Assisting the European Commission in the assessment of new entrants, significant capacity changes and closure applications.

closed

The ETS Directive and the harmonised allocation rules set the rules for free allocation of emission allowances for the period 2013–2020 to numerous incumbent installations in all EU Member States. Free allowances for the third trading period 2013–2020 can also be allocated to new installations or installations that had a significant capacity extension. To be allocated the respective amount of free allowances, the operators of such installations have to submit applications containing verified data to the national competent authorities. The applications of new entrants and significant capacity extensions have to be submitted using complex electronic templates based on a model used for incumbent installations. The competent authorities have to determine the preliminary amount of allowances and notify the application and the respective amount to the Commission.By analogy, during the third trading period operators shall also inform the national competent authorities of any changes in its operations that might have an impact on the installation's allocation, such as significant capacity reductions and (partial) cessation of operation of an installation. The monitoring of such cases and the implementation of the relevant rules, however, is the responsibility of the MS. The Commission's assessment only relates to cases that have been notified by the MS.In practice, this translates into several situations for which allocation has to be given from the new entrants reserve and which would be subject to assessment under the contract. These are the following:— new installations ('greenfield plants') which have obtained all the necessary 'permits' and have started normal operations as defined in the harmonised allocation rules after 30.6.2011,— new sub-installations of existing installations and have changed normal operations as defined in the harmonised allocation rules after 30.6.2011,— significant capacity extensions with start of changed operations after 30.6.2011,— significant capacity extensions with start of changed operations before 30.6.2011, but new capacity identified after 30.9.2011,— significant capacity reductions with start of changed operations after 30.6.2011,— significant capacity reductions with start of changed operations before 30.6.2011, but new capacity identified after 30.9.2011,— cessation of operations,— partial cessation of operation with reduction of activity levels after 30.6.2011 exceeding the thresholds of Article 23 of the Decision,— recovery after partial cessation where the installation has recovered its activity levels to the thresholds referred to in Article 23 of the Decision.