Home Europe Council of the European Union Council Decision (EU) 2023/2754 of 4 December 2023 on the po...
Date: 2023-12-08 Category: Not Applicable State: Union Government Country: Europe

Council Decision (EU) 2023/2754 of 4 December 2023 on the position to be adopted, on behalf of the European Union, within the EEA Joint Committee concerning the amendment to Annex XX (Environment) to the EEA Agreement (ETS Maritime and Stationary)

Issued by Council of the European Union · Not Applicable

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Executive Summary & Key Takeaways

Executive Summary: This Council Decision outlines the EU's position within the EEA Joint Committee regarding amendments to Annex XX (Environment) of the EEA Agreement. The amendments incorporate several EU regulations, directives, and decisions related to the EU Emissions Trading System (ETS), including maritime transport activities. The decision aims to align EEA environmental policies with recent EU legislation, with an effective application date of December 31, 2023. Key Points / Main Content: * **Amendment of Annex XX to the EEA Agreement:** * Annex XX is amended to incorporate Regulation (EU) 2023/957, Directive (EU) 2023/959, Decision (EU) 2023/852, and Commission Decision (EU) 2023/1575. * **Directive 2003/87/EC Amendments:** * Various articles and adaptations related to Directive 2003/87/EC are modified, including those concerning the EU ETS and the market stability reserve. * Specific adaptations are made for EFTA States, including considerations for national law and excess emissions penalties. * Liechtenstein's specific situation, due to its regional union with Switzerland and CO2 tax, is addressed with potential reviews of derogation end dates and exemptions from administrative rules. * **Data and Calculations:** * Figures published by Decision (EU) 2023/1575 for the Union-wide quantity of allowances for 2024 include EFTA States. * Part B of the appendix is replaced with updated figures for Iceland and Norway relevant to the calculation of the EEA-wide quantity of allowances from 2021 to 2030. * **Regulation (EU) 2015/757 Amendment:** * The title of Regulation (EU) 2015/757 is updated to reflect its focus on maritime transport emissions. * Regulation (EU) 2023/957 is added. * **Authentic Languages:** * The Icelandic and Norwegian language versions of the incorporated regulations, directives, and decisions will be published in the EEA Supplement to the Official Journal and are considered authentic. * **Entry into Force and Application:** * The Decision enters into force on the date of adoption or the day following the last notification to the EEA Joint Committee, whichever is later, and applies from December 31, 2023. Impact Analysis: * **EU Member States:** * Impact: Continued alignment with EEA countries on emissions trading and environmental policies. * Action Required: No specific action required, as this decision primarily concerns the EU's position within the EEA Joint Committee. * **EEA EFTA States (Iceland, Liechtenstein, Norway):** * Impact: Incorporation of EU ETS regulations, directives, and decisions into their national laws, affecting maritime transport, greenhouse gas emissions, and carbon markets. Specific adjustments are made for Liechtenstein due to its unique circumstances. * Action Required: Implement the amended Annex XX, provide input data for the Commission Decision regarding the new emissions trading system, and ensure excess emission penalties are equivalent to those in EU Member States. Liechtenstein needs to notify the EFTA Surveillance Authority of its national carbon tax. * **EEA Joint Committee:** * Impact: Responsible for making decisions regarding the incorporation of EU legislation into the EEA Agreement and addressing specific issues related to EFTA States. * Action Required: Adopt the draft decision amending Annex XX to the EEA Agreement. * **European Commission:** * Impact: Oversees the implementation of the EU ETS and collaborates with EEA EFTA states on related matters. * Action Required: Publish the total quantity of allowances to be issued for 2027 under the new emissions trading system by January 1, 2025, and consult with the EEA EFTA States during the preparation of the relevant Commission Decision.

Key Entities Referenced

EEA Agreement: Agreement on the European Economic Area EEA Joint Committee: The committee responsible for amending Annex XX Environment to the EEA Agreement. European Union: A political and economic union of member states located primarily in Europe. Regulation EU 2023/957: Regulation of the European Parliament and of the Council amending Regulation EU 2015/757 to include maritime transport activities in the EU Emissions Trading System. Directive EU 2023/959: Directive of the European Parliament and of the Council amending Directive 2003/87/EC establishing a system for greenhouse gas emission allowance trading within the Union. Decision EU 2023/852: Decision of the European Parliament and of the Council amending Decision EU 2015/1814 regarding the number of allowances in the market stability reserve for the Union greenhouse gas emission trading system until 2030. Commission Decision EU 2023/1575: Commission Decision on the Unionwide quantity of allowances to be issued under the EU Emissions Trading System for 2024. Liechtenstein: Country in Europe which applies a CO tax.
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Official Journal EN of the European Union L series 2023/2754 8.12.2023 COUNCIL DECISION (EU) 2023/2754 of 4 December 2023 on the position to be adopted, on behalf of the European Union, within the EEA Joint Committee concerning the amendment to Annex XX (Environment) to the EEA Agreement (ETS Maritime and Stationary) (Text with EEA relevance) THE COUNCIL OF THE EUROPEAN UNION, Having regard to the Treaty on the Functioning of the European Union, and in particular Article 192(1) in conjunction with Article 218(9) thereof, Having regard to Council Regulation (EC) No 2894/94 of 28 November 1994concerning arrangements for implementing the Agreement on the European Economic Area(1), and in particular Article 1(3) thereof, Having regard to the proposal from the European Commission, Whereas: (1) The Agreement on the European Economic Area(2)(the ‘EEA Agreement’) entered into force on 1 January 1994. (2) Pursuant to Article 98 of the EEA Agreement, the EEA Joint Committee may decide to amend, inter alia, Annex XX (Environment) to the EEA Agreement. (3) Regulation (EU) 2023/957 of the European Parliament and of the Council(3), Directive (EU) 2023/959 of the European Parliament and of the Council(4), Decision (EU) 2023/852 of the European Parliament and of the Council(5)and Commission Decision (EU) 2023/1575(6)should be incorporated into the EEA Agreement. (4) Annex XX (Environment) to the EEA Agreement should therefore be amended accordingly. (5) The position of the Union within the EEA Joint Committee should therefore be based on the attached draft Decision, HAS ADOPTED THIS DECISION: Article 1 The position to be adopted, on behalf of the Union, within the EEA Joint Committee on the proposed amendment to Annex XX (Environment) to the EEA Agreement shall be based on the draft Decision of the EEA Joint Committee attached to this Decision. (1) OJ L 305, 30.11.1994, p. 6. (2) OJ L 1, 3.1.1994, p. 3. (3) Regulation (EU) 2023/957 of the European Parliament and of the Council of 10 May 2023 amending Regulation (EU) 2015/757 in order to provide for the inclusion of maritime transport activities in the EU Emissions Trading System and for the monitoring, reporting and verification of emissions of additional greenhouse gases and emissions from additional ship types (OJ L 130, 16.5.2023, p. 105). (4) Directive (EU) 2023/959 of the European Parliament and of the Council of 10 May 2023 amending Directive 2003/87/EC establishing a system for greenhouse gas emission allowance trading within the Union and Decision (EU) 2015/1814 concerning the establishment and operation of a market stability reserve for the Union greenhouse gas emission trading system (OJ L 130, 16.5.2023, p. 134). (5) Decision (EU) 2023/852 of the European Parliament and of the Council of 19 April 2023 amending Decision (EU) 2015/1814 as regards the number of allowances to be placed in the market stability reserve for the Union greenhouse gas emission trading system until 2030 (OJ L 110, 25.4.2023, p. 21). (6) Commission Decision (EU) 2023/1575 of 27 July 2023 on the Union-wide quantity of allowances to be issued under the EU Emissions Trading System for 2024 (OJ L 192, 31.7.2023, p. 30). ELI: http://data.europa.eu/eli/dec/2023/2754/oj 1/7EN OJ L, 8.12.2023 Article 2 This Decision shall enter into force on the date of its adoption. Done at Brussels, 4 December 2023. For the Council The President F. BOLAÑOS GARCÍA 2/7 ELI: http://data.europa.eu/eli/dec/2023/2754/ojEN OJ L, 8.12.2023 DRAFT DECISION OF THE EEA JOINT COMMITTEE No … of … amending Annex XX (Environment) to the EEA Agreement THE EEA JOINT COMMITTEE, Having regard to the Agreement on the European Economic Area (the ‘EEA Agreement’), and in particular Article 98 thereof, Whereas: (1) Regulation (EU) 2023/957 of the European Parliament and of the Council of 10 May 2023 amending Regulation (EU) 2015/757 in order to provide for the inclusion of maritime transport activities in the EU Emissions Trading System and for the monitoring, reporting and verification of emissions of additional greenhouse gases and emissions from additional ship types(1)is to be incorporated into the EEA Agreement. (2) Directive (EU) 2023/959 of the European Parliament and of the Council of 10 May 2023 amending Directive 2003/87/EC establishing a system for greenhouse gas emission allowance trading within the Union and Decision (EU) 2015/1814 concerning the establishment and operation of a market stability reserve for the Union greenhouse gas emission trading system(2)is to be incorporated into the EEA Agreement. (3) Decision (EU) 2023/852 of the European Parliament and of the Council of 19 April 2023 amending Decision (EU) 2015/1814 as regards the number of allowances to be placed in the market stability reserve for the Union greenhouse gas emission trading system until 2030(3)is to be incorporated into the EEA Agreement. (4) Commission Decision (EU) 2023/1575 of 27 July 2023on the Union-wide quantity of allowances to be issued under the EU Emissions Trading System for 2024(4)is to be incorporated into the EEA Agreement. (5) The total quantity of allowances to be issued for the year 2027 under the new emissions trading system for buildings, road transport and additional sectors is to be published by the Commission by 1 January 2025and will, as for the existing Emissions Trading System, establish the cap as an EEA-wide quantity of allowances. The EEA EFTA States should provide input data and will be consulted during the process of preparation of the relevant Commission Decision. (6) The incorporation of Directive (EU) 2023/959 of the European Parliament and of the Council is without prejudice to the EFTA States’ assessment of Regulation (EU) 2023/955 of the European Parliament and of the Council of 10 May 2023establishing a Social Climate Fund in the context of the scope of the EEA Agreement. (7) Based on Liechtenstein’s regional union with Switzerland and in accordance with the bilateral treaty on environmental charges(5), a CO tax is applied in Liechtenstein, whose administration, including collection, 2 monitoring and reporting is carried out by Swiss authorities and entities. Therefore for Liechtenstein, in respect of the new emissions trading system for buildings, road transport and additional sectors, a review of the end date of the derogation according to Article 30e(3) of Directive 2003/87/EC and an exemption from related administrative rules until then and corresponding adjustments to the sources of emission data are appropriate. (1) OJ L 130, 16.5.2023, p. 105. (2) OJ L 130, 16.5.2023, p. 134. (3) OJ L 110, 25.4.2023, p. 21. (4) OJ L 192, 31.7.2023, p. 30. (5) Vertrag zwischen dem Fürstentum Liechtenstein und der Schweizerischen Eidgenossenschaft betreffend die Umweltabgaben im Fürstentum Liechtenstein, abgeschlossen am 29. Januar 2010 (LGBl. 2010 Nr. 12). ELI: http://data.europa.eu/eli/dec/2023/2754/oj 3/7EN OJ L, 8.12.2023 (8) The figures published by Decision (EU) 2023/1575 for the Union-wide quantity of allowances for 2024 and the yearly reduction of the allowances to be issued resulting from the application of the linear reduction factor include the EFTA States, in line with Directive (EU) 2023/959. (9) Annex XX to the EEA Agreement should therefore be amended accordingly, HAS ADOPTED THIS DECISION: Article 1 Annex XX to the EEA Agreement shall be amended as follows: 1. Point 21al (Directive 2003/87/EC of the European Parliament and of the Council) shall be amended as follows: (i) the following indent is added: ‘— 32023 L 0959: Directive (EU) 2023/959 of the European Parliament and of the Council of 10 May 2023 (OJ L 130, 16.5.2023, p. 134).’; (ii) adaptation (d) shall be replaced by the following adaptation: ‘(d) Article 3d(4), the fourth sentence of the second subparagraph of Article 3ga(3), Article 10(3), Article 30d(6) and the first subparagraph of Article 30e(3)(h) shall not apply to the EFTA States.’; (iii) in adaptation (e), the words ‘The following paragraphs shall be inserted in Article 9’ are replaced by the words ‘The following paragraphs shall be added after the first paragraph of Article 9’; (iv) adaptation (j) is deleted; adaptations (f) to (i) are renumbered as (g) to (j); (v) the following adaptation is inserted after adaptation (e): ‘(f) The following paragraph shall be added after the second paragraph of Article 9: “In respect of the EFTA States, the figures taken into account for the calculation of the EEA-wide quantity of allowances to be issued from 2024 onwards pursuant to this Article are set out in Part B of the Appendix.”’; (vi) adaptations (t) and (u) are renumbered as adaptations (z) and (za); adaptations (l) to (s) are renumbered as adaptations (o) to (v); adaptation (k) is renumbered as adaptation (l); (vii) the following adaptation is inserted after (j): ‘(k) In Article 10a(1), the words “, or equivalent obligations, in accordance with national law in the EFTA States,” shall be inserted after the words “Article 8 of Directive 2012/27/EU of the European Parliament and of the Council”’; (viii) the following adaptations are inserted after adaptation (l): ‘(m) The following subparagraph shall be inserted after the second subparagraph of Article 12(3-d): “Decisions regarding the EFTA States, shall be made by the EEA Joint Committee, in accordance with the procedures laid down in the EEA Agreement.” (n) The following subparagraph shall be inserted after Article 12(3-c): “Decisions regarding requests made by two EFTA States, shall be made by the EEA Joint Committee, in accordance with the procedures laid down in the EEA Agreement.”’; (ix) the text of adaptation (o) shall be replaced by the following: ‘The following sentence shall be inserted after the second sentence of Article 16(3): “The EFTA States shall provide for excess emissions penalties that are equivalent to those in the EU Member States.”’; 4/7 ELI: http://data.europa.eu/eli/dec/2023/2754/ojEN OJ L, 8.12.2023 (x) the text of adaptation (s) shall be replaced by the following: ‘The following subparagraph shall be added in Article 18b(1): “For the purposes of carrying out their tasks under the Directive, the EFTA States and the EFTA Surveillance Authority may request the assistance of EMSA or another relevant organisation and may conclude to that effect any appropriate arrangements with those organisations.”’; (xi) the following adaptations are added after adaptation (v): ‘(w) The following sentence is added in the sixth subparagraph of Article 30d(4): “In the case referred to in this subparagraph, the share of allowances of the EFTA States made available for the Social Climate Fund in accordance with Article 10a(8b) of this Directive, paragraph 3 of this Article and this paragraph shall not be affected.” (x) As regards the EFTA States, Article 30e(3)(a) is replaced by the following paragraph: “The EFTA State concerned notifies the EFTA Surveillance Authority of that national carbon tax at the latest 2 months after the entry into force of EEA Joint Committee Decision …/2023 of … [this Decision], and documenting the tax level by providing references to the relevant national instrument regarding the current tax rate and the indicated tax rates up to 2030; the EFTA State concerned notifies the EFTA Surveillance Authority of any subsequent change to the national carbon tax; the EFTA Surveillance Authority shall promptly, and not later than 1 month thereafter, communicate any notification from an EFTA State to the Commission;” (y) The following subparagraph shall be added in Article 30e(3): “For Liechtenstein, the application of the end date of the derogation, 31 December 2030, will be reviewed as part of the next Joint Committee Decision concerning Directive 2003/87/EC following the July 2026 review of the Directive, taking into account the relevant rules applicable in Liechtenstein due to its regional union with Switzerland and in particular the CO tax and its administration as regulated in accordance with the 2 bilateral treaty on environmental charges in view of their equivalence with the emissions trading system for buildings, road transport and additional sectors, and to the extent possible the results of the Commission review of the implementation of Chapter IVa of Directive 2003/87/EC in accordance with Article 30i of that Directive. Until the next Joint Committee Decision on Directive 2003/87/EC enters into force, Articles 30b and 30f of Directive 2003/87/EC shall not apply in Liechtenstein. Any data relevant for adjustments of the Union-wide quantity of allowances for Liechtenstein relating to the emissions trading system established under Chapter IVa of Directive 2003/87/EC will be taken from UNFCCC greenhouse gas emission inventories for Liechtenstein as long as monitoring data according to Article 30f of the Directive is not available.”’; (xii) the text of Part B of the appendix of adaptation (za) shall be replaced by the following: ‘PART B EFTA States’ figures relevant to the calculation and adjustment of the EEA-wide quantity of allowances to be issued from 2021 to 2030 pursuant to Articles 9 and 9a of Directive 2003/87/EC For the determination of these figures, the linear factor of 2,2 % from 2021 to 2023, 4,3 % from 2024 to 2027 and 4,4 % from 2028 has been applied. CAP 2021-2030 Iceland Norway 2021 1 432 642 16 304 948 2022 1 393 440 15 858 793 2023 1 354 238 15 412 638 ELI: http://data.europa.eu/eli/dec/2023/2754/oj 5/7EN OJ L, 8.12.2023 CAP 2021-2030 Iceland Norway 2024 1 227 504 14 242 697 2025 1 148 901 13 331 215 2026 1 045 721 12 140 314 2027 967 476 11 235 954 2028 887 411 10 310 563 2029 807 347 9 385 171 2030 727 282 8 459 779 These figures do not include the allowances corresponding to the inclusion in the scope of the ETS Directive of greenhouse gas emissions other than CO emissions from maritime transport activities as of 1 January 2026and 2 the coverage of emissions of offshore ships as of 1 January 2027, based on their emissions for the most recent year for which data are available.’ 2. The following indents are added in point 21alj (Decision (EU) 2015/1814 of the European Parliament and of the Council): ‘— 32023 D 0852: Decision (EU) 2023/852 of the European Parliament and of the Council of 19 April 2023 (OJ L 110, 25.4.2023, p. 21), — 32023 L 0959: Directive (EU) 2023/959 of the European Parliament and of the Council of 10 May 2023 (OJ L 130, 16.5.2023, p. 134).’ 3. The following point is inserted after point 21apn (Commission Decision (EU) 2020/1722): ‘21apo. 32023 D 1575: Commission Decision (EU) 2023/1575 of 27 July 2023 on the Union-wide quantity of allowances to be issued under the EU Emissions Trading System for 2024 (OJ L 192, 31.7.2023, p. 30).’ 4. Point 21aw (Regulation (EU) 2015/757 of the European Parliament and of the Council) shall be amended as follows: (i) the title is replaced by the following: ‘Regulation (EU) 2015/757 of the European Parliament and of the Council of 29 April 2015 on the monitoring, reporting and verification of greenhouse gas emissions from maritime transport, and amending Directive 2009/16/EC’; (ii) the following indent is added: ‘— 32023 R 0957: Regulation (EU) 2023/957 of the European Parliament and of the Council of 10 May 2023 (OJ L 130, 16.5.2023, p. 105).’. Article 2 The texts of Regulation (EU) 2023/957, Directive (EU) 2023/959 and Decisions (EU) 2023/852 and (EU) 2023/1575 in the Icelandic and Norwegian languages, to be published in the EEA Supplement to the Official Journal of the European Union, shall be authentic. Article 3 This Decision shall enter into force on …, or on the day following the last notification to the EEA Joint Committee under Article 103(1) of the EEA Agreement, whichever is the later*. [It shall apply from 31 December 2023.] * [No constitutional requirements indicated.] [Constitutional requirements indicated.] 6/7 ELI: http://data.europa.eu/eli/dec/2023/2754/ojEN OJ L, 8.12.2023 Article 4 This Decision shall be published in the EEA Section of, and in the EEA Supplement to, the Official Journal of the European Union. Done at Brussels, …. For the EEA Joint Committee The Secretaries The President To the EEA Joint Committee ELI: http://data.europa.eu/eli/dec/2023/2754/oj 7/7

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