on the position to be adopted, on behalf of the European Union, in the EEA Joint Committee concerning an amendment to Annex XX (Environment) to the EEA Agreement (CO2 Emissions)

EXPLANATORY MEMORANDUM

1.CONTEXT OF THE PROPOSAL

In order to ensure the requisite legal security and homogeneity of the Internal Market, the EEA Joint Committee is to integrate all the relevant EU legislation into the EEA Agreement as soon as possible after its adoption.

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

The draft Decision of the EEA Joint Committee (annexed to the proposed Council Decision) aims to amend Annex XX (Environment) to the EEA Agreement in order to incorporate Regulations (EC) No 443/2009, (EU) No 1014/2010, (EU) No 63/2011, (EU) No 725/2011, (EU) No 429/2012, (EU) No 396/2013, (EU) No 397/2013,(EU) No 333/2014 and (EU) No 6/2015 into the EEA Agreement.

The EEA EFTA States are requesting adaptations which go above the level of mere technical adjustments.

Justification of the main requested adaptations and proposed solution

Regulation (EC) No 443/2009 establishes a system of emission performance standards for new passenger cars. The draft JCD extends the EU system to the EEA EFTA States, so that the system will encompass all the EEA States.

Excess emissions premiums, Article 9(1) of Regulation (EC) No 443/2009 as reflected in adaptation (i) in the JCD

An adaptation text has been included to the effect that it will be for the EFTA Surveillance Authority to impose excess emissions premiums on manufacturers in the EEA EFTA States.

Premiums will be imposed jointly for new passenger cars sold in the EU and the EEA EFTA States respectively. Consequently, the premiums need to be distributed between the EU/EFTA sides.

A distribution key is therefore suggested, so that the premiums are distributed proportionally based on the share of new passenger cars registered in the EU or in the EFTA States, respectively, relative to the total number of new passenger cars registered in the EEA.

Collection of excess emissions premiums, Article 9(3) of Regulation (EC) No 443/2009 as reflected in adaptation (j) in the JCD

Article 9(3) provides a legal basis for the Commission to establish methods for the collection of excess emissions premiums. Such methods were established by Commission Decision 2012/100/EU. As there is a separate surveillance authority and surveillance system under the EEA Agreement, an adaptation text has been included for the EFTA Surveillance Authority to determine the means for collecting excess emissions premiums. These means shall be based on the Commission’s means.

Allocation of excess emissions premiums, Article 9(4) of Regulation (EC) No 443/2009 as reflected in adaptation (k) in the JCD

Article 9(4) states that the premiums shall be considered revenue for the general budget of the EU.

Consequently, an adaptation text has been included for the EFTA States to determine the allocation of the amounts of the excess emissions premium that correspond to the EFTA side.

Applicability of Regulation (EC) No 443/2009 to Liechtenstein as reflected in adaptation (n) in the JCD

The historically longstanding relationship between Liechtenstein and Switzerland is very close and heavily influenced by the Customs and Currency Treaty between the two countries (establishing a customs and currency union) which was concluded in 1923 (LGBl. 1923 No 24). The Customs and Currency Treaty with Switzerland also has a significant impact on the environmental and fiscal strategies of Liechtenstein. Many Swiss environmental provisions are, by way of the Customs and Currency Treaty, directly applicable in Liechtenstein or are implemented into Liechtenstein law on the basis of bilateral treaties between the two countries.