EUROPEAN COMMISSION Brussels, 23.9.2016 SWD(2016) 316 final COMMISSION STAFF WORKING DOCUMENT Accompanying the document REPORT FROM THE COMMISSION Report to facilitate the calculation of the assigned amount of the European Union, and the report to facilitate the calculation of the joint assigned amount of the Union, its Member States and Iceland pursuant to Article 3(7bis), (8) and (8bis) of the Kyoto Protocol for the second commitment period, as required under Article 3(2) of Council Decision (EU) 2015/1339

{COM(2016) 618 final}



Structure This document generally follows the structure and the requirements set out in Annex I to Decision 2/CMP.8 (Implications of the implementation of decisions 2/CMP.7 to 5/CMP.7 on the previous decisions on methodological issues related to the Kyoto Protocol, including those relating to Articles 5, 7 and 8 of the Kyoto Protocol). In addition, this document also reflects the additional guidance contained in Decision 3/CMP.11. This decision contains relevant provisions related to reporting and accounting for the second commitment period under the Kyoto Protocol, including the specification of elements for this report. Chapter 2 of this report presents the items of information as required above. The deadline for submitting the report to facilitate the calculation of the assigned amount for the second commitment period under the Kyoto Protocol was originally 15 April 2015 in accordance with Decision 2/CMP.8 of the Conference of the Parties serving as the meeting of the Parties to under the Kyoto Protocol. A functioning common reporting format (CRF) reporter software was not available for the GHG inventory submissions and for the calculation of the assigned amount in 2015. According to Decision 4/CMP.11 of the Conference of the Parties serving as the meeting of the Parties to the Kyoto Protocol, the CRF Reporter version 5.0.0 was not functioning in order to enable Annex I Parties to prepare their inventory submissions. In the same Decision, the CMP noted that a delay in the submission of the CRF tables by a Party also delays the submission of the report to facilitate the calculation of its assigned amount referred to in Decision 2/CMP.8, paragraph 2. 1.Introduction

The targets (quantified emission limitation commitments, QELRCs) for the Union and its Member States are listed in the Doha Amendment with a footnote stating that those targets are based on the understanding that they will be fulfilled jointly by the European Union (EU) and its Member States, in accordance with Article 4 of the Kyoto Protocol. The Union, its Member States at the time, Croatia and Iceland also issued a joint declaration upon the adoption of the Doha Amendment, expressing their intention to fulfil their commitments in the second commitment period jointly. Article 4 of the Kyoto Protocol requires Parties that agree to fulfil their commitments under Article 3 of the Kyoto Protocol jointly to set out in the relevant joint fulfilment agreement the respective emission level allocated to each of the Parties. Council Decision (EU) 2015/1339 on the conclusion, on behalf of the EU, of the Doha Amendment to the Kyoto Protocol to the UNFCCC and the joint fulfilment of commitments thereunder (from here onwards also referred to as "the ratification decision") sets out the terms of the joint fulfilment and the respective emission levels for the Union, the Member States and Iceland (Annex I to that Decision). Those emission levels were determined in line with the existing responsibilities under EU legislation contained in the EU’s ‘Climate and Energy package’. Negotiations between the EU and Iceland on the joint fulfilment were completed in June 2014. The agreement was signed on 1 April 2015 and approved on behalf of the Union on 13 July 2015 (from here onwards also referred to as the "agreement with Iceland") and it contains the same terms of the joint fulfilment as set out in Council Decision 2015/1339. In the ratification decision, the Commission is tasked to prepare the report to facilitate the calculation of the assigned amount of the Union and the report to facilitate the calculation of the joint assigned amount of the Union, its Member States and Iceland ("the joint assigned amount"). The Member States and Iceland will submit their own initial reports, which will determine their assigned amounts as equal to their emission levels as agreed under the joint fulfilment. The Kyoto Protocol requires the parties to a joint fulfilment agreement to notify the Convention Secretariat of the terms of that agreement on the date of deposit of their instruments of ratification or approval. 2.Provision of information 2.1.Inventories of anthropogenic emissions by sources and removals by sinks of greenhouse gases not controlled by the Montreal Protocol The annual greenhouse gas inventory of the EU covers anthropogenic emissions by sources and removals by sinks of greenhouse gases not controlled by the Montreal Protocol arising on the territory of the Union, calculated as the sum of the emissions and removals of the 28 Member States as reported in their respective national inventories. For the purposes of the joint fulfilment of the EU, its Member States and Iceland under the second commitment period of the Kyoto Protocol, the joint greenhouse gas inventory submitted by the EU under the Kyoto Protocol reflects the sum of emissions and removals of the 28 Member States plus other non-EU territories that are part of the Kyoto Protocol and Iceland (from here onwards referred to as the "joint inventory"). The complete joint inventory of anthropogenic emissions by sources and removals by sinks of greenhouse gases not controlled by the Montreal Protocol for all years from the base year to the year 2014 for the EU, its Member States and Iceland is submitted as a separate document in conjunction with this report in accordance with paragraph 1(a) of Annex I to Decision 2/CMP.8. The greenhouse gas inventory is reported based on the UNFCCC reporting guidelines on annual greenhouse gas inventories, the guidelines for the preparation of information required under Article 7 of the Kyoto Protocol (Decision 15/CMP.1 and Annex III of Decision 3/CMP.11) and the guidance for reporting information on activities under Article 3(3) and (4), of the Kyoto Protocol (Decision 6/CMP.9). 2.1.1.Geographical coverage of the joint inventory under the second commitment period of the Kyoto Protocol The joint inventory under the Kyoto Protocol covers the geographical coverage of the 28 Member States and Iceland under the Kyoto Protocol as specified in the table below: Table 21 Geographical coverage of the joint inventory under the Kyoto Protocol Member State Geographical coverage Austria Austria Belgium Belgium consisting of Flemish Region, Walloon Region and Brussels Region Bulgaria Bulgaria Croatia Croatia Cyprus Republic of Cyprus (Area of the Republic of Cyprus under the effective control of the Government of the Republic of Cyprus) Czech Republic Czech Republic Denmark Denmark excluding Greenland and the Faeroe Islands. Estonia Estonia Finland Finland including Åland Islands France The geographical scope of the inventory under the Kyoto Protocol for the year 2013 is without Mayotte i. e. Metropolitan France, the overseas departments (Guadeloupe, Martinique, Guyana and Réunion) and 2 overseas communities (Saint Barthélemy and Saint-Martin), excluding the other French overseas communities (French Polynesia, Wallis and Futuna, Saint-Pierre and Miquelon and Mayotte) and overseas territories (the French Southern and Antarctic Lands) and New Caledonia The geographical scope of the inventory under the Kyoto Protocol for the period 2014-2020 is with Mayotte i. e. Metropolitan France, the overseas departments (Guadeloupe, Martinique, Guyana, Réunion and Mayotte) and 2 overseas communities (Saint Barthélemy and Saint-Martin), excluding the other French overseas communities (French Polynesia, Wallis and Futuna, Saint-Pierre and Miquelon) and overseas territories (the French Southern and Antarctic Lands) and New Caledonia Germany Germany Greece Greece Hungary Hungary Ireland Ireland Italy Italy Latvia Latvia Lithuania Lithuania Luxembourg Luxembourg Malta Malta Netherlands The legal territory of the Netherlands used in the inventory includes a 12-mile zone from the coastline and also inland water bodies. It excludes Aruba and the Netherlands Antilles, which are self-governing dependencies of the Royal Kingdom of The Netherlands. Emissions from offshore oil and gas production on the Dutch part of the continental shelf are included. Poland Poland Portugal Mainland Portugal and the two Autonomous regions of Madeira and Azores Islands Romania Romania Slovakia Slovakia Slovenia Slovenia Spain Spanish part of Iberian mainland, Canary Islands, Balearic Islands, Ceuta and Melilla Sweden Sweden United Kingdom The territorial coverage has been extended to include complete coverage of emissions for the UK’s Crown Dependencies and those UK Overseas Territories that joined the UK’s ratifications of the UNFCCC and the Kyoto Protocol during its first commitment period. The final extent of territorial coverage for the second commitment period of the Kyoto Protocol has yet to be fully determined, as it will depend on which of the UK’s Crown Dependencies and Overseas Territories join the UK’s ratification in respect of the second commitment period. Iceland Iceland 2.1.2.Greenhouse gas inventory for 1990-2014 The information described below is taken from the joint inventory, which covers the sum of the inventories of the Member States and Iceland for all emissions and removals of greenhouse gases on the territory of the Member States and Iceland subject to the emission reduction commitments under the Kyoto Protocol (see 2.1.1 above). Under the terms of the joint fulfilment, the combined base year emissions of the EU, its Member States and Iceland equal the sum of emissions and removals in the respective base years chosen by each Member State and Iceland plus any emissions resulting from the application of Kyoto Protocol Article 3(7bis) (from here onwards referred to as the "combined base year"). The information on the calculation and choices for the combined base year is contained in section 2.2. In 2014, the total combined GHG emissions, without LULUCF, were 4 290 million tonnes CO2 equivalents, or 24.4% below 1990 levels (Figure 1). Compared to the combined base year, emissions in 2014 were 27.0% lower (Figure 2). Under the Doha Amendment of the Kyoto Protocol, the EU, its Member States and Iceland have agreed to jointly reduce their combined average annual emissions during 2013-2020 by 20% compared to their combined base year emission levels. Table 2-2 shows the combined GHG emissions of Member States and Iceland. Figure 2.1 Combined GHG emissions for the period 1990-2014 (excluding LULUCF) in Mt CO2eq

Table 22 Greenhouse gas emissions in Mt CO2 equivalents for the Member States, the EU and Iceland (excl. LULUCF) Member State Base year 1990 1995 2000 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Austria 78.9 78.8 79.8 80.4 92.8 90.0 87.2 87.1 80.2 84.9 82.6 79.9 80.0 76.3 Belgium 147.8 146.0 154.0 149.2 144.8 141.0 136.5 138.7 125.8 133.3 122.8 118.8 119.4 113.9 Bulgaria 114.6 104.0 73.5 58.3 62.7 63.3 67.2 66.0 57.1 59.8 65.1 60.0 54.9 57.2 Croatia 31.2 34.8 24.4 27.0 31.1 31.5 33.0 31.7 29.7 29.0 28.4 26.1 25.0 24.5 Cyprus 5.7 5.7 7.1 8.4 9.3 9.6 9.9 10.1 9.9 9.6 9.3 8.7 8.0 8.4 Czech Republic 199.3 199.3 158.1 150.9 148.7 150.5 151.3 146.5 138.0 140.2 138.8 134.7 130.7 125.9 Denmark 71.0 70.7 78.6 71.1 66.7 74.5 69.8 66.2 63.2 63.6 58.4 53.5 55.5 51.2 Estonia 40.0 40.0 19.9 17.1 18.3 17.7 20.8 19.4 16.2 19.9 20.5 19.4 21.7 21.1 Finland 71.4 71.3 71.8 70.0 69.5 80.7 79.2 71.3 67.7 75.9 68.0 62.4 63.3 59.1 France 548.1 548.1 547.0 554.3 554.8 543.1 534.0 527.2 506.5 514.5 487.0 488.4 486.5 458.9 Germany 1 249.9 1 246.1 1 118.5 1 041.1 989.9 997.2 970.2 972.1 904.7 939.4 920.2 924.7 943.5 900.2 Greece 107.7 104.8 110.8 127.7 136.0 132.2 135.0 131.3 124.8 118.7 115.7 112.2 104.7 101.4 Hungary 109.6 94.1 75.7 73.6 75.9 74.9 73.1 71.3 65.1 65.5 63.8 60.1 57.6 57.2 Ireland 56.4 56.2 59.9 69.3 70.4 69.8 69.1 68.5 62.9 62.3 58.2 58.7 58.5 58.3 Italy 521.9 521.9 533.4 554.5 578.9 569.1 561.1 549.5 498.9 508.4 494.8 468.7 438.9 418.6 Latvia 26.2 26.2 12.8 10.4 11.4 11.9 12.4 11.9 11.1 12.3 11.5 11.4 11.3 11.3 Lithuania 47.1 47.1 21.6 18.7 22.3 22.6 24.6 23.7 19.3 20.1 20.6 20.4 19.1 19.0 Luxembourg 12.9 12.9 10.1 9.7 13.0 12.9 12.3 12.2 11.6 12.2 12.1 11.8 11.2 10.8 Malta 2.0 2.0 2.5 2.6 3.0 3.1 3.2 3.2 3.1 3.1 3.2 3.3 3.0 3.0 Netherlands 224.6 222.2 232.2 220.3 214.4 209.4 208.3 207.7 201.9 213.8 200.0 195.3 195.0 187.1 Poland 579.9 472.9 445.2 392.2 396.9 411.0 410.9 402.8 385.5 406.2 403.3 396.9 393.4 380.3 Portugal 65.0 60.7 71.4 84.0 88.2 83.1 80.6 78.3 75.2 70.4 68.9 67.1 65.0 64.6 Romania 301.1 251.9 182.8 140.5 146.6 148.9 146.3 141.2 123.5 117.0 121.7 120.1 110.0 109.8 Slovakia 74.7 74.7 54.7 49.9 51.5 51.4 49.5 50.2 45.6 46.5 45.7 43.3 42.9 40.6 Slovenia 20.3 18.6 18.8 19.1 20.5 20.7 20.8 21.5 19.6 19.6 19.6 19.0 18.3 16.6 Spain 288.7 285.9 325.7 385.1 438.5 431.3 440.1 409.0 371.5 360.8 360.4 355.4 327.4 328.9 Sweden 72.1 71.9 74.0 68.9 67.0 66.9 65.4 63.1 59.1 65.0 61.0 57.6 55.9 54.4 United Kingdom 803.7 799.8 752.2 717.3 695.7 690.0 677.7 657.7 599.3 613.9 565.7 582.6 569.8 527.2 EU-28 5 873.9 5 668.7 5 316.6 5 171.5 5 219.0 5 208.1 5 149.5 5 039.3 4 676.7 4 786.0 4 627.1 4 560.5 4 470.6 4 285.6 Iceland 3.6 3.6 3.4 4.0 3.9 4.5 4.7 5.1 4.9 4.7 4.5 4.6 4.5 4.6 EU-28+Iceland 5 877.6 5 672.3 5 320.0 5 175.5 5 222.9 5 212.6 5 154.2 5 044.5 4 681.6 4 790.7 4 631.6 4 565.0 4 475.2 4 290.2 Note: The base year presented includes the emissions from deforestation in the base year for Denmark, Ireland, the Netherlands, Portugal and the United Kingdom in accordance with Article 3.7bis of the Doha amendment to the Kyoto Protocol. 2.2.Identification of base years for the second commitment period The joint inventory reflects the base years as chosen by the Member States and Iceland in their national inventories. The sections below provide information on these choices. Table 2 3 provides an overview of Member States’ and Iceland’s base years. 2.2.1.Base year for CO2, N2O and CH4 For carbon dioxide (CO2), methane (CH4) and nitrous oxide (N2O) all Member States and Iceland use 1990 as base year with the following exceptions: The base year for Slovenia is 1986. The base year for Bulgaria and Poland is 1988. The base year for Romania is 1989. The base year for Hungary is the average of the years 1985 to 1987. The choice of these different base years for these Member States is based on Article 4(6) of the United Nation Framework Convention on Climate Change. These are the same base years for these gases as in the first commitment period, apart from Cyprus and Malta who did not have a QELRC in the first commitment period and hence have identified their base year for the first time under the second commitment period. 2.2.2.Base year for hydrofluorocarbons, perfluorocarbons, sulphur hexafluoride in accordance with Article 3(8) of the Kyoto Protocol For hydrofluorocarbons, perfluorocarbons and sulphur hexafluoride, the choice of base year for the Member States and Iceland remains as in the first commitment period (see Table 2 3 below). Cyprus and Malta did not have to identify a base year in the first commitment period. They selected 1990 as base year for these gases. 2.2.3.Base year for nitrogen trifluoride in accordance with Article 3(8bis) of the Kyoto Protocol

According to Article 3(8bis) of the Doha Amendment to the Kyoto Protocol, any Party included in Annex I may use 1995 or 2000 as its base year for nitrogen trifluoride (NF3) for the purposes of the calculation referred to in paragraph 7 bis. The base year choices of the 28 Member States and Iceland related to NF3 are documented in Table 2 3 below. Most Member States have selected 1995. Table 23 Choice of base years for different greenhouse gases for the EU Member States and Iceland for the second commitment period under the Kyoto Protocol Member State Base year for CO2, CH4 and N2O Base year for HFCs, PFCs

and SF6 Base year for NF3 Austria 1990 1990 2000 Belgium 1990 1995 1995 Bulgaria 1988 1995 1995 Croatia 1990 1990 2000 Cyprus 1990 1995 1995 Czech Republic 1990 1995 1995 Denmark 1990 1995 1995 Estonia 1990 1995 1995 Finland 1990 1995 1995 France 1990 1990 1995 Germany 1990 1995 1995 Greece 1990 1995 2000 Hungary 1985-1987 1995 1995 Ireland 1990 1995 1995 Italy 1990 1990 1995 Latvia 1990 1995 1995 Lithuania 1990 1995 1995 Luxembourg 1990 1995 1995 Malta 1990 1990 1995 Netherlands 1990 1995 1995 Poland 1988 1995 2000 Portugal 1990 1995 2000 Romania 1989 1989 2000 Slovakia 1990 1990 2000 Slovenia 1986 1995 1995 Spain 1990 1995 1995 Sweden 1990 1995 1995 United Kingdom 1990 1995 1995 Iceland 1990 1990 1995 Based on the choices documented in Table 2 3 , the combined base year emissions for the joint fulfilment for each gas is the sum of the base year emissions of the gas concerned in 28 Member States plus the emissions from Iceland in its base year. 2.3.Terms of the joint fulfilment under Article 4 of the Kyoto Protocol for the second commitment period The Kyoto Protocol, under Article 4, provides the option for Parties to fulfil their commitments under Article 3 jointly. The European Union and its Member States already made use of this option during the first commitment period (2008-2012), fulfilling their respective commitments under Article 3 (1) of the Kyoto Protocol jointly as a bloc of 15 countries, which were Member States of the Union at the time the Kyoto Protocol was ratified. For the second commitment period, upon adoption of the Doha amendment to the Kyoto Protocol, the European Union, its Member States and Iceland stated that the European Union and its 28 Member States again intend to fulfil their reduction targets under the second commitment period jointly . The ratification decision (Council Decision (EU) 2015/1339) sets out the terms of the joint fulfilment between the Union and its Member States and Iceland. The same terms are integral part of the Agreement between the European Union and its Member States, of the one part, and Iceland, of the other part, concerning Iceland's participation in the joint fulfilment of the commitments of the European Union, its Member States and Iceland in the second commitment period of the Kyoto Protocol in accordance with Council Decision (EU) 2015/1340. Members of the joint fulfilment agreement for the second commitment period The EU its Member States and the Republic of Iceland are members of this agreement (referred to as ‘the members’). The following States are at present Member States of the European Union: the Kingdom of Belgium, the Republic of Bulgaria, the Czech Republic, the Kingdom of Denmark, the Federal Republic of Germany, the Republic of Estonia, Ireland, the Hellenic Republic, the Kingdom of Spain, the French Republic, the Republic of Croatia, the Italian Republic, the Republic of Cyprus, the Republic of Latvia, the Republic of Lithuania, the Grand Duchy of Luxembourg, Hungary, the Republic of Malta, the Kingdom of the Netherlands, the Republic of Austria, the Republic of Poland, the Portuguese Republic, Romania, the Republic of Slovenia, the Slovak Republic, the Republic of Finland, the Kingdom of Sweden, the United Kingdom of Great Britain and Northern Ireland. Iceland participates in this agreement pursuant to the agreement with Iceland concerning Iceland’s participation in the joint fulfilment of the commitments of the EU, its Member States and Iceland in the second commitment period of the Kyoto Protocol to the United Nations Framework Convention on Climate Change. Provisions of the joint fulfilment relevant to the calculation of the assigned amounts The joint assigned amount is calculated pursuant to the quantified emission limitation and reduction commitment listed in the third column of the table contained in Annex B to the Kyoto Protocol and in accordance with the provisions of Article 3 thereof. The assigned amounts of the members are determined in accordance with the terms of the joint fulfilment (see sections 2.3.1 and 2.4 below). The combined base year emissions of the members to the joint fulfilment equal the sum of emissions in the respective base years applicable to each Member State and Iceland. If land use, land-use change and forestry constituted a net source of greenhouse gas emissions in 1990 for any Member State or Iceland, that member shall, pursuant to Article 3(7bis) of the Kyoto Protocol, include in its emissions base year or period the aggregate anthropogenic carbon dioxide equivalent emissions by sources minus removals by sinks in the base year or period from land-use change (deforestation) for the purpose of calculating the joint assigned amount of the members determined in accordance with Article 3 (7bis), (8) and (8bis) of the Kyoto Protocol. The calculation pursuant to Article 3(7ter) of the Kyoto Protocol shall apply to the joint assigned amount of the second commitment period determined in accordance with Article 3 (7bis), (8) and (8bis) of the Protocol and the sum of the average annual emissions of the members for the first three years of the first commitment period multiplied by eight. 2.3.1.Respective emission levels allocated to the members to the joint fulfilment The joint quantified emission limitation and reduction commitment for the members listed in the third column of Annex B of the Kyoto Protocol for the EU, its 28 Member States and Iceland is 80%. The joint assigned amount of the Members is determined pursuant to Article 3(7bis), (8) and (8bis) of the Kyoto Protocol on the basis of the combined base year (see section 2.4).

The respective emission levels of the members to the joint fulfilment are as follows: The emission level and assigned amount for the EU is the difference between the joint assigned amount of the members, and the sum of the emission levels of the Member States and Iceland. The assigned amount of the EU is counted against the emissions of greenhouse gases listed in Annex A to the Kyoto Protocol that are also covered by the EU Emissions Trading System (EU ETS) pursuant to Directive 2009/29/EC of the European Parliament and of the Council amending Directive 2003/87/EC so as to improve and extend the greenhouse gas emission allowance trading scheme of the Community. The sectors covered by the EU Emissions Trading System are those specified in Annex I of the EU ETS Directive and taking into account the application of its Articles 24 and 27. The emission levels of the Member States and Iceland cover the emissions from sectors and gases listed in Annex A to the Kyoto Protocol not covered by Directive 2009/29/EC of the European Parliament and of the Council amending Directive 2003/87/EC so as to improve and extend the greenhouse gas emission allowance trading scheme of the Community. This includes all emissions from sources and removals by sinks covered by Article 3(3) and (4) of the Protocol as well as all emissions of nitrogen trifluoride (NF3) under the Kyoto Protocol. These emission levels are no longer derived as a reduction percentage compared to base year emissions as in the first commitment period, but as an absolute figure, expressed in tonnes of carbon dioxide equivalents listed for each Member State and Iceland. The figure for individual Member States is equal to the sum of each Member State’s Annual Emissions Allocation under Decision No 406/2009/EC on the effort of Member States to reduce their greenhouse gas emissions to meet the Community’s greenhouse gas emission reduction commitments up to 2020 (Effort Sharing Decision) for the years 2013 to 2020 before the application of Article 3(7bis). The respective emission levels of the 28 Member States and Iceland in accordance with Article 4(1) and (5) of the Protocol and before application of Article 3(7bis) are listed in Table 2 4 Table 24 Emission levels of the Member States and Iceland set out in the terms of the joint fulfilment before application of Article 3(7bis) for the second commitment period under the Kyoto Protocol Country Emission level [tonnes of CO2eq.] Belgium 584 228 513 Bulgaria 222 945 983 Czech Republic 520 515 203 Denmark 269 321 526 Germany 3 592 699 888 Estonia 51 056 976 Ireland 343 467 221 Greece 480 791 166 Spain 1 766 877 232 France 3 014 714 832 Croatia 162 271 086 Italy 2 410 291 421 Cyprus 47 450 128 Latvia 76 633 439 Lithuania 113 600 821 Luxembourg 70 736 832 Hungary 434 486 280 Malta 9 299 769 Netherlands 919 963 374 Austria 405 712 317 Poland 1 583 938 824 Portugal 402 210 711 Romania 656 059 490 Slovenia 99 425 782 Slovakia 202 268 939 Finland 240 544 599 Sweden 315 554 578 United Kingdom 2 743 362 625 Iceland 15 327 217 The terms of the joint fulfilment determine that the assigned amounts of the members shall be equal to their respective emission levels, adjusted for Article 3(7bis) of the Kyoto Protocol. The assessment of compliance of the joint fulfilment at the end of the second commitment period does not require changes to the annual inventory reporting. The EU, the 28 Member States and Iceland will continue to report individually on emissions by sources and removals by sinks, submitting full greenhouse gas inventories covering all anthropogenic emissions by sources and removals by sinks for gases listed on Annex A to the Kyoto Protocol and all source categories covered by the UNFCCC reporting guidelines occurring on their territories under the Kyoto Protocol. The EU will report in its national inventory report on the combined emissions of the 28 Member States and Iceland (see also section 2.1 above). 2.4.Calculation of the assigned amounts pursuant to Article 3(7bis), (8) and (8bis) As previously stated, the combined base year emissions of the EU, its Member States and Iceland are equal to the sum of the respective base year emissions of the 28 Member States and Iceland. The combined base year emissions represent the aggregate sum, taking account of the choice of base years for CO2, N2O, CH4, HFCs, PFCs, SF6 and NF3 for each Member State, as provided in Table 2-3. Table 2 5 presents the base year emissions as well as the net emissions in the base year/period reported in relation to the conversion of forests (deforestation) that are be included in the base year emissions for those countries for whom land-use change and forestry constituted a net source of greenhouse gas emissions in the base year/period in accordance with Article 3(7bis) of the Kyoto Protocol and , paragraph 5(b) of the Annex to Decision 13/CMP.1 as replaced by paragraph 2 of Annex I to Decision 3/CMP.11. The latter are also included in the calculation of the joint base year emissions. Table 25 Base year emissions of the EU Member States and Iceland, calculated pursuant to Article 3(7bis) Member State Base year emissions Net emissions in 1990 due to deforestation where LULUCF sector is a net source of emissions Final base year emissions, after application of Art. 3(7bis) tonnes CO2 equivalent Combined base year emissions 5 873 451 818 5 517 296 5 879 036 636 Austria 78 855 136 0 78 855 136 Belgium 147 811 094 0 147 811 095 Bulgaria 114 582 372 0 114 582 372 Croatia 31 204 631 0 31 204 631 Cyprus 5 646 847 0 5 646 847 Czech Republic 199 266 852 0 199 266 852 Denmark 70 973 233 6 583 70 979 816 Estonia 39 996 697 0 39 996 697 Finland 71 350 147 0 71 350 147 France 548 086 318 0 548 086 318 Germany 1 249 872 158 0 1 249 872 158 Greece 107 674 753 0 107 674 753 Hungary 109 574 819 0 109 574 819 Ireland 56 417 601 8 340 56 425 940 Italy 521 920 601 0 521 920 601 Latvia 26 311 539 0 26 311 539 Lithuania 47 215 485 0 47 215 485 Luxembourg 12 889 364 227 296 13 116 660 Malta 2 000 252 0 2 000 252 Netherlands 223 818 012 752 270 224 570 282 Poland 580 020 010 0 580 020 010 Portugal 60 689 753 4 276 759 64 966 512 Romania 304 651 060 0 304 651 060 Slovakia 74 504 046 0 74 504 046 Slovenia 20 327 584 0 20 327 584 Spain 288 694 596 0 288 694 596 Sweden 72 057 123 0 72 057 123 United Kingdom 803 473 698 246 048 803 719 746 Iceland 3 633 558 0 3 633 558 Note: All figures were rounded to tons in the calculation of base year emissions.

Base year emissions and net emissions in 1990 due to deforestation are derived from GHG inventory submissions in 2016. The calculation of the net emissions from deforestation includes all emissions and removals in 1990 reported in the categories forest land converted to other land uses calculated as deforestation emissions from land areas deforested in 1990, plus any emissions and removals from land areas deforested in the previous 19 years (as these land areas continue to be accounted for under deforestation for 20 years in accordance with the accounting rules under the Kyoto Protocol), plus non-CO2 emissions reported in CRF tables 4.I to 4.V that are related to deforestation. If reported, base year emissions include indirect CO2 emissions to ensure consistency with the scope of reported greenhouse gas emissions in the first commitment period. Pursuant to Article 3(7bis), (8) and (8bis) of the Kyoto Protocol and paragraph 2 of Annex I to Decision 3/CMP.11 under the Kyoto Protocol, the assigned amount for the second commitment period shall be equal to the percentage inscribed in the third column of Annex B to the Kyoto Protocol of the aggregate anthropogenic carbon dioxide equivalent emissions of greenhouse gases from the sources listed in Annex A to the Kyoto Protocol in the base year or period multiplied by eight, taking into account Article 3(7bis) of the Kyoto Protocol as explained above. This method of calculation is applied to the calculation of the joint assigned amount only. It does not apply to the calculation of the individual assigned amounts for the Union, the Member States individually, or Iceland. Thus, the calculations of the base year emissions do not play a role in the calculation of their individual assigned amounts, which are instead determined pursuant to the joint fulfilment agreement. This calculation results in a joint assigned amount of 37 616 498 648 tonnes CO2eq. for the EU, its Member States and Iceland (see Table 2 6 ). As was the case for the first commitment period, the joint assigned amount units will not be issued separately but instead the assigned amounts of each member of the joint fulfilment agreement and the assigned amount of the EU are recorded in the compilation and accounting database and the EU and each of the Member States and Iceland can issue their respective assigned amount units in their respective registries.

Table 26 Calculation of the joint assigned amount Combined base year emissions Of which are emissions in 1990 due to deforestation (Article 3(7bis) Kyoto Protocol) Emission reduction commitment as laid down in the third column of Annex 1 of the Doha amendment to the Kyoto Protocol Calculated joint assigned amount for the period 2013-2020 tonnes CO2eq. tonnes CO2eq. % tonnes CO2eq. European Union, Member States plus Iceland 5 873 451 818 5 517 296 80% 37 625 402 324 The respective assigned amounts of each Member State and Iceland are equal to the emission levels agreed under the terms of the joint fulfilment, listed in Annex 2 of the ratification decision and the results of the application of the second sentence of Article 3(7bis) of the Kyoto protocol for that Member State or Iceland. This is in accordance with paragraph 5(c) of the annex to Decision 13/CMP.1 of the Kyoto Protocol as replaced by paragraph 2 of Decision 3/CMP.11 of the Kyoto Protocol which requires that “those Parties that have reached an agreement in accordance with Article 4 to fulfil their commitments under Article 3 jointly shall use the respective emission level allocated to each of the Parties in that agreement instead of the percentage inscribed for it in the third column of Annex B”. The final assigned amounts for each Member State and Iceland are shown in Table 2 7 . The individual assigned amounts of each Member State and Iceland shall be issued in the Kyoto registry of the respective Member States and Iceland. Table 27 Assigned amounts for individual Member States and Iceland Member States and Iceland Assigned amount in tonnes CO2 eq. taking into account Article 3 (7bis) Austria 405 712 317 Belgium 584 228 513 Bulgaria 222 945 983 Croatia 162 271 086 Cyprus 47 450 128 Czech Republic 520 515 203 Denmark* 269 363 657 Estonia 51 056 976 Finland 240 544 599 France 3 014 714 832 Germany 3 592 699 888 Greece 480 791 166 Hungary 434 486 280 Ireland* 343 520 594 Italy 2 410 291 421 Latvia 76 633 439 Lithuania 113 600 821 Luxembourg 72 191 526 Malta 9 299 769 Netherlands* 924 777 902 Poland 1 583 938 824 Portugal* 429 581 969 Romania 656 059 490 Slovakia 202 268 939 Slovenia 99 425 782 Spain 1 766 877 232 Sweden 315 554 578 United Kingdom* 2 744 937 332 Iceland 15 327 217 Note: * Member States for which net emissions from deforestation in the base year were added to the base year emissions in the assigned amount calculation For the calculation all figures were rounded to tons. The assigned amount of the EU is the difference between the joint assigned amount calculated in Table 2 6 and the sum of the assigned amounts of the Member States and Iceland in Table 2 7 and amounts to 15 826 887 124 tonnes CO2eq (see calculation in Table 2 8 ). The assigned amount of the EU shall be issued in the Kyoto registry of the EU. Table 28 Assigned amount of the European Union Assigned amounts tonnes CO2eq A. Joint assigned amount 37 625 402 324 B. Sum of assigned amounts of Member States and Iceland 21 791 067 463 C. Assigned amount of the European Union (A-B) 15 834 334 860 Note: For the calculation all figures were rounded to tons. For the assessment of compliance with the joint fulfilment agreement at the end of the second commitment period, the total GHG emissions of the EU, its Member States and Iceland from sources listed in Annex A to the Kyoto Protocol for the period 2013 to 2020 shall be compared to the total amount of Kyoto units retired in the Kyoto registries of the EU, its Member States and Iceland. 2.5.Calculation of the commitment period reserve for the European Union in accordance with Decision 11/CMP.1 Parties are required by Decision 11/CMP.1 under the Kyoto Protocol and paragraph 18 of Decision 1/CMP.8 to establish and maintain a commitment period reserve as part of their responsibility to manage and account for their assigned amount. The commitment period reserve equals the lower of either 90% of a Party’s assigned amount pursuant to Article 3(7bis), (8) and (8bis) or 100% of its most recently reviewed inventory, multiplied by 8. For the purposes of the joint fulfilment, the commitment period reserve applies to the EU, its Member States and Iceland individually. Table 2 9 provides a calculation using both methods to calculate the commitment period reserve. The last column presents the commitment period reserve applicable for the second commitment period for the EU and for each Member State and Iceland based on the lower value resulting from the two methods.

Table 29 Commitment period reserve of the European Union and the EU-28 Member States and Iceland Assigned amount for second commitment period 90% of assigned amount 100% of most recently reviewed inventory multiplied by 8 Commitment period reserve tonnes CO2eq. European Union 15 834 334 860 21 777 272 968 34 284 967 695 21 777 272 968 Austria 405 712 317 365 141 085 610 660 949 365 141 085 Belgium 584 228 513 525 805 662 910 932 952 525 805 662 Bulgaria 222 945 983 200 651 385 457 577 755 200 651 385 Croatia 162 271 086 146 043 977 183 191 025 146 043 977 Cyprus 47 450 128 42 705 115 67 154 564 42 705 115 Czech Republic 520 515 203 468 463 683 1 007 079 816 468 463 683 Denmark 269 363 657 242 427 291 409 353 224 242 427 291 Estonia 51 056 976 45 951 278 168 473 921 45 951 278 Finland 240 544 599 216 490 139 472 840 617 216 490 139 France 3 014 714 832 2 713 243 349 3 671 193 181 2 713 243 349 Germany 3 592 699 888 3 233 429 899 7 201 617 232 3 233 429 899 Greece 480 791 166 432 712 049 811 226 504 432 712 049 Hungary 434 486 280 391 037 652 457 801 242 391 037 652 Ireland 343 520 594 309 168 535 466 029 371 309 168 535 Italy 2 410 291 421 2 169 262 279 3 348 697 719 2 169 262 279 Latvia 76 633 439 68 970 095 90 988 696 68 970 095 Lithuania 113 600 821 102 240 739 153 111 249 102 240 739 Luxembourg 72 191 526 64 972 374 86 164 652 64 972 374 Malta 9 299 769 8 369 792 23 861 158 8 369 792 Netherlands 924 777 902 832 300 112 1 496 455 075 832 300 112 Poland 1 583 938 824 1 425 544 942 3 042 300 527 1 425 544 942 Portugal 429 581 969 386 623 772 516 180 208 386 623 772 Romania 656 059 490 590 453 541 892 057 462 590 453 541 Slovakia 202 268 939 182 042 045 325 260 814 182 042 045 Slovenia 99 425 782 89 483 204 132 658 495 89 483 204 Spain 1 766 877 232 1 590 189 509 2 631 410 204 1 590 189 509 Sweden 315 554 578 283 999 120 435 061 898 283 999 120 United Kingdom 2 744 937 332 2 470 443 599 4 217 627 183 2 470 443 599 Iceland 15 327 217 13 794 495 36 774 779 13 794 495 Note: The most recently reviewed inventory will be the inventory for the year 2014 as part of the 2016 UNFCCC submission.

For the calculation all figures were rounded to tons. The figure for the EU is the assigned amount of the EU as presented in Table 2 8 .

2.6.Difference between the assigned amount for the second commitment period and the average emissions for the first three years of the preceding commitment period According to Article 3(7ter) of the Kyoto Protocol, any positive difference between the assigned amount of the second commitment period and the average annual emissions for the first three years of the preceding commitment period multiplied by eight shall be transferred to the cancellation account. In line with the terms of the joint fulfilment of the EU, its Member States and Iceland under Article 3 of the Kyoto Protocol, Article 3(7ter) is applied to the joint assigned amount of the second commitment period. Table 210 Joint Assigned amount for the EU, Member States and Iceland for the second commitment period and average emissions for the first three years of the preceding commitment period Joint assigned amount for the second commitment period 37 625 402 324 tonnes CO2eq. Average annual emissions for 2008 to 2010 for the EU, Member States and Iceland multiplied by eight 38 707 039 784 tonnes CO2eq. In accordance with paragraph 2 of Decision 2/CMP.11 of the Kyoto Protocol Parties shall clarify in their reports to facilitate the calculation of the assigned amount whether they have used in the calculation of the average annual emissions for the first three years of the preceding commitment period: (a) The gases and sources listed in Annex A to the Kyoto Protocol; or (b) The same greenhouse gases, sectors and source categories as those used to calculate the assigned amount for the second commitment period. For the EU the provision in subitem (b) above implies that emissions from deforestation would be added for the respective years for five Member States (Denmark, Ireland, the Netherlands, Portugal and the UK) in line with the assigned amount calculation. For 1990 these emissions are about 0.09% of the base year emission of the EU, its Member States and Iceland. Therefore, both ways of calculating the average annual emissions lead to a very similar result. For both methods (a) and (b), the joint assigned amount for the second commitment period is lower than the average annual emissions for the period 2008 – 2010 multiplied by eight. The figure presented in Table 2 10 above has been calculated based on option (a) - the gases and sources listed in Annex A to the Kyoto Protocol. This choice was made because the calculation is simple and more transparent. On the other hand option (b) is more in accordance with the EU’s interpretation of Article 3.7ter, but would be less transparent as it requires a more complex calculation of the emissions from deforestation for 5 Member States for three years. The joint assigned amount for the second commitment period is lower than the average annual emissions for the period 2008 – 2010 multiplied by eight as indicated in Table 2 10 . Thus, no positive difference occurs and no cancellation needs to be performed. 2.7.Application of paragraphs 23 – 26 of decision 1/CMP.8 According to Decision 1/CMP.8, paragraph 23, each Party included in Annex I with a commitment inscribed in the third column of Annex B as contained in annex I to this decision shall establish a previous period surplus reserve (PPSR) account in its national registry. Based on this provision, the EU, each Member State and Iceland will establish previous period surplus reserve accounts in their respective registries. According to Decision 1/CMP.8, paragraph 24, where the emissions of a Party referred to in paragraph 23 above in a commitment period are less than its assigned amount under Article 3, the difference shall, on request of that Party, be carried over to the subsequent commitment period, as follows: (a) Any ERUs or CERs held in that Party’s national registry that have not been retired for that commitment period or cancelled may be carried over to the subsequent commitment period, up to a maximum for each unit type of 2.5 per cent of the assigned amount calculated pursuant to Article 3(7) and (8); (b) Any AAUs held in that Party’s national registry that have not been retired for that commitment period or cancelled shall be added to the assigned amount for that Party for the second commitment period. That part of a Party’s assigned amount consisting of AAUs held in that Party’s national registry that has not been retired for that commitment period or cancelled shall be transferred to its previous period surplus reserve account for the subsequent commitment period, to be established in its national registry. According to Decision 1/CMP.8, paragraph 23 the European Union, each Member State and Iceland establish previous period surplus reserve accounts in their respective registries.

According to Decision 1/CMP.8, paragraph 24 (a) of decision 1/CMP.8, the EU, each Member State and Iceland may carry over any remaining ERUs and CERs that have not been retired of cancelled for the first commitment period in their respective registries to the second commitment period. The 2.5 per cent limit in paragraph 24 (a) of Decision 1/CMP.8 will be calculated based on the assigned amounts of the Member States, Iceland and the EU calculated pursuant to Article 3(7) and (8) for the first commitment period. According to decision 1/CMP.8, paragraph 24 (b) the EU, each Member State and Iceland may carry over any remaining AAUs that have not been retired of cancelled for the first commitment period in their respective registries to their respective previous period surplus reserve accounts. According to Decision 1/CMP.8, paragraph 25, units in a Party’s previous period surplus reserve account may be used for retirement during the additional period for fulfilling commitments of the second commitment period up to the extent by which emissions during the second commitment period exceed the assigned amount for that commitment period, as defined in Article 3(7 bis), (8) and (8 bis), of the Kyoto Protocol. This provision will be applied to the EU, its Member States and Iceland individually due to the fact that the previous period surplus reserve accounts will be established in the Kyoto registries of the EU, its Member States and Iceland. Units in a member's Previous Period Surplus Reserve account may be used for retirement during the additional period for fulfilling commitments of the second commitment period, up to the extent by which that member's emissions during the second commitment period exceed its respective assigned amount for that commitment period. According to Decision 1/CMP.8, paragraph 26, units may be transferred and acquired between previous period surplus reserve accounts. This provision will be applied to the EU, its Member States and Iceland individually due to the fact that the previous period surplus reserve accounts will be established in the Kyoto registries of the EU, its Member States and Iceland. 2.8.Application and calculation pursuant to paragraph 13 in the annex of Decision 2/CMP.7 According to paragraph 13 in the annex of Decision 2/CMP.7 for the second commitment period, additions to the assigned amount of a Party resulting from forest management under Article 3(4), and from forest management project activities undertaken under Article 6, shall not exceed 3.5 per cent of the base year greenhouse gas emissions excluding land use, land-use change and forestry pursuant to Article 3(7) and (8), or any amendments thereto, times the duration of the commitment period in years. Similar to the general accounting of emissions and removals under Article 3(3) and (4), Member States and Iceland will apply this provision individually. The maximum accountable quantities resulting from forest management that can be added to the assigned amounts to Member States are presented in Table 2 11 . Table 211 Maximum accountable quantities resulting from forest management under Article 3, paragraph 4 in the second commitment period Member State Forest management cap for the 2nd commitment period tonnes CO2 eq. Austria 22 079 438 Belgium 41 387 107 Bulgaria 32 083 064 Croatia 8 737 297 Cyprus 1 581 117 Czech Republic 55 794 719 Denmark 19 872 505 Estonia 11 199 075 Finland 19 978 041 France 153 464 169 Germany 349 964 204 Greece 30 148 931 Hungary 30 680 949 Ireland 15 796 928 Italy 146 137 768 Latvia 7 367 231 Lithuania 13 220 336 Luxembourg 3 609 022 Malta 560 070 Netherlands 62 669 043 Poland 162 405 603 Portugal 16 993 131 Romania 85 302 297 Slovakia 20 861 133 Slovenia 5 691 724 Spain 80 834 487 Sweden 20 175 995 United Kingdom 224 972 636 Iceland 1 017 396 Note: For the calculation all figures were rounded to tons. 2.9.Information related to LULUCF activities under Article 3(3) and (4) of the Kyoto Protocol As in the first commitment period, Member States and Iceland will continue to apply Article 3(3) and (4) of the Kyoto Protocol and decisions agreed thereunder individually. Member States will account individually for emissions by sources and removals by sinks from Kyoto LULUCF activities and will individually decide on accounting modalities and elections where foreseen under the Kyoto Protocol. Any issuance of removal units (RMUs) or cancellation of units resulting from the accounting under Articles 3(3) and (4) should be made to the Member States’ and Iceland’s Kyoto registries. 2.9.1.Identification of the selection of single minimum values for tree crown cover, land area and tree height for use in accounting under Article 3(3) and (4) Member States have selected threshold values for the forest definition for reporting on the activities afforestation, reforestation and deforestation under Article 3(3) and forest management, if elected under Article 3(4) of the Kyoto Protocol for the first commitment period. As the EU aggregates Member States’ information, the same values are used as those elected by Member States for the required single minimum values for tree crown cover, land area and tree height in accordance with the forest definition used for reporting to the FAO. Table 2 12 presents an overview on Member States’ and Iceland’s selections. The definitions for the second commitment period shall be the same as for the first commitment period. Cyprus and Malta did not have a commitment in the first commitment period and selected definitions for the second commitment period. Table 212 Member States’ and Iceland`s selection of threshold values for the forest definition for reporting under Article 3(3) and (4) (1)Member State Minimum value for tree crown cover Minimum tree height Minimum area for forest land area Austria 30 % 2 m 0.05 ha Belgium 20 % 5 m 0.5 ha Bulgaria 10 % 5 m 0.1 ha Croatia 10 % 2 m 0.1 ha Cyprus 10 % 5 m 0.3 ha Czech Republic 30 % 2 m 0.05 ha Denmark 10 % 5 m 0.5 ha Estonia 30% 2 m 0.5 ha Finland 10 % 5 m 0.5 ha France 10 % 5 m 0.5 ha Germany 10 % 5 m 0.1 ha Greece 25 % 2 m 0.3 ha Hungary 30 % 5 m 0.5 ha Ireland 20 % 5 m 0.1 ha Italy 10 % 5 m 0.5 ha Latvia 20 % 5 m 0.1 ha Lithuania 30 % 5 m 0.1 ha Luxembourg 10 % 5 m 0.5 ha Malta 30 % 5 m 1 ha Netherlands 20 % 5 m 0.5 ha Poland 10 % 2 m 0.1 ha Portugal 10 % 5 m 1 ha Romania 10 % 5 m 0.25 ha Slovakia 20 % 5 m 0.3 ha Slovenia 30 % 2 m 0.25 ha Spain 20 % 3 m 1 ha Sweden 10 % 5 m 0.5 ha United Kingdom 20 % 2 m 0.1 ha Iceland 10 % 2 m 0.5 ha 2.9.2.Election of activities under Article 3(4), for inclusion in the accounting for the first commitment period and second commitment period Article 3(4) of the Kyoto Protocol provides the option to include the activities forest management, cropland management, grazing land management and revegetation in the accounting of the commitments for the first commitment period. In the second commitment period all Parties included in Annex I have to account for anthropogenic greenhouse gas emissions by sources and removals by sinks resulting from any activity under Article 3(4) already elected in the first commitment period, and for forest management (Decision 2/CMP 7, Annex, Paragraph 7). In addition, they may also choose to elect further activities from the ones above for inclusion in its accounting for the second commitment period as well as wetland drainage and rewetting can be chosen as an additional activity. The EU will report in the joint inventory under the Kyoto Protocol the sum of the 28 Member States' and Iceland's greenhouse gas emissions by sources and removals by sinks from land-use, land-use change and forestry activities under Article 3(3), for forest management and the additional elected activities under Article 3(4) of the Kyoto Protocol, based on the election of activities by Member States. Table 2 13 presents an overview of the Member States’ and Iceland´s elections of activities under Article 3(4) as reported in their reports to facilitate the calculation of the assigned amount for the second commitment period. Table 213 Member States and Iceland`s elections of activities under Article 3(4) in the second commitment period

(2)Member State Cropland management Grazing land management Revegetation Wetland Drainage and rewetting Austria Not elected Not elected Not elected Not elected Belgium Not elected Not elected Not elected Not elected Bulgaria Not elected Not elected Not elected Not elected Croatia Not elected Not elected Not elected Not elected Cyprus Not elected Not elected Not elected Not elected Czech Republic Not elected Not elected Not elected Not elected Denmark Elected Elected Not elected Not elected Estonia Not elected Not elected Not elected Not elected Finland Not elected Not elected Not elected Not elected France Not elected Not elected Not elected Not elected Germany Elected Elected Not elected Not elected Greece Not elected Not elected Not elected Not elected Hungary Not elected Not elected Not elected Not elected Ireland Elected Elected Not elected Not elected Italy Elected Elected Not elected Not elected Latvia Not elected Not elected Not elected Not elected Lithuania Not elected Not elected Not elected Not elected Luxembourg Not elected Not elected Not elected Not elected Malta Not elected Not elected Not elected Not elected Netherlands Not elected Not elected Not elected Not elected Poland Not elected Not elected Not elected Not elected Portugal Elected Elected Not elected Not elected Romania Not elected Not elected Elected Not elected Slovakia Not elected Not elected Not elected Not elected Slovenia Not elected Not elected Not elected Not elected Spain Elected Not elected Not elected Not elected Sweden Not elected Not elected Not elected Not elected United Kingdom Elected Elected Not elected Elected Iceland Not elected Not elected Elected Not elected Information on how the national system under Article 5(1) of the Kyoto Protocol will identify land areas associated with activities under Article 3(4) and how Member States ensure that land that was accounted for in the first commitment period continues to be accounted for in the second commitment period is provided in the individual initial reports of the Member States and Iceland or in their national inventory reports – as appropriate - because the development of the methodological approach to identify land areas is part of the Member States’ responsibilities. 2.9.3.Identification of the frequency of accounting for activities under Article 3(3) and (4) Member States and Iceland identify the accounting frequency for the activities under Article 3(3) and (4) in their respective reports to facilitate the calculation of the assigned amount. Member States and Iceland can choose to account at the end of the commitment period or annually. Table 2 14 reflects the decisions of the Member States and Iceland. Table 214 EU-28 Member States’ and Iceland`s choice of accounting frequency Member State Annual accounting Accounting at the end of the second commitment period Austria X Belgium X Bulgaria X Croatia X Cyprus X Czech Republic X Denmark X Estonia X Finland X France X Germany X Greece X Hungary X Ireland X Italy X Latvia X Lithuania X Luxembourg X Malta X Netherlands X Poland X Portugal X Romania X Slovakia X Slovenia X Spain X Sweden X United Kingdom X Iceland X Each Member State and Iceland will account for net emissions and removals for each activity under Article 3(3) and (4), if elected, by issuing RMUs or cancelling Kyoto Protocol units based on the corresponding reported emissions and removals from these activities and the specific accounting rules. The EU will neither issue, nor cancel units based on the reported emissions and removals from activities under Article 3(3) and (4). 2.9.4.Forest Management Reference Levels as inscribed in the appendix to the annex to Secision 2/CMP.7 For the second commitment period forest management is a mandatory activity under Article 3(4) of the Kyoto Protocol, which will be accounted against a forest management reference level, i.e. a country-specific level of business-as-usual emissions or removals. RMUs will be issued only if forest management removals are higher, or emissions are lower, than the agreed forest management reference level. Otherwise, Kyoto units will be cancelled. Paragraph 1(i) of Annex I to Decision 2/CMP.8 requires the reporting of the forest management level and any technical corrections as contained in the inventory report. This information is reported in the reports to facilitate the calculation of the assigned amount of Member States and Iceland and their most recent greenhouse gas inventories in line with the explanations above that each Member State and Iceland will account for net emissions and removals for the forest management activity under Article 3(4) of the Kyoto Protocol. The same applies to the requirement in paragraph 1(j) of Annex I to Decision 2/CMP.8 of the Kyoto Protocol to report Information on how emissions from harvested wood products originating from forests prior to the start of the second commitment period have been calculated in the reference level in accordance with Decision 2/CMP.7, annex, paragraph 16. This information is also provided in Member States’s reports to facilitate the calculation of the assigned amount or in Member States’ most recent inventory submissions. 2.9.5.Accounting for natural disturbances According to Paragraph 33 of the Annex to Decision 2/CMP.7 the countries shall provide information on whether they intend to apply the provisions to exclude emissions from natural disturbances for the accounting for afforestation and reforestation under Article 3(3), of the Kyoto Protocol and/or forest management under Article 3(4), of the Kyoto Protocol during the second commitment period. Table 2 15 provides an overview on the decisions of Member States whether they intend to use the provisions to exclude emissions from natural disturbances. Table 215 Information on the use of the provision to exclude emissions from natural disturbances Countries Afforestation/Reforestation Forest Management Austria No Yes Belgium No Yes Bulgaria Yes Yes Croatia Yes Yes Cyprus No Yes Czech Republic No No Denmark No No Estonia No Yes Finland No Yes France Yes Yes Germany No No Greece Yes Yes Hungary No No Ireland Yes Yes Italy Yes Yes Latvia No No Lithuania No No Luxembourg Yes Yes Malta Yes Yes Netherlands Yes Yes Poland No No Portugal Yes Yes Romania Yes Yes Slovakia No No Slovenia No No Spain Yes Yes Sweden Yes Yes United Kingdom Yes Yes Iceland Yes Yes Member States that intend to exclude emissions from natural disturbances are required to report country-specific information on the background level of emissions associated with annual natural disturbances that have been included in its forest management reference level and related explanations. This information is provided in Member States’ and Iceland’s reports to facilitate the calculation of their assigned amounts or their most recent greenhouse gas inventory submissions, as appropriate.

2.10.Description of the national system A description of the national system is required pursuant to the Annex to Decision 2/CMP.8 if the Party did not have a quantified emission limitation and reduction target in the first commitment period. The EU already had a quantified emission limitation and reduction target in the first commitment period and provided this description in the report to calculate the assigned amount of the first commitment period. Subsequently any changes that occurred were reported as part of the annual supplementary information under Article 7 of the Kyoto Protocol and included in the national inventory report. Changes compared to the previous inventory submissions related to the national system are the following: A key change to previous inventory submissions is that the Kyoto greenhouse inventory for the second commitment period has a different coverage of countries due to the scope of the terms of the joint fulfilment agreement for the second commitment period which includes 28 Member States and Iceland. As part of the agreement between the EU, its Member States and Iceland (Council Decision (EU) 2015/1340), Regulation (EU) No 525/2013 on a mechanism for monitoring and reporting GHG emissions and for reporting other information at national and Union level relevant to climate change (Monitoring Mechanism Regulation) as well as current and future delegated and implementing acts based on this regulation are binding upon Iceland. In accordance with the Monitoring Mechanism Regulation Article 6(1), a Union Inventory system is established to ensure the timeliness, transparency, accuracy, consistency, comparability and completeness of national inventories with regard the Union greenhouse gas inventory. The Commission’s Staff Working Document (SWD (2013) 308 final) outlines the main elements of the Union inventory system. An overview is presented in Figure 2.2 . The Directorate-General for Climate Action of the European Commission has overall responsibility for the inventory of the EU while each Member State is responsible for the preparation of its own inventory which is the basic input for the inventory of the EU. DG Climate Action is supported in the establishment of the inventory by the following main institutions: the European Environment Agency (EEA) and its European Topic Centre on Air Pollution and Climate Change Mitigation (ETC/ACM) as well as the following other Directorates General of the European Commission: Eurostat, and the Joint Research Centre (JRC) . Figure 2.2 Inventory system of the European Union Table 2 16 shows the main institutions and persons involved in the compilation and submission of the EU inventory. Table 216 List of institutions and experts responsible for the compilation of Member States’ inventories and for the preparation of the EU inventory Member State/EU institution Contact address Austria Elisabeth Rigler

Umweltbundesamt

Spittelauer Laende 5, A-1090 Vienna Belgium Peter Wittoeck

Federal Department of the Environment

Place Victor Horta 40, B-1060 Brussels Bulgaria Detelina Petrova

Executive Environment Agency

136, Tzar Boris III Blvd.

1618 Sofia Croatia Ms Iva Švedek Ekonerg - Energy and Environmental Protection Institute Koranska 5, 10000 Zagreb Ms Vlatka Palčić Ministry of Environmental and Nature Protection Radnička cesta 80 , 10000 Zagreb Cyprus Theodoulos Mesimeris

Head of Climate Action Unit

Department of Environment

Ministry of Agriculture, Natural Resources and Environment

1498, Nicosia, Cyprus Czech Republic Ing. Eva Krtkova Czech Hydrometeorological Institute (CHMI)

Na Sabatce 17, CZ 14306 Prague 4 Denmark Ole-Kenneth Nielsen

Aarhus University

Frederiksborgvej 399, PO Box 358, DK-4000 Roskilde Estonia Katre Kets Adviser, Climate and Radiation Department and Cris-Tiina Türkson Senior officer, Climate and Radiation Department Ministry of the Environment Narva mnt 7a, 15172 Tallinn, Estonia Finland Riitta Pipatti

Statistics Finland

PB 6 A, FIN-00022 Statistics Finland France Pascale Vizy

Direction Générale de l'Energie et du Climat (DGEC)

Ministère de l’Environnement, de l'Energie et de la Mer (MEEM)

Tour Sequoia, 92055 La Défense CEDEX

and

Centre Interprofessionel Technique d’Etudes de la Pollution Atmosphérique (CITEPA)

42 rue de Paradis, F-75010 Paris

Jean-Pierre Chang Germany Michael Strogies

Federal Environmental Agency

Wörlitzer Platz 1, D-06844 Dessau-Roßlau Greece Mr. Kyriakos Psychas Ministry of Environment and Energy, Climate Change Department, 147 Patission st, 11251 Athens, Greece Hungary Mr. Gábor KIS-KOVÁCS Hungarian Meteorological Service, Kitaibel Pál u. 1, 1024, Budapest, HUNGARY Ireland Paul Duffy

Environmental Protection Agency

PO Box 3000, Johnstown Castle, Co. Wexford, Ireland Italy M. Contaldi, R. de Lauretis, D. Romano

National Environment Protection Agency (ANPA)

Via Vitaliano Brancati 48, I-00144 Rome Latvia Agita Gancone

Ministry of Environmental Protection and Regional Development

Peldu street 25, LV-1494 Lithuania Ms. Jolanta Merkeliene, Chief Desk Officer, Climate Change Policy Division of the Ministry of Environment

Lithuanian Ministry of Environment

A. Jaksto 4/9, LT 01105 Vilnius Luxembourg Eric De Brabanter

Département de l'Environnement

Ministère du Développement durable et des Infrastructures

L-2918 Luxembourg Dr Marc Schuman

Administration de l'Environnement

16 rue Eugène Ruppert

L-2453 Luxembourg Malta Krista Rizzo

Malta Resources Authority – Climate Change Unit

Millennia, 2nd Floor, Aldo Moro Road, Marsa MRS 9065, Malta. Netherlands Wim van der Maas

National Institute for Public Health and the Environment

P.O. Box 1, 3720 BA Bilthoven, The Netherlands Poland Anna Olecka National Centre for Emissions Management Institute of Environmental Protection - National Research Institute Chmielna 132/134, 00-805 Warszawa, PL Portugal Eduardo Santos Agência Portuguesa do Ambiente, Departamento de Alterações Climáticas (DCLIMA)

Rua da Murgueira, 9/9A, 2610-124 Amadora, Portugal Romania Sorin Deaconu

National Environmental Protection Agency

Splaiul Independentei 294, Sector 6, Cod Postal 060841, Bucharest, Romania Slovakia Milos Grajcar Ministry of the Environment of the Slovak Republic Climate Change Department (National Focal Point) Namestie L. Stura 1, 812 35 Bratislava 1, Slovak Republic Janka Szemesova

Department of Emissions, Slovak Hydrometeorological Institute

Jeseniova 17, 833 15 Bratislava, Slovak Republic Slovenia Tajda Mekinda Majaron

Environmental Agency of the Republic of Slovenia

Vojkova 1/b, SI-1000 Ljubljana Spain Maj Britt Larka Abellán

Dirección General de Calidad y Evaluación Ambiental y Medio Natural

Ministerio de Agricultura, Alimentación y Medio Ambiente

Plaza de San Juan de la Cruz s/n, E-28071 Madrid Sweden Johan Kristensson The Ministry of the Environment and Energy, Street address: Rosenbad 4 Postal address: SE 103 33 Stockholm and Frida Löfström The Swedish Environmental Protection Agency Postal Address: Naturvårdsverket , SE-106 48 Stockholm ,Sweden United Kingdom Julia Sussams UK Greenhouse Gas Inventory GHG Statistics & Inventory Team Department of Energy & Climate Change European Commission Ana Maria Danila

European Commission, DG Climate Action

Beaulieu, BU-24 4/32, Brussels, Belgium European Environment Agency (EEA) Ricardo Fernandez, Spyridoula Ntemiri

European Environment Agency

Kongens Nytorv 6, DK-1050 Copenhagen, Denmark European Topic Centre on Air Pollution and Climate Change Mitigation (ETC/ACM) Nicole Mandl, Michael Gager, Elisabeth Rigler

European Topic Centre on Air Pollution and Climate Change Mitigation

Umweltbundesamt

Spittelauer Laende 5, A-1090 Vienna, Austria Eurostat Michael Goll

Statistical Office of the European Communities (Eurostat),

Jean Monnet Building, L-2920 Luxembourg, Luxembourg Joint Research Centre (JRC) Giacomo Grassi, Adrian Leip

Joint Research Centre, Institute for Environment and Sustainability, Climate Change Unit

Via Enrico Fermi, I-21020 Ispra (VA), Italy The Member States All EU Member States are Annex I Parties to the UNFCCC. Therefore, all Member States have committed themselves to prepare individual national greenhouse gas inventories in accordance with UNFCCC reporting guidelines and to submit those inventories to the UNFCCC Secretariat by 15 April. In this context, all Member States are required to establish, operate and seek to continuously improve national inventory systems in accordance to Article 5 of the Monitoring Mechanism Regulation. Detailed information on institutional arrangements/national systems of each Member State is included in the respective national inventory reports. The EU's inventory is based on the inventories supplied by Member States. The total estimate of the EU greenhouse gas emissions should accurately reflect the sum of Member States’ national greenhouse gas inventories. Member States are responsible for choosing activity data, emission factors and other parameters used for their national inventories as well as the correct application of methodologies provided in the 2006 IPCC Guidelines. Member States are also responsible for establishing quality assurance/quality control (QA/QC) programmes for their inventories. The QA/QC activities of each Member State are described in the respective national inventory reports. For the EU to be able to provide the greenhouse gas inventory to the UNFCCC on time, all Member States are required to report individual greenhouse gas inventories prepared in accordance with UNFCCC reporting guidelines to the European Commission and to the European Environment Agency (EEA) by 15 January every year. After the submission of national GHG inventories and inventory reports, QA/QC checks are performed by the EU team. The outcome of these ‘initial checks’, together with the draft EU inventory report is sent to Member States for checking, reviewing and providing of comments. The Member States take part in the review and comment phase of the draft EU inventory report. The purpose of circulating the draft EU inventory report is to improve the quality of the EU inventory. The Member States check their national data and information used in the EU inventory report, answer to the initial checks findings and send updates, as relevant by the 15th March. In addition, they can comment on the general aspects of the EU inventory report by the same deadline. During the UNFCCC review of the Union inventory, Member States are also required to provide answers related to the issues under their responsibility as soon as possible. In these cases, the issues are forwarded directly as requested by the EU team. The European Commission, Directorate-General for Climate Action

The European Commission’s Directorate-General for Climate Action (DG CLIMA) in consultation with the Member States has the overall responsibility for the EU inventory. Member States are required to submit their national inventories and inventory reports under the Monitoring Mechanism Regulation to the European Commission, DG CLIMA; DG CLIMA itself submits the inventory and inventory report of the EU to the UNFCCC Secretariat, on behalf of the EU. In the actual compilation of the EU inventory and inventory report, the European Commission, DG CLIMA, is assisted by the EEA including the EEA’s ETC/ACM and by Eurostat and the JRC. The consultation between the DG CLIMA and the Member States takes place in the Climate Change Committee established under Article 26 of the Monitoring Mechanism Regulation. The Committee is composed of the representatives of the Member States and chaired by the representative of the DG CLIMA. Procedures within the Committee for decision-making, adoption of measures and voting are outlined in the rules of procedure, adopted in November 2003. In order to facilitate decision-making in the Committee, working groups have been established, one of which is Working Group 1 on ‘Annual inventories’. The objectives and tasks of Working Group 1 under the Climate Change Committee include: the promotion of the timely delivery of national annual GHG inventories as required under the monitoring mechanism; the improvement of the quality of GHG inventories on all relevant aspects (transparency, consistency, comparability, completeness, accuracy and use of good practices); the exchange of practical experience on inventory preparation, on all quality aspects and on the use of national methodologies for GHG estimation; the evaluation of the current organisational aspects of the preparation process of the EU inventory and the preparation of proposals for improvements where needed. The European Environment Agency Under Article 24 of the Monitoring Mechanism regulation, the role of the European Environment Agency (EEA) is defined as providing assistance to the Commission in its work. In relation to the inventories, this assistance includes the following: (a) Compilation of the Union greenhouse gas inventory and preparation of the Union greenhouse gas inventory report; (b) Performance of the quality assurance and quality control procedures for the preparation of the Union greenhouse gas inventory; (c) Preparation of estimates for data not reported in the national greenhouse gas inventories; (d) Conduction of the reviews of Member States’ inventories. The tasks of the EEA are facilitated by the European environmental information and observation network (Eionet), which consists of the EEA as central node (supported by European topic centres) and national institutions in the EEA member countries (see http://eionet.eea.europa.eu). Member States report the information reported pursuant to Article 7 of the Monitoring Mechanism Regulation to the Commission with a copy to the European Environment Agency, and for this reason they are making use of the EEA’s ReportNet’s Central Data Repository under the Eionet (‘CDR’, see http://cdr.eionet.europa.eu/ ). Apart from the data capturing processes, and as part of its responsibility to compile the GHG inventory and prepare the Union GHG inventory report, the EEA is also responsible for the implementation of the QA/QC Programme of the EU, by performing inter alia a number of QA/QC checks focused on ensuring the completeness and consistency of the Union and Member States inventories. Finally, in the end of the process the EEA is publishing the GHG inventory dataset and the EU National Inventory Report on its website. To facilitate the access of the GHG information to the general public, the EEA data viewer is also provided. The EEA is further assisted by its European Topic Centre on Air Pollution and Climate Change Mitigation (ETC/ACM), which is an international consortium working with the EEA under a framework partnership agreement. The activities of the EEA’s ETC/ACM are further deployed in the next paragraph. The European Topic Centre on Air Pollution and Climate Change Mitigation The EEA’s European Topic Centre on Air and Climate Change Mitigation (ETC/ACM) was established by a contract between the lead organisation Institute for Public Health and the Environment (RIVM) in the Netherlands and EEA for the years 2014-2018. The EEA’s ETC/ACM involves 14 organisations and institutions in eight European countries. The technical annex for the 2014 work plan for the EEA’s ETC/ACM and an implementation plan specify the specific tasks of the EEA’s ETC/ACM partner organisations with regard to the preparation of the EU inventory. Umweltbundesamt Austria is the task leader for the compilation of the EU annual inventory in the EEA’s ETC/ACM. The specific tasks undertaken by EEA’s ETC/ACM include: Initial QA/QC checks of Member States’ submissions in cooperation with Eurostat, and the JRC, up to 28 February documented in the EEA review tool and compilation of results from initial checks (status and consistency reports);

consultation with Member States in order to clarify data and other information provided; preparation of the draft EU inventory and inventory report by 28 February based on Member States’ submissions; preparation of the final EU inventory and inventory report by 15 April (to be submitted by the Commission to the UNFCCC Secretariat); The EEA’s ETC/ACM provides the CRF Aggregator developed to ensure the EU submission is fully consistent with Member States’ submissions. From the CRF aggregator the aggregated EU inventory is transferred into the CRF reporter software for preparing the official EU GHG inventory submission. Eurostat Eurostat collects national energy statistics reported under the EU Energy Statistics Regulation on an annual basis. These data are used for the estimation of the IPCC Reference Approach and the Sectoral Approach. The EEA compares the results of the two approaches with Member States’ CRF submissions. These comparisons are sent to Member States’ during the consultation on the Draft EU GHG inventory by 28 February each year. The Energy Statistics Regulation (Regulation EC/1099/2008) as amended by Commission Regulation (EU) No 147/2013 of 13 February 2013 is the basis for Member States reporting of energy data to Eurostat. Article 6(2) of the Energy Statistics Regulation stipulates: 'Every reasonable effort shall be undertaken to ensure coherence between energy data declared in the energy statistics regulation, and data declared in accordance with Commission Decision No 280/2004/EC of the European Parliament and of the Council concerning a mechanism for monitoring Community greenhouse gas emissions and for implementing the Kyoto Protocol'. The consistency of energy balances and CRF activity data is essential for good quality GHG estimates in the energy sector, and therefore it is at the core of the QA/QC activities at EU level. Joint Research Centre The Joint Research Centre (JRC) performs the QA/QC of the LULUCF and Agriculture sectors and is responsible of the writing of the respective chapters. The QA/QC main activity is the annual checking of early versions of the each national GHG inventory. Focus is on errors and inconsistencies, with numerous interactions with national representatives for clarifications and improvements. Specific completeness and consistency checks are also carried out. For LULUCF, additional efforts to help member states in improving their reporting include annual technical workshops (http://forest.jrc.ec.europa.eu/activities/lulucf/workshops/), dedicated EU-funded projects, the AFOLU database, and a forest growth model whose results which may be used by countries to compare with their estimates. More information is provided in the QA/QC sections of the LULUCF and Agriculture chapters in the EU NIR. 2.11.Description of the national registry For the purpose of meeting their obligations as Parties to the Kyoto Protocol and under Article 10 of Regulation (EU) No 525/2013 ("Monitoring Mechanism Regulation") , each Member State and the EU operate a Kyoto Protocol national registry. In accordance with Decision 13/CMP.l and Decision 24/CP.8 the Member States and the Union operate their national registries in a consolidated manner. A description of the national registry is required pursuant to the Annex to Decision 2/CMP.8 if the Party did not have a quantified emission limitation and reduction target in the first commitment period. The EU already had a quantified emission limitation and reduction target in the first commitment period and provided a description of the national registry in the report to calculate the assigned amount of the first commitment period. Subsequently changes that occurred related to the national registry were reported as part of the annual supplementary information under Article 7 of the Kyoto Protocol included in the national inventory report. Changes compared to the previous inventory submissions related to the Kyoto registry of the EU are the following: Reporting Item Description 15/CMP.1 annex II.E paragraph 32.(a) Change of name or contact None 15/CMP.1 annex II.E paragraph 32.(b) Change regarding cooperation arrangement No change of cooperation arrangement occurred during the reported period. 15/CMP.1 annex II.E paragraph 32.(c) Change to database structure or the capacity of national registry There was no change to the database structure as it pertains to Kyoto Protocol functionality in 2015. Versions of the CSEUR released after 6.3.3.2 (the production version at the time of the last Chapter 14 submission) introduced minor changes in the structure of the database. These changes were limited and only affected EU ETS functionality. No change was required to the database and application backup plan or to the disaster recovery plan. The database model is provided in Annex A. No change to the capacity of the national registry occurred during the reported period. 15/CMP.1 annex II.E paragraph 32.(d) Change regarding conformance to technical standards Changes introduced since version 6.3.3.2 of the national registry are listed in Annex B. Each release of the registry is subject to both regression testing and tests related to new functionality. These tests also include thorough testing against the DES and were successfully carried out prior to the relevant major release of the version to Production (see Annex B). Annex H testing was carried out in February 2016 and the test report is attached. No other change in the registry's conformance to the technical standards occurred for the reported period. 15/CMP.1 annex II.E paragraph 32.(e) Change to discrepancies procedures No change of discrepancies procedures occurred during the reported period. 15/CMP.1 annex II.E paragraph 32.(f) Change regarding security No change of security measures occurred during the reporting period. 15/CMP.1 annex II.E paragraph 32.(g) Change to list of publicly available information No change to the list of publicly available information occurred during the reporting period. 15/CMP.1 annex II.E paragraph 32.(h) Change of Internet address No change of the registry internet address occurred during the reporting period. 15/CMP.1 annex II.E paragraph 32.(i) Change regarding data integrity measures No change of data integrity measures occurred during the reporting period. 15/CMP.1 annex II.E paragraph 32.(j) Change regarding test results Changes introduced since version 6.3.3.2 of the national registry are listed in Annex B. Both regression testing and tests on the new functionality were successfully carried out prior to release of the version to Production. The site acceptance test was carried out by quality assurance consultants on behalf of and assisted by the European Commission; the report is attached as Annex B. Annex H testing was carried out in February 2016. 3.Units and abbreviations

t 1 tonne (metric) = 1 megagram (Mg) = 106 g Gg 1 gigagram = 109 g = 1 kilotonne (kt) AAU Assigned Amount Unit CER Certified Emission Reduction CH4 methane CO2 carbon dioxide CMP Conference of the Parties serving as the meeting of the Parties to the Kyoto Protocol COP Conference of the Parties CRF common reporting format DG Directorate General EEA European Environment Agency ERU Emission Reduction Unit ESD Effort Sharing Decision ETC/ACM European Topic Centre on Air Pollution and Climate

Change Mitigation ETS Emission Trading System EU European Union GHG greenhouse gas GWP global warming potential