Proposal for a DECISION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on accounting rules and action plans on greenhouse gas emissions and removals resulting from activities related to land use, land use change and forestry
Date: 2012-03-12
Institutions: European Commission
Subjects: accounting system, agri-foodstuffs, climate change, disclosure of information, economic accounts for agriculture, environmental standard, farming sector, greenhouse gas, reduction of gas emissions, renewable energy, silviculture

EUROPEAN COMMISSION 

Brussels, 12.3.2012  
COM(2012) 93 final 

2012/0042 (COD) 

Proposal for a 

DECISION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL 

on accounting rules and action plans on greenhouse gas emissions and removals 
resulting from activities related to land use, land use change and forestry 

{SWD(2012) 40 final} 
{SWD(2012) 41 final} 

 
 
  
 
EXPLANATORY MEMORANDUM 

1. 

CONTEXT OF THE PROPOSAL 

The need to act on climate change now 

At the end of 2010, in the context of the United Nations Framework Convention on Climate 
Change (UNFCCC), it was recognised that global warming must not exceed the temperatures 
experienced before the industrial revolution by more than 2˚ C1. This is vital if the negative 
consequences  of  human  interference  with  the  climate  system  are  to  be  limited.  Global 
emissions must therefore start declining. This long-term goal requires global greenhouse gas 
emissions to be reduced by at least 50 % below 1990 levels by 20502. 

Developed countries as a group should reduce emissions by 80 to 95 % by 2050 compared to 
1990  levels.  In  the  medium  term,  the  Union  has  committed  to  reduce  its  greenhouse  gas 
emissions by 20 % below 1990 levels by 2020, and by 30 % below if conditions are right3. The 
land  use,  land  use  change  and  forestry  (LULUCF)  sector  does  not  form  part  of  that 
commitment. 

However, Directive 2009/29/EC of the European Parliament and of the Council of 23 April 
2009  amending  Directive  2003/87/EC  so  as  to  improve  and  extend  the  greenhouse  gas 
emission  allowance  trading  scheme  of  the  Community4  (the  EU  Emission  Trading  System, 
‘EU ETS’) and Decision No 406/2009/EC of the European Parliament and of the Council of 
23  April  2009  on  the  effort  of  Member  States  to  reduce  their  greenhouse  gas  emissions  to 
meet  the  Community’s  greenhouse  gas  emission  reduction  commitments  up  to  20205  (the 
Effort  Sharing  Decision,  ‘ESD’)  note  that  all  sectors  of  the  economy  should  contribute  to 
reaching the Union’s greenhouse gas emission reduction target for 2020. Moreover, Article 9 
of  Decision  No  406/2009/EC  invited  the  Commission  to  assess  the  modalities  for  including 
emissions  and  removals  from  activities  related  to  LULUCF  in  the  Union  reduction 
commitment  and  to  make  a  legislative  proposal,  as  appropriate,  whilst  ensuring  the 
permanence  and  environmental  integrity  of  the contribution  of  the  sector,  and  providing  for 
accurate monitoring and accounting. 

Following wide consultation of Member States and stakeholders, and an impact assessment, 
the Commission accordingly proposes a Decision to provide, as a first step, a legal framework 
for robust, harmonised and comprehensive accounting rules for LULUCF that are designed to 
accommodate  its  specific  profile.  The  proposal  establishes  a  legal  framework  for  the 
LULUCF sector which is separate from the frameworks regulating the existing commitments 
(the EU ETS and ESD), meaning that the sector would not formally be included in the 20 % 
greenhouse gas emission reduction target at this stage. Only once robust accounting rules and 
monitoring and reporting are in place, the LULUCF sector could be formally included in the 
Union’s  emission  reduction  targets.  To  this  end,  the  Commission  has  also  put  forward  a 
proposal to repeal Decision No 280/2004/EC of the European Parliament and of the Council 
of  11  February  2004  concerning  a  mechanism  for  monitoring  Community  greenhouse  gas 

1 
2 
3 
4 
5 

Decision 1/CP.16 of the Conference of Parties to the UNFCCC (the ‘Cancún Agreements’). 
Based on the Fourth Assessment Report of the Intergovernmental Panel on Climate Change (IPCC). 
Conclusions of the European Council of 8/9.3.2007. 
OJ L 140 5.6.2009, p. 63. 
OJ L 140, 5.6.2009, p. 136. . 

EN 

2 

   EN 

 
                                                 
emissions  and  for  implementing  the  Kyoto  Protocol6,  replacing  it  by  a  Regulation  of  the 
European  Parliament  and  of  the  Council  on  a  mechanism  for  monitoring  and  reporting 
greenhouse  gas  emissions  and  for  reporting  other  information  at  national  and  Union  level 
relevant to climate change7. 

The role of land use and forestry in climate change 

In the Union, emissions of greenhouse gases come mainly from energy production and other 
man-made  sources.  At  the  same  time,  carbon  is  absorbed  (removed)  from  the  atmosphere 
through photosynthesis and stored in trees and associated wood products, and in other plants 
and  soils.  Therefore,  appropriate  land  uses  and  management  practices  in  forestry  and 
agriculture  can  limit  emissions  of  carbon  and  enhance  removals  from  the  atmosphere.  Such 
practices are covered by the LULUCF sector, which comprises mostly carbon dioxide (CO2) 
emissions  and  removals  by  terrestrial  ecosystems,  generally  estimated  as  carbon  stock 
changes8. In 2009, LULUCF removed an amount of carbon from the atmosphere equivalent to 
about 9 % of the Union’s total greenhouse gas emissions in other sectors. 

Agriculture, forestry, related industries  and energy are the  most important  economic sectors 
relevant for LULUCF and they can contribute to the reduction of emissions and enhancement 
of  sinks  in  several  ways.  Agricultural  measures,  aimed  at  reducing  the  conversion  of 
grassland  and  carbon  losses  from  the  cultivation  of  organic  soils,  could  include  improving 
agronomic  practices  such  as  using  different  crop  species  (e.g.  more  leguminous  crops)  and 
extending  crop  rotations.  Agro-forestry  practices  which  provide  higher  soil  carbon  stocks 
could  contribute  by  keeping  livestock  or  growing  of  food  crops  on  land  on  which  trees  are 
also grown for timber, energy or other wood products. Organic materials can also be returned 
to or left on the land to improve the productivity of croplands and grasslands, while rewetting, 
setting  aside  or  not  draining  organic  soils,  including  peat  land,  and  restoring  degraded  soils 
can have significant mitigation and biodiversity benefits. In view of this, including cropland 
and  grassland  management  into accounting of emissions would be a necessary  step towards 
the  full  recognition  of  the  contribution  of  these  activities  to  meet  the  climate  challenge 
commitments. 

Forestry  also  has  much  potential  to  boost  mitigation.  This  includes  practices  such  as 
converting non-forest land to forest (i.e. afforestation)9, avoiding the conversion of forest to 
other  types  of  land  (i.e.  deforestation),  storing  carbon  in  existing  forests  through  longer 
rotation  periods  of  trees,  avoiding  clear-felling  (e.g.  forest  management  on  thinning  or 
selective  logging)  and  conversion  to  undisturbed  forests,  and  more  widespread  use  of 
prevention  measures  to  limit  the  impacts  of  disturbances  such  as  fires,  pests  and  storms. 
Equally importantly, existing forests can be made more productive by spacing rotations closer 
to the productive maximum, producing more from low-production forests and increasing the 
harvest  of  timber  off-cuts  and  branch-wood,  provided  biodiversity,  soil  fertility  and  organic 

6 
7 
8 

9 

OJ L 49, 19.2.2004, p. 1. 
COM(2011) 789 final — 2011/0372 (COD). 
Other greenhouse gases from agricultural activities, e.g. methane and nitrous oxide from ruminants and 
fertilisers, do not count under LULUCF, which deals primarily with carbon emissions and removals in 
vegetation  and  soils.  Non-CO2  emissions  from  agriculture  are  included  in  a  separate  agriculture 
inventory. 
There  is  also  a  trade-off,  namely  conversion  should  not  induce  ‘carbon  leakage’,  i.e.  replacement  of 
domestically produced food by imported food that has a more negative carbon footprint. 

EN 

3 

   EN 

 
                                                 
matter can be maintained. An impact could also be obtained by changing species composition 
and growth rates. 

In addition to the opportunities directly linked to forestry and agriculture, there are potential 
mitigation  benefits  in  the  related  industries  (e.g.  pulp  and  paper,  wood  processing)  and 
renewable  energy  sectors  if  agricultural  land  and  forests  are  managed  for  production  of 
timber and energy. Whilst carbon is stored in trees and in other plants and soils, it can also be 
stored  for  several  decades  in  products  (e.g.  construction  wood).  Industry  and  consumer 
oriented  policies  can  make  an  important  contribution  to  increasing  the  long  term  use  and 
recycling of wood and/or the production of pulp, paper and wood products, thereby replacing 
more emission-intensive equivalents (e.g. concrete, steel, plastics made from fossil fuels). In 
fact, the bio-based industry can make use of crops grown for material substitution (e.g. hemp 
and grass for insulation instead of glass fibre, straw for furniture production, car door panels 
made from flax or sisal plants, bio-plastics) or for energy (e.g. using biomass instead of fossil 
fuels). Studies show that for each tonne of carbon in wood products substituted for non-wood 
products  an  average  greenhouse  gas  emission  reduction  of  approximately  two  tonnes  of 
carbon can be expected10. 

The  inclusion  of  mandatory  accounting  for  forest  management,  cropland  management  and 
grazing-land  management  would  make  action  taken  by  farmers,  foresters  and  forest-based 
industries  more  apparent  and  provide  the  basis  for  designing  policy  incentives  to  increase 
their  mitigation  action.  If  such  efforts  are  being  accounted  for,  their  overall  greenhouse  gas 
impact  is  more  correctly  reflected  and  the  cost-efficiency  of  reaching  emission  reduction 
targets would be improved. 

Given the fact that agricultural land use, forestry and related industries differ greatly between 
Member  States  in  terms  of  their  emission  potential  within  the  Union  no  single  policy 
approach will fit them all. A tailored approach is needed to tackle the different forms of land 
uses  and  forestry  practices.  The  fundamental  pre-condition  for  protecting  and  enhancing 
carbon  stocks,  and  the  rate  of  removals  is  the  provision  of  a  level  playing  field  between 
different  types  of  measures  in  the  various  sectors  in  the  Member  States  (e.g.  grazing  land 
management  or  bio-energy  production),  through  accurate  and  harmonised  accounting  for 
emissions and removals from the LULUCF sector. 

Current policies are not enough 

Although  the  LULUCF  sector  does  not  yet  count  towards  the  Union’s  emission  reduction 
target for 2020, it counts in part towards the Union’s commitment under the Kyoto Protocol 
(‘Kyoto  Protocol’)  to  the  UNFCCC,  approved  by  Council  Decision  2002/358/EC  11  for  the 
period from 2008 to 2012. However, the existing international accounting rules, which are a 
mix  of  voluntary  and  mandatory  practices,  have  significant  drawbacks.  Most  importantly, 
accounting  is  voluntary  for  most  LULUCF  activities,  notably  for  forest  management 
(representing  about  70 %  of  the  sector)  and  for  cropland  and  grazing-land  management 
(representing  about  17 %  of  the  sector).  As  a  result,  accounting  in  this  first  commitment 
period under the Kyoto Protocol varies greatly between Member States. Another drawback is 
the lack of incentives for climate change mitigation in forestry. Improvements in accounting 
are  necessary  to  create  a  level  playing  field  within  the  agricultural,  forestry  and  related 

10 

11 

See e.g. Sathre R. and O’Connor J. (2010), ‘A synthesis of research on wood products and greenhouse 
gas impacts’, 2nd edition, Vancouver, B. C. FP Innovations, p 117. 
OJ L 130, 15.5.2002, p. 1. 

EN 

4 

   EN 

 
                                                 
industries  and  energy  sectors  in  the  Member  States  with  a  view  to  ensuring  their  consistent 
treatment within the Union’s internal market. 

Robust  and  harmonised  estimation  of  emissions  and  removals  in  agriculture  and  forestry 
requires  investment  in  monitoring  and  reporting  capacity.  Nonetheless,  there  are  still 
significant  gaps  and  the  accuracy  and  completeness  of  the  reported  data  must  be  improved, 
especially as regards data on agricultural soils. Improvements in monitoring and reporting 
will  therefore  not  only  support  accounting  but  also  provide  a  robust,  clear  and  visible 
indicator of progress in agriculture and forestry. 

Fostering  synergies  with  wider  policy  objectives  is  also  important.  Incentives  do  exist  to 
promote the use of bio-energy12 but currently there is no coherent approach to climate change 
mitigation  in  the  LULUCF  sector  through  measures  in  agriculture,  forestry  and  related 
industries. 

Indeed, climate change mitigation could play an increasingly important role in the Common 
Agricultural Policy (CAP). In the post-2013 Union rural-development policy, climate change 
mitigation  and  adaptation  could  be  tackled  by  offering  better  incentives  for  carbon 
sequestration in agriculture and forestry. Some of them would at the same time enhance and 
protect  carbon  stocks  and  generate  co-benefits  for  biodiversity  and  for  adaptation  by 
increasing water-retention capacity and reducing erosion. Mandatory accounting of associated 
carbon fluxes would make the positive contribution of these measures more visible and ensure 
their  full  contribution  towards  meeting  the  climate  change  challenge.  Accounting  for 
LULUCF would also clarify the benefits of sustainable bio-energy by better reflecting related 
emissions, in particular those resulting from the combustion of biomass, which is unaccounted 
for at the moment. This would strengthen the incentives provided by sustainability criteria in 
the context of renewable energy targets. 

However, LULUCF is not like other sectors. Removals and emissions of greenhouse gases in 
this  sector  are  the  result  of  relatively  slow  natural  processes.  It  can  take  decades  before 
measures  such  as  afforestation  have  a  significant  effect.  Therefore,  action  to  increase 
removals and reduce emissions in forestry and agriculture should be considered over the long-
term.  Moreover,  emissions  and  removals  are  reversible:  such  reversals  may  be  because 
extreme events such as fires, storms, droughts or pests have had an impact on forest and land 
cover or because of management decisions (e.g. to harvest or plant trees). In addition, annual 
fluctuations  of  emissions  and  removals  in  forests  are  high  and  can  amount  to  as  much  as 
35 % of the total annual emissions in some Member States as a result of natural disturbances 
and harvesting. This would make it difficult for Member States to comply with annual targets. 

Although  emissions  and  removals  from  LULUCF  are  reported  under  the  UNFCCC  and 
partially accounted under the Kyoto Protocol, the sector was left out of the Union’s climate 
commitments  under  the  Climate  and  Energy  Package  due  to  the  recognition  of  serious 
deficiencies  in  international  accounting  rules  of  emissions  and  removals  from  this  sector. 
Also, the expectation at the moment of setting the Union emission reduction target was that 
the  climate  summit  in  Copenhagen  in  2009  would  deliver  an  international  agreement  on 
climate  change,  including  revised  accounting  rules  for  LULUCF,  which  could  then  be 
adopted by the Union. This did not happen on that occasion. 

12 

Directive 2009/28/EC. 

EN 

5 

   EN 

 
                                                 
However, during the 17th Conference of the Parties of the UNFCCC serving as the meeting of 
the  Parties  to  the  Kyoto  Protocol  in  Durban  in  December  2011  progress  was  made.  In  this 
framework, Decision -/CMP.7 sets out the rules, definitions and modalities for accounting for 
the  LULUCF  sector  as  of  a  second  commitment  period  under  the  Kyoto  Protocol.  In 
particular,  accounting  for  forest  management  activities,  including  for  harvested  wood 
products, will be mandatory and definitions for natural disturbances and wetland drainage and 
rewetting  were  established.  Therefore,  it  is  important  to  proceed  at  Union  level  in  parallel 
with the international processes. A legal proposal on accounting for emissions and removals 
from activities related to LULUCF in the Union needs to be in line with the decisions taken at 
international  level  in  order  to  ensure  the  appropriate  level  of  coherence;  at  the  same  time, 
however, it should give the Union a chance to lead by example with a view to an international 
agreement as of a second commitment period of the Kyoto Protocol. 

The  aim  of  this  proposal  is  therefore  to  gradually  integrate  the  LULUCF  sector  into  the 
Union’s climate policy by means of a separate legal framework which addresses the sector’s 
specific  profile  and  by  ensuring  a  robust  and  harmonised  accounting  framework.  Most 
importantly,  it  would  complete  the  accounting  of  anthropogenic  greenhouse  gas  emissions 
from all economic activities within the Union. As part of that it would increase the visibility 
of  ongoing  and  new  mitigation  efforts  in  agriculture,  forestry  and  related  industries  and 
provide a basis for designing adequate policy incentives (e.g. in the CAP and in view of the 
Roadmap  to  a  Resource  Efficient  Europe13).  Laying  down  common  Union  accounting  rules 
would  also  level  the  playing  field  among  Member  States.  It  would  capture  the  changes  in 
carbon  stocks  due  to  the  use  of  domestically  produced  biomass,  thus  completing  the 
accounting  of  bio-energy  at  the  level  of  the  economy.  This  would  strengthen  the 
environmental  integrity  of  the  Union’s  climate  policy.  Lastly,  it  would  be  an  important  and 
necessary  move  towards  a  cost  effective  pursuit  of  more  ambitious  climate  targets.  To  this 
end,  it  is  therefore  important  to  establish  robust  and  harmonised  accounting  rules  for  the 
sector and to ensure their contribution towards meeting the climate change challenges. 

2. 

RESULTS OF CONSULTATIONS WITH THE INTERESTED PARTIES AND 
IMPACT ASSESSMENTS 

Consultations with stakeholders 

In  early  2010,  an  expert  group  on  climate  policy  for  LULUCF  was  established  under  the 
European  Climate  Change  Programme.  The  group  comprised  a  wide  range  of  stakeholders: 
environmental NGOs, trade associations, experts from public administrations and researchers. 
The  group’s  objective  was  to  define  and  provide  input  on  critical  issues  related  to  the 
inclusion of the LULUCF sector in the Union’s climate change mitigation efforts. This helped 
define the scope and steer the work of the Commission. The summary report with the main 
findings is available on the relevant Commission websites14. 

An  online  public  consultation  was  carried  out  in  2010  to  collect  views  on  the  opportunities 
and challenges related to the inclusion of the LULUCF sector in the Union’s greenhouse gas 
emission reduction commitments15. A total of 153 responses were received, representing the 
views of private companies, business and industry organisations, individuals and private land 

13 
14 
15 

COM(2011) 571 final. 
http://ec.europa.eu/clima/events/0029/index_en.htm . 
http://ec.europa.eu/clima/consultations/0003/index_en.htm . 

EN 

6 

   EN 

 
                                                 
owners, non-governmental organisations, academia and research, and public authorities. The 
same questions were subsequently used in a separate consultation with Member States and 14 
responses  were  received.  The  following  points  can  be  made  based  on  the  data  collected 
through the online public consultation: 

• 

• 

• 

• 

• 

most of the respondents believe that land use activities could contribute to mitigating 
climate  change  even  in  the  short  term  (until  2020)  and  in  the  longer  term  between 
2020 and 2050; 

the  majority  replied  that  the  LULUCF  sector  should  be  part  of  the  Union’s 
greenhouse  gas  emission  reduction  targets  for  2020,  with  a  tendency  in  favour  of 
including the sector only if the Union were to take on a more ambitious commitment; 

respondents  tended  to  favour  a  separate  accounting  framework  for  the  LULUCF 
sector, as opposed to inclusion in the EU ETS or ESD; 

the majority of respondents also agreed that there is a need for more harmonisation 
and standardisation in reporting and monitoring within the Union; 

the vast majority of respondents considered the existing Union and national policies 
to  be  insufficient  to  ensure  that  land  use  activities  contribute  to  climate  change 
mitigation. 

The full results of the online public consultation and the consultation with Member States are 
available on the relevant Commission websites16. 

Finally,  the  Commission  also  held  a  stakeholder  meeting  on  28  January  2011  in  Brussels. 
Around 75 participants representing Member States, trade associations, environmental NGOs 
and research institutes took part in the discussions. The proceedings are also available on the 
relevant Commission websites17. 

Impact assessment 

The impact assessment investigated three key issues that need to be addressed when assessing 
how  LULUCF  should  be  included  in  the  Union’s  greenhouse  gas  emission  reduction 
commitments, namely how to: 

• 

• 

• 

ensure robust accounting rules for emissions and removals; 

achieve robust monitoring and reporting; 

establish  the  appropriate  policy  context  for  bringing  the  sector  into  the  Union’s 
climate change commitments. 

Based  on  the  policy  context  for  including  the  sector  in  the  Union’s  commitments  currently 
regulated  by  the  ESD  and  the  EU  ETS,  the  impact  assessment  considered  three  options  for 
including  LULUCF,  namely  as  part  of  the  ESD,  as  a  separate  framework  or  by  delaying 
inclusion  altogether.  Each  option  addressed  the  issues  of  accounting  and  monitoring.  The 

16 
17 

http://ec.europa.eu/clima/events/0029/index_en.htm . 
http://ec.europa.eu/clima/events/0029/index_en.htm . 

EN 

7 

   EN 

 
                                                 
potential social, economic and environmental impacts of the various options were considered 
in detail. 

The  impact  assessment  concluded  that  there  were  good  reasons  to  include  LULUCF  in  the 
Union’s  greenhouse  gas  emission-reduction  commitments,  namely  to  improve  their  policy 
coherence, environmental integrity and economic efficiency. But this will only be possible if 
the  right  policy  context  for  LULUCF  is  put  in  place.  The  high  variability  of  emissions  and 
removals  in  forests  means  that  annual  emission  reduction  targets  of  the  kind  that  apply  to 
other sectors are unsuitable. The long lead times needed for mitigation measures to take effect 
also  set  LULUCF  apart  from  most  other  sectors.  In  view  of  this,  the  impact  assessment 
indicated  that  a  separate  legal  framework  for  LULUCF  would  be  the  preferred  option.  In 
terms  of  accounting,  the  suitable  options  identified  included  mandatory  accounting  of 
emissions  and  removals  from  both  forestry  and  agricultural  activities  and  giving  equal 
weight  to  mitigation  action  irrespective  of  whether  it  was  taken  in  the  forestry,  agriculture, 
related industries or energy sectors. This is more cost-efficient and will ensure a level playing 
field  not  only  for  Member  States  but  also  for  the  various  sectors  of  the  Union’s  internal 
market.  It  will  also  provide  a  framework  of  incentives  for  mitigation  action  by  farmers, 
foresters  and  related  industries,  ensuring  that  such  action  is  visible  and  correctly  recorded. 
Broad  coverage  of  emissions  and  removals  will  also  ensure  that  potential  reversals  are 
reflected in the accounting system. Mitigation actions should nevertheless not be put on hold. 
National action plans could be prepared to provide a strategy and forecast for LULUCF. This 
would  be  an  intermediate  step  towards  the  sector’s  full  integration  into  current  policies. 
Moreover,  the  impact  assessment  also  indicated  that  monitoring  and  reporting  needed  to  be 
improved  to  underpin  the  accounting  framework  and  the  indicators  tracking  progress  in 
agriculture  and  forestry.  The  Commission  proposes  to  achieve  this  through  a  separate 
framework,  namely  by  revising  the  Monitoring  Mechanism  Decision.  For  reasons  of 
comparability  and  cost-efficiency,  better  use  could  also  be  made  of  Union-wide  monitoring 
instruments such as LUCAS and CORINE. 

The full results are presented in the impact assessment accompanying the proposal. 

Summary of the proposal 

The main objective of this Decision is to establish robust and comprehensive accounting rules 
for  LULUCF  as  well  as  to  enable  future  policy  development  towards  the  full  inclusion  of 
LULUCF  in  the  Union’s  greenhouse  gas  emission  reduction  commitments  when  the 
conditions are right. To this end this Decision establishes a framework for: 

• 

• 

• 

• 

a  mandatory  accounting  obligation  on  Member  States  as  regards  greenhouse  gas 
emissions by sources and removals by sinks associated with agricultural and forestry 
activities  in  the  LULUCF  sector  and  voluntary  accounting  for  revegetation  and 
wetland drainage and rewetting; 

the general accounting rules that must be applied; 

the  specific  accounting  rules  for  afforestation,  reforestation,  deforestation,  forest 
management,  changes  in  the  harvested  wood  products  pool,  cropland  management, 
grazing land management, revegetation, and wetland drainage and rewetting; 

the specific rules for accounting for natural disturbances; 

EN 

8 

   EN 

 
• 

• 

adopting  LULUCF  Action  Plans  in  Member  States  designed  to  limit  or  reduce 
emissions  by  sources  and  maintain  or  increase  removals  by  sinks  associated  with 
LULUCF activities, and for the evaluation of those plans by the Commission; 

the Commission’s power to update the definitions laid down in Article 2 in the light 
of  changes  to  definitions  adopted  by  the  bodies  of  the  UNFCCC  or  the  Kyoto 
Protocol or other multilateral agreement relevant to climate change concluded by the 
Union, to amend Annex I to add accounting periods and ensure consistency between 
those  accounting  periods  and  the  relevant  periods  applicable  to  Union  emission 
reduction commitments in other sectors, to amend Annex II with updated reference 
levels in accordance with the proposed reference levels submitted by Member States 
pursuant to Article 6 subject to corrections made in accordance with this Decision, to 
revise the information specified in Annex III in accordance with scientific progress 
and to revise the conditions relating to the accounting rules for natural disturbances 
laid down in Article 9(2) in the light of scientific progress or to reflect revisions to 
acts adopted by UNFCCC or Kyoto Protocol bodies. 

3. 

LEGAL ELEMENTS OF THE PROPOSAL 

Legal basis 

The legal basis for the legislative proposal is Article 192(1) of the Treaty on the Functioning 
of  the  European  Union.  The  proposal  pursues  a  legitimate  objective  within  the  scope  of 
Article  191(1)  of  the  Treaty  on  the  Functioning  of  the  European  Union,  namely,  combating 
climate change. The purpose of the legislative proposal is to ensure Member States’ accurate 
and consistent accounting of emissions by sources and removals by sinks related to LULUCF, 
and therefore to improve the availability of information for policy and decision making in the 
context  of  the  Union’s  climate  change  commitments  and  provide  incentives  for  mitigation 
efforts.  This  objective  cannot  be  achieved  by  less  restrictive  means  than  the  legislative 
proposal. 

Subsidiarity principle 

For Union action to be justified, the subsidiarity principle must be respected. 

(a) 

Transnational nature of the problem (necessity test) 

Climate  change  is  a  trans-boundary  issue  which  requires  joint  action  by  Member  States. 
National  actions  alone  would  not  achieve  compliance  with  the  common  greenhouse  gas 
emission  reduction  targets  set  at  Union’s  level;  they  would  also  neither  meet  the  objectives 
nor fulfil internationally agreed commitments. It is therefore necessary for the Union to create 
an  enabling  legal  framework  to  ensure  harmonised  accounting  for  the  LULUCF  sector 
wherever possible  in  order  to  further its contribution to the  climate change commitments of 
the Union. 

(b) 

Effectiveness test (added value) 

By  reason  of  its  effectiveness,  taking  action  at  Union  level  would  produce  clear  benefits 
compared to action at Member State level. As the overarching climate change commitments 
are made at the Union level, it is effective to also develop the required accounting rules at this 
level. Moreover, overcoming the problems that have been identified, such as the need to have 

EN 

9 

   EN 

 
accurate  and  consistent  accounting  methodologies  for  the  different  LULUCF  activities, 
requires common rules across all Member States. This can be ensured only at the Union level. 

This  legal  framework  will  ensure  effectiveness  by  employing  harmonised  and  sound 
accounting  and  LULUCF  Action  Plans,  and  by  enabling  a  more  detailed  assessment  and 
evaluation  of  progress  in  Member  States.  This  will  ensure  the  coherence  of  the  Union’s 
climate  policy,  further  improve  the  environmental  integrity  of  the  Union’s  climate  change 
commitments and enhance the economic efficiency of the Union’s climate policy. 

Proportionality principle 

The proposal complies with the proportionality principle for the following reasons: 

It  does  not  go  beyond  what  is  necessary  in  order  to  achieve  the  objectives  of  improving 
climate  change  data  quality  and  ensuring  compliance  with  international  and  Union 
requirements and commitments. 

The proposal is proportionate to the Union’s overall objective of reaching the Union targets 
enshrined  in  the  Climate  and  Energy  Package,  the  Kyoto  Protocol,  the  Copenhagen  Accord 
and the Decisions 1/CP.16, 1/CMP.6 and 2/CMP.6 (‘Cancun Agreements’). 

The  proposal  provides  for  the  implementation  of  accounting  rules  which  are  similar  to,  but 
more robust and comprehensive than, the ones discussed and employed at international level, 
especially with regard to Decision -/CMP.7. 

4. 

BUDGETARY IMPLICATION 

As  specified  in  the  financial  statement  accompanying  this  Decision,  the  Decision  will  be 
implemented  using  the  existing  budget  and  will  not  have  an  impact  on  the  multi-annual 
financial framework. 

5. 

OPTIONAL ELEMENTS 

The  proposal  includes  a  provision  pursuant  to  which  the  Commission  will  review  the 
accounting rules in this Decision at the latest within one year of the end of the first accounting 
period. 

2012/0042 (COD) 

EN 

10 

   EN 

 
Proposal for a 

DECISION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL 

on accounting rules and action plans on greenhouse gas emissions and removals 
resulting from activities related to land use, land use change and forestry 

THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION, 

Having  regard  to  the  Treaty  on  the  Functioning  of  the  European  Union,  and  in  particular 
Article 192(1) thereof, 

Having regard to the proposal from the European Commission, 

After transmission of the draft legislative act to the national Parliaments, 

Having regard to the opinion of the European Economic and Social Committee18, 

Having regard to the opinion of the Committee of the Regions19, 

Acting in accordance with the ordinary legislative procedure, 

Whereas: 

(1) 

The Union land use, land use change and forestry (‘LULUCF’) sector is a net sink that 
removes  from  the  atmosphere  greenhouse  gasses  in  an  amount  equivalent  to  a 
significant  share  of  total  Union  emissions.  It  results  in  anthropogenic  emissions  and 
removals of greenhouse gases as a consequence of changes in the quantity of carbon 
stored in vegetation and soils. Emissions and removals of greenhouse gases resulting 
from  the  LULUCF  sector  are  not  counted  towards  the  Union’s  20 %  greenhouse  gas 
emission  reduction  targets  for  2020  pursuant  to  Decision  No  406/2009/EC  of  the 
European  Parliament  and  of  the  Council  of  23  April  2009  on  the  efforts  of  Member 
States to reduce their greenhouse gas emissions to meet the Community’s greenhouse 
gas  emission  reduction  commitments  up  to  202020  and  Directive  2003/87/EC  of  the 
European Parliament and of the Council of 13 October 2003 establishing a scheme for 
greenhouse  gas  emission  allowance  trading  within  the  Community  and  amending 
Council  Directive  96/61/EC21,  though  they  count  in  part  towards  the  Union’s 
quantified  emission  limitation  and  reduction  target  pursuant  to  Article  3(3)  of  the 
Kyoto  Protocol  (‘Kyoto  Protocol’)  to  the  United  Nations  Framework  Convention  on 
Climate Change (‘UNFCCC’), approved by Council Decision 2002/358/EC22. 

18 
19 
20 
21 
22 

OJ C , , p. . 
OJ C , , p. . 
OJ L 140, 5.6.2009, p. 136. 
OJ L 275, 25.10.2003, p. 32. 
OJ L 130, 15.5.2002, p. 1. 

EN 

11 

   EN 

 
                                                 
(2) 

(3) 

(4) 

(5) 

(6) 

Article 9 of Decision No 406/2009/EC requires the Commission to assess modalities 
to include greenhouse gas emissions and removals resulting from activities related to 
land  use,  land  use  change  and  forestry  into  the  Union’s  greenhouse  gas  emission 
reduction commitment, whilst ensuring the permanence and environmental integrity of 
the contribution of the sector, and providing for accurate monitoring and accounting of 
the  relevant  emissions  and  removals.  This  Decision  should,  therefore,  as  a  first  step, 
set out accounting rules applicable to greenhouse gas emissions and removals from the 
LULUCF sector. To ensure the preservation and enhancement of carbon stocks in the 
interim,  it  should  also  provide  for  Member  States  to  adopt  LULUCF  Action  Plans 
setting  out  measures  to  limit  or  reduce  emissions,  and  to  maintain  or  increase 
removals, from the LULUCF sector. 

The 17th Conference of the Parties of the UNFCCC, meeting in Durban in December 
2011,  adopted  Decision  -/CMP.7  of  the  Conference  of  the  Parties  serving  as  the 
meeting of the Parties to the Kyoto Protocol (‘Decision -/CMP.7’). That decision set 
out  rules  for  accounting  for  the  LULUCF  sector  as  of  a  second  commitment  period 
under the Kyoto Protocol. This Decision should be in line with that decision to ensure 
an  appropriate 
internal  rules  and 
methodologies  agreed  within  the  UNFCCC.  This  Decision  should  also  reflect  the 
particularities of the Union LULUCF sector. 

level  of  coherence  between 

the  Union’s 

The  LULUCF  accounting  rules  should  reflect  efforts  made  in  the  agriculture  and 
forestry  sectors  to  enhance  the  contribution  of  changes  made  to  the  use  of  land 
resources to the reduction of emissions. This Decision should provide for accounting 
rules  applicable  on  a  mandatory  basis  to  the  forestry  activities  of  afforestation, 
reforestation, deforestation and forest management, and to the agricultural activities of 
grazing  land  management  and  cropland  management.  It  should  also  provide  for 
accounting rules applicable on a voluntary basis to revegetation and wetland drainage 
and rewetting activities. 

To ensure the environmental integrity of the accounting rules applicable to the Union 
LULUCF sector, these rules should be based on the accounting principles laid down in 
Decision -/CMP.7, and Decision 16/CMP.1 of the Conference of the Parties serving as 
the meeting of the Parties to the Kyoto Protocol. 

The accounting rules should accurately represent human-induced changes in emissions 
and  removals.  In  that  regard,  this  Decision  should  provide  for  the  use  of  specific 
methodologies  in  respect  of  different  LULUCF  activities.  Emissions  and  removals 
related to afforestation, reforestation and deforestation are the direct result of human 
intervention  and  should  therefore  be  accounted  for  in  their  entirety.  However,  given 
that  not  all  emissions  and  removals  from  forest  management  are  anthropogenic,  the 
relevant accounting rules should provide for the use of reference levels to exclude the 
effects  of  natural  and  country-specific  characteristics.  Reference  levels  constitute 
estimates  of  the  annual  net  emissions  or  removals  resulting  from  forest  management 
within the territory of a Member State for the years included in an accounting period, 
and should be set transparently in accordance with Decision -/CMP.7. They should be 
updated  to  reflect  improvements  to  methodologies  or  data  available  in  the  Member 
States.  The  accounting  rules  should  provide  for  an  upper  limit  applicable  to  net 
greenhouse  gas  emissions  and  removals  for  forest  management  that  may  be  entered 
into accounts, given underlying uncertainties in the projections on which the reference 
levels are based. 

EN 

12 

   EN 

 
(7) 

(8) 

(9) 

The accounting rules should ensure that Member States accurately reflect in accounts 
the time emissions of greenhouse gasses from harvested wood take place, to provide 
incentives for the use of harvested wood products with long life cycles. The first-order 
decay function applicable to emissions resulting from harvested wood products should 
therefore correspond to equation 12.1 of the 2006 Intergovernmental Panel on Climate 
Change  (‘IPCC’)  Guidelines  for  National  Greenhouse  Gas  Inventories,  and  the 
relevant  default  half-life  values  should  be  based  on  Table  3a.1.3  of  the  2003  IPCC 
Good Practice Guidance for Land Use, Land Use Change and Forestry. 

Since  inter-annual  fluctuations  in  greenhouse  gas  emissions  and  removals  resulting 
from  agricultural  activities  are  much  smaller  than  those  related  to  forestry  activities, 
Member  States  should  account  for  greenhouse  gas  emissions  and  removals  from 
cropland  and  grazing  land  management  activities  relative  to  its  base  year  in 
accordance with their reviewed initial report on base year emission data as submitted 
to  the  UNFCCC  pursuant  to  Decision  13/CMP.1  of  the  Conference  of  the  Parties 
serving as the meeting of the Parties to the Kyoto Protocol (‘Decision 13/CMP.1’). 

Natural  disturbances,  such  as  wildfires,  insect  and  disease  infestations,  extreme 
weather events and geological disturbances, may result in greenhouse gas emissions or 
reductions of a temporary nature in the LULUCF sector, or may cause the reversal of 
previous removals. As reversal can also be the result of management decisions, such 
as decisions to harvest or plant trees, this Decision should ensure that human-induced 
reversals of removals are always accurately reflected in LULUCF accounts. Moreover, 
this Decision should provide Member States a limited possibility to exclude emissions 
resulting  from  disturbances  that  are  beyond  their  control  from  their  LULUCF 
accounts. However, the manner in which Member States apply those provisions should 
not lead to undue under-accounting. 

(10)  Reporting rules on greenhouse gas emissions and other information relevant to climate 
change,  including  information  on  the  LULUCF  sector,  fall  within  the  scope  of 
Regulation  (EU)  No  …/…  [Commission  proposal  for  a  Regulation  of  the  European 
Parliament  and  of  the  Council  on  a  mechanism  for  monitoring  and  reporting  Union 
greenhouse  gas  emissions  and  for  reporting  other  information  at  national  and  Union 
level relevant to climate change (COM/2011/0789 final — 2011/0372 (COD)], and are 
not therefore within the scope of this Decision. 

(11) 

Inter-annual  fluctuations  in  emissions  and  removals,  the  frequent  need  to  recalculate 
certain  reported  data,  and  long  time  required  for  changed  management  practices  in 
agriculture and forestry to have an effect on the quantity of carbon stored in vegetation 
and soils would make LULUCF sector accounts inaccurate and unreliable if compiled 
on  an  annual  basis.  This  Decision  should  therefore  provide  for  longer  and  more 
appropriate accounting periods. 

(12)  Member  State  LULUCF  Action  Plans  should  set  out  measures  to  limit  or  reduce 
emissions  and  to  maintain  or  increase  removals  from  the  LULUCF  sector.  Each 
LULUCF Action Plan should contain certain information as specified in this Decision. 
Moreover,  to  promote  best  practice,  an  indicative  list  of  measures  that  may  also  be 
included in those plans should be set out in Annex to this Decision. The Commission 
should  periodically  evaluate  the  content  and  implementation  of  Member  States’ 
LULUCF Action Plans and, where appropriate, provide recommendations to enhance 
Member State action. 

EN 

13 

   EN 

 
(13)  The  power  to  adopt  acts  in  accordance  with  Article  290  of  the  Treaty  on  the 
Functioning of the European Union should be delegated to the Commission to update 
the definitions laid down in Article 2 in the light of changes to definitions adopted by 
the  bodies  of  the  UNFCCC  or  the  Kyoto  Protocol  or  other  multilateral  agreement 
relevant  to  climate  change  concluded  by  the  Union,  to  amend  Annex  I  to  add 
accounting periods and ensure consistency between those accounting periods and the 
relevant periods applicable to Union emission reduction commitments in other sectors, 
to  amend  Annex  II  with  updated  reference  levels  in  accordance  with  the  proposed 
reference  levels  submitted  by  Member  States  pursuant  to  Article  6  subject  to 
corrections made in accordance with this Decision, to revise the information specified 
in Annex III in accordance with scientific progress and to revise the conditions relating 
to the accounting rules for natural disturbances laid down in Article 9(2) in the light of 
scientific  progress  or  to  reflect  revisions  to  acts  adopted  by  the  UNFCCC  or  Kyoto 
Protocol  bodies.  It  is  of  particular  importance  that  the  Commission  carry  out 
appropriate  consultations  during  its  preparatory  work,  including  at  expert  level.  The 
Commission,  when  preparing  and  drawing-up  delegated  acts,  should  ensure  a 
simultaneous,  timely  and  appropriate  transmission  of  relevant  documents  to  the 
European Parliament and Council. 

(14)  Since the objectives of the proposed action cannot, by their very nature, be sufficiently 
achieved by the Member States alone and can therefore by reason of scale and effects 
of  the  action  be  better  achieved  at  Union  level,  the  Union  may  adopt  measures,  in 
accordance  with  the  principle  of  subsidiarity as  set  out  in  Article  5  of  the  Treaty  on 
European Union. In accordance with the principle of proportionality, as set out in that 
Article, this Decision does not go beyond what is necessary in order to achieve those 
objectives, 

HAVE ADOPTED THIS DECISION: 

Article 1 

Subject matter and scope 

This Decision sets out accounting rules applicable to emissions and removals resulting from 
land use, land use change and forestry activities. It also provides for Member State LULUCF 
Action Plans to limit or reduce emissions and to maintain or increase removals, and for the 
evaluation of those plans by the Commission. 

Article 2 

Definitions 

1. 

For the purposes of this Decision, the following definitions apply: 

(a) 

‘emissions’ means anthropogenic greenhouse gas emissions by sources; 

(b) 

‘removals’ means anthropogenic greenhouse gas removals by sinks; 

(c) 

‘afforestation’ is the direct human-induced conversion of land that has not been 
forest for a period of at least 50 years to forest through planting, seeding and/or 

EN 

14 

   EN 

 
(d) 

(e) 

(f) 

(g) 

(h) 

(i) 

(j) 

(k) 

the  human-induced  promotion  of  natural  seed  sources,  where  the  conversion 
has taken place after 1 January 1990; 

‘reforestation’ is any direct human-induced conversion of land that is not forest 
to  forest  through  planting,  seeding  and/or  the  human-induced  promotion  of 
natural  seed  sources,  on  land  that  was  covered  with  forest,  but  that  has  been 
converted to land without forest, where the conversion has taken place after 1 
January 1990; 

‘deforestation’ is the direct human-induced conversion of forest to land that is 
not forest, where the conversion has taken place after 1 January 1990; 

‘forest  management’  is  any  activity  resulting  from  a  system  of  practices 
applicable  to  a  forest  and  aimed  at  improving  any  ecological,  economic  or 
social function of the forest; 

‘cropland  management’  is  any  activity  resulting  from  a  system  of  practices 
applicable to land on which agricultural crops are grown and on land that is set 
aside or temporarily not being used for crop production; 

‘grazing land management’ is any activity resulting from a system of practices 
applicable  to  land  used  for  livestock  production  and  aimed  at  controlling  or 
influencing the quantity and type of vegetation and livestock produced; 

‘revegetation’  is  any  direct  human-induced  activity  intended  to  increase  the 
carbon stock of any site that covers a minimum area of 0.05 hectares, through 
the  proliferation  of  vegetation,  where  that  activity  does  not  constitute 
afforestation or reforestation; 

‘carbon  stock’  is  the  quantity  of  the  element  carbon  stored  in  a  carbon  pool, 
expressed in millions of tonnes; 

‘wetland  drainage  and  rewetting’  is  any  activity  resulting  from  a  system  for 
draining  or  rewetting  land  that  covers  a  minimum  area  of  1  hectare  and  on 
which  organic  soil  is  present,  provided  the  activity  does  not  constitute  any 
other  activity  referred  to  in  Article  3(1),  and  where  draining  is  the  direct 
human-induced  lowering  of  the  soil  water  table,  and  rewetting  is  the  direct 
human-induced partial or total reversal of drainage; 

(l) 

‘source’ is any process, activity or mechanism that releases a greenhouse gas, 
an aerosol or a precursor to a greenhouse gas into the atmosphere; 

(m)  ‘sink’ is any process, activity or mechanism that removes a greenhouse gas, an 

aerosol, or a precursor to a greenhouse gas from the atmosphere; 

(n) 

‘carbon pool’ is the whole or part of a biogeochemical feature or system within 
the  territory  of  a  Member  State  within  which  carbon,  any  precursor  to  a 
greenhouse gas containing carbon or any greenhouse gas containing carbon is 
stored; 

EN 

15 

   EN 

 
(o) 

(p) 

(q) 

(r) 

(s) 

(t) 

(u) 

(v) 

‘precursor to a greenhouse gas’ is a chemical compound that participates in the 
chemical  reactions  that  produce  any  of  the  greenhouse  gases  listed  in  Article 
3(2); 

‘harvested wood product’ is any product of wood  harvesting, including wood 
material and bark, that has left a site where wood is harvested; 

‘forest’ is  an area of land of  at least 0.5 hectare, with tree crown cover or an 
equivalent stocking level of at least 10 per cent of the area, covered with trees 
with the potential to reach a minimum height of at least 5 metres at maturity at 
their  place  of  growth,  including  groups  of  growing  young  natural  trees,  or  a 
plantation that has yet to reach a tree crown cover or equivalent stocking level 
of at least 10 per cent of the area or tree height of at least 5 metres, including 
any  area  that  normally  forms  part  of  the  forest  area  but  on  which  there  are 
temporarily no trees as a result of human intervention, such as harvesting, or as 
a result of natural causes, but which area can be expected to revert to forest; 

‘crown  cover’  is  the  share  of  a  fixed  area  that  is  covered  by  tree  crowns, 
expressed as a percentage; 

‘stocking level’ is the density of standing and growing trees on land covered by 
forest measured in accordance with a methodology established by the Member 
State; 

‘natural  disturbance’  is  any  non-anthropogenic  event  or  circumstance  that 
causes significant emissions in forests or agricultural soils and the occurrence 
of  which  is  beyond  the  control  of  the  relevant  Member  State  provided  the 
Member State is also objectively unable to significantly limit the effect of the 
event or circumstance, even after its occurrence, on emissions; 

‘half-life value’ is the number of years it takes for the carbon content of a wood 
product to decrease to one half of its initial quantity; 

‘the  instantaneous  oxidation  method’  is  an  accounting  method  that  assumes 
that  the  release  into  the  atmosphere  of  the  entire  quantity  of  carbon  stored  in 
harvested  wood  products  occurs  at  the  time  when  a  Member  State  includes 
those products into its accounts pursuant to this Decision; 

(w) 

‘salvage logging’ is any activity consisting of recovering timber affected by a 
natural disturbance and that can still be used at least in part. 

2. 

The  Commission  shall  be  empowered  to  adopt  delegated  acts  in  accordance  with 
Article 12 to amend the definitions in paragraph 1 of this Article for the purpose of 
updating those definitions in the light of changes to definitions adopted by the bodies 
of  the  UNFCCC  or  the  Kyoto  Protocol,  or  other  multilateral  agreement  relevant  to 
climate change concluded by the Union. 

Article 3 

Obligation to draw up and maintain LULUCF accounts 

EN 

16 

   EN 

 
1. 

For each accounting period specified in Annex I, Member States shall draw up and 
maintain  accounts  that  accurately  reflect  all  emissions  and  removals  resulting  from 
the activities on their territory falling within the following categories of activity: 

(a) 

afforestation; 

(b) 

reforestation; 

(c)  deforestation; 

(d) 

forest management; 

(e) 

cropland management; 

(f) 

grazing land management. 

Member  States  may  also  draw  up  and  maintain  accounts  that  accurately  reflect 
emissions  and  removals  resulting  from  revegetation,  and  wetland  drainage  and 
rewetting. 

The  accounts  referred  to  in  paragraph  1  shall  cover  emissions  and  removals  of  the 
following greenhouse gases: 

carbon dioxide (CO2); 

methane (CH4); 

nitrous oxide (N2O). 

Member  States  shall  include  in  their  accounts  a  particular  activity  referred  to  in 
paragraph 1 as of the onset of the activity or from 1 January 2013, whichever is the 
later. 

Article 4 

General accounting rules 

Member States shall, in their accounts referred to in Article 3(1), denote sources by 
the positive (+) sign and sinks by the negative (-) sign. 

Emissions  and  removals  resulting  from  any  activity  falling  within  one  or  more 
categories of activity referred to in Article 3(1) shall only be accounted for under one 
category. 

Member  States  shall,  on  the  basis  of  transparent  and  verifiable  data,  determine  the 
areas of land on which an activity falling within a category referred to in Article 3(1) 
is  conducted.  They  shall  ensure  that  all  such  areas  of  land  are  identifiable  with 
precision in the account for the respective category. 

Member States shall include in their accounts referred to in Article 3(1) any change 
in the carbon stock of the following carbon pools: 

2. 

(a) 

(b) 

(c) 

3. 

1. 

2. 

3. 

4. 

EN 

17 

   EN 

 
(a) 

(b) 

(c) 

(d) 

(e) 

(f) 

5. 

6. 

7. 

1. 

2. 

3. 

above-ground biomass; 

below-ground biomass; 

litter; 

dead wood; 

soil organic carbon; 

harvested wood products. 

However,  Member  States  may  choose  not  to  include  in  their  accounts  changes  in 
carbon stock for carbon pools listed under points (a) — (e) of the first subparagraph 
where the carbon pool is not a declining sink or a source. Member States shall only 
consider  that  a  carbon  pool  is  not  a  declining  sink  or  a  source  where  this  is 
demonstrated on the basis of transparent and verifiable data. 

Member States shall complete their accounts referred to in Article 3(1) at the end of 
each accounting period listed in Annex I by specifying the total emissions and total 
removals included in those accounts during that accounting period. 

Member  States  shall  maintain  a  complete  and  accurate  record  of  all  methodologies 
and data used in complying with their obligations under this Decision.  

The  Commission  shall  be  empowered  to  adopt  delegated  acts  in  accordance  with 
Article  12  to  amend  Annex  I  to  add  accounting  periods  and  to  ensure  consistency 
between  those  accounting  periods  and  the  relevant  periods  applicable  to  Union 
emission reduction commitments in other sectors. 

Article 5 

Accounting rules for afforestation, reforestation and deforestation 

In  accounts  relating  to  reforestation,  Member  States  shall  reflect  emissions  and 
removals resulting only from such activities taking place on those lands that were not 
forest on 1 January 1990. 

Where Member States reflect in their accounts net changes in carbon dioxide (CO2) 
emissions and removals resulting from afforestation, reforestation and deforestation 
activities, such net changes shall represent the total removals and emissions for the 
years in each accounting period specified in Annex I, calculated by summing up for 
each  year  of  that  accounting  period  the  carbon  stock  on  31  December  of  that  year 
minus the carbon stock on 1 January in the same year, on the basis of transparent and 
verifiable data. 

Where  Member  States  reflect  in  their  accounts  methane  (CH4)  and  nitrous  oxide 
(N2O)  emissions  resulting  from  afforestation,  reforestation  and  deforestation 
activities,  such  emissions  shall  represent  the  total  emissions  for  the  years  in  each 
accounting  period  specified  in  Annex  I,  calculated  by  summing  up  the  emissions 

EN 

18 

   EN 

 
4. 

5. 

1. 

2. 

3. 

(a) 

(b) 

(c) 

(d) 

4. 

5. 

occurring  in  each  year  in  that  accounting  period,  on  the  basis  of  transparent  and 
verifiable data. 

Member  States  shall  continue  to  draw  up  and  maintain  accounts  that  reflect 
emissions and removals resulting from land that was identified in accounts pursuant 
to  Article  4(3)  under  afforestation,  reforestation  and  deforestation  even  where  such 
activity is no longer conducted on that land. 

Member States shall use the same spatial assessment unit in calculations to determine 
the forest falling within afforestation, reforestation and deforestation. 

Article 6 

Accounting rules for forest management 

In accounts relating to forest management, Member States shall reflect the emissions 
and removals resulting from such activities, calculated as emissions and removals in 
each  accounting  period  specified  in  Annex  I,  minus  the  value  obtained  by 
multiplying  the  number  of  years  in  that  accounting  period  by  their  reference  level 
specified in Annex II. 

Where  the  result  of  the  calculation  referred  to  in  paragraph  1  for  an  accounting 
period is negative, Member States shall enter into their forest management accounts 
total  emissions  and  removals  of  no  more  than  the  equivalent  of  3.5  per  cent  of  a 
Member  State’s  emissions  in  its  base  year,  as  submitted  to  the  UNFCCC  in  that 
Member  State’s  reviewed  initial  report  on  base  year  emission  data  pursuant  to  the 
Annex  of  Decision  13/CMP.1,  excluding  emissions  and  removals  from  activities 
referred  to  in  Article  3(1),  multiplied  by  the  number  of  years  in  that  accounting 
period. 

Member States shall ensure that the calculation methods they apply in respect of their 
accounts for forest management activities are consistent with the calculation methods 
applied for the calculation of their reference levels specified in Annex II with regards 
to the following aspects: 

carbon pools and greenhouse gases; 

area under forest management; 

harvested wood products; 

natural disturbances. 

No later than one year before the end of each accounting period, Member States shall 
communicate to the Commission proposed revised reference levels for the following 
accounting period in accordance with the methodology in Decision -/CMP.7 used for 
calculating the reference levels set out in that decision. 

If  there  are  changes  to  the  relevant  provisions  of  Decision  -/CMP.7,  the  Member 
States  shall  communicate  to  the  Commission  proposed  revised  reference  levels 
reflecting those changes no later than six months after the adoption of those changes. 

EN 

19 

   EN 

 
6. 

7. 

8. 

9. 

If improved methodologies  become  available allowing a Member State to calculate 
reference  levels  in  a  significantly  more  accurate  manner  or  where  there  are 
significant  improvements  in  the  quality  of  data  available  to  a  Member  State,  the 
Member  State  concerned  shall  communicate  to  the  Commission  proposed  revised 
reference levels reflecting those changes without delay. 

For the purposes of paragraphs 4, 5 and 6, Member States shall specify the amount of 
annual  emissions  resulting  from  natural  disturbances  which  have  been  included  in 
their proposed revised reference levels and the manner in which they estimated that 
amount. 

The Commission shall verify the accuracy of proposed revised reference levels. 

The  Commission  shall  be  empowered  to  adopt  delegated  acts  in  accordance  with 
Article 12 to update the reference levels in Annex II as necessary. 

10. 

Member  States  shall  reflect  in  their  accounts  for  forest  management  the  impact  of 
any amendment to Annex II in respect of entire relevant accounting period. 

Article 7 

Accounting rules for harvested wood products 

1. 

2. 

Member States shall reflect in their accounts pursuant to Article 3(1) emissions from 
harvested  wood  products  containing  carbon  on  1  January  2013  even  where  such 
harvested wood products were harvested prior to this date. 

In  accounts  pursuant  to  Article  3(1)  relating  to  harvested  wood  products,  Member 
States shall reflect emissions resulting from the following harvested wood products 
on the basis of calculations in accordance with the first order decay function and the 
default half-life values specified in Annex III: 

(a)  paper; 

(b)  wood panels; 

(c) 

sawn wood. 

Member  States  may  use  country-specific  half-life  values  instead  of  the  half-life 
values  specified  in  Annex  III  provided  that  those  values  are  determined  by  the 
Member State on the basis of transparent and verifiable data. 

In  accounts  relating  to  exported  harvested  wood  products,  Member  States  may  use 
country-specific half-life values instead of the half-life values specified in Annex III, 
provided  that  those  values  are  determined  by  the  Member  State  on  the  basis  of 
transparent  and  verifiable  data  on  the  use  of  those  harvested  wood  products  in  the 
importing country. 

3. 

Where  Member  States  reflect  in  their  accounts  pursuant  to  Article  3(1)  carbon 
dioxide (CO2) emissions from harvested wood products in solid waste disposal sites, 
they shall do so on the basis of the instantaneous oxidation method. 

EN 

20 

   EN 

 
4. 

5. 

6. 

Where  Member  States  reflect  in  their  accounts  emissions  resulting  from  harvested 
wood products that were harvested for energy purposes, they shall do so also on the 
basis of the instantaneous oxidation method. 

A Member State shall reflect emissions from harvested wood products in its accounts 
only where these emissions result from harvested wood products removed from lands 
included in the accounts of that Member State pursuant to Article 3(1). 

The  Commission  shall  be  empowered  to  adopt  delegated  acts  in  accordance  with 
Article  12  to  revise  the  information  specified  in  Annex  III  in  accordance  with 
scientific progress. 

Accounting rules for cropland management, grazing land management, revegetation, 
and wetland drainage and rewetting 

Article 8 

1. 

2. 

1. 

2. 

In accounts relating to cropland management and grazing land management, Member 
States shall reflect emissions and removals resulting from such activities, calculated 
as emissions and removals in each accounting period specified in Annex I, minus the 
value  obtained  by  multiplying  the  number  of  years  in  that  accounting  period  by  a 
Member  State’s  emissions  and  removals  resulting  from  such  activities  in  its  base 
year, as submitted to the UNFCCC in that Member State’s reviewed initial report on 
base year emission data pursuant to the Annex of Decision 13/CMP.1. 

Where  a  Member  State  elects  to  draw  up  and  maintain  accounts  for  revegetation, 
and/or  wetland  drainage  and  rewetting,  it  shall  apply  the  calculation  method 
specified in paragraph 1. 

In accounts relating to wetland drainage and rewetting, Member States shall reflect 
emissions  and  removals  resulting  from  that  activity  on  all  lands  that  have  been 
drained since 1990 and all lands that have been rewetted since 1990. 

Article 9 

Accounting rules for natural disturbances 

Where  the  conditions  set  out  in  paragraph  2  are  met,  Member  States  may  exclude 
non-anthropogenic  greenhouse  gas  emissions  by  sources  resulting  from  natural 
disturbances  from  calculations  relevant  to  their  accounting  obligations  pursuant  to 
points  (a),  (b),  (d),  (e)  and  (f)  of  Article  3(1).  If  Member  States  exclude  such 
emissions  they  shall  also  exclude  any  subsequent  removals  on  lands  where  those 
natural  disturbances  have  occurred.  However,  non-anthropogenic  greenhouse  gas 
emissions by sources resulting from natural disturbances which have been included 
in  the  calculation  of  their  reference  level  pursuant  to  Article  6(4),  Article  6(5)  or 
Article 6(6) shall not be excluded. 

Member States may exclude non-anthropogenic greenhouse gas emissions by sources 
in  accordance  with  paragraph  1  from  calculations  relevant  to  their  accounting 
obligations  pursuant  to  points  (a),  (b)  and  (d)  of  Article  3(1)  where  those  non-

EN 

21 

   EN 

 
anthropogenic  greenhouse  gas  emissions  from such  natural  disturbances  in  a  single 
year exceed 5 per cent of the total emissions of a Member State in its base year as 
submitted  to  the  UNFCCC  in  that  Member  State’s  reviewed  initial  report  on  base 
year emission data pursuant to the Annex of Decision 13/CMP.1 excluding emissions 
and removals from activities referred to in Article 3(1), provided that the following 
conditions are met: 

the Member State identifies all land areas excluded from the purpose of the Member 
States’ accounts pursuant to points (a), (b) and (d) of Article 3(1), including by their 
geographical location, year and types of natural disturbances; 

the Member State estimates the annual non-anthropogenic greenhouse gas emissions 
by  sources  resulting  from  natural  disturbances  and  the  subsequent  removals  in  the 
excluded land areas; 

no land-use change has occurred on the excluded  land areas and the Member  State 
uses  transparent  and  verifiable  methods  and  criteria  to  identify  land-use  change  on 
these land areas; 

the Member State, where practicable, undertakes measures to manage or control the 
impact of the natural disturbances; 

the Member State, where possible, undertakes measures to rehabilitate the excluded 
land areas; 

emissions  resulting  from  harvested  wood  products  recovered  by  salvage  logging, 
were not excluded from accounting. 

Member  States  may  also  separately  exclude  non-anthropogenic  greenhouse  gas 
emissions  by  sources  in  accordance  with  paragraph  1  from  calculations  relevant  to 
their accounting obligations pursuant to points (e) and (f) of Article 3(1) where those 
non-anthropogenic  greenhouse  gas  emissions  from  such  natural  disturbances  in  a 
single year exceed 5 per cent of the total emissions of a Member State in its base year 
as submitted to the UNFCCC in that Member State’s reviewed initial report on base 
year emission data pursuant to the Annex of Decision 13/CMP.1 excluding emissions 
and  removals  from  activities  referred  to  in  Article  3(1),  provided  that  conditions 
stipulated in Article 9(2) are met. 

Member  States  shall  include  in  their  accounts  referred  to  in  Article  3(1)  emissions 
resulting from harvested wood products recovered by salvage logging in accordance 
with Article 7. 

The  Commission  shall  be  empowered  to  adopt  delegated  acts  in  accordance  with 
Article 12 to revise the conditions referred to in the first subparagraph of paragraph 2 
in the light of scientific progress or to reflect revisions to acts adopted by UNFCCC 
or Kyoto Protocol bodies. 

(a) 

(b) 

(c) 

(d) 

(e) 

(f) 

3. 

4. 

5. 

Article 10 

LULUCF Action Plans 

EN 

22 

   EN 

 
1. 

2. 

(a) 

(b) 

(c) 

(d) 

(e) 

(f) 

3. 

4. 

5. 

No later than six months after the beginning of each accounting period specified in 
Annex  I,  Member  States  shall  draw  up  and  transmit  to  the  Commission  draft 
LULUCF  Action  Plans  to  limit  or  reduce  emissions  and  maintain  or  increase 
removals resulting from the activities referred to in Article 3(1). Member States shall 
ensure that a broad range of stakeholders are consulted. 

The draft LULUCF Action Plans shall cover the duration of the relevant accounting 
period specified in Annex I. 

Member  States  shall  include  in  their  draft  LULUCF  Action  Plans  the  following 
information relating to each of the activities referred to in Article 3(1): 

a description of past trends of emissions and removals; 

projections for emissions and removals for the respective accounting period; 

an analysis of the potential to limit or reduce emissions and to maintain or increase 
removals; 

a  list  of  measures,  including,  as  appropriate,  those  specified  in  Annex  IV,  to  be 
adopted  in  order  to  pursue  the  mitigation  potential,  where  identified  in  accordance 
with the analysis referred to in point (c); 

policies  foreseen  to  implement  the  measures  referred  to  in  point  (d),  including  a 
description of the expected effect of those measures on emissions and removals; 

timetables for the adoption and implementation of the measures referred to in point 
(d). 

The Commission shall evaluate a Member State’s draft LULUCF Action Plan within 
three  months  of  receiving  all  relevant  information  from  that  Member  State.  The 
issue 
Commission  shall  publish 
recommendations, as appropriate, with a view to enhance Member States’ efforts to 
limit or reduce emissions and maintain or increase removals. 

that  evaluation  and  may 

the  results  of 

Member  States  shall  take  due  account  of  the  Commission’s  findings  and  shall 
publish  in  electronic  form  and  make  available  to  the  public  their  LULUCF  Action 
Plans within three months of receiving the Commission’s evaluation. 

Member States shall submit to the Commission, by the date falling in the mid-point 
of each accounting period specified in Annex I, and by the end of each accounting 
period specified in Annex I, a report describing the progress in the implementation of 
their LULUCF Action Plans. 

The  Commission  shall  evaluate  the  implementation  by  Member  States  of  their 
LULUCF  Action  Plans  within  six  months  of  receiving  the  reports  referred  to  in 
paragraph 4. 

The  Commission  shall  publish  those  reports  and  the  results  of  that  evaluation  and 
may issue recommendations, as appropriate, with a view to enhance Member States’ 
efforts  to  limit  or  reduce  emissions  and  maintain  or  increase  removals.  Member 
States shall take due account of the Commission’s findings. 

EN 

23 

   EN 

 
Article 11 

Review 

The Commission shall review the accounting rules in this Decision at the latest within a year 
of the end of the first accounting period specified in Annex I. 

Article 12 

Exercise of the delegation 

1. 

2. 

3. 

4. 

5. 

The  power  to  adopt  delegated  acts  is  conferred  on  the  Commission  subject  to  the 
conditions laid down in this Article. 

The delegation of power referred to in Articles 2(2), 4(7), 6(9), 7(6) and 9(4) shall be 
conferred  on  the  Commission  for  an  indeterminate  period  of  time  from  the  date  of 
entry into force of this Decision. 

The delegation of power referred to in Articles 2(2), 4(7), 6(9), 7(6) and 9(4) may be 
revoked  at  any  time  by  the  European  Parliament  or  by  the  Council.  A  decision  to 
revoke shall put an end to the delegation of the power specified in that decision. It 
shall  take  effect  the  day  following  the  publication  of  the  decision  in  the  Official 
Journal of the European Union or at a later date specified therein. It shall not affect 
the validity of any delegated acts already in force. 

As soon as it adopts a delegated act, the Commission shall notify it simultaneously to 
the European Parliament and to the Council. 

A delegated act adopted pursuant to Articles 2(2), 4(7), 6(9), 7(6) and 9(4) shall enter 
into force only if no objection has been expressed either by the European Parliament 
or the Council within a period of 2 months of notification of that act to the European 
Parliament  and  the  Council  or  if,  before  the  expiry  of  that  period,  the  European 
Parliament  and  the  Council  have  both  informed  the  Commission  that  they  will  not 
object. That  period  shall  be  extended  by  2  months at the initiative of the European 
Parliament or the Council. 

This Decision shall enter into force on 1 January 2013. 

Article 13 

Article 14 

This Decision is addressed to the Member States. 

Done at Brussels, 12.3.2012 

For the European Parliament 
The President 

For the Council 
The President 

EN 

24 

   EN 

 
ANNEX I 

ACCOUNTING PERIODS REFERRED TO IN ARTICLE 3(1) 

Accounting period 

First accounting period 

Years 

From 1 January 2013 to 31 December 2020 

MEMBER STATE REFERENCE LEVELS REFERRED TO IN ARTICLE 6 

ANNEX II 

Member State 

Austria 

Belgium 

Bulgaria 

Cyprus 

Czech Republic 

Denmark 

Estonia 

Finland 

France 

Germany 

Greece 

Hungary 

Ireland 

Italy 

Latvia 

Lithuania 

Luxembourg 

Malta 

The Netherlands 

Poland 

Portugal 

Romania 

Slovakia 

Slovenia 

Spain 

Sweden 

United Kingdom 

Gg carbon dioxide (CO2) equivalents per year 

-6516 

-2499 

-7950 

-157 

-4686 

409 

-2741 

-20466 

-67410 

-22418 

-1830 

-1000 

-142 

-22166 

-16302 

-4552 

-418 

-49 

-1425 

-27133 

-6830 

-15793 

-1084 

-3171 

-23100 

-41336 

-8268 

EN 

25 

   EN 

 
 
ANNEX III 

FIRST ORDER DECAY FUNCTION AND DEFAULT HALF-LIFE VALUES 
REFERRED TO IN ARTICLE 7 

First order decay function starting with 

=i

1900

 and continuing to present year: 

(

)A  

(

)B  

iC
(

+

)1

=

e

−

k

•

iC
)(

+

−

k

)

⎡
⎛ −
1(
e
⎜⎜
⎢
k
⎝
⎣

⎞
⎟⎟
⎠

⎤
•⎥
⎦

Δ

iC
)(

=

iC
(

)1
−+

iC
)(

, 

Inflow

i
)(

with  

C

(
1900
)

=

0.0

where: 

=i

year 

=)(iC

 the carbon stock of the harvested wood products pool in the beginning of year  i , Gg C 

decay constant of first-order decay given in units of year-1 

=k
half-life of the harvested wood products pool in years.) 

k
( =

)2ln(

HL

, where HL is 

Inflow

=)(i

the inflow to the harvested wood products pool during year  i , Gg C year-1 

Δ

)(iC

=

carbon stock change of the harvested wood products pool during year  i  , Gg C year-1, 

Default half-life values (HL): 

2 years for paper 

25 years for wood panels 

35 years for sawn wood. 

ANNEX IV 

MEASURES THAT MAY BE INCLUDED IN LULUCF ACTION PLANS PURSUANT 
TO ARTICLE 10(2)(d) 

(a) 

Measures related to cropland management such as: 

–  improving agronomic practices by selecting better crop varieties; 

–  extending crop rotations and avoiding or reducing the use of bare fallow; 

–  improving  nutrient  management, 

tillage/residue  management  and  water 

management; 

–  stimulating agro-forestry practices and potential for land cover (use) change; 

(b) 

Measures related to grazing land management and pasture improvement such as: 

–  preventing the conversion of grassland to cropland and the reversion of cropland 

to native vegetation; 

EN 

26 

   EN 

 
 
 
 
 
 
–  improving  grazing  land  management  by  including  changes  to  the  intensity  and 

timing of grazing; 

–  increasing productivity; 

–  improving nutrient management; 

–  improving fire management; 

–  introducing more appropriate species and in particular deep rooted species; 

(c) 

Measures to improve the management of agricultural organic soils, in particular, peat 
lands, such as: 

(d) 

(e) 

(f) 

(g) 

–  incentivising sustainable paludicultural practices; 

–  incentivising adapted agricultural practices, such as minimising soil disturbance or 

extensive practices; 

Measures to prevent drainage and to incentivise rewetting of wetlands; 

Measures related to existing or partly drained mires, such as: 

–  preventing further drainage; 

–  incentivising rewetting and restoration of mires; 

–  preventing bog fires; 

Restoration of degraded lands; 

Measures related to forestry activities such as: 

–  preventing deforestation; 

–  afforestation and reforestation; 

–  conservation of carbon in existing forests; 

–  enhancing production in existing forests; 

–  increasing the harvested wood products pool; 

–  enhancing forest management, including through optimised species composition, 

tending and thinning, and soil conservation; 

(h) 

Strengthening protection against natural disturbances such as fire, pests, and storms. 

EN 

27 

   EN 

 
LEGISLATIVE FINANCIAL STATEMENT 

1. 

FRAMEWORK OF THE PROPOSAL/INITIATIVE 

1.1.  Title of the proposal/initiative 

1.2.  Policy area(s) concerned in the ABM/ABB structure 

1.3.  Nature of the proposal/initiative 

1.4.  Objective(s) 

1.5.  Grounds for the proposal/initiative 

1.6.  Duration and financial impact 

1.7.  Management method(s) envisaged 

2. 

MANAGEMENT MEASURES 

2.1.  Monitoring and reporting rules 

2.2.  Management and control system 

2.3.  Measures to prevent fraud and irregularities 

3. 

ESTIMATED FINANCIAL IMPACT OF THE PROPOSAL/INITIATIVE 

3.1.  Heading(s)  of  the  multiannual  financial  framework  and  expenditure  budget 
line(s) affected 

3.2.  Estimated impact on expenditure 

3.2.1. Summary of estimated impact on expenditure 

3.2.2. Estimated impact on operational appropriations 

3.2.3. Estimated impact on appropriations of an administrative nature 

3.2.4. Compatibility with the current multiannual financial framework 

3.2.5. Third-party participation in financing 

3.3.  Estimated impact on revenue

EN 

28 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
LEGISLATIVE FINANCIAL STATEMENT 

1. 

FRAMEWORK OF THE PROPOSAL/INITIATIVE 

1.1. 

Title of the proposal/initiative 

Decision  of  the  European  Parliament  and  of  the  Council  on  accounting  rules  and  action 
plans  on  greenhouse  gas  emissions  and  removals  resulting  from  activities  related  to  land 
use, land use change and forestry 

1.2. 

Policy area(s) concerned in the ABM/ABB structure23 

ENVIRONMENT AND CLIMATE ACTION [07] 

1.3. 

Nature of the proposal/initiative 

⌧ The proposal/initiative relates to a new action 
(cid:133) The proposal/initiative relates to a new action following a pilot project/preparatory action24 
(cid:133) The proposal/initiative relates to the extension of an existing action 
(cid:133) The proposal/initiative relates to an action redirected towards a new action 

1.4. 

Objectives 

1.4.1.  The Commission’s multiannual strategic objective(s) targeted by the proposal/initiative 

The proposal is consistent with the Europe 2020 Strategy and it is envisaged to contribute 
towards the realisation of the Union’s emission reduction targets. 

1.4.2. 

Specific objective(s) and ABM/ABB activity(ies) concerned 

Specific objective No. 
Implementation of EU policy and legislation on climate action (ABB code 07 12) 
ABM/ABB activity(ies) concerned 
07 12 01 (Implementation of Union policy and legislation on climate action) 

1.4.3.  Expected result(s) and impact 

Specify the effects which the proposal/initiative should have on the beneficiaries/groups targeted. 
The  proposal  establishes  a  robust  and  harmonised  legal  framework  to  account  for 
greenhouse gas (GHG) emissions and removals from activities related to land use, land use 
change  and  forestry  (LULUCF)  in  the  Union,  by  enabling  a  detailed  assessment  of 
progress in Member States (MS). More specifically, it would: 
-  improve  the  visibility  of,  and  provide  incentives  for,  mitigation  efforts  through  the 
enhancement  of  removals  and  reduction  of  emissions  in  agriculture  and  forestry  and 
through the production of harvested wood products in industry; 
-  strengthen  the  environmental  integrity  of  the  commitments  by  ensuring  that  emissions 
and removals are correctly reflected and secure sustainable and climate-friendly bio-energy 
production by complementing existing policy measures; and 
- improve the economic efficiency in the pursuit of more ambitious targets by allowing all 
sectors to contribute. 

23 
24 

ABM: Activity-Based Management — ABB: Activity-Based Budgeting. 
As referred to in Article 49(6)(a) or (b) of the Financial Regulation. 

EN 

29 

   EN 

 
                                                 
Indicators of results and impact 

Specify the indicators for monitoring implementation of the proposal/initiative. 
The following indicators correspond to the general, specific and operational objectives of 
the proposal: 
- trends in emissions and removals; 
- number of MS’ non-compliance cases, MS’ LULUCF Action Plans (LAPs) and reports 
submitted on time to the Commission, MS submitting on time their reference levels to the 
Commission; 
- the compliance of the MS’ reports with the requirements of the proposal; 
- completeness of MS’ reports submitted to the Commission and of degree of application 
by MS of common accounting rules; 
- availability of data and information in the areas targeted by the proposal.. 

1.5. 

Grounds for the proposal/initiative 

1.5.1.  Requirement(s) to be met in the short or long term 

The objectives of this proposal are twofold: 
-  to  ensure  robust  and  harmonised  accounting  of  emissions  and  removals  from  the 
LULUCF sector in the MS; 
- to incentivise mitigation efforts by MS through the establishment and implementation of 
LAPs; 

1.5.2.  Added value of EU involvement 

Taking  action  at  Union  level  would  produce  clear  benefits  compared  with  action  at  MS 
level alone by reason of its effectiveness. As the overarching climate change commitments 
are made at the Union level, it is effective to also develop the required accounting rules at 
this  level.  Moreover,  overcoming  the  problems  identified,  such  as  the  need  to  have 
accurate  and  consistent  accounting  rules  for  different  LULUCF  activities,  requires  a 
common approach across all MS which can be ensured only at the Union level. 
This  legal  framework  will  ensure  effective  added  value  by  employing  common  and 
accurate  accounting  across  all  MS,  establishing  LAPs,  and  thus  by  enabling  a  more 
detailed assessment and appreciation of progress in MS. This will ensure the coherence of 
the  Union’s  climate  policy,  improve  further  the  environmental  integrity  of  the  Union’s 
climate change commitments and enhance the economic efficiency of the Union’s climate 
policy. 

1.5.3.  Lessons learned from similar experiences in the past 

The proposal is based on experience achieved at international level and is meant to address 
the shortcomings of the existing accounting rules under the Kyoto Protocol (KP). Detailed 
assessment  has  been  carried  out  in  order  to  propose  a  robust  and  harmonised  accounting 
framework for LULUCF. 

1.5.4.  Coherence and possible synergy with other relevant instruments 

The  proposal  is  consistent  with  the  Europe  2020  Strategy  and  the  Europe  2020  flagship 
initiative for a resource-efficient Europe. It is also complementary with the existing Union 
climate, energy and social policies. 
It  also  complements  the  post-  2013  Common  Agricultural  Policy  (CAP)  with  regard  to 
implementing the ‘greening components’ and in the context of Union’s Rural Development 
Policy, incentives for carbon sequestration in agriculture and forestry could be significantly 

EN 

30 

   EN 

 
improved. Proper accounting of associated positive carbon fluxes would make the positive 
contribution of these policy measures implemented through the CAP more visible. 
Accounting  for  LULUCF  would  therefore  support  the  sustainable  use  of  bio-energy  and 
would  also  provide  a  robust,  clear  and  visible  indicator  of  progress  in  agriculture  and 
forestry. Without comprehensive mandatory accounting for LULUCF activities, the efforts 
invested by MS, farmers and foresters to provide climate change mitigation services will 
not be reflected in the Union’s efforts to reach its GHG reduction targets. 

1.6. 

Duration and financial impact 

(cid:133) Proposal/initiative of limited duration 

(cid:133) 
(cid:133) 

Proposal/initiative in effect from [DD/MM]YYYY to [DD/MM]YYYY 
Financial impact from YYYY to YYYY 

⌧ Proposal/initiative of unlimited duration 
Implementation is envisaged to start in 1 January 2013, depending on progress with the 
legislative process. 

1.7.  Management mode(s) envisaged25 

⌧ Centralised direct management by the Commission 
(cid:133) Centralised indirect management with the delegation of implementation tasks to: 

(cid:133) 
executive agencies 
bodies set up by the Communities26 
(cid:133) 
(cid:133) 
national public-sector bodies/bodies with public-service mission 
(cid:133) 
persons  entrusted  with  the  implementation  of  specific  actions  pursuant  to 
Title  V  of  the  Treaty  on  European  Union  and  identified  in  the  relevant  basic  act 
within the meaning of Article 49 of the Financial Regulation 

(cid:133) Shared management with the Member States 
(cid:133) Decentralised management with third countries 
(cid:133) Joint management with international organisations (to be specified) 
If more than one management mode is indicated, please provide details in the ‘Comments’ section. 

Comments 

The MS will be responsible for implementing the bulk of this proposal. The Commission will assess 
the  information  included  in  the  reports  submitted  by  MS  and  issue  recommendations,  where 
appropriate. 

2. 

MANAGEMENT MEASURES 

2.1.  Monitoring and reporting rules 

Specify frequency and conditions. 
MS  will  include  information  in  their  LULUCF  accounts  on  an  annual  basis  and  will 
account for emissions and removals from LULUCF pursuant to this proposal at the end of 
each accounting period. 
The  reports  prepared  under  this  proposal  will  be  assessed  by  the  Commission  for  each 
accounting period, based on technical expertise assistance. 
A study would be needed to assess the implementation of this Decision in the context of 
the review clause. 

25 

26 

Details of management modes and references to the Financial Regulation may be found on the BudgWeb site: 
http://www.cc.cec/budg/man/budgmanag/budgmanag_en.html. 
As referred to in Article 185 of the Financial Regulation. 

EN 

31 

   EN 

 
                                                 
2.2.  Management and control system 

2.2.1.  Risk(s) identified 

As the proposal is a Decision, the implementation risks are limited because the proposed 
obligations  are  based  on  already  established  international  rules  applied  by  the  MS  in  the 
framework of their commitments under the KP. 

2.2.2.  Control method(s) envisaged 

The  measures  to  address  eventual  risks  will  consist  of:  constructive  dialogue  and 
cooperation  with  the  MS,  maintaining  contact  with  the  relevant  Commission  services, 
especially  in  view  of  ensuring  satisfaction  of  the  corresponding  data  needs,  consulting 
experts, especially when adopting the delegated acts, accessing external technical expertise 
for  the  corresponding  evaluations,  conducting  studies  when  reviewing  the  legal  act,  and 
organising thematic conferences, where appropriate. 

2.3.  Measures to prevent fraud and irregularities 

Specify existing or envisaged prevention and protection measures. 
Given the amounts involved and the type of procurement, this initiative does not present 
particular risks of fraud. The Commission will manage and control the work by using all 
relevant regular tools, such as the Annual Management Plan of DG CLIMA. 
Internal control standards No 2, 7, 8, 9, 11, 12, 13, 15 and 16 are of particular relevance. In 
addition, the principles laid down in Council Regulation (EC, Euratom) No 1605/202 (the 
‘Financial Regulation’) and its implementing rules, will be fully applied. 
The  procurement  procedures  will  be  governed  by  the  common  DG  CLIMA  financial 
circuit:  a  partially  decentralised  circuit  which  main  characteristic  is  the  hierarchical 
independence  from  the  AO(s)D  of  the  persons  performing  financial  initiation  and 
verification. 
Moreover, an internal control committee (ENVAC) examines the procedure leading to the 
choice  of  the  contractor  and  verifies  the  consistency  of  the  procedures  adopted  by  the 
Authorising  Officers  with  the  rules  and  provision  of  the  Financial  Regulation  and  the 
Implementing  Rules  for  a  combination  of  a  random  sample  and  a  risk-based  sample  of 
public procurement contracts. 
On  top  of  these  measures,  for  the  adoption  of  delegated  acts  it  will  be  ensured  that  the 
persons taking part to the expert consultations are independent and appropriately qualified. 

3. 

3.1. 

ESTIMATED FINANCIAL IMPACT OF THE PROPOSAL/INITIATIVE 

Heading(s)  of  the  multiannual  financial  framework  and  expenditure  budget  line(s) 
affected 

•  Existing expenditure budget lines 

In order of the Multiannual Financial Framework headings and budget lines. 

Heading of 
multiannual 
financial 
framework 

Budget line 

Number  
[Description ………………………...……….] 

Type of  
expenditure
Diff./non-
diff 
(27) 

Contribution  

from 
EFTA28 
countries 

from 
candidate 
countries29 

from third 
countries 

within the meaning 
of Article 18(1)(aa) 
of the Financial 

27 
28 

Diff. = Differentiated appropriations / Non-Diff. = Non-differentiated appropriations. 
EFTA: European Free Trade Association. . 

EN 

32 

   EN 

 
 
                                                 
07 01 02 11 
Other management expenditures in support of 
the  ‘Environment  and  climate  action’  policy 
area  
•  New budget lines requested 
In order of multiannual financial framework headings and budget lines. 

non-diff. 

NO 

Regulation  

NO 

NO 

NO 

Budget line 

Number  
[Heading ……………………………………..
] 
[XX.YY.YY.YY] 
[…] 

Type of 
expenditure

Diff./non-
diff. 

Contribution  

from 
EFTA 
countries 

from 
candidate 
countries 

from third 
countries 

within the meaning 
of Article 18(1)(aa) 
of the Financial 
Regulation  

[…] 

YES/NO  YES/NO  YES/NO 

YES/NO 

5 

Heading of 
multiannual 
financial 
framework 

[…] 

29 

Candidate countries and, where applicable, potential candidate countries from the Western Balkans. 

EN 

33 

   EN 

 
                                                                                                                                                                  
3.2. 

Estimated impact on expenditure 

3.2.1. 

Summary of estimated impact on expenditure 

Heading of multiannual financial framework:  

Number  Heading 2 

EUR million (to 3 decimal places) 

DG: CLIMA 

(cid:121) Operational appropriations  

Number of budget line  

Number of budget line 

of 

an 

Appropriations 
administrative 
from the envelope for specific programmes31  
Number  of  budget  line  07  01  04  05  (and 
successive lines) 

TOTAL appropriations 
for DG CLIMA 

Year 
N30 

Year 
N+1 

Year 
N+2 

Year 
N+3 

Year 
N+4 

Year 
N+5 

Year 
N+6 

TOTAL 

Commitments 

Payments 

Commitments 

Payments 

(1) 

(2) 

(1a) 

(2a) 

nature 

financed 

- 
- 
- 
- 

Commitments 

Payments 

(3) 

0 .100 

=1+1a 
+3 

=2+2a 

+3 

0 .100 

0 .100 

- 
- 
- 
- 

- 

- 

- 

- 
- 
- 
- 

- 

- 

- 

- 
- 
- 
- 

0 .600 

0 .600 

0 .600 

- 
- 
- 
- 

- 

- 

- 

- 
- 
- 
- 

- 

- 

- 

- 
- 
- 
- 

0 .600 

0 .600 

0 .600 

- 
- 
- 
- 

1 .300 

1 .300 

1 .300 

30 
31 

EN 

Year N is the year in which implementation of the proposal/initiative starts. 
Technical and/or administrative assistance and expenditure in support of the implementation of EU programmes and/or actions (former ‘BA’ lines), indirect research, 
direct research. 

34 

EN

 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
(cid:121) TOTAL operational appropriations  

Commitments 

Payments 

(cid:121)  TOTAL  appropriations  of  an  administrative  nature 
financed from the envelope for specific programmes  

(4) 

(5) 

(6) 

0 .100 

TOTAL appropriations  
under HEADINGS 1 to 4 
of the multiannual financial framework 
(reference amount) 

Commitments 

=4+ 6 

0 .100 

Payments 

=5+ 6 

0 .100 

If more than one heading is affected by the proposal / initiative: 

(cid:121) TOTAL operational appropriations  

Commitments 

Payments 

(cid:121)  TOTAL  appropriations  of  an  administrative  nature 
financed from the envelope for specific programmes  

(4) 

(5) 

(6) 

0 .100 

TOTAL appropriations  
under HEADINGS 1 to 4 
of the multiannual financial framework 
(Reference amount) 

Commitments 

=4+ 6 

0 .100 

Payments 

=5+ 6 

0 .100 

- 

- 

- 

- 

- 

- 

0 .600 

0 .600 

0 .600 

- 

- 

- 

- 

- 

- 

0 .600 

0 .600 

0 .600 

0 .600 

0 .600 

0 .600 

0 .600 

0 .600 

0 .600 

1 .300 

1 .300 

1 .300 

1 .300 

1 .300 

1 .300 

Heading of multiannual financial 
framework:  

5 

’ Administrative expenditure ‘ 

Year 
N 

Year 
N+1 

Year 
N+2 

Year 
N+3 

Year 
N+4 

Year 
N+5 

Year 
N+6 

TOTAL 

EUR million (to 3 decimal places) 

DG: CLIMA 

EN 

35 

EN 

 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(cid:121) Human resources  
(cid:121) Other administrative expenditure  

0 .127 

0 .348 

0 .127 

0 .348 

0 .127 

0 .348 

0 .127 

0 .348 

0 .127 

0 .348 

0 .127 

0 .348 

0 .127 

0 .348 

TOTAL DG CLIMA 

Appropriations  

0 .475 

0 .457 

0 .475 

0 .475 

0 .475 

0 .475 

0 .475 

0 .889 

2 .433 

3 .322 

TOTAL appropriations 
under HEADING 5 
of the multiannual financial framework  

(Total 
= Total payments) 

commitments 

0 .475 

0 .475 

0 .475 

0 .475 

0 .475 

0 .475 

0 .475 

3 .322 

Year 
N32 

Year 
N+1 

Year 
N+2 

Year 
N+3 

Year 
N+4 

Year 
N+5 

Year 
N+6 

TOTAL 

EUR million (to 3 decimal places) 

TOTAL appropriations  
under HEADINGS 1 to 5 
of the multiannual financial framework  

Commitments 

0 .575 

0 .475 

0 .475 

1 .075 

0 .475 

0 .475 

1 .075 

Payments 

0 .575 

0 .475 

0 .475 

1 .075 

0 .475 

0 .475 

1 .075 

4 .622 

4 .622 

32 

Year N is the year in which implementation of the proposal/initiative starts. The proposal is envisaged to enter into force in 2013, depending on progress with the legislative 
process. 

EN 

36 

EN 

 
  
 
 
 
 
                                                 
3.2.2.  Estimated impact on operational appropriations 

(cid:133) 

The proposal/initiative does not require the use of operational appropriations 

⌧  The proposal/initiative requires the use of operational appropriations, as explained below: 

Indicate 
objectives and 
outputs 

Year 
N 

Year 
N+1 

Year 
N+2 

Year 
N+3 

OUTPUTS 

Commitment appropriations in EUR million (to 3 decimal places) 

Year 
N+4 

Year 
N+5 

Year 
N+6 

TOTAL 

(cid:216) 

Type 
of 
output
33 

Avera
ge 
cost  
of the 
output 

r
e
b
m
u
N

s
t
u
p
t
u
o

f
o

Cost 

r
e
b
m
u
N

s
t
u
p
t
u
o

f
o

Cost 

r
e
b
m
u
N

s
t
u
p
t
u
o

f
o

Cost 

r
e
b
m
u
N

s
t
u
p
t
u
o

f
o

Cost 

r
e
b
m
u
N

s
t
u
p
t
u
o

f
o

Cost 

r
e
b
m
u
N

s
t
u
p
t
u
o

f
o

Cost 

r
e
b
m
u
N

s
t
u
p
t
u
o

f
o

Cost 

Total 
number 
of 
outputs 

Total  
cost 

SPECIFIC OBJECTIVE: Implementation of EU policy and legislation on climate action (ABB code 07 12) 

- Output 

Evaluation 

0 .004 

27 

0.100 

- Output 

- Output 

Study 

Review 

0.500 

0.500 

Sub-total for specific objective No 1 

27 

0 .100 

TOTAL COST 

0 

0 .100 

0 

0 

- 

- 

0 

0 

- 

- 

27 

0.100 

1 

28 

0 

0.500 

0.600 

0.600 

0 

0 

- 

- 

0 

0 

- 

- 

27 

1 

0.100 

0.500 

28 

0.600 

81 

0 .300 

1 

1 

83 

0 .500 

0 .500 

1 .300 

0 

0. 600 

0 

1. 300 

33 

EN 

Outputs are products and services to be supplied (e.g.: number of student exchanges financed, number of km of roads built, etc.). 

37 

EN 

 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
3.2.3.  Estimated impact on appropriations of an administrative nature 

3.2.3.1.  Summary 

The  proposal/initiative  does  not 

(cid:133) 
appropriations 

require 

the  use  of  administrative 

⌧  The  proposal/initiative  requires  the  use  of  administrative  appropriations,  as 
explained below: 

EUR million (to 3 decimal places) 

Year 
N 34 

Year 
N+1 

Year 
N+2 

Year 
N+3 

Year 
N+4 

Year 
N+5 

Year 
N+6 

TOTAL 

HEADING 5 
of the multiannual 
financial framework 

Human resources 

(1  AD  FTE  already 
working 
in  DG 
CLIMA) 

Other  administrative 
expenditure 

-  07  01  02  11  01 
Missions (5 per year 
;  0 0015  M  EUR 
/mission) 

-  07  01  02  11  02 
Conferences  (2  per 
year; 
150 
participants;  ;  0 035 
M EUR /conference) 

-  07  01  02  11  02 
Meetings (2 per year 
;  168  experts  max 
; 
(28  *6);  1  day 
0 135  M 
EUR 
/meeting) 

SUBTOTAL  

Subtotal HEADING 5 
of the multiannual 
financial framework  

Year
N 

Year 
N+1 

Year
N+2 

Year
N+3 

Year
N+4 

Year 
N+5 

Year
N+6 

0 .127 

0 .127 

0 .127 

0 .127 

0 .127 

0 .127 

0 .127 

0 .889 

0 .0075 

0 .0075 

0 .0075 

0 .0075 

0 .0075 

0 .0075 

0 .0075 

0 .053

0 .070 

0 .070 

0. 070 

0. 070 

0 .070 

0 .070 

0 .070 

0 .490

0 .270 

0 .270 

0 .270 

0 .270 

0 .270 

0 .270 

0 .270 

1 .890

0 .348 

0 .348 

0 .348 

0 .348 

0 .348 

0 .348 

0 .348 

2 .433 

0 .475 

0. 475 

0 .475 

0 .475 

0 .475 

0 .475 

0 .475 

3 .322 

34 

Year N is the year in which implementation of the proposal/initiative starts. The proposal is envisaged 
to enter into force in 2013, depending on progress with the legislative process. 

EN 

38 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
Outside HEADING 535 
of the multiannual 
financial framework  

Human resources  

Other 
expenditure  
of  an  administrative 
nature 

Subtotal  
outside HEADING 5 
of the multiannual 
financial framework  

TOTAL 

0 .475 

0 .475 

0 .475 

0 .475 

0 .475 

0 .475 

0 .475 

3 .322

3.2.4.  Estimated requirements of human resources 

(cid:133) 

The proposal/initiative does not require the use of human resources 

⌧  The  proposal/initiative  requires  the  use  of  human  resources,  as  explained 
below: 

Estimate to be expressed in full amounts (or at most to one decimal place) 

Year 
N 

Year 
N+1 

Year 
N+2 

Year 
N+3 

Year 
N+4 

Year 
N+5 

Year 
N+6 

(cid:121) Establishment plan posts (officials and temporary agents) 

07 01 01 01 (Headquarters and 
Commission’s Representation 
Offices) 

XX 01 01 02 (Delegations) 

XX 01 05 01 (Indirect research) 

10 01 05 01 (Direct research) 

0 .127 

0 .127 

0 .127 

0 .127 

0 .127 

0 .127 

0 .127 

(cid:121) External personnel (in Full Time Equivalent unit: FTE)36 

XX 01 02 01 (CA, INT, SNE from 
the ‘global envelope’) 

XX 01 02 02 (CA, INT, JED, LA and 
SNE in the delegations) 

XX 01 04 
yy 37 

- at 
Headquarte
rs38 

35 

36 

37 

Technical  and/or  administrative  assistance  and  expenditure  in  support  of  the  implementation  of  EU 
programmes and/or actions (former ‘BA’ lines), indirect research, direct research. 
CA=  Contract Agent;  INT=  agency  staff  (‘Intérimaire’);  JED=  ‘Jeune  Expert  en Délégation’  (Young 
Experts in Delegations); LA= Local Agent; SNE= Seconded National Expert; . 
Under the ceiling for external personnel from operational appropriations (former ‘BA’ lines). 

EN 

39 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
- in 
delegations 

XX 01 05 02 (CA, INT, SNE — 
Indirect research) 

10 01 05 02 (CA, INT, SNE — 
Direct research) 

Other budget lines (specify) 

TOTAL 

0 .127 

0 .127 

0 .127 

0 .127 

0 .127 

0 .127 

0 .127 

XX is the policy area or budget title concerned. 

The human resources required will be met by staff from the DG who are already assigned to 
management of the action and/or have been redeployed within the DG, together if necessary 
with any additional allocation which may be granted to the managing DG under the annual 
allocation procedure and in the light of budgetary constraints. 

Description of tasks to be carried out: 

Officials and temporary agents 

Take appropriate action to implement the various requirements upon Commission (e.g. 
review Member States reports, carry out analysis, monitor the implementation, etc.) 

External personnel 

3.2.5.  Compatibility with the current multiannual financial framework 

Proposal/initiative  is  compatible  with  the  current  multiannual  financial 

⌧ 
framework. 
(cid:133) 
multiannual financial framework. 
(cid:133) 
of the multiannual financial framework39. 

Proposal/initiative  will  entail  reprogramming  of  the  relevant  heading  in  the 

Proposal/initiative requires application of the flexibility instrument or revision 

3.2.6.  Third-party contributions 

⌧The proposal/initiative does not provide for co-financing by third parties 
The proposal/initiative provides for the co-financing estimated below: 

3.3. 

Estimated impact on revenue 

⌧ 
(cid:133) 

Proposal/initiative has no financial impact on revenue. 
Proposal/initiative has the following financial impact: 
(cid:133) 
(cid:133) 

on own resources 
on miscellaneous revenue 

38 

39 

Essentially  for  Structural  Funds,  European  Agricultural  Fund  for  Rural  Development  (EAFRD)  and 
European Fisheries Fund (EFF). 
See points 19 and 24 of the Interinstitutional Agreement. 

EN 

40 

   EN