Opinion of the Committee of the Regions on Emission allowance trading
Date: 2008-10-08
Institutions: European Committee of the Regions
Subjects: EU environmental policy, air transport, climate change, energy policy, reduction of gas emissions, renewable energy, waste management

19.12.2008

EN

Official Journal of the European Union

C 325/19

Opinion of the Committee of the Regions on ‘Emission allowance trading’

(2008/C 325/04)

THE COMMITTEE OF THE REGIONS

— urges the Commission to speed up approval of legislation for including air transport in the ETS and

to incorporate the maritime transport sector into the ETS without delay;

— is concerned that the directive does not encourage the reduction of greenhouse gas emissions in the
waste management sector, an especially critical sector both for emissions and for land-use planning;

— recommends that at least 30 % of the revenues generated from the auctioning of allowances shall be
earmarked by Member States for local and regional authorities in order to promote the use of renew-
able energies and energy efficiency in end uses, so as to meet the Community's objective of using 20 %
renewable energy by 2020 and increasing energy efficiency by 20 % by 2020; to promote measures
for reducing greenhouse gases in non ETS sectors, in particular in the transport and waste sectors;

— recommends measures to support certain energy intensive industries in the event of ‘carbon leakage’;

— no more than six months after this directive has entered into force, the Commission shall, after
consulting with all relevant social partners and the Committee of the Regions, submit concrete propo-
sals for preventing carbon leakage from energy-intensive sectors and subsectors.

C 325/20

EN

Official Journal of the European Union

19.12.2008

Rapporteur: Pietro MARRAZZO (IT/PES), President of the Lazio Region

Reference document

Proposal for a Directive 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 system of the Community

COM(2008) 16 final — 2008/0013 (COD)

I. POLICY RECOMMENDATIONS

THE COMMITTEE OF THE REGIONS

General recommendations

Notes that

1.
local and regional authorities make a key
contribution to the success of European initiatives and play a
critical
industrial and
energy policies;

role in implementing environmental,

2.
endorses the practical application of the ‘polluter pays’
principle in all Community policies relating to environmental
protection and the climate; internalising the environmental cost
of goods and services is an essential part of proper public policy
guided by the principles of sustainable balanced and eco-compa-
tible economic development;

3.
therefore appreciates the efforts made to date by the
European Commission to build an effective carbon market that
succeeds in pinpointing the price of the pollution from a tonne
of carbon dioxide within a free bargaining system;

4.
welcomes the proposed adjustment and updating of the
Emission Trading System (ETS), in line with the results achieved
to date and the evidence uncovered during the first period
under the system (2005-2007);

5.
considers that despite the progress made, it is necessary to
further increase the transparency and long-term reliability of the
ETS and to remain attentive to the social and environmental
repercussions that the proposed measures will have, especially at
regional and local level;

Adjustments to the ETS:

Technical adjustments

notes that the simplification proposed by the Commission,
6.
including the possibility of excluding the smallest
industrial
installations and clarifying the concept of a combustion installa-
tion, will help to improve the reliability, efficiency and transpar-
ency of the carbon market as a whole;

nevertheless asks the Commission to specify the equivalent
7.
measures that can be adopted by Member States to pursue emis-
sion reductions in small installations, going beyond the generic
reference to possible fiscal policy measures (carbon tax);

notes that with regard to the auctioning of quotas,

8.
it
would be appropriate to move on from completely free alloca-
tion with a gradual changeover to public auctions; strongly
supports the need to protect the poorer sections of the public
from the possible rise in the price of industrial products and
other energy sources, more specifically, electricity, also by
helping them to increase their homes' energy efficiency;

9.
agrees with the Commission on the proposed change to
the approach taken to date with the adoption of National Allo-
cation Plans (NAP) for each Member State and welcomes the
decision to define common Community objectives, as part of a
single, mutually supportive approach for the EU as a whole;

agrees with the Commission's proposal

10.
to include
capture, transport and geological storage of greenhouse gases in
the ETS and hopes in this respect that appropriate support will
be given to research into related technologies that require
further development and investment, provided that account is
taken of the detrimental impact that carbon storage might have
on the ecosystems in which it takes place;

the

recalls

important

11.
research in the
energy-environment field can play when it comes to cutting
emissions and making changes and hopes that the directive will
prove an effective instrument for securing a steady source of
financing for such activities;

that

role

12.
stresses that the inclusion of new sectors and activities in
the ETS must be assessed from the point of view not only of
the risk that European industry may become less competitive on
international markets, but also of the actual pollution produced
by this sector, the potential for technological improvement of
the sectors concerned and checks on the extent to which extra
costs can be passed on to end users;

13.
therefore urges the Commission to speed up approval of
legislation for including air transport in the ETS and to incorpo-
rate the maritime transport sector into the ETS without delay
(see point 65 of Opinion CdR 22/2008);

14.
approves of the principle of cooperation and solidarity
between Member States as introduced in the new ETS between
countries that are technologically more advanced (whose indus-
trial sectors are more energy efficient) and less-developed coun-
tries (whose economies have a higher energy consumption and
need to increase their growth rates);

19.12.2008

EN

Official Journal of the European Union

C 325/21

The international dimension of the fight against climate change

appreciates the efforts made by the EU to date in taking
15.
part in international negotiations on implementing the Kyoto
protocol, most recently at the Bali conference, and in defining
common global strategies, particularly for sharing the burden
between wealthy and developing countries; therefore hopes that
the results obtained to date will be further strengthened and
developed by agreements at
the forthcoming Poznan and
Copenhagen international conferences;

16.
calls for additional measures in the fight against climate
change and an extension of the objectives set for the ETS in
order to gear them to the target of a 30 % overall reduction in
emissions following international agreements on the subject;

17.
stresses the need for the proposed international agree-
ment to lead to equal treatment world-wide for the various
sectors concerned; consequently, minimum requirements should
in order to
be established which an agreement must meet
constitute an international agreement along the lines proposed
in the directive;

New sectors covered by regulations

stresses the need to have proper cost-benefit analyses on
18.
the inclusion of new production sectors in the ETS so as to
prevent distortions of competition arising between dissimilar
sectors as a result of limiting greenhouse gas production;

19.
is concerned that the directive does not encourage the
reduction of greenhouse gas emissions in the waste manage-
ment sector, an especially critical sector both for emissions and
for land-use planning;

20.
notes that, alongside the emission allowance scheme,
much needs to be done above all to effect a switch to environ-
mentally sound modes of transport. National governments need
to take responsibility here to expand rail and waterway infra-
structure and promote intermodal transport generally;

Competitiveness of companies and consumer protection

notes that

the risk of

21.
falling competitiveness among
industrial sectors has yet to be fully assessed by the Commission
and that adequate measures for supporting and defending
European economies are not yet provided for by the new direc-
tive; stresses in that respect the importance of a stable and
attractive environment for investments and the urgent need to
address the dangers of transferring emissions to countries with
less binding environmental standards and lower costs (carbon
leakage); calls on the Commission to submit proposals to the
European Parliament and the Council at the earliest possible
opportunity for Community-wide, fully harmonised rules for
the free allocation of certificates. These rules should take
account of
the situation in the energy-intensive sectors and
subsectors where there is a considerable risk of carbon leakage;

22.
calls for the efforts involved in the fight against climate
change to be properly shared among the industrial operators
involved and the end users, ensuring that the latter do not have
to carry the entire burden of the additional cost of the strategies
adopted in certain production sectors in particular;

23.
notes that the Commission's proposal does not give suffi-
cient attention to the need to avoid a negative impact on poorer
sections of society, owing in particular to the possible effect of
the directive on electricity prices; therefore calls on the Commis-
sion to monitor the markets more closely, to increase consumer
confidence and limit the risk of market manipulation;

24.
advocates rewarding the emissions reductions already
achieved, when free emissions certificates are being allocated; in
so doing, some installations which represent the benchmark in
their production sector for the lowest greenhouse gas emissions
per unit of production could be allocated 100 % free certifi-
cates.

The contribution of local and regional authorities

stresses that local and regional authorities are in the
25.
front line when it comes to dealing with the consequences of
climate change and must therefore be properly involved in the
adoption of any strategies to combat it and make changes;

calls on the Commission, when revising the ETS,

26.
to
consider not only the consequences on competition at national
and international level, but also the dangers for the competitive-
ness and attractiveness of the various regions within the EU;

27.
therefore calls for due consideration to be given to the
demands of regional development policies and notes that in
order to promote a more transparent and effective carbon
market, a number of industrial installations could be thoroughly
restructured so as to rid the production system of the least effi-
cient installations or those that are already in crisis; on that
note, calls for action to support
industrial
renewal and retraining of the workers concerned;

the process of

28.
recognises, with regard to the strengthening and adjust-
ment of the ETS, the need to improve the overall coherence of
actions and to set more ambitious objectives which, pursuant to
the international agreements under discussion, stipulate a target
of a 30 % reduction in greenhouse gas emissions by 2020;

considers that more should be done to involve the public
29.
in the efforts made by the EU to address climate change, with
the help of local and regional authorities; this awareness-raising
activity should focus both on encouraging responsible personal
behaviour and on helping the public understand the major
industrial and technological issues that often lie behind the stra-
tegies adopted;

sees a need to step up the work of the local and regional
30.
authorities in the field of training and information for end users
and operators of small and medium-sized businesses covered by
the ETS directive.

C 325/22

EN

Official Journal of the European Union

19.12.2008

II. PROPOSED AMENDMENTS

Amendment 1

Article 1(5), (Article 9)

Text proposed by the Commission

Article 9

CoR amendment

Article 9

Community-wide quantity of allowances

Community-wide quantity of allowances

The Community-wide quantity of allowances issued each
year starting in 2013 shall decrease in a linear manner
beginning from the mid-point of the period 2008 to 2012.
The quantity shall decrease by a linear factor of 1,74 %
compared to the average annual total quantity of allow-
ances issued by Member States in accordance with the
Commission Decisions on their national allocation plans
for the period 2008 to 2012.

The Community-wide quantity of allowances issued each
year starting in 2013 shall decrease in a linear manner
beginning from the mid-point of the period 2008 to 2012.
The quantity shall decrease by a linear factor of 1,74 %
compared to the average annual total quantity of allow-
ances issued by Member States in accordance with the
Commission Decisions on their national allocation plans
for the period 2008 to 2012.

The Commission shall, by 30 June 2010, publish the abso-
lute quantity of allowances for 2013, based on the total
quantities of allowances issued by the Member States in
accordance with the Commission Decisions on their
national allocation plans for the period 2008 to 2012.

The Commission shall, by 30 June 2010, publish the abso-
lute quantity of allowances for 2013, based on the total
quantities of allowances issued by the Member States in
accordance with the Commission Decisions on their
national allocation plans for the period 2008 to 2012.

The Commission shall review the linear factor no later
than 2025.

The Commission shall review the linear factor no later
than 2025.

The Commission shall review the Directive no later than
2018 with regard to the further development
the
period after 2020.

for

Reason

The proposed amendment to the Directive relates to the period between 2013 and 2020. Provisions for the
period post-2020 are therefore out of place. Instead, the far-reaching amendments warrant a general review
of the trade arrangements to date no later than 2018.

Amendment 2

Article 1(7), (Article 10(3))

Text proposed by the Commission

CoR amendment

the revenues generated from the
At
least 20 % of
referred to in paragraph 2,
auctioning of allowances
including all revenues from the auctioning referred to in
point (b) thereof, should be used for the following:

At
least 50 % of
the revenues generated from the
referred to in paragraph 2,
auctioning of allowances
including all revenues from the auctioning referred to in
point
thereof, should be used for the following by
Member States and their local and regional authorities:

(b)

Amendment 3

Article 1(7), (Article 10(3)(f))

Text proposed by the Commission

CoR amendment

f) to address social aspects in lower and middle income
households, for example by increasing their energy effi-
ciency and insulation;

f) to address social aspects in lower and middle income
households,
for example by increasing with measures
designed to compensate any increase in the price of elec-
tricity while also helping to increase their homes' energy
efficiency and insulation;

Reason

The aim is to include among measures for low-income households compensatory measures of a specifically
economic nature.

19.12.2008

EN

Official Journal of the European Union

C 325/23

Amendment 4

Article 1(7), (Article 10(3)), add a new paragraph 3a

Text proposed by the Commission

CoR amendment

At least 30 % of the revenues generated from the
3 a
auctioning of allowances
referred to in paragraph 2,
including all revenues from the auctioning referred to in
point (b) thereof, shall be earmarked by Member States for
local and regional authorities in order to:

a) promote the use of renewable energies and energy effi-
ciency in end uses, so as to meet the Community's
objective of using 20 % renewable energy by 2020 and
increasing energy efficiency by 20 % by 2020;

b) promote measures for reducing greenhouse gases in non
in particular in the transport and waste

ETS sectors,
sectors;

c) fund information activities to encourage good habits
among end users so as to offset possible increases in
electricity prices;

d) fund training and information activities designed to
encourage good practice on the part of small and
medium-sized industries and operators.

Reason

The aim is to give regional and local authorities a part to play in measures to reduce greenhouse gas emis-
sions and secure the appropriate funding for them.

Regional and local authorities should be given a specific role to play in promoting the use of renewable
resources and energy efficiency.

Funding should be found for regional and local activities to reduce greenhouse gas emissions in sectors that
do not fall within the scope of the ETS directive, such as the waste and transport sectors.

Funding should be found for training and information activities aimed at the public and industry operators
falling within the scope of the ETS directive.

Amendment 5

Article 1(7), (Article 10(5))

Text proposed by the Commission

CoR amendment

By 31 December 2010, the Commission shall adopt a
5.
Regulation on timing, administration and other aspects of
auctioning to ensure that it is conducted in an open, trans-
parent and non-discriminatory manner. Auctions shall be
designed to ensure that operators, and in particular any
small and medium size enterprises covered by the Com-
munity scheme, have full access and any other participants
do not undermine the operation of
the auction. That
measure, designed to amend non-essential elements of this
Directive by supplementing it, shall be adopted in accord-
ance with the regulatory procedure with scrutiny referred
to in Article [23(3)].

By 31 December 2010, the Commission shall adopt a
5.
Regulation on timing, administration and other aspects of
auctioning to ensure that it is conducted in an open, trans-
parent and non-discriminatory manner. Auctions shall be
designed to ensure that operators, and in particular any
small and medium size enterprises covered by the Com-
munity scheme, have full access and any other participants
do not undermine the operation of the auction. In order to
avoid unwelcome speculative profits, access to gradual tran-
sition can be limited to only genuine market participants.
That measure, designed to amend non-essential elements of
this Directive by supplementing it, shall be adopted in
accordance with the regulatory procedure with scrutiny
referred to in Article [23(3)].

C 325/24

EN

Official Journal of the European Union

19.12.2008

Reason

Because of the foreseeable scarcity of certificates, there is a danger that speculation might lead to price rises
out of all proportion to their value.

Amendment 6

Article 1(8), (Article 10a(1))

Text proposed by the Commission

CoR amendment

1.
The Commission shall, by 30 June 2011, adopt Com-
munity wide and fully-harmonised implementing measures
for allocating the allowances referred to in paragraphs 2
to 6 and 8 in a harmonised manner.

1.
The Commission shall, by 30 June 2011, adopt Com-
munity wide and fully-harmonised implementing measures
for allocating the allowances referred to in paragraphs 2
to 6 and 8 in a harmonised manner.

Those measures, designed to amend non-essential elements
of this Directive by supplementing it, shall be adopted in
accordance with the regulatory procedure with scrutiny
referred to in Article [23(3)].

Those measures, designed to amend non-essential elements
of this Directive by supplementing it, shall be adopted in
accordance with the regulatory procedure with scrutiny
referred to in Article [23(3)].

The measures referred to in the first subparagraph shall, to
the extent feasible, ensure that allocation takes place in a
manner that gives incentives for greenhouse gas and energy
efficient techniques and for reductions in emissions, by
taking account of the most efficient techniques, substitutes,
alternative production processes, use of biomass and green-
house gas capture and storage, and shall not give incentives
to increase emissions. No free allocation shall be made in
respect of any electricity production.

The Commission shall, upon the conclusion by the Com-
munity of an international agreement on climate change
leading to mandatory reductions of greenhouse gas emis-
sions comparable to those of the Community, review those
measures to provide that free allocation only takes place
where this is fully justified in the light of that agreement.

The measures referred to in the first subparagraph shall, to
the extent feasible, ensure that allocation takes place in a
manner that gives incentives for greenhouse gas and energy
efficient techniques — including cogeneration —, and for
reductions in emissions, by taking account of the most
efficient
alternative production
substitutes,
processes, use of biomass and greenhouse gas capture and
storage, and shall not give incentives to increase emissions.
No free allocation shall be made in respect of any electricity
production. All other sectors may however benefit from
free allocations.

techniques,

The Commission shall, upon the conclusion by the Com-
munity of an international agreement on climate change
leading to mandatory reductions of greenhouse gas emis-
sions comparable to those of the Community, review those
measures to provide that free allocation only takes place
where this is fully justified in the light of that agreement.

Reason

It should be specified that sectors other than electricity production may enjoy free allocations (fully or in
part).

Amendment 7

Article 1(8), (Article 10a(3)), add a new paragraph 3a

Text proposed by the Commission

CoR amendment

Free allocation may be given to electricity generators in
respect of the production of heat through high efficiency
cogeneration as defined by Directive 2004/8/EC for
economically justifiable demand to ensure equal treatment
with regard to other producers of heat. In each year subse-
quent to 2013, the total allocation to such installations in
respect of the production of that heat shall be adjusted by
the linear factor referred to in Article 9.

Based on reference values for separate production of electri-
city and heat, free allocation may be given to electricity
generators in respect of the production of heat through
high efficiency cogeneration as defined by Directive
2004/8/EC for economically justifiable demand to ensure
equal treatment with regard to other producers of heat. In
each year subsequent to 2013, the total allocation to such
installations in respect of the production of that heat shall
be adjusted by the linear factor referred to in Article 9.

19.12.2008

EN

Official Journal of the European Union

C 325/25

Amendment 8

Article 1(8), (Article 10a(5))

Text proposed by the Commission

CoR amendment

5.
The maximum amount of allowances that is the basis
for calculating allocations to installations which are only
included in the Community scheme from 2013 onwards
shall not exceed, in 2013, the total verified emissions of
those installations in 2005 to 2007. In each subsequent
year,
the total allocation to such installations shall be
adjusted by the linear factor referred to in Article 9.

5.
The maximum amount of allowances that is the basis
for calculating allocations to installations which are only
included in the Community scheme from 2013 onwards
shall not exceed, in 2013, the historical average of the total
emissions of those installations in 2005 to 2007. In each
subsequent year, the total allocation to such installations
shall be adjusted by the linear factor referred to in Article 9.

Reason

It should be made clear that it will not be possible to verify emissions for the installations in question as
they will not be covered by the ETS in the 2008-2013 period.

Amendment 9

Article 1(8), (Article 10a(6))

Text proposed by the Commission

CoR amendment

Five percent of

6.
the Community-wide quantity of
allowances determined in accordance with Articles 9 and 9a
over the period 2013 to 2020 shall be set aside for new
entrants, as the maximum that may be allocated to new
entrants in accordance with the rules adopted pursuant to
paragraph 1 of this Article.

Allocations shall be adjusted by the linear factor referred to
in Article 9.

No free allocation shall be made in respect of any electricity
production by new entrants.

Five percent of

6.
the Community-wide quantity of
allowances determined in accordance with Articles 9 and 9a
over the period 2013 to 2020 shall be set aside for new
entrants, as the maximum that may be allocated to new
entrants in accordance with the rules adopted pursuant to
paragraph 1 of this Article, to be determined in accordance
with forecasts of trends in Community industrial GDP in
2020. In any case, the maximum quantity to be allocated
shall not exceed five percent of the Community-wide quan-
tity of allowances determined in accordance with Articles 9
and 9a over the period 2013 to 2020.

Allocations shall be adjusted by the linear factor referred to
in Article 9.

No free allocation shall be made in respect of any electricity
production by new entrants.

Reason

The quota for new entrants should be determined on the basis of the forecast for industry GDP growth
in 2020. Five percent appears excessive given the growth forecast for Community industry GDP.

Amendment 10

Article 1(8), (Article 10a(8))

Text proposed by the Commission

CoR amendment

8.
In 2013 and in each subsequent year up to 2020,
installations in sectors which are exposed to a significant
risk of carbon leakage shall be allocated allowances free of
charge up to 100 percent of the quantity determined in
accordance with paragraphs 2 to 6.

8.
In 2013 and in each subsequent year up to 2020,
installations in sectors which are exposed to a significant
risk of carbon leakage shall be allocated allowances free of
charge up to 100 percent of the quantity determined in
accordance with paragraphs 2 to 6.
that
produce the lowest CO2 emissions per production unit
shall receive preference (benchmarks).

Installations

C 325/26

EN

Official Journal of the European Union

19.12.2008

Reason

The Commission proposal disadvantages those firms that have already voluntarily made efforts to reduce
greenhouse gas emissions. When allocating free certificates, treating ‘clean’ installations on an equal basis
with firms which have ‘dirty’ installations would lead to a distortion of competition between firms in the
same sectors in the Community. It is therefore only fair to take into account emissions reductions which
have already been achieved. The proposed benchmark model, which envisages 100 % free allocation only
for the ‘cleanest’ firms, is feasible, transparent and competition-neutral.

Amendment 11

Article 1(8), (Article 10b)

Text proposed by the Commission

CoR amendment

Measures to support certain energy intensive indus-
tries in the event of carbon leakage

Measures to support certain energy intensive indus-
tries in the event of carbon leakage

Not later than June 2011, the Commission shall,
in the
light of the outcome of the international negotiations and
the extent to which these lead to global greenhouse gas
emission reductions, and after consulting with all relevant
social partners, submit to the European Parliament and to
the Council an analytical report assessing the situation with
regard to energy-intensive sectors or sub-sectors that have
been determined to be exposed to significant risks of
carbon leakage. This shall be accompanied by any appro-
priate proposals, which may include:

— adjusting the proportion of allowances received free of
charge by those sectors or sub-sectors under Article 10a;
— inclusion in the Community scheme of importers of
products produced by the sectors or sub-sectors deter-
mined in accordance with Article 10a.

Any binding sectoral agreements which lead to global emis-
sions reductions of the magnitude required to effectively
address climate change, and which are monitorable, verifi-
able and subject to mandatory enforcement arrangements
shall also be taken into account when considering what
measures are appropriate.

No more than six months after this directive has entered
into force, the Commission shall, after consulting with all
relevant social partners and the Committee of the Regions,
submit concrete proposals for preventing carbon leakage
from energy-intensive sectors and subsectors.

Not later than June 2011, the Commission shall,
in the
light of the outcome of the international negotiations and
the extent to which these lead to global greenhouse gas
emission reductions, and after consulting with all relevant
social partners, submit to the European Parliament and to
the Council an analytical report assessing the situation with
regard to energy-intensive sectors or sub-sectors that have
been determined to be exposed to significant risks of
carbon leakage. This shall be accompanied by any appro-
priate proposals, which may include:

— adjusting the proportion of allowances received free of
charge by those sectors or sub-sectors under Article 10a;
— inclusion in the Community scheme of importers of
products produced by the sectors or sub-sectors deter-
mined in accordance with Article 10a.

Any binding sectoral agreements which lead to global emis-
sions reductions of the magnitude required to effectively
address climate change, and which are monitorable, verifi-
able and subject to mandatory enforcement arrangements
shall also be taken into account when considering what
measures are appropriate.

Reason

It is necessary to give regional and local authorities a role in pinpointing the sectors and subsectors likely to
be exposed to carbon leakage, so as to limit the danger of these companies losing competitiveness and jobs,
with particular reference to SMEs.

It is precisely investments in energy-intensive sectors which as a rule require a great deal of capital and long
lead times. Therefore it is all the more important for the firms concerned to have reliable, predictable frame-
work conditions in which to operate. The plan to wait until 2011 before considering how the particular
situation of energy-intensive sectors can be taken into account does not meet these firms'
legitimate
demands for certainty for planning purposes. Uncertainty with regard to future framework conditions has
already been seen to lead to the postponement of investments or even the relocation of investments to
non-Member States. The Commission is therefore urged to consider this point and publish corresponding
plans as soon as possible.

19.12.2008

EN

Official Journal of the European Union

C 325/27

Amendment 12

Article 1(21) (Article 27(1))

Text proposed by the Commission

CoR amendment

1. Member States may exclude, from the Community
scheme, combustion installations which have a rated
thermal
input below 25 MW, reported emissions to the
competent authority of less than 10 000 tonnes of carbon
dioxide equivalent, excluding emissions from biomass,
in
each of the preceding 3 years, and which are subject to
measures that will achieve an equivalent contribution to
emission reductions,
the Member State concerned
complies with the following conditions:

if

(a) it notifies the Commission of each such installation,
specifying the equivalent measures that are in place,
(b) it confirms that monitoring arrangements are in place
to assess whether any installation emits 10 000 tonnes
or more of carbon dioxide equivalent, excluding emis-
sions from biomass, in any one calendar year;

1. Member States may exclude from the Community
scheme, also taking into account the opinion of the instal-
lation owner, combustion installations which have a rated
input below 25 MW, reported emissions to the
thermal
competent authority of less than 10 000 tonnes of carbon
dioxide equivalent, excluding emissions from biomass,
in
each of the preceding 3 years, and which are subject to
measures that will achieve an equivalent contribution to
emission reductions,. Member States shall decide those
measures in cooperation with regional and local authorities,
on the basis of appropriate guidelines adopted by the
Commission.

2.
Installations covered by paragraph 1 may be excluded
from the Community system ifproviding the Member State
concerned complies with the following conditions:

(c) it confirms that if any installation emits 10 000 tonnes
or more of carbon dioxide equivalent, excluding emis-
sions from biomass, in any one calendar year or the
equivalent measures are no longer in place, the installa-
tion will be re-introduced into the system;

(d) it publishes the information referred to in points (a), (b)

(a) it notifies the Commission of each such installation,
specifying the equivalent measures that are in place,
(b) it confirms that monitoring arrangements are in place
to assess whether any installation emits 10 000 tonnes
or more of carbon dioxide equivalent, excluding emis-
sions from biomass, in any one calendar year;

and (c) for public comment.

(c) it confirms that, having consulted the regional and
local authorities, if any installation emits 10 000 tonnes
or more of carbon dioxide equivalent, excluding emis-
sions from biomass, in any one calendar year or the
equivalent measures are no longer in place, the installa-
tion will be re-introduced into the system;

(d) it publishes the information referred to in points (a), (b)

and (c) for public comment.

Reason

The aim is to acquire information on emission reduction measures implemented at regional level, given that
operating authorisation for small installations is the responsibility of the region.

Brussels, 8 October 2008.

The President

of the Committee of the Regions

Luc VAN DEN BRANDE