Date: 2019-03-14Category: Not ApplicableState: Union GovernmentCountry: Europe
Commission Delegated Regulation (EU) 2019/401 of 19 December 2018 amending Regulation (EU) No 389/2013 establishing a Union Registry (Text with EEA relevance.)
Executive Summary:
Commission Delegated Regulation (EU) 2019/401 amends Regulation (EU) No 389/2013, concerning the Union Registry under the EU Emissions Trading System (ETS). The amendment addresses the use of emission allowances issued by a Member State withdrawing from the EU, specifically in light of the Withdrawal Agreement. The regulation stipulates that allowances created for 2019 and 2020 will not be identified with a country code under certain conditions related to compliance with Directive 2003/87/EC. The regulation enters into force the day after its publication in the Official Journal of the European Union.
Key Points / Main Content:
* **Amendment Purpose:**
* The regulation amends Regulation (EU) No 389/2013 to address the treatment of emission allowances issued by a withdrawing Member State.
* **Withdrawal Agreement Context:**
* The regulation considers the draft Withdrawal Agreement, which includes a transition period ensuring compliance with Directive 2003/87/EC for emissions in 2019 and 2020.
* **Allowance Identification:**
* From the day following the deposit of ratification instruments for the Withdrawal Agreement, allowances created for 2019 and 2020 shall not be identified with a country code if compliance with Directive 2003/87/EC for emissions taking place during these years is required by an agreement setting out arrangements for the withdrawal of such a Member State from the European Union.
* **Entry into Force:**
* The regulation enters into force on the day following its publication in the Official Journal of the European Union.
Impact Analysis:
* **Aviation Operators and Other Operators in the EU ETS:**
* Impact: Operators may be able to use allowances issued by a withdrawing Member State for emissions in 2019 and 2020, depending on the entry into force and terms of the Withdrawal Agreement.
* Action Required: Monitor the status of the Withdrawal Agreement and any related guidance from the Commission to ensure compliance.
* **European Commission:**
* Impact: Responsible for implementing and monitoring the effectiveness of the amended regulation.
* Action Required: Ensure appropriate technical measures are in place to implement the regulation.
* **Member States:**
* Impact: Must apply the regulation directly.
* Action Required: Implement the changes to the Union Registry as specified in the regulation.
Key Entities Referenced
European Union: A political and economic union of member states located primarily in Europe.
European Commission: An executive branch of the European Union responsible for proposing legislation, implementing decisions, upholding the EU treaties and managing the day-to-day business of the EU.
Directive 2003/87/EC: A directive of the European Parliament and of the Council establishing a scheme for greenhouse gas emission allowance trading within the Community (EU ETS).
Regulation EU No 389/2013: A regulation establishing a Union Registry for the EU emissions trading system (EU ETS).
Kyoto Protocol: An international treaty which extends the 1992 United Nations Framework Convention on Climate Change (UNFCCC) that commits state parties to reduce greenhouse gas emissions.
Decision No 406/2009/EC: A decision related to the effort of Member States to reduce their greenhouse gas emissions to meet the European Community’s greenhouse gas emission reduction commitments up to 2020.
United Kingdom of Great Britain and Northern Ireland: A country in Europe that was formerly a member state of the European Union, mentioned in the context of its withdrawal from the EU.
Treaty on European Union: One of the primary treaties upon which the European Union is founded. Article 50 outlines the procedure for a member state to withdraw from the EU.
L 72/4 EN Official Journal of the European Union 14.3.2019
REGULATIONS
COMMISSION DELEGATED REGULATION (EU) 2019/401
of 19 December 2018
amending Regulation (EU) No 389/2013 establishing a Union Registry
(Text with EEA relevance)
THE EUROPEAN COMMISSION,
Having regard to the Treaty on the Functioning of the European Union,
Having regard to 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/EC (1), and in particular Articles 19(3) thereof,
Whereas:
(1) The registries system ensures the accurate accounting of transactions under the EU emissions trading system (EU
ETS) set up by Directive 2003/87/EC, the Kyoto Protocol and Decision No 406/2009/EC.
(2) Where necessary and for as long as necessary in order to protect the environmental integrity of the EU ETS,
aviation operators and other operators in the EU ETS may not use allowances that are issued by a Member State
which has notified the European Council of its intention to withdraw from the Union pursuant to Article 50 of
the Treaty on European Union (‘TEU’). In the light of the negotiations pursuant to Article 50 TEU, and pursuant
to Article 12(3)(a) of Directive 2003/87/EC, the Commission should regularly assess whether the use of
allowances by a Member State in respect of which there are obligations lapsing for aircraft operators and other
operators is permitted, in particular in situations where Union law does not yet cease to apply in that Member
State or where it is sufficiently ensured that the surrender of allowances takes place in a legally enforceable
manner before the Treaties cease to apply.
(3) The draft agreement on the withdrawal of the United Kingdom of Great Britain and Northern Ireland from the
European Union and the European Atomic Energy Community (‘the Withdrawal Agreement’), as agreed at
negotiators' level on 14 November 2018, establishes a transition period and ensures that UK operators comply
with their obligations laid down in the Directive 2003/87/EC as regards their emissions in 2019 and 2020. In
case of entry into force of the Withdrawal Agreement, it is no longer necessary to restrict the use of allowances
that are issued by such a Member State in those years.
(4) No marking of allowances should therefore take place from the day following the one on which the instruments
of ratification of both parties to the Withdrawal Agreement are deposited with the Secretary-General of the
Council.
(5) Appropriate technical measures should be put in place to ensure the effectiveness of this Regulation at the time
of its application.
(1) OJ L 275, 25.10.2003, p. 32.14.3.2019 EN Official Journal of the European Union L 72/5
HAS ADOPTED THIS REGULATION:
Article 1
In Article 41(4) of Regulation (EU) No 389/2013, the following paragraph is added:
‘4. From the day following the one on which both ratification instruments concerning the Withdrawal Agreement
have been deposited, allowances created for 2019 and 2020 shall not be identified with a country code if
compliance with Directive 2003/87/EC for emissions taking place during these years is required by an agreement
setting out arrangements for the withdrawal of such a Member State from the European Union.’
Article 2
This Regulation shall enter into force on the day following that of its publication in the Official Journal of the European
Union.
This Regulation shall be binding in its entirety and directly applicable in all Member States.
Done at Brussels, 19 December 2018.
For the Commission
The President
Jean-Claude JUNCKER