2.

The following points shall be inserted after point 21ak (Directive 2004/107/EC of the European Parliament and of the Council): ‘21al. 32003 L 0087: Directive 2003/87/EC of the European Parliament and of the Council of 13 October 2003 establishing a scheme for greenhouse gas emission allowance trading within the Community and amending Council Directive 96/61/EC (OJ L 275, 25.10.2003, p. 32), as amended by: — 32004 L 0101: Directive 2004/101/EC of the European Parliament and of the Council of 27 October 2004 (OJ L 338, 13.11.2004, p. 18). The provisions of the Directive shall, for the purposes of this Agreement, be read with the following adaptations: (a) Without prejudice to future development by the EEA Joint Committee, it should be noted that the following Community acts are not incorporated into the EEA Agreement: (i) Council Decision 2002/358/EC of 25 April 2002 concerning the approval, on behalf of the European Community, of the Kyoto Protocol to the United Nations Framework Convention on Climate Change and the joint fulfilment of commitments thereunder, (ii) Decision No 280/2004/EC of the European Parliament and of the Council of 11 February 2004 concerning a mechanism for monitoring Community greenhouse gas emissions and for implementing the Kyoto Protocol. (b) The EFTA States shall be exempted from the provisions of the Directive relating to the three-year period beginning 1 January 2005, referred to in Article 11(1). (c) The following shall be added in Article 9(1), second subparagraph: “With regard to the five-year period beginning 1 January 2008, the plan of an EFTA State shall be published and notified at the latest immediately after the entry into force of the Decision of the EEA Joint Committee incorporating this Directive into the Agreement.” (d) In Article 9(3), the words “within three months” shall read “within two months or as soon as practicable thereafter” in so far as the five-year period starting on 1 January 2008 is concerned. (e) For the periods referred to in Article 11(2) and for the total quantity of allowances to be allocated for each period under Article 11(2), each EFTA State may allocate a greater percentage of its allowances against payment than any limitation established under Article 10. (f) The following shall be added in Article 11(2): “With regard to the five-year period beginning 1 January 2008 and as far as an EFTA State is concerned, this decision shall be taken at least two months before the beginning of that period or as soon as practicable thereafter.” (g) In Article 11(3), the words “Treaty, in particular Articles 87 and 88 thereof” shall read “the Agreement, in particular Articles 61 and 62 thereof”. (h) The first sentence in Article 11a(1) shall be replaced by the following: “Subject to paragraph 3, during each period referred to in Article 11(2), EFTA States may allow operators to use CERs and ERUs from project activities in the Community scheme as a percentage of the total quantity of allowances.” (i) The second sentence in Article 16(3) shall be replaced by the following: “The EFTA States shall provide for excess emissions penalties that are equivalent to those in the EC Member States.” (j) The following shall be added in Article 19(1): “The Liechtenstein registry may be hosted by Switzerland.” (k) The following paragraph shall be added to Article 20: “4. The issue, transfer and cancellation of allowances concerning the EFTA States and their operators shall be registered in the independent transaction log referred to in paragraph 1. The Central Administrator shall be competent to perform the tasks referred to in paragraphs 1 to 3 when the EFTA States or their operators are concerned.” (l) The following paragraph shall be added to Article 25: “3. Allowances of the Community system include allowances issued or traded by the EFTA States or their operators under the Community system. Upon conclusion by the Community of an agreement referred to in paragraph 1, no distinction shall be made between such allowances. The Commission shall keep the EFTA States informed regarding the negotiation and conclusion of agreements according to this Article at an early stage.” (m) The EFTA States participating in the EU Emission Trading Scheme will provide information according to the relevant requirements in the first subparagraph of Article 30(3), while the reporting requirements under the second subparagraph shall not apply to them. (n) The following shall be added at the beginning of Annex III(1): “International obligations of the EFTA States outside the scope of this Agreement shall not be subject to review by the EFTA Surveillance Authority.” (o) In Annex III(2), the words “assessments of actual and projected progress” shall be replaced by “verified emissions data reported by installations under the Directive, National Inventories and National Communications submitted to the UNFCCC Secretariat” with regard to the EFTA States. (p) In Annex III(4), the words “Community legislative and policy instruments” shall be replaced by “legislative instruments incorporated into the Agreement”. (q) In Annex III(5), the words “the Treaty, in particular Articles 87 and 88 thereof” shall read “the Agreement, in particular Articles 61 and 62 thereof”. (r) Annex III(12) shall be replaced by the following: “The plan shall specify the maximum amount of CERs and ERUs which may be used by the operators in the Emissions Trading Scheme as a percentage of the total quantity of allowances.” (s) The EFTA States shall bring into force the laws, regulations and administrative provisions necessary to comply with this Directive by 31 December 2007. (t) Combustion installations in Iceland with a rated thermal input exceeding 20 MW (except hazardous or municipal waste installations), but which have reported emissions to the competent authority of less than 25 000 tonnes of carbon dioxide equivalent (excluding emissions from biomass) in each of the three years preceding the date for submission of a national allocation plan for a period, shall be exempted from the scope of this Directive for the period for which that plan would apply, provided that the respective competent authority shows to the satisfaction of the EFTA Surveillance Authority that it is undertaking other policies and measures achieving the same results as Directive 2003/87/EC. As a consequence as long as no installations or activity pursuant to Annex I of Directive 2003/87/EC would be covered by the national allocation plan, the requirement under Article 9(1) to submit a plan shall not apply. (u) The EFTA Surveillance Authority shall apply the relevant provisions of the methodology as set out in the Commission's guidance documents COM(2003) 830 final, COM(2005) 703 final and COM(2006) 725 final for the assessment of a national allocation plan under Article 9(3) of Directive 2003/87/EC as applied in the Commission's Decisions on national allocation plans. 21am. 32004 D 0156: Commission Decision 2004/156/EC of 29 January 2004 establishing guidelines for the monitoring and reporting of greenhouse gas emissions pursuant to Directive 2003/87/EC of the European Parliament and of the Council (OJ L 59, 26.2.2004, p. 1). 21an. 32004 R 2216: 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 (OJ L 386, 29.12.2004, p. 1). The provisions of the Regulation shall, for the purposes of this Agreement, be read with the following adaptations: (a) Adaptation (k) to Directive 2003/87/EC shall apply mutatis mutandis to the Regulation. (b) The following sub-paragraph shall be added to Article 6(3): “If registries in the EFTA States are concerned, the Central Administrator shall be instructed by the EFTA Surveillance Authority.” (c) In Article 8(4), the words “and the EFTA Surveillance Authority” shall be inserted after the word “Commission”. (d) In Article 44(1), the words “1 January 2007” shall read “15 December 2007”. (e) The following paragraph shall be added to Article 44: “4. If national allocation plan tables of the EFTA States are concerned, the Central Administrator shall be instructed by the EFTA Surveillance Authority.” 21ao. 32006 D 0780: Commission Decision 2006/780/EC of 13 November 2006 on avoiding double counting of greenhouse gas emission reductions under the Community emissions trading scheme for project activities under the Kyoto Protocol pursuant to Directive 2003/87/EC of the European Parliament and of the Council (OJ L 316, 16.11.2006, p. 12).’