LegalizeCommission Delegated Regulation (EU) 2019/331 of 19 December 2018 determining transitional Union-wide rules for harmonised free allocation of emission allowances pursuant to Article 10a of Directive 2003/87/EC of the European Parliament and of the Council (Text with EEA relevance.)
COMMISSION DELEGATED REGULATION (EU) 2019/331 of 19 December 2018 determining transitional Union-wide rules for harmonised free allocation of emission allowances pursuant to Article 10a of Directive 2003/87/EC of the European Parliament and of the Council (Text with EEA relevance)
CHAPTER I
General provisions
Article 1
Scope
This Regulation shall apply to the free allocation of emission allowances under Chapter III (Stationary installations) of Directive 2003/87/EC as regards the allocation periods as from 2021, with the exception of transitional free allocation of emission allowances for the modernisation of electricity generation pursuant to Article 10c of Directive 2003/87/EC.
Article 2
Definitions
For the purposes of this Regulation, the following definitions apply:
(1) ‘incumbent installation’ means any installation carrying out one or more activities listed in Annex I to Directive 2003/87/EC or an activity included in the European Union Emissions Trading System (EU ETS) for the first time in accordance with Article 24 of that Directive, which obtained a greenhouse gas emission permit before or on: (a) 30 June 2019 for the period 2021-2025, (b) 30 June 2024 for the period 2026-2030;
(2) ‘product benchmark sub-installation’ means inputs, outputs and corresponding emissions relating to the production of a product for which a benchmark has been set in Annex I;
(3) ‘heat benchmark sub-installation’ means inputs, outputs and corresponding emissions not covered by a product benchmark sub-installation relating to the production of measurable heat or the import of measurable heat from an installation covered by the EU ETS other than installations covered by the EU ETS only for the purposes of Articles 14 and 15 of Directive 2003/87/EC, or both, which is: (a) consumed within the installation’s boundaries for the production of products, for the production of mechanical energy other than used for the production of electricity, for heating or cooling other than the consumption for the production of electricity; or (b) exported to an installation or other entity not covered by the EU ETS other than district heating with the exception of the export for the production of electricity;
(4) ‘district heating’ means the distribution of measurable heat for the purpose of heating or cooling of space or of production of domestic hot water, through a network, to buildings or sites not covered by EU ETS with the exception of measurable heat used for the production of products and related activities or the production of electricity;
(5) ‘district heating sub-installation’ means inputs, outputs and corresponding emissions not covered by a product benchmark sub-installation relating to the production, the import from an installation covered by the EU ETS, or both, of measurable heat which is exported for the purposes of district heating;
(6) ‘fuel benchmark sub-installation’ means inputs, outputs and corresponding emissions not covered by a product benchmark sub-installation, relating to the production of non-measurable heat, by fuel combustion or from electricity, for the primary purpose of the generation of heat, consumed for the production of products, for the production of mechanical energy other than used for the production of electricity, for heating or cooling other than the consumption for the production of electricity, and including safety flaring;
(7) ‘measurable heat’ means a net heat flow transported through identifiable pipelines or ducts using a heat transfer medium, such as, in particular, steam, hot air, water, oil, liquid metals and salts, for which a heat meter is or could be installed;
(8) ‘heat meter’ means a thermal energy meter (MI-004) within the meaning of Annex VI to Directive 2014/32/EU of the European Parliament and of the Council (1) or any other device to measure and record the amount of thermal energy produced based upon flow volumes and temperatures;
(9) ‘non-measurable heat’ means all heat other than measurable heat;
(10) ‘process emissions sub-installation’ means greenhouse gas emissions listed in Annex I to Directive 2003/87/EC other than carbon dioxide, which occur outside the system boundaries of a product benchmark listed in Annex I to this Regulation, or carbon dioxide emissions, which occur outside the system boundaries of a product benchmark listed in Annex I to this Regulation, as a direct and immediate result of any of the following processes and emissions stemming from the combustion of waste gases for the purpose of the production of measurable heat, non-measurable heat or electricity, provided that emissions that would have occurred from the combustion of an amount of natural gas, equivalent to the technically usable energy content of the combusted incompletely oxidised carbon, are subtracted: (a) the chemical, electrolytic or pyrometallurgical reduction of metal compounds in ores, concentrates and secondary materials for a primary purpose other than the generation of heat; (b) the removal of impurities from metals and metal compounds for a primary purpose other than the generation of heat; (c) the decomposition of carbonates, excluding those for flue gas scrubbing for a primary purpose other than the generation of heat; (d) chemical syntheses of products and intermediate products where the carbon bearing material participates in the reaction, for a primary purpose other than the generation of heat; (e) the use of carbon containing additives or raw materials for a primary purpose other than the generation of heat; (f) the chemical or electrolytic reduction of metalloid oxides or non-metal oxides such as silicon oxides and phosphates for a primary purpose other than the generation of heat;
(11) ‘waste gas’ means a gas containing incompletely oxidised carbon in a gaseous state under standard conditions which is a result of any of the processes listed in point (10), where ‘standard conditions’ means temperature of 273,15 K and pressure conditions of 101 325 Pa defining normal cubic metres (Nm3) according to Article 3(50) of Regulation (EU) No 601/2012;
(12) ‘start of normal operation’ means the first day of operations;
(13) ‘safety flaring’ means the combustion of pilot fuels and highly fluctuating amounts of process or residual gases in a unit open to atmospheric disturbances which is explicitly required for safety reasons by relevant permits for the installation;
(14) ‘baseline period’ means the five calendar years preceding the time-limit for submission of data to the Commission pursuant to Article 11(1) of Directive 2003/87/EC;
(15) ‘allocation period’ means the five-year period starting from 1 January 2021 and each subsequent period of five years;
(16) ‘uncertainty’ means a parameter, associated with the result of the determination of a quantity, that characterises the dispersion of the values that could reasonably be attributed to the particular quantity, including the effects of systematic as well as of random factors, expressed in per cent, and describes a confidence interval around the mean value comprising 95 % of inferred values taking into account any asymmetry of the distribution of values;
(17) ‘merger’ means a fusion of two or more installations already holding greenhouse gas permits provided that they are technically connected, operate on the same site and the resulting installation is covered by one greenhouse gas permit;
(18) ‘split’ means a division of an installation into two or more installations that are covered by separate greenhouse gas permits and are run by different operators.
Article 3
National administrative arrangements
In addition to designating a competent authority or authorities in accordance with Article 18 of Directive 2003/87/EC, Member States shall make the appropriate administrative arrangements for the implementation of the rules of this Regulation.
CHAPTER II
Application, data reporting and monitoring rules
Article 4
Application for free allocation by operators of incumbent installations
Member States may set an alternative time-limit for the submission of such applications, which, however, may not be later or earlier than one month compared to the time-limit provided for in the first subparagraph.
An application for free allocation submitted pursuant to paragraph 1 shall be accompanied by the following particulars:
(a) a baseline data report verified as satisfactory in accordance with measures adopted pursuant to Article 15 of Directive 2003/87/EC containing data for the installation, and its sub-installations as specified in Article 10 and Annexes I and II to this Regulation, taking into account, for the calculation of historical activity levels for specific product benchmarks, Annex III to this Regulation, containing each parameter listed in Annex IV to this Regulation and covering the baseline period relating to the allocation period to which the application relates;
(b) the monitoring methodology plan which formed the basis for the baseline data report and the verification report, in accordance with Annex VI;
(ba) where relevant, the climate-neutrality plan in accordance with Article 10a(1), fifth subparagraph, and Article 10b(4) of Directive 2003/87/EC;
(c) a verification report issued in accordance with measures adopted pursuant to Article 15 of Directive 2003/87/EC on the baseline data report.
Article 5
Application for free allocation by new entrants
Article 6
The operator of an installation, applying for or receiving free allocation pursuant to Article 10a of Directive 2003/87/EC shall monitor the data to be submitted as listed in Annex IV to this Regulation, based on a monitoring methodology plan approved by the competent authority.
Article 7
Monitoring principles
By way of derogation from paragraph 1, the operator may use other data sources in accordance with sections 4.4 to 4.6 of Annex VII, if any of the following conditions is met:
(a) the use of most accurate data sources pursuant to section 4 of Annex VII is technically not feasible;
(b) the use of most accurate data sources pursuant to section 4 of Annex VII would incur unreasonable costs;
(c) based on a simplified uncertainty assessment identifying major sources of uncertainty and estimating their associated levels of uncertainty, the operator demonstrates to the satisfaction of the competent authority that the associated level of accuracy of the data source proposed by the operator is equivalent to or better than the level of accuracy of most accurate data sources pursuant to section 4 of Annex VII.
Article 8
Content and submission of the monitoring methodology plan
Article 9
Changes to the monitoring methodology plan
The operator shall modify the monitoring methodology plan in any of the following situations:
(a) new emissions or activity levels occur due to new activities carried out or due to the use of new fuels or materials not yet contained in the monitoring methodology plan;
(b) the use of new measuring instrument types, new sampling or analysis methods or new data sources, or other factors, lead to higher accuracy in the determination of reported data;
(c) data resulting from the previously applied monitoring methodology has been found incorrect;
(d) the monitoring methodology plan is not, or no longer, in conformity with the requirements of this Regulation;
(e) it is necessary to implement recommendations for improvement of the monitoring methodology plan contained in a verification report.
The following modifications of the monitoring methodology plan of an installation shall be considered significant:
(a) modifications resulting from changes to the installation, in particular new sub-installations, changes to the boundaries of existing sub-installations or closures of sub-installations;
(b) a switch from a monitoring methodology laid down in sections 4.4 to 4.6 of Annex VII to another methodology laid down in those sections;
(c) the change of a default value or estimation method laid down in the monitoring methodology plan;
(d) changes requested by the competent authority to ensure conformity of the monitoring methodology plan with the requirements of this Regulation.
The operator shall keep records of all modifications of the monitoring methodology plan. In each record, the following shall be specified:
(a) a transparent description of the modification;
(b) a justification for the modification;
(c) the date of notification of the intended modification to the competent authority;
(d) the date of acknowledgement, by the competent authority, of the receipt of the notification referred to paragraph 3, where available, and the date of the approval or provision of information referred to in paragraph 4;
(e) the starting date of implementation of the modified monitoring methodology plan.
Article 10
Division into sub-installations
For attributing the installation's inputs, outputs and emissions to sub-installations, the operator shall carry out the following steps in the descending order:
(a) if any of the products as specified for product benchmarks listed in Annex I are produced in the installation, the operator shall attribute the related inputs, outputs and emissions to the product benchmark sub-installations, as applicable, applying rules set out in Annex VII;
(b) if inputs, outputs and emissions qualifying for heat benchmark or district heating sub-installations are relevant at the installation, and do not qualify for any of the sub-installations referred to in point (a), the operator shall attribute them to heat benchmark sub-installations or to district heating sub-installation, as applicable, applying the rules set out in Annex VII;
(c) if inputs, outputs and emissions qualifying for fuel benchmark sub-installations are relevant at the installation, and do not qualify for any of the sub-installations referred to in points (a) or (b), the operator shall attribute them to fuel benchmark sub-installations, as applicable, applying the rules set out in Annex VII;
(d) if inputs, outputs and emissions qualifying for process emissions sub-installations are relevant at the installation, and do not qualify for any of the sub-installations referred to in points (a), (b) or (c), the operator shall attribute them to process emissions sub-installations, as applicable, applying the rules set out in Annex VII.
In addition, the operator shall clearly distinguish, based on CN codes, and provide evidence to the satisfaction of the competent authority, whether or not the relevant process serves the production of goods listed in Annex I to Regulation (EU) 2023/956.
For distinguishing measurable heat attributable to the district heating sub-installation, the operator shall provide evidence to the satisfaction of the competent authority that the measurable heat is exported to district heating.
In addition, where an installation included in the EU ETS has produced and exported measurable heat to an installation or other entity not included in the EU ETS, the operator shall provide evidence on the quantity of measurable heat used to produce goods listed in Annex I to Regulation (EU) 2023/956. Unless the operator provides such evidence to the satisfaction of the competent authority, that heat shall be considered as used to produce goods listed in Annex I of that Regulation.
By carrying out the division in accordance with paragraphs 1 and 2, the operator shall ensure all of the following:
(a) each of the installation's physical products is attributed to one sub-installation without any omission or double counting;
(b) 100 % of the quantity of all the installation's source streams and emissions as listed in the installation's monitoring plan approved in accordance with Regulation (EU) No 601/2012 are attributed to sub-installations without any omission or double counting, unless they relate to any process non-eligible for free allocation such as the production of electricity in the installation, flaring other than safety flaring which is not covered by a product benchmark sub-installation, or the production of measurable heat exported to other EU ETS installations;
(c) 100 % of the quantity of net measurable heat eligible for free allocation produced within the installation, or imported or exported by the installation, as well as quantities transferred between sub-installations, are attributed to sub-installations without any omission or double counting;
(d) for all measurable heat produced, imported or exported by sub-installations, it is documented whether the measurable heat was produced within an EU ETS installation, imported from other heat producing processes, imported from non-EU ETS entities or imported from EU ETS installations covered by the EU ETS only for the purposes of Articles 14 and 15 of Directive 2003/87/EC;
(e) where electricity is produced within the installation, the quantities produced within product benchmark sub-installations are attributed to these sub-installations without any omission or double counting;
(g) where a sub-installation has outputs of carbon containing materials in the form of exported fuels, products, by-products, feedstocks for other sub-installations or installations, or waste gases, those outputs are attributed to sub-installations without any omission or double counting, if not covered by point (b);
(h) CO2 emissions occurring outside the system boundaries of a product benchmark sub-installation resulting from processes listed in points (a) to (f) of Article 2(10) are assigned to a process emissions sub-installation to the extent that it can be demonstrated to the satisfaction of the competent authority that these emissions are direct and immediate results of any of the processes listed in Article 2(10) and that they do not result from the subsequent oxidation of incompletely oxidised carbon in a gaseous state under standard conditions;
(i) where CO2 emissions from the combustion of waste gas not serving the purpose of the production of measurable heat, non-measurable heat or electricity occur outside the system boundaries of a product benchmark sub-installation as a result of the processes listed in points (a) to (f) of Article 2(10), 75 % of the quantity of the carbon content of the waste gas shall be considered as converted to CO2, and assigned to a process emissions sub-installation;
(j) for avoiding any double counting, products of a production process returned into the same production process are deducted from annual activity levels, in line with product definitions laid down in Annex I.
Article 11
Control system
The operator shall make the risk assessment pursuant to the first subparagraph available to the competent authority upon request. The operator shall also make it available for the purposes of verification.
Control activities referred to in paragraph 2 shall include, where applicable:
(a) quality assurance of the relevant measurement equipment;
(b) quality assurance of information technology systems ensuring that the relevant systems are designed, documented, tested, implemented, controlled and maintained in a way that ensures processing reliable, accurate and timely data in accordance with the risks identified in accordance with paragraph 1;
(c) segregation of duties in the data flow activities and control activities, as well as management of necessary competencies;
(d) internal reviews and validation of data;
(e) corrections and corrective action;
(f) control of out-sourced processes;
(g) keeping records and documentation including the management of document versions.
Where components of the measuring systems cannot be calibrated, the operator shall identify those in the monitoring methodology plan and propose alternative control activities.
When the equipment is found not to comply with required performance, the operator shall promptly take necessary corrective action.
Such review and validation of the data shall include:
(a) a check as to whether the data are complete;
(b) a comparison of the data that the operator has determined over the preceding baseline period and, in particular, consistency checks based on time series of greenhouse gas efficiency of each sub-installation;
(c) a comparison of data and values resulting from different operational data collection systems, in particular for production protocols, sales figures and stock figures of products to which product benchmarks relate;
(d) comparisons and completeness checks of data at installation and sub-installation level for ensuring that the requirements laid down in Article 10(5) are fulfilled.
For the purposes of paragraph 3(f), where the operator outsources one or more data flow activities or control activities referred to in paragraph 1, the operator shall proceed to all of the following:
(a) check the quality of the outsourced data flow activities and control activities in accordance with this Regulation;
(b) define appropriate requirements for the outputs of the outsourced processes as well as the methods used in those processes;
(c) check the quality of the outputs and methods referred to in point (b) of this paragraph;
(d) ensure that outsourced activities are carried out such that those are responsive to the inherent risks and control risks identified in the risk assessment referred to in paragraph 1.
When the operator finds the control system ineffective or not commensurate with the risks identified, it shall seek to improve the control system and update the monitoring methodology plan or the underlying written procedures for data flow activities, risk assessments and control activities, as appropriate.
Article 12
Data gaps
The operator shall take all necessary measures to achieve a prompt application of the approved monitoring methodology plan.
Article 13
Use of electronic templates
Member States may require operators and verifiers to use electronic templates or specific file formats for the submission of baseline data reports, monitoring methodology plans and verification reports as referred to in Article 4(2) and of new entrant data reports, monitoring methodology plans and verification reports as referred to in Article 5(2).
CHAPTER III
Allocation rules
Article 14
National implementation measures
The list referred to in paragraph 1 shall contain the following information for each incumbent installation applying for free allocation:
(a) an identification of the installation and its boundaries using the installation identification code in the Union Registry;
(b) activity information and information on eligibility for free allocation;
(c) an identification of each sub-installation of an installation;
(d) for each sub-installation, the annual activity level and annual emissions in each year of the relevant baseline period;
(da) the competent authority’s assessment on the reduction of free allocation of 20 % in accordance with Article 22a and Article 22b(1), where applicable;
(db) the fulfilment of the conditions related to the additional 30 % free allocation pursuant to Article 22b(3), where applicable;
(e) for each sub-installation, information on whether it belongs to a sector or subsector deemed to be at risk of carbon leakage as determined in accordance with Article 10b(5) of Directive 2003/87/EC, including the PRODCOM codes of the products produced, where applicable;
(ea) for each sub-installation, information on whether the goods produced are listed in Annex I to Regulation (EU) 2023/956, using the CN codes of these goods produced, where applicable;
(f) for each sub-installation, the data reported in accordance with Annex IV.
Article 15
Historical activity level for incumbent installations
The district heating-related historical activity level shall refer to the median of annual historical import from an installation covered by the EU ETS, other than EU ETS installations covered by the EU ETS only for the purposes of Articles 14 and 15 of Directive 2003/87/EC, production, or both, during the baseline period, of measurable heat which is exported for the purposes of district heating expressed as terajoule per year.
If a sub-installation has been operating for less than two calendar years during the relevant baseline period, the historical activity level shall be the activity level of the first calendar year of operation after the calendar year where the start of normal operation occurs of this sub-installation.
If a sub-installation has been operating for less than one calendar year after the start of normal operation during the baseline period, the historical activity level shall be determined when the activity level report for the first calendar year after the calendar year where the start of normal operation occurs is submitted.
Article 16
Allocation at installation level for incumbent installations
For the purpose of the calculation referred to in paragraph 1, Member States shall first determine the preliminary annual number of emission allowances allocated free of charge for each sub-installation separately, as follows:
(a) for product benchmark sub-installations, the preliminary annual number of emission allowances allocated free of charge for a given year shall correspond to the value of that product benchmark for the relevant allocation period, adopted in accordance with Article 10a(2) of Directive 2003/87/EC, multiplied by the relevant product-related historical activity level;
(b) for heat benchmark sub-installations, the preliminary annual number of emission allowances allocated free of charge for a given year shall correspond to the value of the heat benchmark for measurable heat for the relevant allocation period, adopted in accordance with Article 10a(2) of Directive 2003/87/EC, multiplied by the heat-related historical activity level for the consumption or export to non-ETS installations or other entities of measurable heat other than district heating;
(c) for district heating sub-installations, the preliminary annual number of emission allowances allocated free of charge for a given year shall correspond to the value of the heat benchmark for measurable heat for the relevant allocation period, adopted in accordance with Article 10a(2) of Directive 2003/87/EC, multiplied by the district heating-related historical activity level;
(d) for fuel benchmark sub-installations, the preliminary annual number of emission allowances allocated free of charge for a given year shall correspond to the value of the fuel benchmark for the relevant five-year period, adopted in accordance with Article 10a(2) of Directive 2003/87/EC, multiplied by the fuel-related historical activity level for the energy consumed;
(e) for process emissions sub-installations, the preliminary annual number of emission allowances allocated free of charge for a given year shall correspond to the process-related historical activity level multiplied by 0,97 for the years until 31 December 2027 and by 0,91 for the years 2028 and onwards.
If a sub-installation has been operating for less than one calendar year after the start of normal operation during the baseline period, the preliminary allocation for the relevant alloction period shall be determined after the historical activity level has been reported.
By way of derogation from the first subparagraph, for district heating sub-installations, the factor to be applied shall be 0,3.
From 2026, the preliminary annual number of emission allowances allocated free of charge for product benchmark sub-installations for the relevant allocation period shall be reduced by the annual historical emissions stemming from waste gases flared, with the exception of safety flaring, and not used for the purpose of the production of measurable heat, non-measurable heat or electricity.
Where an installation encompasses sub-installations producing pulp (short fibre kraft pulp, long fibre kraft pulp, thermo-mechanical pulp and mechanical pulp, sulphite pulp or other pulp not covered by a product benchmark) exporting measurable heat to other technically connected sub-installations, the preliminary amount of emission allowances allocated free of charge shall, without prejudice to the preliminary annual numbers of emission allowances allocated free of charge for other sub-installations of the installation concerned, only take into account the preliminary annual number of emission allowances allocated free of charge, to the extent that pulp products produced by this sub-installation are placed on the market and not processed into paper in the same or other technically connected installations.
By way of derogation from the first subparagraph, the final annual amount of emission allowances allocated free of charge shall be 100 % of the preliminary annual amount of emission allowances allocated free of charge to each installation whose sub-installations with greenhouse gas emission levels below the average of the 10 % most efficient sub-installations for the relevant benchmarks in the period referred to in Article 10a(2), third subparagraph, point (c), of Directive 2003/87/EC, cover more than 60 % of the preliminary annual amount of emission allowances allocated free of charge for this installation.
Article 17
Historical activity level for new entrants
Member States shall determine historical activity levels of each new entrant and its sub-installations as follows:
(a) the product-related historical activity level shall be, for each product for which a product benchmark has been determined as referred to in Annex I to this Regulation or pursuant to Article 24 of Directive 2003/87/EC, the activity level of the first calendar year after the calendar year where the start of normal operation occurs for the production of this product of the sub-installation concerned;
(b) the heat-related historical activity level shall be the activity level of the first calendar year after the calendar year where the start of normal operation occurs for the import from an installation covered by the EU ETS, other than installations covered by the EU ETS only for the purposes of Articles 14 and 15 of Directive 2003/87/EC, production, or both, of measurable heat consumed within the installation’s boundaries for the production of products, for the production of mechanical energy other than used for the production of electricity, for heating or cooling with the exception of the consumption for the production of electricity, or exported to an installation or other entity not covered by the EU ETS with the exception of the export for the production of electricity;
(c) the district heating-related historical activity level shall be the activity level of the first calendar year after the calendar year where the start of normal operation occurs for the import from an installation covered by the EU ETS other than installations covered by the EU ETS only for the purposes of Articles 14 and 15 of Directive 2003/87/EC, production, or both, of measurable heat which is exported for the purposes of district heating;
(d) the fuel-related historical activity level shall be the activity level of the first calendar year after the calendar year where the start of normal operation occurs for the consumption of energy used for the primary purpose of the production of non-measurable heat consumed for the production of products, for the production of mechanical energy other than used for the production of electricity, for heating or cooling with the exception of the consumption for the production of electricity, and including safety flaring, of the installation concerned;
(e) the process emissions-related activity level shall be the activity level of the first calendar year after the calendar year where the start of normal operation occurs for the production of process emissions of the process unit;
(f) by way of derogation from point (a), the product-related historical activity level for products to which the product benchmarks referred to in Annex III apply shall be the activity level of the first calendar year after the calendar year where the start of normal operation occurs for the production of this product of the sub-installation concerned, determined by applying the formulas set out in that Annex.
Article 18
Allocation to new entrants
For the purposes of the free allocation of emission allowances to new entrants, Member States shall calculate the preliminary annual number of emission allowances allocated free of charge as of the start of normal operation of the installation for each sub-installation separately, as follows:
(a) for each product benchmark sub-installation, heat benchmark sub-installation and fuel benchmark sub-installation, the preliminary annual number of emission allowances allocated free of charge for a given year shall correspond to the value of that benchmark for the relevant period multiplied by the relevant historical activity level;
(b) for each process emissions sub-installation, the preliminary annual number of emission allowances allocated free of charge for a given year shall correspond to the process-related historical activity level multiplied by 0,97 for the years until 31 December 2027 and by 0,91 for the years 2028 and onwards.
Article 16 (3), (4), (4a), (5) and (7) shall apply *mutatis mutandis* to the calculation of the preliminary annual number of emission allowances allocated free of charge to new entrants.
Emission allowances from the new entrants reserve created pursuant to Article 10a(7) of Directive 2003/87/EC shall be allocated by the Commission on a first come, first served basis as from receipt of that notification.
The Commission may reject the preliminary annual amount of emission allowances allocated free of charge to a specific installation.
Article 19
Allocation in respect of steam cracking
By way of derogation from Article 16(2), point (a), and Article 18(1), point (a), the preliminary annual number of emission allowances allocated free of charge for a product benchmark sub-installation and relating to the production of high value chemicals (HVC) shall correspond to the value of the steam cracking product benchmark for the relevant allocation period multiplied by the historical activity level determined in accordance with Annex III. To the result of that calculation, 1,78 tonnes of carbon dioxide per tonne of hydrogen times the median historical production of hydrogen from supplemental feed expressed in tonnes of hydrogen, 0,24 tonnes of carbon dioxide per tonne of ethylene times the median historical production of ethylene from supplemental feed expressed in tonnes of ethylene, and 0,16 tonnes of carbon dioxide per tonne of HVC times the median historical production of other high value chemicals than hydrogen and ethylene from supplemental feed expressed in tonnes of HVC, shall be added.
Article 20
Allocation in respect of vinyl chloride monomer
By way of derogation from Article 16(2), point (a), and Article 18(1), point (a), the preliminary annual number of emission allowances allocated free of charge for a sub-installation and relating to the production of vinyl chloride monomer (VCM) shall correspond to the value of the VCM benchmark for the relevant allocation period multiplied by the historical activity level for VCM production expressed as tonnes and multiplied by the quotient of the direct emissions for the production of VCM including emissions from net imported heat, calculated on the basis of the historical net heat import expressed as terajoules times the value of the heat benchmark for the relevant allocation period, over the baseline period referred to in Article 15(2) or of the first calendar year after the calendar year where the start of normal operation occurs referred to in Article 17, point (a), as appropriate, expressed as tonnes of carbon dioxide equivalent and the sum of those direct emissions and the hydrogen-related emissions for the production of VCM over the baseline period referred to in Article 15(2) or of the first calendar year after the calendar year where the start of normal operation occurs referred to in Article 17, point (a), as appropriate, expressed as tonnes of carbon dioxide equivalent calculated on the basis of the historical heat consumption stemming from hydrogen combustion expressed as terajoules times the value of the heat benchmark for the relevant allocation period.
Article 21
Heat flows between installations
Where a product-benchmark sub-installation encompasses measurable heat imported from an installation or other entity not included in the EU ETS or only included for the purposes of Articles 14 and 15 of Directive 2003/87/EC, the preliminary annual number of emission allowances allocated free of charge for the product benchmark sub-installation concerned determined pursuant to Article 16(2), point (a), or Article 18(1), point (a), as appropriate, shall be reduced by the amount of heat historically imported from an installation or other entity not included in the EU ETS or only included for the purposes of Articles 14 and 15 of that Directive in the year concerned multiplied by the value of the heat benchmark for measurable heat for the relevant allocation period.
Article 22a
Conditionality of free allocation on implementation of energy efficiency improvement measures
By way of derogation from the first subparagraph, no such reduction shall apply if the operator can demonstrate to the satisfaction of the competent authority that any of the following conditions apply:
(a) the pay-back time for the relevant investments of a recommendation exceeds three years;
(b) the investment costs for the implementation of a recommendation exceed either of the following thresholds: (i) 5 % of the installation’s annual turnover or 25 % of the installation’s profit, calculated on the basis of the corresponding annual averages over the three calendar years prior to the date on which the application for free allocation shall be submitted in accordance with Article 4; (ii) 50 % of the average annual economic equivalent of the amount reduced in accordance with the first subparagraph from the final annual amount of emission allowances allocated free of charge pursuant to Article 16(8) calculated based on the average price of allowances on the common auction platform in the relevant calendar year preceding the application referred to in Article 4(2);
(c) other measures have been implemented during or after the relevant baseline period which lead to greenhouse gas emission reductions within the installation equivalent to those recommended by the energy audit report or the certified energy management system under Article 8 of Directive 2012/27/EU;
(d) the recommendations would not lead to energy savings within the system boundaries of the industrial process carried out at the installation;
(e) the installation-specific operating conditions, including planned or unplanned periods of maintenance, based on which the pay-back period referred to under point (a) was determined, have not occurred yet;
(f) the recommendations of the audit report or of the certified energy management system were not issued during the first four years of the relevant baseline period.
Where relevant, the verifier shall check, as part of the verification of the annual activity level report in accordance with Article 7 of Commission Implementing Regulation (EU) 2018/2067 (4), whether the recommendations referred to in paragraph 1, first subparagraph, are implemented and whether the conditions set out in paragraph 1, second subparagraph, are met, where applicable.
The competent authority shall only consider the recommendations referred to in paragraph 1, first subparagraph, as implemented where all of the following conditions are met:
(a) the operator demonstrates the completion of the implementation of those recommendations;
(b) the verifier has confirmed the completion referred to in point (a) in accordance with paragraph 3.
Article 22b
Conditionality of free allocation on climate-neutrality plans
By way of derogation from the first subparagraph, no such reduction shall apply if the following conditions are fulfilled:
(a) the operator of an installation referred to in the first subparagraph has submitted a climate-neutrality plan for its activities covered by Directive 2003/87/EC to the competent authority by 30 May 2024, or as appropriate, pursuant to Article 4 of this Regulation as part of the application for free allocation;
(b) the achievement of the targets and milestones referred to in Article 10b(4), third subparagraph, point (b), of Directive 2003/87/EC has been confirmed by the verification carried out in accordance with Article 10b(4), fourth subparagraph, of that Directive;
(c) the competent authority has checked and deemed compliant the content and format of the climate-neutrality plan pursuant to paragraph 4.
For the purposes of Article 10b(4), second, third and fourth subparagraphs, of Directive 2003/87/EC, the preliminary annual number of emission allowances allocated free of charge to a district heating sub-installation, calculated in accordance with Article 16, paragraphs 2 and 3, of this Regulation, shall be increased by 30 % of the number calculated in accordance with paragraph 2 of Article 16, where the operator of a district heating sub-installation has submitted an application in accordance with Article 4 of this Regulation and where, in respect of the period until the end of 2025 or in respect of the period from 2026 to 2030, all of the following conditions are met:
(a) the installation or district heating company is located in a Member State that meets the criteria set out in Article 10b(4), second subparagraph, of Directive 2003/87/EC and as referred to in Annex VIII;
(b) the installation or district heating company invested a volume at least equivalent to the economic value of the additional number of free allowances for the period from 2026 to 2030, in accordance with the intermediate targets and milestones as set out in the climate-neutrality plan to measure, by 31 December 2025 and by 31 December of each fifth year thereafter, progress made towards reaching climate-neutrality;
(c) the investment referred to under point (b) leads to significant emission reductions before 2030;
(d) the installation or district heating company submits a climate neutrality plan by 30 May 2024 pursuant to Article 4(1) or as appropriate, for its activities covered by Directive 2003/87/EC;
(e) the achievement of the targets and milestones referred to in Article 10b(4), third subparagraph, point (b), of Directive 2003/87/EC is confirmed by the verification carried out in accordance with Article 10b(4), fourth subparagraph, of that Directive;
(f) the competent authority has checked and deemed compliant the content and format of the climate-neutrality plan pursuant to paragraph 4.
For the purposes of point (b), the economic value of the additional 30 % allowances shall be determined by multiplying the additional number of free allowances over the period from 2026 to 2030 by the average price of allowances on the common auction platform in the calendar year preceding the application referred to in Article 4(2) and multiplied by the factor determined in accordance with Article 14(6), as applicable to the installation.
For the purposes of point (c), emission reductions are significant where the specific emissions, expressed as tonnes of CO2 per terajoules of district heating supplied, of the installation or district heating company are reduced below the average specific emissions during the relevant baseline period with an emission reduction rate equivalent to the application of the linear reduction factors referred to in Article 9 of Directive 2003/87/EC, starting from the mid-point of the relevant baseline period.
Article 22c
Non-cumulative nature of the 20 % reduction in Articles 22a and 22b
The 20 % reduction referred to in Articles 22a and 22b shall be applied to an installation only once in the relevant allocation period.
Article 22d
Update of the climate-neutrality plan
Article 22e
Publication of the climate-neutrality plan
Article 23
Changes to the allocation of an installation
The competent authority shall submit the relevant information pursuant to the first subparagraph using an electronic system operated by the Commission.
Article 24
Renunciation of free allocation of allowances
The revised allocation shall concern the calendar years following the year of the application referred to in the paragraph 1.
Article 25
Mergers and splits
The operators of new installations resulting from a merger or a split shall provide the following documentation to the competent authority, as appropriate:
(a) names, addresses and contact data of the operators of the previously separate or single installations;
(b) names, addresses and contact data of the operators of the newly formed installation;
(c) a detailed description of the boundaries of the installation parts concerned if applicable;
(d) the permit identifier and the identification code of the newly formed installation(s) in the Union Registry.
Based on the data received pursuant to paragraph 2, the competent authority shall determine the historical activity levels in the baseline period for each sub-installation of each newly formed installation after the merger or split. In the case that a sub-installation is split into two or more sub-installations, the historical activity level and allocation to the sub-installations after the split shall be based on the historical activity levels in the baseline period of the respective technical units of the installation before the split.
Article 26
Cessation of operations of an installation
An installation is deemed to have ceased operations where any of the following conditions is met:
(a) the relevant greenhouse gas emissions permit has expired or been withdrawn, including if the installation no longer meets the thresholds of the activities listed in Annex I to Directive 2003/87/EC;
(b) the installation is no longer operating and it is technically impossible to resume operation.
CHAPTER IV
Final provisions
Article 27
Repeal of Decision 2011/278/EU
Decision 2011/278/EU is repealed with effect from 1 January 2021. However, it shall continue to apply to allocations relating to the period prior to 1 January 2021.
Article 28
Entry into force
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.
ANNEX I
Benchmarks
1. Definition of product benchmarks and system boundaries without collection of data on electricity consumption
| Product benchmark | Definition of products covered | Definition of processes and emissions covered (system boundaries) | Starting point for determination of annual reduction rate for benchmark value update (allowances/t) |
|---|---|---|---|
| Coke | Coke-oven coke (obtained from the carbonisation of coking coal, at high temperature) or gas-works coke (by-product of gas-works plants) expressed in tonnes of dry coke, determined at the discharge of the coke oven or gas-works plant. Lignite coke is not covered by this benchmark. Coking in refineries is not included but covered by the CWT methodology for refineries. | All processes directly or indirectly linked to the process units coke ovens, H2S/NH3 incineration, coal preheating (defreezing), coke gas extractor, desulphurisation unit, distillation unit, steam generation plant, pressure control in batteries, biological water treatment, miscellaneous heating of by-products and hydrogen separator are included. Coke oven gas cleaning is included. | 0,286 |
| Agglomerated iron ore | Agglomerated iron-bearing product containing iron ore fines, fluxes and possibly iron-containing recycling materials with the chemical and physical properties such as the level of basicity, mechanical strength and permeability required to deliver iron and necessary flux materials into iron ore reduction processes. Expressed in tonnes of agglomerated ore as leaving the agglomerated iron ore production plant. Agglomerated iron ore returned to the production process is not to be considered as part of the product. | All processes directly or indirectly linked to the production of agglomerated iron ore are included. | 0,171 |
| Hot metal | Iron produced from iron ores for primary steelmaking including (a) liquid iron saturated with carbon for further processing, considered as product of blast furnaces, and expressed in tonnes of liquid iron at the exit point of the blast furnace, excluding liquid iron produced from sponge iron under (b); (b) sponge iron at the exit point of a direct reduced iron reactor, and expressed in tonnes of sponge iron at the exit point of the direct reduced iron reactor. Similar products such as ferroalloys are not covered by this product benchmark. Residual material and by-products are not to be considered as part of the product. | All processes directly or indirectly linked to the process units blast furnace, hot metal treatment units, blast furnace blowers, blast furnace hot stoves, direct reduced iron reactor, electric arc furnace and electric smelting furnace for sponge iron, basic oxygen furnace, secondary metallurgy units, vacuum ladles, casting units (including cutting), slag treatment unit, burden preparation, BF and other gas treatment units, dedusting units, scrap pre-heating, coal drying for PCI, vessels preheating stands, casting ingots preheating stands, compressed air production, dust treatment unit (briquetting), sludge treatment unit (briquetting), steam injection in BF unit, steam generation plant, converter BOF gas cooling and miscellaneous are included. | 1,328 |
| Pre-bake anode | Anodes for aluminium electrolysis use consisting of petrol coke, pitch and normally recycled anodes, which are formed to shape specifically intended for a particular smelter and baked in anode baking ovens to a temperature of around 1 150 °C. Söderberg anodes are not covered by this product benchmark. | All processes directly or indirectly linked to the production of pre-bake anodes are included. | 0,324 |
| Aluminium | Unwrought non-alloy liquid aluminium from electrolysis. Expressed in tonnes measured between the electrolysis section and the holding furnace of the cast house, before alloys and secondary aluminium are added. | All processes directly or indirectly linked to the production step electrolysis are included. Emissions resulting from holding furnaces and casting, and emissions related to anode productions are excluded. | 1,514 |
| Grey cement clinker | Grey cement clinker or alternative hydraulic binders for the production of cement, as total amount of hydraulic binder produced. Products produced within the system boundaries of other product benchmarks or as by-product or waste of other production processes are not covered by this benchmark, including fly ash, blast-furnace slag, steel slag, silica fume, paper sludge. | All processes directly or indirectly linked to the production of grey cement clinker or alternative hydraulic binders are included. | 0,766 |
| White cement clinker | White cement clinker or alternative hydraulic binders for use as main binding component in the formulation of materials such as joint filers, ceramic tile adhesives, insulation, and anchorage mortars, industrial floor mortars, ready mixed plaster, repair mortars, and water-tight coatings with maximum average contents of 0,4 mass-% Fe2O3, 0,003 mass-% Cr2O3 and 0,03 mass-% Mn2O3. Expressed in tonnes of hydraulic binders (as 100 % clinker/alternative hydraulic binders). Products produced within the system boundaries of other product benchmarks or as by-product or waste of other production processes are not covered by this benchmark, including fly ash, blast-furnace slag, steel slag, silica fume, paper sludge. | All processes directly or indirectly linked to the production of white cement clinker or alternative hydraulic binders are included. | 0,987 |
| Lime | Quicklime: calcium oxide (CaO) produced by the decarbonation of limestone (CaCO3). Expressed in tonnes of ‘standard pure’ defined as lime with a free CaO content of 94,5 %. Lime produced and consumed in the same installation for purification processes is not covered by this product benchmark. The internal lime production of the pulp sector is already covered by the respective pulp benchmarks and is therefore not eligible for additional allocation based on the lime benchmark. | All processes directly or indirectly linked to the production of lime are included. | 0,954 |
| Dolime | Dolime or calcined dolomite as mixture of calcium and magnesium oxides produced by the decarbonation of dolomite (CaCO3 · MgCO3) with a residual CO2 exceeding 0,25 %, a free MgO content between 25 % and 40 % and a bulk density of the commercial product below 3,05 g/cm3. Dolime shall be expressed as ‘standard pure dolime’ quality with a free CaO content of 57,4 % and a free MgO content of 38,0 %. | All processes directly or indirectly linked to the production of dolime are included, in particular fuel preparation, calcination/sintering and flue gas treatment. | 1,072 |
| Sintered dolime | Mixture of calcium and magnesium oxides used solely for the production of refractory bricks and other refractory products with a minimum bulk density of 3,05 g/cm3. Expressed in tonnes of saleable sintered dolime. | All processes directly or indirectly linked to the production of sintered dolime are included. | 1,449 |
| Float glass | Float/ground/polish glass. (as tons of glass exiting the lehr). | All processes directly or indirectly linked to the production steps melter, refiner, working end, bath and lehr are included. Finishing workshops that can be physically separated from the upstream process, such as offline coating, laminating and toughening are excluded. | 0,453 |
| Bottles and jars of colourless glass | Bottles of colourless glass of a nominal capacity < 2,5 litres, produced in a furnace where there is no deliberate addition of colour for beverages and foodstuffs (excluding bottles covered with leather or composition leather; infant's feeding bottles) except extra-white flint products with an iron oxide content expressed as percent Fe2O3 by weight lower than 0,03 % and colour co-ordinates of L in the range 100 to 87, of a in the range 0 to – 5 and of b in the range 0 to 3 (using the CIELAB advocated by the Commission Internationale d'éclairage) expressed as tonnes of packed product. | All processes directly or indirectly linked to the production steps materials handling, melting, forming, downstream processing, packaging and ancillary processes are included. | 0,382 |
| Bottles and jars of coloured glass | Bottles of coloured glass of a nominal capacity < 2,5 litres, for beverages and foodstuffs (excluding bottles covered with leather or composition leather; infant's feeding bottles), not meeting the definition of the product benchmark for bottles and jars of colourless glass, expressed as tonnes of packed product. | All processes directly or indirectly linked to the production steps materials handling, melting, forming, downstream processing, packaging and ancillary processes are included. | 0,306 |
| Continuous filament glass fibre products | Melted glass for the production of continuous filament glass fibre products namely chopped strands, rovings, yarns and staple glass fibre and mats, expressed as tonnes of melted glass exiting the forehearth calculated from the quantity of raw material input into the furnace after subtraction of the volatile gaseous emissions. Mineral wool products for thermal, acoustic and fire insulation are not covered by this benchmark. | All processes directly or indirectly linked to the production processes glass melting in the furnaces and glass refining in the forehearths are included, in particular direct CO2 emissions associated to these process CO2 emissions resulting from the decarbonatisation of the glass mineral raw materials during the melting process. Downstream processes to convert the fibres into sellable products are not included in this product benchmark. Supporting processes such as material handling are ragarded as utilities and are outside the system boundaries. | 0,406 |
| Facing bricks | Facing bricks with a density > 1 000 kg/m3 used for masonry based on EN 771-1, excluding pavers, clinker bricks and blue braised facing bricks. | All processes directly or indirectly linked to the production processes raw material preparation, component mixing, forming and shaping of ware, drying of ware, firing of ware, product finishing and flue gas cleaning are included. | 0,139 |
| Pavers | Clay bricks of any color used for flooring according to EN 1344. Expressed in tonnes of paves as net saleable product. | All processes directly or indirectly linked to the production processes raw material preparation, component mixing, forming and shaping of ware, drying of ware, firing of ware, product finishing and flue gas cleaning are included. | 0,192 |
| Roof tiles | Clay roofing tiles as defined in EN 1304:2005 excluding blue braised roof tiles and accessories. Expressed in tonnes of saleable roof tiles. | All processes directly or indirectly linked to the production processes raw material preparation, component mixing, forming and shaping of ware, drying of ware, firing of ware, product finishing and flue gas cleaning are included. | 0,144 |
| Spray dried powder | Spray-dried powder for the production of dry-pressed wall and floor tiles. Expressed in tonnes of powder produced. | All processes directly or indirectly linked to the production of spray-dried powder are included. | 0,076 |
| Plaster | Plasters consisting of calcined gypsum or calcium sulphate (including for use in building, for use in dressing woven fabrics or surfacing paper, for use in dentistry, for use in land remediation), in tonnes of stucco (saleable production). Alpha plaster, plaster that is further processed to plasterboard and the production of the intermediate product dried secondary gypsum are not covered by this product benchmark. | All processes directly or indirectly linked to the production steps milling, drying and calcining are included. | 0,048 |
| Dried secondary gypsum | Dried secondary gypsum (synthetic gypsum produced as a recycled by-product of the power industry or recycled material from construction waste and demolition) expressed as tonnes of product. | All processes directly or indirectly linked to the drying of secondary gypsum are included | 0,017 |
| Short fibre kraft pulp | Short fibre kraft pulp is a wood pulp produced by the sulphate chemical process using cooking liquor, characterised by fibre lengths of 1 – 1,5 mm, which is mainly used for products which require specific smoothness and bulk, as tissue and printing paper, expressed as net saleable production in air dried tonnes, measured at the end of the production process, Air dry metric tonne of pulp meaning dry solids content of 90 %. | All processes which are part of the pulp production process (in particular the pulp mill, recovery boiler, pulp drying section and lime kiln and connected energy conversion units (boiler/CHP)) are included. Other activities on site that are not part of this process such as sawmilling activities, woodworking activities, production of chemicals for sale, waste treatment (treating waste onsite instead of offsite (drying, pelletising, incinerating, landfilling), PCC (precipitated calcium carbonate) production, treatment of odorous gases, and district heating are not included. | 0,12 |
| Long fibre kraft pulp | Long fibre kraft pulp is a wood pulp produced by the sulphate chemical process using cooking liquor, characterised by fibre lengths of 3 – 3,5 mm, including bleached and unbleached pulp, expressed as net saleable production in air dried tonnes, measured at the end of the production process. Air dry metric tonne of pulp meaning dry solids content of 90 %. | All processes which are part of the pulp production process (in particular the pulp mill, recovery boiler, pulp drying section and lime kiln and connected energy conversion units (boiler/CHP)) are included. Other activities on site that are not part of this process such as sawmilling activities, woodworking activities, production of chemicals for sale, waste treatment (treating waste onsite instead of offsite (drying, pelletising, incinerating, landfilling), PCC (precipitated calcium carbonate) production, treatment of odorous gases, and district heating are not included. | 0,06 |
| Sulphite pulp, thermo-mechanical and mechanical pulp | Sulphite pulp produced by a specific pulp making process, e.g. pulp produced by cooking wood chips in a pressure vessel in the presence of bisulphite liquor expressed as net saleable production in air dried metric tonnes measured at the end of the production process. Air dry metric tonne of pulp meaning dry solids contents of 90 %. Sulphite pulp can be either bleached or unbleached. Mechanical pulp grades: TMP (thermomechanical pulp) and groundwood as net saleable production in air dried metric tonnes measured at the end of the production process. Air dry metric tonne of pulp meaning dry solids contents of 90 %. Mechanical pulp can be either bleached or unbleached. Not covered by this group are the smaller subgroups of semichemical pulp CTMP – chemi-thermomechanical pulp and dissolving pulp. | All processes which are part of the pulp production process (in particular the pulp mill, recovery boiler, pulp drying section and lime kiln and connected energy conversion units (boiler/CHP)) are included. Other activities on site that are not part of this process such as sawmilling activities, woodworking activities, production of chemicals for sale, waste treatment (treating waste onsite instead of offsite (drying, pelletising, incinerating, landfilling), PCC (precipitated calcium carbonate) production, treatment of odorous gases, and district heating are not included. | 0,02 |
| Recovered paper pulp | Pulps of fibres derived from recovered (waste and scrap) paper or paperboard or of other fibrous cellulosic material expressed in tonnes of saleable production in air dried metric tonnes measured at the end of the production process. Air dry metric tonne of pulp meaning dry solids contents of 90 %. In case of pulp production, the production is defined as the total pulp produced including both pulp for internal delivery to a paper mill and market pulp. | All processes which are part of the production of pulp from recovered paper and connected energy conversion units (boiler/CHP)) are included. Other activities on site that are not part of this process such as sawmilling activities, woodworking activities, production of chemicals for sale, waste treatment (treating waste onsite instead of offsite (drying, pelletising, incinerating, landfilling), PCC (precipitated calcium carbonate) production, treatment of odorous gases, and district heating are not included. | 0,039 |
| Newsprint | Specific paper grade (in rolls or sheets) expressed as net saleable production in air dried tonnes, defined as paper with 6 % moisture content. | All processes which are part of the paper production process (in particular paper or board machine and connected energy conversion units (boiler/CHP) and direct process fuel use) are included. Other activities on site that are not part of this process such as sawmilling activities, woodworking activities, production of chemicals for sale, waste treatment (treating waste onsite instead of offsite (drying, pelletising, incinerating, landfilling), PCC (precipitated calcium carbonate) production, treatment of odorous gases, and district heating are not included. | 0,298 |
| Uncoated fine paper | Uncoated fine paper, covering both uncoated mechanical and uncoated woodfree expressed as net saleable production in air dried tonnes, defined as paper with 6 % moisture content. 1. Uncoated woodfree papers covers papers suitable for printing or other graphic purposes made from a variety of mainly virgin fibre furnishes, with variable levels of mineral filler and a range of finishing processes. 2. Uncoated mechanical papers cover the specific paper grades made from mechanical pulp, used for packaging or graphic purposes/magazines. | All processes which are part of the paper production process (in particular paper or board machine and connected energy conversion units (boiler/CHP) and direct process fuel use) are included. Other activities on site that are not part of this process such as sawmilling activities, woodworking activities, production of chemicals for sale, waste treatment (treating waste onsite instead of offsite (drying, pelletising, incinerating, landfilling), PCC (precipitated calcium carbonate) production, treatment of odorous gases, and district heating are not included. | 0,318 |
| Coated fine paper | Coated fine paper covering both coated mechanical and coated woodfree papers expressed as net saleable production in air dried tonnes, defined as paper with 6 % moisture content. | All processes which are part of the paper production process (in particular paper or board machine and connected energy conversion units (boiler/CHP) and direct process fuel use) are included. Other activities on site that are not part of this process such as sawmilling activities, woodworking activities, production of chemicals for sale, waste treatment (treating waste onsite instead of offsite (drying, pelletising, incinerating, landfilling), PCC (precipitated calcium carbonate) production, treatment of odorous gases, and district heating are not included. | 0,318 |
| Tissue | Tissue papers, covering a wide range of tissue and other hygienic papers for use in households or commercial and industrial premises such as toilet paper and facial tissues, kitchen towels, hand towels and industrial wipes, the manufacture of baby nappies, sanitary towels, etc. TAD – Through Air Dried Tissue is not part of this group. Expressed as tonnes of net saleable production of parent reel in air dried tonnes, defined as paper with 6 % moisture content. | All processes which are part of the paper production process (in particular paper or board machine and connected energy conversion units (boiler/CHP) and direct process fuel use) are included. Other activities on site that are not part of this process such as sawmilling activities, woodworking activities, production of chemicals for sale, waste treatment (treating waste onsite instead of offsite (drying, pelletising, incinerating, landfilling), PCC (precipitated calcium carbonate) production, treatment of odorous gases, and district heating are not included. The conversion of parent reel to finished products is not part of this product benchmark. | 0,334 |
| Testliner and fluting | Testliner and fluting expressed as net saleable production in air dried tonnes defined as paper with 6 % moisture content. 1. Testliner covers types of paperboard that meet specific tests adopted by the packaging industry to qualify for use as the outer facing layer for corrugated board, from which shipping containers are made. 2. Fluting refers to the centre segment of corrugated shipping containers, being faced with linerboard (testliner/kraftliner) on both sides. Fluting covers mainly papers made from recycled fibre but this group also holds paperboard that is made from chemical and semi-chemical pulp. Kraftliner is not inluded in this product benchmark. | All processes which are part of the paper production process (in particular paper or board machine and connected energy conversion units (boiler/CHP) and direct process fuel use) are included. Other activities on site that are not part of this process such as sawmilling activities, woodworking activities, production of chemicals for sale, waste treatment (treating waste onsite instead of offsite (drying, pelletising, incinerating, landfilling), PCC (precipitated calcium carbonate) production, treatment of odorous gases, and district heating are not included. | 0,248 |
| Uncoated carton board | Various uncoated products (expressed as net saleable production in air dried tonnes, defined as paper with 6 % moisture content) which may be single or multiply. Uncoated carton board is mainly used for packaging applications which the main needed characteristic is strength and stiffness, and for which the commercial aspects as information carrier are of a second order of importance. Carton board is made from virgin and/or recovered fibres, has good folding properties, stiffness and scoring ability. It is mainly used in cartons for consumer products such as frozen food, cosmetics and for liquid containers; also known as solid board, folding box board, boxboard or carrier board or core board. | All processes which are part of the paper production process (in particular paper or board machine and connected energy conversion units (boiler/CHP) and direct process fuel use) are included. Other activities on site that are not part of this process such as sawmilling activities, woodworking activities, production of chemicals for sale, waste treatment (treating waste onsite instead of offsite (drying, pelletising, incinerating, landfilling), PCC (precipitated calcium carbonate) production, treatment of odorous gases, and district heating are not included. | 0,237 |
| Coated carton board | This benchmark covers a wide range of coated products (expressed as net saleable production in air dried tonnes, defined as paper with 6 % moisture content) which may be single or multiply. Coated carton board is mainly used for commercial applications that need to bring commercial information printed on the packaging to the shelf in the store in applications such as food, pharma, cosmetics, and other. Carton board is made from virgin and/or recovered fibres, and has good folding properties, stiffness and scoring ability. It is mainly used in cartons for consumer products such as frozen food, cosmetics and for liquid containers; also known as solid board, folding box board, boxboard or carrier board or core board. | All processes which are part of the paper production process (in particular paper or board machine and connected energy conversion units (boiler/CHP) and direct process fuel use) are included. Other activities on site that are not part of this process such as sawmilling activities, woodworking activities, production of chemicals for sale, waste treatment (treating waste onsite instead of offsite (drying, pelletising, incinerating, landfilling), PCC (precipitated calcium carbonate) production, treatment of odorous gases, and district heating are not included. | 0,273 |
| Nitric acid | Nitric acid (HNO3), to be recorded in tonnes HNO3 (100 % purity). | All processes directly or indirectly linked to the production of the benchmarked product as well as the N2O destruction process are included except the production of ammonia. | 0,302 |
| Adipic acid | Adipic acid to be recorded in tonnes of dry purified adipic acid stored in silos or packed in (big)bags. Salts and esters of adipic acid are not covered by this product benchmark. | All processes directly or indirectly linked to the production of the benchmarked product as well as the N2O destruction process are included. | 2,79 |
| Vinyl chloride monomer (VCM) | Vinyl chloride (chloroethylene). Expressed in tonnes of vinyl chloride (saleable product, 100 % purity). | All processes directly or indirectly linked to the production steps direct chlorination, oxychlorination and EDC cracking to VCM are included. Direct chlorination refers to chlorination of ethylene. Oxychlorination refers to chlorination of ethylene with hydrogen chloride (HCl) and oxygen. The incineration of chlorinated hydrocarbons contained in the vent gases of EDC/VCM production is included in the benchmark. The production of oxygen and compressed air used as raw materials in VCM manufacture are excluded from the benchmark. | 0,204 |
| Phenol/acetone | Sum of phenol, acetone and the by-product alpha-methyl styrene as total production, expressed in tonnes of saleable product at 100 % purity. | All processes directly or indirectly linked to the production of phenol and acetone are included, in particular air compression, hydroperoxidation, cumene recovery from spent air, concentration & cleavage, production fractionation & purification, tar cracking, acetophenone recovery & purification, AMS recovery for export, AMS hydrogenation for ISB recycle, initial waste water purification (1st waste water stripper), cooling water generation (e.g., cooling towers), cooling water utilisation (circulation pumps),flare & incinerators (even if physically located OSB) as well as any support fuel consumption. | 0,266 |
| S-PVC | Polyvinyl chloride; not mixed with any other substances consisting of PVC particles with a mean size between 50 and 200 μm. Expressed in tonnes of S-PVC (saleable product, 100 % purity). | All processes directly or indirectly linked to the production of S-PVC are included except the production of VCM. | 0,085 |
| E-PVC | Polyvinyl chloride; not mixed with any other substances consisting of PVC particles with a mean size between 0,1 and 3 μm. Expressed in tonnes of E-PVC (saleable product, 100 % purity). | All processes directly or indirectly linked to the production of E-PVC are included except the production of VCM. | 0,238 |
| Soda ash | Disodium carbonate, expressed in tonnes of soda ash as total gross production except dense soda ash obtained as by-product in a caprolactam production network. | All processes directly or indirectly linked to the process units brine purification, limestone calcination and milk of lime production, carbon dioxide reactors, absorption of ammonia, precipitation of NaHCO3, filtration or separation of NaHCO3 crystals from mother liquor, decomposition of NaHCO3 to Na2CO3, recovery of ammonia and densification or production of dense soda ash are included. | 0,843 |
If no other reference is given, all product benchmarks refer to 1 ton of product produced expressed as saleable (net) production and to 100 % purity of the substance concerned.
All definitions of processes and emissions covered (system boundaries) include flares where they occur.
2. Definition of product benchmarks and system boundaries with collection of data on electricity consumption
| Product benchmark | Definition of products covered | Definition of processes and emissions covered (system boundaries) | Starting point for determination of annual reduction rate for benchmark value update (allowances/t) |
|---|---|---|---|
| Refinery products | Mix of refinery products with more than 40 % light products (motor spirit (gasoline) including aviation spirit, spirit type (gasoline type) jet fuel, other light petroleum oils/light preparations, kerosene including kerosene type jet fuel, gas oils) expressed as CO2 weighted tonne (CWT). Refineries with other product mixes are not covered by this product benchmark. | All processes of a refinery matching the definition of one of the CWT process units as well as ancillary non-process facilities operating inside the refinery fence-line such as tankage, blending, effluent treatment, etc. are included. Lube oils and bitumen processing units located in mainstream refineries are also included in the refinery CWT and emissions envelope. Process units pertaining to other sectors, such as petrochemicals, are sometimes physically integrated with the refinery. Such process units and their emissions are excluded from the CWT approach. For the purpose of data collection, the total electricity consumption within the system boundaries shall be considered. | 0,0295 |
| EAF carbon steel | Steel containing less than 8 % metallic alloying elements and tramp elements to such levels limiting the use to those applications where no high surface quality and processability is required and if none of the criteria for the content of the metal alloying elements and the steel quality for high alloy steel are met. Expressed in tonnes of crude secondary steel ex-caster. Steel produced from sponge iron already covered under the hot metal benchmark is not covered by this benchmark. | All processes directly or indirectly linked to the process units electric arc furnace, secondary metallurgy, casting and cutting, post-combustion unit, dedusting unit, vessels heating stands, casting ingots preheating stands, scrap drying and scrap preheating are included. Processes downstream of casting are not included. For the purpose of data collection, the total electricity consumption within the system boundaries shall be considered. | 0,283 |
| EAF high alloy steel | Steel containing 8 % or more metallic alloying elements or where high surface quality and processability is required. Expressed in tonnes of crude secondary steel ex-caster. Steel produced from sponge iron already covered under the hot metal benchmark is not covered by this benchmark. | All processes directly or indirectly linked to the process units electric arc furnace, secondary metallurgy, casting and cutting, post-combustion unit, dedusting unit, vessels heating stands, casting ingots preheating stands, slow cooling pit, scrap drying and scrap preheating are included. The process units FeCr converter and cryogenic storage of industrial gases are not included. Processes downstream of casting are not included. For the purpose of data collection, the total electricity consumption within the system boundaries shall be considered. | 0,352 |
| Iron casting | Casted iron expressed as tonnes of liquid iron ready alloyed, skinned, and ready for casting. | All processes directly or indirectly linked to the process steps melting shop, casting shop, core shop and finishing are included. The process step ‘finishing’ refers to operations like fettling but not general matching, heat treatment or painting which are not covered by the system boundaries of this product benchmark. For the purpose of data collection, only the electricity consumption of melting processes within the system boundaries shall be considered. | 0,325 |
| Mineral wool | Mineral wool insulation products for thermal, acoustic and fire applications manufactured using glass, rock or slag. Expressed in tonnes of mineral wool (saleable product). | All processes directly or indirectly linked to the production steps melting, fiberizing and injection of binders, curing and drying and forming are included. For the purpose of data collection, the total electricity consumption within the system boundaries shall be considered. | 0,682 |
| Plasterboard | The benchmark covers boards, sheets, panels, tiles, similar articles of plaster/compositions based on plaster, (not) faced/reinforced with paper/paperboard only, excluding articles agglomerated with plaster, ornamented (in tonnes of stucco, saleable product). High-density gypsum fibreboards are not covered by this product benchmark. | All processes directly or indirectly linked to the production steps milling, drying, calcining and board drying are included. For the purpose of data collection, only the electricity consumption of heat pumps applied in the drying stage shall be considered. The production of the intermediary product dried secondary gypsum is not covered by this benchmark. | 0,131 |
| Carbon black | Furnace carbon black, expressed in tonnes of furnace carbon black, saleable product, purity above 96 %. Gas- and lamp black products are not covered by this benchmark. | All processes directly or indirectly linked to the production of furnace carbon black as well as finishing, packaging and flaring are included. For the purpose of data collection, the total electricity consumption within the system boundaries shall be considered. However, only electricity driven devices like pumps and compressors with a rated power of 2 MW or more should be considered. | 1,954 |
| Ammonia | Ammonia (NH3), expressed in tonnes produced, 100 % purity. Ammonia produced from hydrogen produced by chloralkali electrolysis or by chlorate production is not covered by this benchmark. | All processes directly or indirectly linked to the production of the ammonia and the intermediate product hydrogen are included. Ammonia production from other intermediate products is not covered. For the purpose of data collection, the total electricity consumption within the system boundaries shall be considered. | 1,619 |
| Steam cracking | Mix of high value chemicals (HVC) expressed in tonnes as total mass of acetylene, ethylene, propylene, butadiene, benzene and hydrogen exported out of the cracker perimeter excluding HVC from supplemental feed (hydrogen, ethylene, other HVC) with an ethylene content in the total product mix of at least 30 mass-percent and a content of HVC, fuel gas, butenes and liquid hydrocarbons of together at least 50 mass-percent of the total product mix. | All processes directly or indirectly linked to the production of high value chemicals as purified product or intermediate product with concentrated content of the respective HVC in the lowest tradable form (raw C4, unhydrogenated pygas) are included except C4 extraction (butadiene plant), C4-hydrogenation, hydrotreating of pyrolysis gasoline & aromatics extraction and logistics/storage for daily operation. For the purpose of data collection, the total electricity consumption within the system boundaries shall be considered. | 0,702 |
| Aromatics | Mix of aromatics expressed as CO2 weighted tonne (CWT). | All processes directly or indirectly linked to the aromatics sub-units pygas hydrotreater, benzene/toluene/xylene (BTX) extraction, TDP, HDA, xylene isomerisation, P-xylene units, cumene production and Cyclo-hexane production are included. For the purpose of data collection, the total electricity consumption within the system boundaries shall be considered. | 0,0295 |
| Styrene | Styrene monomer (vinyl benzene, CAS number: 100-42-5). Expressed in tonnes of styrene (saleable product). | All processes directly or indirectly linked to the production of styrene as well as the intermediate product ethylbenzene (with the amount used as feed for the styrene production) are included. For installations producing both propylene oxide and styrene monomer, the facilities exclusively dedicated to propylene and propylene oxide unit operations are excluded from this benchmark, and shared facilities are covered in proportion to the production in tonnes of the styrene monomer production. For the purpose of data collection, the total electricity consumption within the system boundaries shall be considered. | 0,527 |
| Hydrogen | Pure hydrogen and mixtures of hydrogen and carbon monoxide having a hydrogen content ≥ 60 % volume fraction of total contained hydrogen plus carbon monoxide based on the aggregation of all hydrogen and carbon-monoxide-containing product streams exported from the sub-installation concerned expressed as tonnes of 100 % pure hydrogen, as net saleable product. Hydrogen used for ammonia production is not covered by this benchmark but under the ammonia benchmark. Hydrogen produced by chloralkali electrolysis or by chlorate production or released from chemical conversion from hydrogen carriers used to transport hydrogen from production facilities is not covered by this benchmark. | All relevant process elements directly or indirectly linked to the production of hydrogen and the separation of hydrogen and car bon monoxide are included. These elements lie between: (a) the point(s) of entry of feedstock(s) and, if separate, fuel(s); (b) the points of exit of all product streams containing hydrogen and/or carbon monoxide; (c) the point(s) of entry or exit of import or export heat. For the purpose of data collection, the total electricity consumption within the system boundaries shall be considered. | 8,85 |
| Synthesis gas (syngas) | Mixtures of hydrogen and carbon monoxide having a hydrogen content < 60 % volume fraction of total contained hydrogen plus carbon monoxide based on the aggregation of all hydrogen and carbon-monoxide-containing product streams exported from the sub-installation concerned. Expressed in tonnes of synthesis gas referred to 47 volume-percent hydrogen as net saleable product. | All relevant process elements directly or indirectly linked to the production of syngas and the separation of hydrogen and carbon monoxide are included. These elements lie between: (a) the point(s) of entry of feedstock(s) and, if separate, fuel(s); (b) the points of exit of all product streams containing hydrogen and/or carbon monoxide; (c) the point(s) of entry or exit of import or export heat. For the purpose of data collection, the total electricity consumption within the system boundaries shall be considered. | 0,242 |
| Ethylene oxide/ethylene glycols | The ethylene oxide/ethylene glycol benchmark covers the products ethylene oxide (EO, high purity), monoethylene glycol (MEG, standard grade + fibre grade (high purity)), diethylene glycol (DEG), triethylene glycol (TEG). The total amount of products is expressed in terms of tonnes of EO-equivalents (EOE), which are defined as the amount of EO (in mass) that is embedded in one mass unit of the specific glycol. | All processes directly or indirectly linked to the process units EO production, EO purification and glycol section are included. For the purpose of data collection, the total electricity consumption within the system boundaries shall be considered. | 0,512 |
If no other reference is given, all product benchmarks refer to 1 tonne of product produced expressed as saleable (net) production and to 100 % purity of the substance concerned.
All definitions of processes and emissions covered (system boundaries) include flares where they occur.
3. Heat and fuel benchmarks
| Benchmark | Starting point for determination of annual reduction rate for benchmark value update (allowances/TJ) |
|---|---|
| Heat benchmark | 62,3 |
| Fuel benchmark | 56,1 |
ANNEX II
Specific product benchmarks
1. Refineries benchmark: CO2 weighted tonne (CWT) functions
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