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Questions & answers on implementation of new registry rules regarding units from Joint Implementation (February 2013)
Friday, 01 March 2013 15:18

 

1. When will the revised Registry Regulation enter into force?

The revised Registry Regulation will enter into force on the day following its publication in the Official Journal of the European Union. The Commission will adopt the revised Regulation and ensure its publication in early May after the end of the scrutiny period of the European Parliament and the Council, subject of course to there being no objections raised.

 

2. What does “legally binding” mean in relation to quantified emission targets from 2013 to 2020 in the context of Article 58(2) of the revised Registry Regulation?

The term "legally binding" refers to the entry into force of the amendment to the Kyoto Protocol under international law (i.e. when three-quarters of Parties to the Kyoto Protocol have deposited instruments of ratification).

 

3. What is the impact of Article 58(2) on projects from Annex B Parties in third countries (i.e. non-EU ETS Parties)?

In accordance with Article 58(2) of the revised Registry Regulation, emission reduction units (ERUs) issued after 31 December 2012 in respect of emission reductions taking place up until 31 December 2012 from non-EU ETS Annex B Parties can only be held in ETS accounts in the Union Registry provided that:

  • The amendment to the Kyoto Protocol including a commitment for such a Party has entered into force; or
  • The Party has deposited an instrument of ratification; or
  • The units are issued under track 2; or
  • Where track 2 issuance is not possible, where the date of reduction (pre-2013) is certified by an accredited independent entity (AIE).

 

4. When will market participants be informed about the certification process required under Article 58(2)?

The Commission is currently working on such guidance and as soon as it is finalised it will be made public. In any case, the guidance will be finalised in advance of entry into force of the revised Regulation.

 

5. How will an assessment be made of whether or not issuance under track 2 is “possible”?

In light of the revised Registry Regulation approved by vote of the Climate Change Committee in January, it is envisaged that project participants will switch tracks where possible. Although this will not always be possible for all units issued in respect of a Joint Implementation project (e.g. for units already issued as track 1 before the entry into force of the revised Regulation), a project participant may at any time apply to switch tracks . Hence, the cases in which issuance under track 2 is not possible are expected to be quite limited.

 

6. What other units cannot be held in ETS accounts in the Union Registry?

Unit holdings in ETS accounts in the Union Registry are harmonised in accordance with Annex I of the revised Registry Regulation. It should be noted that for Kyoto Protocol (KP) accounts in the consolidated system of European Registries (CSEUR), Member States can determine unit holdings.

 

7. If a unit cannot be held in an ETS account in the Union Registry in accordance with Annex I, where can it be held in the CSEUR?

If allowed by the Member State National Administrator, these units can be held in KP accounts (person holding accounts or national KP accounts). An account holder will be able to distinguish eligible units held on a KP account from those that are either ineligible / pending eligibility.

 

8. What if these units (those for which ETS holdings are prohibited according to Annex I) are currently held in ETS accounts in the Union Registry?

In accordance with Article 58(3) and Article 115, the Central Administrator will provide National Administrators with a list to enable the transfer of these units to an appropriate KP account. These units will then be transferred to a KP account specified by the account holder or, if the account holder fails to specify a KP account within the given timeframe (40 days from request by National Administrator), to a national KP account.

 

The source: http://ec.europa.eu/clima/policies/ets/linking/faq_en.htm

 

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