Table 2.2. Revenues from the auctioning of general and aviation allowances in 2021 (EFTA countries).

Table 2.3. Revenues from the auctioning of allowances for the Innovation and Modernisation Funds.

Table 2.4. Projects supported under the InnovFin EDP and CEF DI (through NER 300 funds), June 2020 - June 2022.

The project consists of the roll out of an electric vehicle charging network involving the deployment of 476 charging points in 200 sites over a 3-year implementation period. Charging points will only sell electricity sourced from renewable sources backed by relevant certificates. This project requested the EIB loan of EUR 50 million, fully covered from NER300 unspent funds.

The project comprises the deployment of a hydrogen distribution infrastructure and a hydrogen production plant, to supply green hydrogen to a large-scale fleet of fuel cell electric buses in Denmark. The financing of EUR 20.7 million is supported under the Future Mobility product, backed by the Connecting Europe Facility and the NER300 Programme.

The proposed technology platform allows the integration of electric vehicles (“EVs”) into the power grid by aggregating and leveraging the energy storage potential of end-user EVs batteries as stationary storage devices in order to provide power system services. The project’s demonstration is located in Germany, France and the Netherlands and the NER 300 contribution amounts to EUR 2.1 million.

The project concerns the design, installation, operation and maintenance of a floating offshore wind farm about off the coast of Marseille, France in 100m Water Depth. The project will consist of three 8MW turbines which will be mounted in an innovative floating. The NER 300 contribution in form of loans) amounts to EUR 50 million.

Table 2.5. Total number of allowances in the Modernisation Fund per beneficiary Member State for phase 4 (2021-30).

Appendix 3 – Balancing supply and demand

Figure 3.1. TNAC methodology

A key notion for the functioning of the Market Stability Reserve (MSR) is the total number of allowances in circulation (TNAC). Allowances are added to the reserve if the TNAC is above a predefined upper threshold (833 million allowances), and are released from the reserve if the TNAC is below a predefined lower threshold (below 400 million allowances)*. The MSR absorbs or releases allowances when the circulating volume is outside of a predefined range. Backloaded and so-called unallocated** allowances were also put in the reserve. From 2023 onwards, allowances held in the MSR exceeding the previous year's auction volume will no longer be valid.

The TNAC relevant for determining the MSR feeds and releases is calculated on the basis of the following formula:

TNAC = Supply – (Demand + allowances in the MSR)

The components of supply and demand used in the formula are described in the Communication from the European Commission on the TNAC, published annually in May.***

* Or where measures are adopted under Article 29a of the EU ETS Directive.

**Unallocated allowances are allowances not allocated pursuant to Article 10a(7) of the EU ETS Directive, i.e. allowances remaining in the new entrants' reserve, and resulting from the application of Article 10a(19) and (20), i.e. allowances foreseen for free allocation to installations but remaining unallocated because of (partial) cessation of operations or significant capacity reductions. De facto "unallocated" allowances stemming from the application of the relevant carbon leakage factor to sectors not included in the carbon leakage list during the current period, as well as any allowances that are not allocated under Article 10c of the ETS Directive, are not foreseen to be placed in the MSR under Article 1(3) of Decision (EU) 2015/1814 . Such allowances are therefore not covered (please refer to p. 225 of the Impact Assessment (SWD(2015)135 final) accompanying the 2015 proposal for revision of the EU ETS Directive).