Registries operated in accordance with Article 63a: cancellation and retirement of surrendered allowances and CERs for the 2008 to 2012 period and subsequent periods

1. By 30 June 2009 and on 30 June each year thereafter, the registry administrator of a registry operated in accordance with Article 63a shall cancel a number of allowances and CERs held in the Party holding account pursuant to Articles 52 and 53.

The number of allowances and CERs to be cancelled shall be equal to the total number of surrendered allowances entered into the surrendered allowances table since 1 January of the first year of the relevant period until 31 May of the subsequent year and since 1 June of the preceding year until 31 May of each of the subsequent years.

2. Cancellation shall take place by transferring the allowances and CERs, with the exception of CERs resulting from projects referred to in Article 11a(3) of Directive 2003/87/EC, from the Party holding account into the retirement account of the Community Registry for the relevant period in accordance with the ‘retirement (registries referred to in Article 63a)’ process set out in Annex IX.

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Article 63p

Registries operated in accordance with Article 63a: cancellation and replacement of allowances issued for the 2008 to 2012 period and subsequent periods

1. On 1 May in 2013 and on 1 May in the first year of each subsequent five year period, each registry administrator of a registry operated in accordance with Article 63a shall cancel and replace allowances held in its registry in accordance with the allowance cancellation and replacement process set out in Annex IX by: (a) transferring a number of allowances, equal to the number of allowances issued for the preceding five-year period minus the number of allowances surrendered pursuant to Article 52 since 31 May of the preceding year, from their holding accounts referred to in Articles 11(2) and 63i to the cancellation account of the Community registry for the relevant period; (b) issuing an equal number of replacement allowances with a supplementary unit type of 4 for the current period into the Party holding account and assigning to each of these allowances a unique unit identification code comprising the elements set out in Annex VI; (c) transferring a number of those allowances issued in accordance with point (b) for the current period from the Party holding account into each operator and person holding account from which allowances were transferred in accordance with point (a), equal to the number of allowances that were transferred from those accounts under point (a).

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CHAPTER VI

SECURITY STANDARDS, AUTHENTICATION AND ACCESS RIGHTS

Article 64

Security standards

1. Each registry shall comply with the security standards set out in Annex XV.

2. The Community independent transaction log shall comply with the security standards set out in Annex XV.

Article 65

Authentication

The Member States and the Community shall use the digital certificates issued by the Secretariat to the UNFCCC, or an entity designated by it, to authenticate their registries and the Community independent transaction log to the UNFCCC independent transaction log.

However, from 1 January 2005 until the communication link between the Community independent transaction log and UNFCCC independent transaction log is established, the identity of each registry and the Community independent transaction log shall be authenticated using digital certificates and usernames and passwords as specified in Annex XV. The Commission, or an entity designated by it, shall act as the certification authority for all digital certificates and shall distribute the usernames and passwords.

Article 66

Access to registries

1. An authorised representative shall only have access to the accounts within a registry which he is authorised to access or be able to request the initiation of processes which he is authorised to request pursuant to Article 23. This access or these requests shall take place through a secure area of the website for that registry.

The registry administrator shall issue each authorised representative with a username and password to permit the level of access to accounts or processes to which he is authorised. Registry administrators may apply additional security requirements at their discretion if they are compatible with the provisions of this Regulation.

2. The registry administrator may assume that a user who has entered a matching username and password is the authorised representative registered under that username and password, until such point that the authorised representative informs the registry administrator that the security of his password has been compromised and requests a replacement. The registry administrator shall promptly issue such replacement passwords.

3. The registry administrator shall ensure that the secure area of the registry website is accessible to any computer using a widely available Internet browser. Communications between the authorised representatives and the secure area of the registry website shall be encrypted in accordance with the security standards in Annex XV.

4. The registry administrator shall take all necessary steps to ensure that unauthorised access to the secure area of the registry website does not occur.

Article 67

Suspension of access to accounts

1. The Central Administrator and each registry administrator may only suspend an authorised representative’s password to any accounts or processes to which he would otherwise have access if the authorised representative has, or that administrator has reasonable grounds to believe the authorised representative has: (a) attempted to access accounts or processes which he is not authorised to access; (b) repeatedly attempted to access an account or a process using a non-matching username and password; or (c) attempted, or is attempting, to undermine the security of the registry or the registries system.

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1a. An administrator may suspend the access of authorised representatives and additional authorised representatives to a specific account where one of the following conditions is fulfilled: (a) the account holder died without a legal successor or ceased to exist as a legal person; (b) the account holder did not pay its fees; or (c) the account holder violated the terms and conditions applicable to the account; or (d) the account holder did not agree to the changes in the terms and conditions; (e) the account holder did not provide evidence concerning the changes to account information; (f) the account holder failed to maintain the required minimum number of authorised representatives for the account; (g) the account holder failed to maintain compliance with the Member State requirement to have an authorised representative with a permanent residence in the Member State of the administrator of the account; (h) the account holder failed to maintain compliance with the Member State requirement that the account holder have a permanent residence or registration in the Member State of the administrator of the account.

1b. The registry administrator may suspend access to a person holding account if it considers that its opening should have been refused on the basis of Article 19(2). The account holder may object to the suspension with the competent authority or the relevant authority under national law within 30 calendar days, who shall either instruct the registry administrator to reinstate access or uphold the suspension in a reasoned decision.

1c. The competent authority, or in the case of accounts in the Union registry, the Central administrator may also instruct the administrator to implement a suspension in accordance with paragraph 1a.

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2. Where access to an operator holding account has been suspended pursuant to paragraph 1 or pursuant to Article 69 between 28 April and 30 April in any year from 2006 onwards, the registry administrator shall, if so requested by the account holder and following submission of his authorised representative's identity by means of supporting evidence, surrender the number of allowances and use the number of CERs and ERUs specified by the account holder in accordance with the allowance surrender process set out in Article 52 and 53 and Annex IX.







CHAPTER VII

AVAILABILITY AND RELIABILITY OF INFORMATION

Article 68

Availability and reliability of registries and the Community independent transaction log

The Central Administrator and each registry administrator shall take all reasonable steps to ensure that:

(a) the registry is available for access by account holders 24 hours a day, 7 days a week, and that the communication