Commission Implementing Regulation (EU) 2024/2493 of 23 September 2024 amending Implementing Regulation (EU) 2018/2066 as regards updating the monitoring and reporting of greenhouse gas emissions pursuant to Directive 2003/87/EC of the European Parliament and of the Council

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	2024/2493	27.9.2024

THE EUROPEAN COMMISSION,

Having regard to the Treaty on the Functioning of the European Union,

Having regard to Directive 2003/87/EC of the European Parliament and of the Council of 13 October 2003 establishing a system for greenhouse gas emission allowance trading within the Union and amending Council Directive 96/61/EC ², and in particular Article 14(1) and Article 30f(5) thereof,

Whereas:

• (1) Directive 2003/87/EC establishing a system for greenhouse gas emission allowance trading within the Union (EU ETS) was revised and amended by Directive (EU) 2023/959 of the European Parliament and of the Council ³ to align it with Regulation (EU) 2021/1119 of the European Parliament and of the Council ⁴ setting a target of at least 55 % net emission reductions by 2030 compared to 1990.

• (2) Following the amendment of Directive 2003/87/EC by Directive (EU) 2023/958 of the European Parliament and of the Council ⁵ and Directive (EU) 2023/959, Commission Implementing Regulation (EU) 2018/2066 ⁶ should be amended accordingly to incorporate the necessary definitions and detailed arrangements for the monitoring and reporting of emissions from renewable fuels of non-biological origin and recycled carbon fuels and also to ensure proper alignment with sustainability and greenhouse gas savings criteria laid down in Directive (EU) 2018/2001 of the European Parliament and of the Council ⁷, for the monitoring and reporting of emissions from the transport of CO2 by other means than pipelines for geological storage, emissions from aviation including monitoring and reporting of non-CO2 aviation effects, emissions from the new emission trading system for buildings, road transport and non-ETS industry.

• (3) Under the new emission trading system for buildings, road transport and additional sectors, it is necessary, for the definition of a ‘final consumer’ in Article 3(69) to provide for more specific reference to the definition of regulated entity in Article 3(ae) of Directive 2003/87/EC.

• (4) Article 5 of Implementing Regulation (EU) 2018/2066 should be amended to reflect that the completeness of monitoring and reporting should cover all process and combustion emissions of the stationary installation, from all emission sources and source streams belonging to activities listed in Annex I to Directive 2003/87/EC and other directly associated activities in line with Article 3(e) of that Directive.

• (5) To improve the quality of information on biomass, on renewable fuels of non-biological origin (RFNBOs), on recycled carbon fuels (RCFs), and on synthetic low-carbon fuels and to facilitate national reporting under Regulation (EU) 2018/1999 of the European Parliament and of the Council ⁸, operators should monitor and report emissions from the non-zero rated and zero-rated carbon fraction of these fuels as memo-items in the emission reports. For that purpose, parameters concerning non-zero-rated and zero-rated biomass, RFNBOs and RCFs, or synthetic low-carbon fuels should be determined and reported for each corresponding source stream under the standard calculation methodology pursuant to Article 24 of Implementing Regulation (EU) 2018/2066 and the mass balance system pursuant to Article 25 of that Regulation. Specific rules are necessary on the determination of composition-related calculation factors concerning non-zero-rated and zero-rated biomass, RFNBOs and RCFs, and synthetic low-carbon fuels, including the zero-rated and non-zero-rated carbon fraction.

• (6) To avoid systematic underestimation of the total emissions in the mass balance system when zero-rated carbon is contained in the input and in the output streams, it is important for operators to determine the zero-rated carbon content of the output streams. Clear evidence is required to demonstrate that underestimation has been avoided and that the total mass of the zero-rated carbon fractions in the output materials is equivalent to the total mass of zero-rated carbon fractions contained in the input materials.

• (7) Directive 2003/87/EC, as revised by Directive (EU) 2023/959, specifies that the emission factor of biomass is zero if the biomass complies with the sustainability and greenhouse gas emissions savings criteria for the use of biomass fuels established by Directive (EU) 2018/2001, taking into account any necessary adjustments for application under Directive 2003/87/EC, as set out in the implementing acts referred to in Article 14 of that Directive. In order to clarify the conditions under which biomass emissions can be zero-rated and to align with the revised Directive (EU) 2018/2001, Article 38(5) of Implementing Regulation (EU) 2018/2066 should be amended. Where the relevant sustainability and greenhouse gas emissions savings criteria do not apply to a specific type of biomass, that biomass can be zero-rated directly. However, in this case, operators should still demonstrate that the criteria are not applicable. Assessing the proof of applicability and proof of sustainability is an essential part of the verification where the verifier checks the correct application of the monitoring methodology, including the zero-rating of the biomass. Where sustainability and greenhouse gas emissions savings criteria laid down in Article 29(2) to (7) and (10) do apply, compliance with these criteria is required for zero-rating. Biomass that does not comply with the criteria in this case should be treated as a fossil fuel. Zero-rating of emissions under EU ETS is distinct from support schemes defined in Article 2, point (5) of Directive (EU) 2018/2001.

• (8) Article 31a of the amended Directive (EU) 2018/2001 of the European Parliament and of the Council ⁹ sets up a Union database to enable the tracing of liquid and gaseous renewable fuels, recycled carbon fuels and synthetic low-carbon fuels (‘the Union Database’). By 21 November 2024, the Union Database should be fully operational. Where compliance is required with the sustainability and the greenhouse gas emissions saving criteria laid down in Article 29, paragraphs (2) to (7) and (10) of Directive (EU) 2018/2001, for biomass, and Article 29a of that Directive, for liquid and gaseous renewable fuels and RCFs, proof of sustainability should be provided in line with Article 30 and 31 of that Directive. To facilitate this process and to reduce the administrative burden, Member States should be able to rely on the evidence provided by EU ETS operators, aircraft operators and regulated entities from the Union Database on the transactions related to any amount of fuel that has been purchased and used during the reporting year and that has been connected to the cancellation of the respective quantity in the Union database. In the case of subsequent non-compliance regarding the proof of sustainability of the quantities cancelled in the databases, the competent authority shall correct the verified emissions accordingly.

• (9) According to Article 33 of Implementing Regulation (EU) 2018/2066, sampling is to be representative for the specific batch and free of bias. Where continuous sampling of the flue gas stream is used, the analysis frequency should be aligned with this process and cover the whole reporting year without interruption.

• (10) Directive (EU) 2023/959 has extended the scope of activities listed in Annex I to Directive 2003/87/EC for the refining of any oil, the production of any iron, the production of alumina, the production of hydrogen and the transport of CO2 through means other than pipelines. In order to ensure alignment with Annex I to Directive 2003/87/EC, the Annexes to Implementing Regulation (EU) 2018/2066 need to be updated.

• (11) Directive 2003/87/EC recognises the potential role of RCFs and RFNBOs for reducing greenhouse gas emissions in sectors that are hard to decarbonise. To contribute to the decarbonisation, their greenhouse gas emissions savings need to meet the minimum greenhouse gas emissions savings laid out in Article 29a of Directive (EU) 2018/2001 and be calculated according to the methodology set out in the act adopted pursuant to that Article.

• (12) RCFs or RFNBOs that contain carbon in their chemical composition, such as e-kerosene or e-methanol, require a carbon feedstock for their production. Until all stages of the life of a product, in which captured carbon is used, are subject to carbon pricing, in particular at the stage of waste incineration, reliance on accounting for emissions at the point of their release from products into the atmosphere would result in emissions being underestimated. Where RFNBOs or RCFs are produced from captured CO2 under an activity covered by Directive 2003/87/EC, the emissions should be accounted for under that activity. In order to avoid double counting and requiring a double payment for the same emissions, the CO2 emissions from RCFs and RFNBOs that comply with the criteria laid out in Directive (EU) 2018/2001 should have an emission factor of zero.

• (13) Synthetic low-carbon fuels must comply with the greenhouse gas savings criteria laid down in Article 2 point 13 of Directive (EU) 2024/1788 on common rules for the internal markets in renewable gas and natural gas and in hydrogen. Synthetic low-carbon fuels require carbon feedstock for their production. Subject to review in respect of zero-rated carbon combusted in installations which are exempt from the EU ETS due their high use of biomass pursuant to point 1 of Annex I, to avoid double counting within the EU ETS in accordance with Article 5 of Commission Implementing Regulation (EU) 2018/2066, if the carbon content of the fuels stems from the EU ETS and it has therefore been accounted, including when its emissions factor is zero, the emissions from the synthetic low-carbon fuel should be zero-rated. The emissions resulting from synthetic low-carbon fuels with other carbon content should be treated as their fossil fuel equivalents. It is necessary to provide rules for the determination of the fraction of zero-rated synthetic low-carbon fuels.

• (14) RCFs or RFNBOs that do not meet the greenhouse gas emissions savings laid out in Article 29a of Directive (EU) 2018/2001 are considered to lead to insufficient greenhouse gas emissions savings in comparison to fossil fuels. Therefore, the emissions resulting from the combustion of such RCFs or RFNBOs should be treated as their fossil fuel equivalents. As fossil fuels may be blended with RCFs or RFNBOs, it is necessary to provide rules for the determination of the fraction of zero-rated RCF or RFNBO.

• (15) Implementing Regulation (EU) 2018/2066 should determine the monitoring methodology that should be applied to emissions from zero-rated RFNBOs, RCFs and synthetic low-carbon fuels. Provisions should be included for the deduction of total zero-rated RFNBO, RCF and synthetic low-carbon fuels emissions, in the case where the operator uses the measurement-based methodology for the determination of total CO2 emissions. When designing support schemes for renewable or low-carbon fuels, Member States retain the right to specify how to incentivise the different RFNBOs, RCFs or synthetic low carbon fuels.

• (16) In addition, when applying the measurement-based methodology for biomass-containing fuels and materials, conditions should be added when the biomass fraction equals the zero-rated biomass fraction. Clarifications should also be provided when these conditions are not met and in such case the provisions deployed related to calculation-based approach should be followed by the operator.

• (17) When the installation’s proposed methodology involves continuous sampling from the flue gas stream, and at the same time the stationary installation consumes natural gas from the grid, to avoid double counting, the CO2 stemming from biogas should be determined by laboratory analysis and this amount should be respectively deducted from the total zero-rated CO2 previously determined by calculation-based approach.

• (18) Directive 2003/87/EC does not recognise negative greenhouse gas emissions. To avoid generating negative emissions, an operator should not subtract from its emissions any CO2 that originates from zero-rated fuels. In the case of the capture of emissions from a mix of zero and non-zero-rated sources, to ensure clarity and simplicity, the quantity of CO2 resulting from non-zero-rated sources that can be deducted from the operator’s emissions should be established based on the proportion of the zero-rated and non-zero-rated emissions.

• (19) The activities ‘transport of greenhouse gases for geological storage’, and ‘geological storage of greenhouse gases’, in Annex I to Directive 2003/87/EC, cover all CO2 transported and stored in a storage site permitted under Directive 2009/31/EC, irrespective of the geographical and physical origin of the CO2. In order to avoid any gaps in the monitoring and reporting framework and to provide the incentives for operators of CO2 transport infrastructure or of CO2 storage sites to minimise leaks, it is necessary to clarify that these operators should monitor and report any emissions from all CO2 for geological storage in their custody, including if originating from activities outside of the scope of Directive 2003/87/EC.

• (20) As CO2 for geological storage is expected to be transported by a variety of modes, Directive (EU) 2023/959 expanded the scope of the activity ‘transport of greenhouse gases for geological storage’ in Annex I to Directive 2003/87/EC to any transport mode. Therefore, it is necessary to revise the monitoring and reporting provisions related to the CO2 transport activity to ensure that they are applicable to a CO2 transport infrastructure based on any transport modes. Where a transport mode is also covered by another activity under Directive 2003/87/EC, to avoid the double counting of emissions, the emissions covered by the other activity under that Directive should be excluded from the boundaries of the CO2 transport activity.

• (21) The transport of CO2 for geological storage may take place over long distances. Therefore, the CO2 may be in transit for lengthy periods. In such cases, it is appropriate to provide the operator of the CO2 transport infrastructure the flexibility to subtract from the emissions to be reported in a given year any amount of CO2 that is still in transit by 31 December of that year, provided that the CO2 shipment reaches its destination and is transferred out to a storage site or to another EU ETS installation no later than 31 January of the following year.

• (22) The revised Directive 2003/87/EC amended the definition of emissions to also encompass greenhouse gases that are not directly released into the atmosphere. Therefore, these should also be considered emissions under the EU ETS, unless they are stored in a storage site in accordance with Directive 2009/31/EC or they are permanently chemically bound in a product so that they do not enter the atmosphere under normal use, and do not enter the atmosphere under any normal activity taking place after the end of the life of the product. In consequence, the Annexes to Implementing Regulation (EU) 2018/2066 need to be updated accordingly to account for greenhouse gases released in ways other than directly into the atmosphere, while avoiding the double counting of emissions where greenhouse gases not emitted directly into the atmosphere are re-used within the same installation or in another EU ETS installations. To avoid undue disruptions for installations affected by these changes, their application should be delayed until 1 January 2025 to allow sufficient time for the necessary adaptations.

• (23) When determining the oxidation or conversion factor of a source stream, carbon monoxide (CO) emitted to the atmosphere should be considered as the molar equivalent amount of CO2. CO that is otherwise transferred in a product or as a feedstock is not considered as an emission under the scope of Directive 2003/87/EC.

• (24) Article 12(3b) of Directive 2003/87/EC provides that allowances do not need to be surrendered for greenhouse gases which are considered to have been captured and utilised in such a way that they have become permanently chemically bound in a product so that they do not enter the atmosphere under normal use, including any normal activity taking place after the end of the life of the product. It is necessary to include a general provision for operators to determine and subtract from their emissions the amount of CO2 considered to be permanently chemically bound in a product listed in the delegated act adopted pursuant to Article 12(3b) of Directive 2003/87/EC, replacing the provision that allowed to subtract the CO2 considered chemically bound in precipitated calcium carbonate.

• (25) Having regard to Article 14(5) of Directive 2003/87/EC, the monitoring, reporting and verification framework (MRV) of non-CO2 effects constitutes a stand-alone, distinct exercise from carbon pricing. EU research and innovation activities on the impact and technological solutions of non-CO2 aviation effects are ongoing since 1994 and should continue. Given the uncertainties surrounding the impacts of non-CO2 effects, it is key to start the MRV on non-CO2 effects with a view to ensuring scientific validation of the impacts.

• (26) Aircraft operators should monitor the non-CO2 aviation effects occurring from 1 January 2025, from the activities performed by aeroplanes equipped with jet engines, enabling the calculation of a CO2 equivalent (CO2(e)) per flight. The aircraft operators should report those non-CO2 aviation effects once a year. However, to facilitate the start of the MRV for non-CO2 effects, in 2025 and 2026, while the reporting may cover all routes, such reporting shall only be required in respect of routes involving two aerodromes located in the European Economic Area (EEA), and routes from an aerodrome located in the EEA departing to Switzerland or to the United Kingdom. In respect of 2025 and 2026, the reporting of non-CO2 aviation effects taking place from other flights is possible.

• (27) In order to minimise administrative burden, aircraft operators should provide a single monitoring plan for CO2 emissions and non-CO2 effects.

• (28) The calculation of the CO2(e) per flight should be done using the Global Warming Potential (GWP) metric in three time horizons GWP20, GWP50 and GWP100, to better understand those impacts on climate, applying efficacy, as defined in Implementing Regulation (EU) 2018/2066, and the Commission’s non-CO2 aviation effects tracking system (NEATS), to refine the GWP metric.

• (29) In order to calculate CO2(e) for non-CO2 effects, the aircraft operators should use a CO2(e) calculation approach. This approach includes modules for estimating fuel burn and different emissions (NOx, CO, HC), models calculating CO2(e) using the input data and default values as described in Annex IIIa and Annex IIIb to Implementing Regulation (EU) 2018/2066, where data gaps occur.

• (30) In order to avoid incentivizing underreporting, conservative default values may be used. Where data sourced by the aircraft operator is not available, work needs to continue to enable reporting of measured values, based on the best information available. Relying on default values decreases the precision of the data.

• (31) Acknowledging the importance of providing appropriate tools to limit the administrative effort of monitoring, reporting and verification of non-CO2 aviation effects, the aircraft operators may rely on the information technology tool, NEATS, provided by the Commission. The aircraft operators may also opt to use their own or third-party information technology tools provided that these tools comply with the provisions of Implementing Regulation (EU) 2018/2066, in particular Article 56a, and provided that the Commission approves them.

• (32) The aircraft operators should securely collect, and store monitored data, including flight details and aircraft information. For this purpose, the aircraft operators may rely on the Commission IT tool and/or third-party resources, ensuring compliance with confidentiality rules and accessibility for verification purposes.

• (33) In a situation where no data is provided by the aircraft operators NEATS should be able to calculate the CO2(e) automatically, on the basis of data gathered from external sources and the default values as described in Annex IIIa and Annex IIIb to Implementing Regulation (EU) 2018/2066.

• (34) In the event of the unavailability of IT tools, aircraft operators should monitor essential flight and aircraft properties information as an interim measure.

• (35) In the event of the unavailability of common reference Numerical Weather Prediction (NWP) model, aircraft operators should use a location-based simplified approach to calculate the CO2(e) of non-CO2 aviation effects as an interim measure.

• (36) For the purpose of minimising the administrative burden, small emitters may choose to use a location-based simplified approach to calculate the CO2(e) of non-CO2 aviation effects.

• (37) Based on the feedback on the implementation of the EU ETS, it is necessary to further facilitate the identification of the operator of an aircraft pursuant to Article 3(o) of Directive 2003/87/EC and to include an additional step in this process.

• (38) In order to align the provisions of Article 28a(4) of Directive 2003/87/EC and this Regulation concerning the definition of small emitters, this Regulation should be updated to allow operators meeting the criteria defined in Article 28a(4) of that Directive, to use the fuel estimation tools implemented by Eurocontrol.

• (39) Reporting requirements play a key role in ensuring proper emission monitoring and enforcement of legislation. In order to streamline those reporting requirements, appropriate reporting rules should be established for aircraft operators for the use of different types of alternative aviation fuels, including biofuels, RFNBOs, RCFs and other fuels eligible under the EU ETS support system established pursuant to Article 3c(6) of Directive 2003/87/EC.

• (40) Emission thresholds apply to aircraft operators for their inclusion into the EU ETS or ICAO’s Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA). Aircraft operators can be considered small emitters or allowed to use simplified tools. In accordance with the purpose of the EU ETS and the principles also included in ICAO’s CORSIA scheme, the calculation of these emissions thresholds should not take into account the possible use of fuels with an emission factor of zero. Therefore, it is appropriate to establish a preliminary emission factor for the purpose of a calculation of these thresholds.

• (41) In accordance with Directive (EU) 2023/959, the surrendering of allowances under the new emissions trading for buildings, road transport and additional sectors system will start in 2028 for the annual emissions of 2027. However, the monitoring and reporting of emissions under the new emissions trading system will start from 1 January 2025. Clear monitoring and reporting rules for the emissions trading system for buildings, road transport and additional sectors should be laid down sufficiently in advance, in order to facilitate orderly implementation in Member States. In order to reduce administrative burden, to ensure consistency between monitoring methodologies and to build on experiences from the existing emission trading system for stationary installations and aviation, it is appropriate to set up the relevant rules for the new system.

• (42) In order to ensure a robust level of monitoring accuracy and to minimise the administrative burden for the regulated entities and competent authorities, the scope factor should be applied after the categorisation of the regulated entity and the fuel streams. This should allow more accurate monitoring and should avoid unnecessary changes to the monitoring plans, which reduce the administrative burden for regulated entities and competent authorities.

• (43) In order to limit the administrative burden, it is appropriate to provide specific rules for regulated entities with low emissions and give flexibility to the competent authorities in the categorisation of regulated entities.

• (44) In order to facilitate the implementation of the new measures, it is appropriate to provide a time-bound derogation, before 2027, to the application of the scope factor after the categorisation. It is appropriate for the competent authorities to be able to qualify regulated entity as regulated entities with low emissions, or to allow the regulated entity to classify itself and each fuel stream, based on the emissions after the application of the scope factor, with the exclusion of CO2 stemming from zero-rated fuels, where it can be demonstrated to the satisfaction of the competent authority that the scope factor applied for the classification will also remain to be representative in the future years.

• (45) In order to facilitate verification, it is appropriate that stationary installations operators, aircraft operators, shipping companies and regulated entities submit the information on fuels used for activities referred to in Annex I to Directive 2003/87/EC together with the annual emissions report. No separate report should be required on the amounts of fuels acquired and used. Implementing Regulation (EU) 2018/2066 should therefore be amended accordingly.

• (46) In order to facilitate the orderly and coherent submission of the monitoring plan for regulated entities to the competent authorities, and considering the provisions that have already been adopted in Commission Implementing Regulation (EU) 2023/2122 ¹⁰ of 17 October 2023, amending Implementing Regulation (EU) 2018/2066, all provisions contained in this Regulation relating to the new emissions trading for buildings, road transport and additional sectors, should apply from 1 July 2024.

• (47) Directive 2003/87/EC already provides that the emissions from RFNBOs used for aircraft operators shall be zero-rated before the entry into force of this revision of the Implementing Regulation (EU) 2018/2066. Therefore, in order to ensure consistency, clarity and a level playing field, the rules for monitoring and reporting of emissions from zero-rated RFNBO, RCF and synthetic low-carbon fuels should apply as of 1 January 2024.

• (48) The measures provided for in this Regulation are in accordance with the opinion of the Climate Change Committee,

HAS ADOPTED THIS REGULATION:

Article 1

Implementing Regulation (EU) 2018/2066 is amended as follows:

• (1) Articles 1 and 2 are replaced by the following:

‘Article 1

This Regulation lays down rules for the following:

• (i) from 1 January 2021 and subsequent trading periods, monitoring and reporting of greenhouse gas emissions and activity data pursuant to Directive 2003/87/EC in the trading period of the Union emissions trading system;

• (ii) from 1 January 2025, monitoring and reporting of non-CO2 aviation effects pursuant to Article 14 of Directive 2003/87/EC.

Article 2

This Regulation shall apply to the monitoring and reporting of greenhouse gas emissions specified in relation to the activities listed in Annex I and III to Directive 2003/87/EC, to activity data from stationary installations, to aviation activities, including non-CO2 aviation effects, and to released fuel amounts from activities referred to in Annex III to that Directive.

It shall apply to the following:

• (i) from 1 January 2021, emissions, activity data and released fuel amounts occurring;

• (ii) from 1 January 2025, non-CO2 aviation effects.

The monitoring and reporting of non-CO2 aviation effects from 2025 shall cover all non-CO2 effects from aviation activities listed in Annex I to the Directive involving an aerodrome located in the EEA. However, in respect of the monitoring and reporting of non-CO2 aviation effects taking place in 2025 and 2026, such reporting shall only be required in respect of routes involving two aerodromes located in the EEA, and routes from an aerodrome located in the EEA departing to Switzerland or to the United Kingdom. In respect of 2025 and 2026, the non-CO2 aviation effects taking place from other flights may be reported on a voluntary basis.’

;

• (2) Article 3 is amended as follows:

• (a) point (4)(b) is replaced by the following:

• ‘(b) in the case of a mass balance methodology in accordance with Article 25 of this Regulation, one of the following:

• (i) a specific fuel type, raw material or product containing carbon;

• (ii) CO2 transferred in accordance with Article 49 of this Regulation;’;

• (b) point (7) is replaced by the following:

• ‘(7) ‘calculation factors’ means net calorific value, emission factor, preliminary emission factor, oxidation factor, conversion factor, carbon content, fossil fraction, biomass fraction, zero-rated biomass fraction, RFNBO or RCF fraction, zero-rated RFNBO or RCF fraction, synthetic low-carbon fraction, zero-rated synthetic low-carbon fraction, zero-rated fraction, or unit conversion factor;’,

• (c) point (15) is replaced by the following:

• ‘(15) ‘conversion factor’ means the ratio of carbon emitted as CO2 to the total carbon contained in the source stream before the emitting process takes place, expressed as a fraction, considering CO emitted to the atmosphere as the molar equivalent amount of CO2. In the case of CO2 emissions considered to be permanently chemically bound in a product, conversion factor means the ratio of CO2 bound as carbon in a product during a process, to the total CO2 contained as carbon in a product leaving that same process;’;

• (d) points (23b) to (23h) are inserted:

• ‘(23b) ‘alternative aviation fuels’ means neat aviation fuels containing carbon other than stemming from the neat fossil fuels listed in Table 1 of Annex III to this Regulation;

• (23c) ‘zero-rating’ means the mechanism by which the emission factor of a fuel or material is reduced in order to acknowledge:

• (a) in case of biomass, its compliance with sustainability or greenhouse gas savings criteria provided by Article 29(2) to (7) and (10) of Directive (EU) 2018/2001, as specified in Article 38(5) of this Regulation;

• (b) in case of RFNBO or RCF, its compliance with the greenhouse gas savings criteria in accordance with Article 29a of Directive (EU) 2018/2001, as specified in Article 39a(3) of this Regulation;

• (c) in case of synthetic low-carbon fuels, its compliance with the greenhouse gas savings criteria provided by Article 2 point 13 of Directive (EU) 2024/1788 on common rules for the internal markets in renewable gas and natural gas and in hydrogen; and the prior surrendering of allowances under Directive 2003/87/EC for the captured carbon necessary to produce the synthetic low-carbon fuels, as specified in Article 39a(4) of this Regulation, unless that captured carbon is zero-rated carbon as defined in Article 3(38f).

• (23d) ‘zero-rated fuels’ means biofuels, bioliquids, biomass fuels, synthetic low-carbon fuels, RFNBO or RCF or fractions of mixed fuels or materials which comply with the criteria as specified in Articles 38(5) or 39a(3) or 39a(4) of this Regulation, as applicable;

• (23e) ‘recycled carbon fuels’ (RCF) means recycled carbon fuels as defined in Article 2, point (35) of Directive (EU) 2018/2001;

• (23f) ‘renewable fuels of non-biological origin’ (RFNBO) means renewable fuels of non-biological origin as defined in Article 2, point (36) of Directive (EU) 2018/2001;

• (23g) ‘neat fuel’ means a fuel in its pure form containing only one of the following fractions:

• (i) fossil fraction;

• (ii) non-zero-rated biomass fraction;

• (iii) zero-rated biomass fraction;

• (iv) non-zero-rated RFNBO or RCF fraction;

• (v) zero-rated RFNBO or RCF fraction;

• (vi) non-zero-rated synthetic low-carbon fraction;

• (vii) zero-rated synthetic low-carbon fraction;

• (viii) fraction of fuels containing carbon other than stemming from the fossil fuels listed in Table 1 of Annex III to this Regulation or from biomass, RFNBO, RCF or synthetic low-carbon fuels;

• (23h) ‘synthetic low-carbon fuels’ means gaseous and liquid fuels, the energy content of which is derived from low-carbon hydrogen as defined in Article 2, point (13) of Directive (EU) 2024/1788, which meet the greenhouse gas emission reduction threshold of 70 % compared to the fossil fuel comparator for renewable fuels of non-biological origin set out in the methodology adopted according to Article 29a(3) of Directive (EU) 2018/2001, as certified in accordance with Article 9 of Directive (EU) 2024/1788.;’;

• (e) points (34) and (34a) are replaced by the following:

• ‘(34) ‘mixed fuel’ means a fuel which contains at least two of the following:

• (i) carbon stemming from biomass;

• (ii) carbon stemming from a RFNBO or RCF;

• (iii) carbon stemming from synthetic low-carbon fuels;

• (iv) other fossil carbon;

or which contains both zero-rated carbon and other carbon.

• (34a) ‘mixed aviation fuel’ means a fuel which contains at least two different neat fuels;’;

• (f) points (36) and (38) are replaced by the following:

• ‘(36) ‘preliminary emission factor’ means the assumed total emission factor of a fuel or material based on its total carbon content before multiplying it by the fossil fraction to produce the emission factor;

• (38) ‘biomass fraction’ means the ratio of carbon stemming from biomass to the total carbon content of a fuel or material, expressed as a fraction, independent of whether the biomass complies with the criteria of Article 38(5) of this Regulation;’;

• (g) point (38a) is deleted.

• (h) points (38b) to (38h) are inserted as follows:

• ‘(38b) ‘zero-rated biomass fraction’ means the ratio of carbon stemming from biomass which complies with the criteria of Article 38(5) of this Regulation to the total carbon content of a fuel or material, expressed as a fraction;

• (38c) ‘RFNBO or RCF fraction’ means the ratio of carbon stemming from an RFNBO or RCF to the total carbon content of a fuel, expressed as a fraction, independent of whether the RFNBO or RCF complies with the criteria of Article 39a(3) of this Regulation;

• (38d) ‘zero-rated RFNBO or RCF fraction’ means the ratio of carbon stemming from an RFNBO or RCF that complies with the criteria of Article 39a(3) of this Regulation, to the total carbon content of a fuel, expressed as a fraction;

• (38e) ‘zero-rated carbon fraction’ means:

• (i) in case of a fuel, the sum of its zero-rated biomass fraction, its zero-rated synthetic low-carbon fraction and its zero-rated RFNBO or RCF fraction without double counting of any carbon;

• (ii) in case of a material, its zero-rated biomass fraction.

• (38f) ‘zero-rated carbon’ means carbon contained in a fuel or material that belongs to the zero-rated carbon fraction of that fuel or material.

• (38g) ‘synthetic low-carbon fraction’ means the ratio of carbon stemming from synthetic low-carbon fuel to the total carbon content of a fuel, expressed as a fraction, independent of whether the synthetic low-carbon fuel complies with the criteria of Article 39a(4) of this Regulation;

• (38h) ‘zero-rated synthetic low-carbon fraction’ means the ratio of carbon stemming from a synthetic low-carbon fuel that complies with the criteria of Article 39a(4) of this Regulation, to the total carbon content of a fuel;’;

• (i) point (42) is replaced by the following:

• ‘(42) ‘fossil carbon’ means inorganic and organic carbon that is not zero-rated carbon;’;

• (j) point (55) is replaced by the following:

• ‘(55) ‘CO2 transport’ means the transport of CO2 for geological storage in a storage site permitted under Directive 2009/31/EC;’;

• (k) point (63) is replaced by the following:

• ‘(63) ‘CO2 transport infrastructure’ means an infrastructure as defined in Article 3(29) of Regulation (EU) 2024/1735, ;’;

• (l) point (63b) is inserted:

• ‘(63b) ‘CO2 in transit’ means any amount of transferred CO2 in a CO2 transport infrastructure that has not been transferred to another installation or CO2 transport infrastructure within the same reporting period it was received;’;

• (m) point (69) is replaced by the following:

• ‘(69) ‘final consumer’ for the purposes of applying the definition of regulated entity, in accordance with Article 3(ae) of Directive 2003/87/EC, in this Regulation, means any natural or legal person that is the consumer of the fuel, whose annual fuel consumption does not exceed 1 tonne of CO2;’;

• (n) points (71) to (80) are inserted:

• ‘(71) ‘non-CO2 aviation effects’ means non-CO2 aviation effects as defined in Article 3(v) of Directive 2003/87/EC;

• (72) ‘CO2(e) per flight’ means the non-CO2 aviation effects that warm the atmosphere, expressed as the equivalent amount of CO2 emissions of the given flight;

• (73) ‘radiative forcing’ means an imposed change of the planetary energy balance, measured in watts per square meter (W/m²);

• (74) ‘efficacy’ is the change in global mean temperature per unit radiative forcing exerted by the climate agent, relative to the response generated by a standard CO2 forcing starting from the same initial climate state;

• (75) ‘CO2(e) calculation model’ means a model used to calculate the total climate impact of non-CO2 aviation effects, in accordance with Annex IIIa Section 4 to this Regulation;

• (76) ‘weather-based approach’ means Method C, as provided in Annex IIIa Section 4 to this Regulation, using primarily enhanced weather data, as well as flight information, trajectory, aircraft properties and fuel properties;

• (77) ‘location-based simplified approach’ means Method D, as provided in Annex IIIa Section 4 to this Regulation, using primarily aircraft in-flight location-related data such as flight information, trajectory, but also basic weather data and aircraft properties;

• (78) ‘non-CO2 aviation effects tracking system (NEATS)’ means an information technology (IT) tool, that is provided by the Commission to aircraft operators, to accredited verifiers and to competent authorities for the purpose of facilitating and, to the extent possible, automating monitoring, reporting and verification of non-CO2 aviation effects, in line with Article 14(5) of Directive 2003/87/EC;

• (79) ‘aircraft properties’ means the category of information encompassing as a minimum and for each flight, the aircraft type, the engine(s) identifier(s) and the aircraft mass.

• (80) ‘aeroplane’ means a power-driven heavier-than-air aircraft, which derives its lift in flight chiefly from aerodynamic reactions on surfaces which remain fixed under given conditions of flight.’;

• (3) Article 4 is replaced by the following:

‘Article 4

Operators and aircraft operators shall carry out their obligations related to the monitoring and reporting of greenhouse gas emissions and non-CO2 aviation effects under Directive 2003/87/EC in accordance with the principles laid down in Articles 5 to 9 of this Regulation.’

;

• (4) in Article 5, the first subparagraph is replaced by the following:

‘Monitoring and reporting shall be complete and cover all process and combustion emissions from all emission sources and source streams belonging to activities listed in Annex I to Directive 2003/87/EC and other relevant activities included pursuant to Article 24 of that Directive, as well as associated activities included in the boundaries of the installation, and of all greenhouse gases specified in relation to those activities, while avoiding double-counting.’;

• (5) in Article 6, paragraph 3 is inserted:

‘3.   Aircraft operators shall obtain, record, compile, analyse and document monitoring data, including assumptions, references, activity data and calculation factors, in a transparent manner that enables the reproduction of the determination of non-CO2 aviation effects per flight by the verifier and the competent authority.’

;

• (6) Article 8 is replaced by the following:

‘Article 8

Operators and aircraft operators shall enable reasonable assurance of the integrity of emission and non-CO2 aviation effects data to be reported. They shall determine emissions and non-CO2 aviation effects using the appropriate monitoring methodologies set out in this Regulation.

Reported emissions and non-CO2 aviation effects data and related disclosures shall be free from material misstatement as defined in Article 3(6) of Commission Implementing Regulation (EU) 2018/2067[^ntr*1-L_202402493EN.000101-E0010], avoid bias in the selection and presentation of information, and provide a credible and balanced account of an installation’s or aircraft operator’s emissions and non-CO2 aviation effects.

In selecting a monitoring methodology, the improvements from greater accuracy shall be balanced against additional costs. Monitoring and reporting shall aim for the highest achievable accuracy, unless this is technically not feasible or incurs unreasonable costs.

[^ntr*1-L_202402493EN.000101-E0010]: Commission Implementing Regulation (EU) 2018/2067 of 19 December 2018 on the verification of data and on the accreditation of verifiers pursuant to Directive 2003/87/EC of the European Parliament and of the Council (OJ L 334, 31.12.2018, p. 94, ELI: http://data.europa.eu/eli/reg_impl/2018/2067/oj)).’;"

• (7) in Article 11(1), the first subparagraph is replaced by the following:

‘1.   Each operator or aircraft operator shall monitor greenhouse gas emissions, and non-CO2 aviation effects, on the basis of a monitoring plan approved by the competent authority in accordance with Article 12 of this Regulation, taking into account the nature and functioning of the installation or aviation activity to which it applies.’

;

• (8) in Article 14(2), the following point (aa) is inserted:

• ‘(aa) non-CO2 aviation effects occur due to new activities carried out;’;

• (9) Article 15(4) is amended as follows:

• (a) the introductory sentence of paragraph (4) and the introductory sentence of point (a) are replaced by the following:

‘4.   Significant modifications to the monitoring plans of an aircraft operator include:

• (a) with regard to emissions:’

;

• (b) point (a)(iv) is replaced by the following:

• ‘(iv) changes in the status of the aircraft operator as a small emitter within the meaning of Article 55(1) of this Regulation and whether the aircraft operator intends to use the simplification pursuant to Article 28a(4) of Directive 2003/87/EC.’;

• (c) point (b) is inserted:

• ‘(b) with regard to the non-CO2 aviation effects:

• (i) (a change in the CO2(e) calculation approach selected, as laid down in Article 56a(4) of this Regulation, notably in terms of IT tools to apply the CO2(e) calculation models;

• (ii) changes in the status of the aircraft operator as a small emitter within the meaning of Article 55(1) of this Regulation.’;

• (10) in Article 18(2), second subparagraph, Article 19(2), points (a), (b) and (c), Article 19(5), Article 38(1) and Article 47(2), points (a) and (b), the term “biomass” is replaced by “zero-rated carbon”.

• (11) in Article 19, paragraph 6 is deleted.

• (12) Article 24 is amended as follows:

• (a) paragraph 1 is replaced by the following:

‘1.   Under the standard methodology, the operator shall calculate combustion emissions of each source stream by multiplying the activity data related to the amount of fuel combusted, expressed as terajoules based on net calorific value (NCV), by the corresponding emission factor, expressed as tonnes of CO2 per terajoule (t CO2/TJ) consistent with the use of NCV, and the corresponding oxidation factor.’

;

• (b) the following paragraph 1a is inserted:

‘1a.   For the purpose of reporting memo-items, the operator shall also calculate for each source stream combusted and for fuels used as process input the following parameters which are defined by these calculations:

• (i) the total preliminary emissions shall be calculated by multiplying the activity data related to the amount of fuel combusted, expressed as tonnes or normal cubic metres, by the corresponding preliminary emission factor and the corresponding oxidation factor;

• (ii) biomass emissions shall be calculated by multiplying the total preliminary emissions by the biomass fraction;

• (iii) zero-rated biomass emissions shall be calculated by multiplying the total preliminary emissions by the zero-rated biomass fraction;

• (iv) emissions from RFNBO, RCF or synthetic low-carbon fuels shall be calculated by multiplying the total preliminary emissions by the RFNBO or RCF fraction or the synthetic low-carbon fraction;

• (v) emissions from zero-rated RFNBO, RCF or synthetic low-carbon fuels shall be calculated by multiplying the total preliminary emissions by the zero-rated RFNBO or RCF fraction or the zero-rated synthetic low-carbon fraction;’

;

• (c) the following paragraph 2a is inserted:

‘2a.   For the purpose of reporting memo-items, the operator shall also calculate for each source stream relating to process emissions the following parameters which are defined by these calculations:

• (i) The total preliminary emissions shall be calculated by multiplying the activity data related to the material consumption, throughput or production output, expressed in tonnes or normal cubic metres, by the corresponding emission factor, expressed in t CO2/t or t CO2/Nm³, and the corresponding conversion factor;

• (ii) Biomass emissions shall be calculated by multiplying the total preliminary emissions by the relevant biomass fraction;

• (iii) Zero-rated biomass emissions shall be calculated by multiplying the total preliminary emissions by the relevant zero-rated biomass fraction.’

;

• (13) Article 25 is amended as follows:

• (a) paragraph 1 is replaced by the following:

‘1.   Under the mass balance methodology, the operator shall calculate the quantity of CO2 corresponding to each source stream included in the mass balance by multiplying the activity data related to the amount of fuel, material or CO2 transferred entering or leaving the boundaries of the mass balance, with the fuel’s, material’s or CO2 transfer’s carbon content multiplied by its fossil fraction and by 3,664 t CO2/t C, applying Section 3 of Annex II to this Regulation.’

;

• (b) the following paragraph 1a is inserted:

‘1a.   For the purpose of reporting memo-items, the operator shall also calculate for each source stream covered by the mass balance the following parameters which are defined by these calculations:

• (i) The total preliminary quantity of CO2 shall be calculated by multiplying the activity data related to the amount of fuel or material entering or leaving the boundaries of the mass balance, with the fuel’s or material’s carbon content and by 3,664 t CO2/t C;

• (ii) The quantity of CO2 relating to biomass shall be calculated by multiplying the total preliminary quantity of CO2 by the biomass fraction;

• (iii) The quantity of CO2 relating to zero-rated biomass shall be calculated by multiplying the total preliminary quantity of CO2 by the zero-rated biomass fraction;

• (iv) If applicable, the quantity of CO2 relating to RFNBO, RCF or synthetic low-carbon fuels shall be calculated by multiplying the total preliminary quantity of CO2 by the RFNBO or RCF fraction or the synthetic low-carbon fraction;

• (v) If applicable, the quantity of CO2 relating to zero-rated RFNBO, RCF or synthetic low-carbon fuels shall be calculated by multiplying the total preliminary quantity of CO2 by the zero-rated RFNBO or RCF fraction or the zero-rated synthetic low-carbon fraction.’

;

• (c) the following paragraph 3 is inserted:

‘3.   Where the operator uses a mass balance in accordance with this Article, and zero-rated carbon is contained in input materials or fuels, and output materials contain carbon, the operator shall provide to the competent authority data on the zero-rated fraction of the carbon content of the output streams. The operator shall thereby provide evidence that the installation’s total emissions are not systematically underestimated by the applied monitoring methodology and that the total mass of carbon corresponding to the zero-rated carbon fractions of the carbon contained in all relevant output materials, is not lower than the total mass of zero-rated fractions of the carbon contained in input materials and fuels.

For the purpose of the first subparagraph, Article 39, paragraphs 3 and 4 shall apply regarding the zero-rated biomass fraction of biogas and natural gas used as input.’

;

• (14) Article 30 is amended as follows:

• (a) in paragraph 2, the last subparagraph is deleted.

• (b) the following paragraphs 2a and 3 are inserted:

‘2a.   The operator shall determine the biomass fraction only for mixed fuels or materials containing biomass. For other fuels or materials, the default value of 0 % for the biomass fraction of fossil fuels or materials shall be used, and a default value of 100 % biomass fraction for biomass fuels or materials consisting exclusively of biomass.

The operator shall determine the RFNBO or RCF fraction or the synthetic low-carbon fraction only for mixed fuels containing RFNBOs, RCFs or synthetic low-carbon fuels. For other fuels the default value of 0 % for the RFNBO or RCF fraction or the synthetic low-carbon fraction shall be used, and a default value of 100 % RFNBO or RCF fraction or synthetic low-carbon fraction for fuels consisting exclusively of RFNBOs, RCFs or synthetic low-carbon fuels.

The operator shall determine the zero-rated biomass fraction, zero-rated RFNBO or RCF fraction and zero-rated synthetic low-carbon fraction only where the operator wants to make use of zero-rating.

1. Regarding the interdependency of composition-related calculation factors, the operator shall apply the following rules:

• (i) Where a fuel or material contains biomass, the operator shall determine the biomass fraction in accordance with Article 39 of this Regulation.

• (ii) Where the biomass fraction is not zero and where the operator wants to make use of zero-rating, the operator shall determine the zero-rated biomass fraction in accordance with Article 38(5) of this Regulation.

• (iii) Where a fuel contains an RFNBO, RCF or synthetic low-carbon fuel, the operator shall determine the RFNBO or RCF fraction or the synthetic low-carbon fraction in accordance with Article 39a(1) and (2) of this Regulation.

• (iv) Where the RFNBO or RCF fraction is not zero and where the operator wants to make use of zero-rating, the operator shall determine the zero-rated RFNBO or RCF fraction in accordance with Article 39a(3) of this Regulation.

• (v) Where the synthetic low-carbon fraction is not zero and where the operator wants to make use of zero-rating, the operator shall determine the zero-rated synthetic low-carbon fraction in accordance with Article 39a(4) of this Regulation.

• (vi) Where the zero-rated biomass fraction, the zero-rated RFNBO or RCF fraction or the zero-rated synthetic low-carbon fraction are not zero, the operator shall calculate the zero-rated fraction as the sum of zero-rated biomass fraction, zero-rated RFNBO or RCF fraction and zero-rated synthetic low-carbon fraction. The fossil fraction is the sum of all non-zero-rated fractions.

• (vii) The operator shall calculate the emission factor as the preliminary emission factor multiplied by the fossil fraction.

For the purpose of point (vi), where the operator does not calculate the zero-rated fraction, the fossil fraction shall be 100 %.

By way of derogation from the first subparagraph, the operator may:

• (i) determine the biomass fraction as identical to the zero-rated biomass fraction, if the latter is determined based on the mass balance pursuant to Article 30(1) of Directive (EU) 2018/2001;

• (ii) determine the RFNBO or RCF fraction as identical to the zero-rated RFNBO or RCF fraction, if the latter is determined based on the mass balance pursuant to Article 30(1) of Directive (EU) 2018/2001;

• (iii) determine the synthetic low-carbon fraction as identical to the zero-rated synthetic low-carbon fraction, if the latter is determined based on the mass balance pursuant to Article 30(1) of Directive (EU) 2018/2001.’

;

• (15) in Article 37(2), the last subparagraph is replaced by the following:

‘Where mixed fuels are used, the operator shall provide evidence that application of points (a) or (b) of the first subparagraph does not lead to an underestimation of emissions.’;

• (16) in Section 2, the title of subsection 5 is replaced by the following:

‘ Treatment of biomass, synthetic low-carbon fuels, RFNBO and RCF ’;

• (17) Article 38 is amended as follows:

• (a) in paragraph 1, the last subparagraph is deleted;

• (b) in paragraph 2, the first subparagraph is deleted;

• (c) paragraph 4 is amended as follows:

• (i) the term ‘biomass fraction’ is replaced by ‘zero-rated biomass fraction’;

• (ii) the last subparagraph is deleted;

• (d) paragraph 5 is amended as follows:

• (i) the first subparagraph is replaced by the following:

‘Biofuels, bioliquids and biomass fuels shall fulfil the sustainability and the greenhouse gas emissions saving criteria laid down in paragraphs 2 to 7 and 10 of Article 29 of Directive (EU) 2018/2001, in order to be counted towards the zero-rated biomass fraction of a source stream.’;

• (ii) the sixth subparagraph is replaced by the following:

‘The compliance with the criteria laid down in paragraphs 2 to 7 and 10 of Article 29 of Directive (EU) 2018/2001 shall be assessed in accordance with Articles 30 and 31(1) of that Directive. The criteria may also be considered complied with if the operator provides evidence for a purchase of a quantity of biofuel, bioliquid or biogas connected to the cancellation of the respective quantity in the Union Database set up pursuant to Article 31a or a national database set up by the Member State in accordance with Article 31a(5) of that Directive. In case of subsequent non-compliance regarding the proof of sustainability of the quantities cancelled in the aforementioned databases, the competent authority shall correct the verified emissions accordingly.’;

• (iii) the seventh subparagraph is replaced by the following:

‘Where the biomass used does not comply with this paragraph, its carbon content shall be considered as fossil carbon.’;

• (iv) the following eighth subparagraph is inserted:

‘Where according to the first to sixth subparagraphs of this paragraph, the criteria laid down in paragraphs 2 to 7 and 10 of Article 29 of Directive (EU) 2018/2001 do not apply to biomass, the zero-rated biomass fraction equals its biomass fraction.’;

• (18) Article 39 is amended as follows:

• (a) paragraph 1 is replaced by the following:

‘1.   For fuels or materials containing biomass, the operator may either assume the absence of biomass and apply a default biomass fraction of 0 % or determine a biomass fraction in accordance with paragraph 2, applying tiers as defined in Section 2.4 of Annex II to this Regulation.’

;

• (b) in paragraph 2, the second subparagraph is replaced the following:

‘Where, subject to the tier level required, the operator has to carry out analyses to determine the biomass fraction, but the application of the first subparagraph is technically not feasible or would incur unreasonable costs, the operator shall submit an alternative estimation method to determine the biomass fraction to the competent authority for approval. For fuels or materials originating from a production process with defined and traceable input streams, the operator may base the estimation on a material balance of fossil and biomass carbon entering and leaving the process.’;

• (c) paragraph 2a is deleted.

• (d) paragraph 3 is amended as follows:

• (i) in the first subparagraph, the reference to “Article 43(4)” is replaced by “Article 43(4b)”.

• (ii) the second subparagraph is replaced by the following:

‘The operator may determine that a certain quantity of natural gas from the gas grid is zero-rated biogas by using the methodology set out in paragraph 4. In this case, by way of derogation from Article 30(3), the operator shall consider the biomass fraction to be identical to the zero-rated biomass fraction.’;

• (e) paragraph 4 is amended as follows:

• (i) the first subparagraph is replaced by the following:

‘4.   The operator may determine the biomass fraction and identical zero-rated biomass fraction of biogas using purchase records of biogas of equivalent energy content, provided that the operator provides evidence to the satisfaction of the competent authority that:’

;

• (ii) the last subparagraph is replaced by:

‘For the purpose of demonstrating compliance with this paragraph, the operator may use the data recorded in a database set up by one or more Member States which enables tracing of transfers of biogas. Compliance with this paragraph may be considered demonstrated if the operator provides evidence for a purchase of a quantity of biogas connected to the cancellation of the respective quantity in the Union Database set up pursuant to Article 31a of Directive (EU) 2018/2001 or a national database set up by the Member States in accordance with Article 31a(5) of that Directive. In case of subsequent non-compliance regarding the proof of sustainability of the quantities cancelled in the aforementioned databases, the competent authority shall correct the verified emissions accordingly.’;

• (19) the following Article 39a is inserted:

‘Article 39a

Determination of RFNBO or RCF or synthetic low-carbon fraction and zero-rated RFNBO or RCF or synthetic low-carbon fraction

1. For fuels or materials containing RFNBOs, RCFs or synthetic low-carbon fuels for which the operator cannot determine the RFNBO or RCF fraction or synthetic low-carbon fraction in accordance with paragraph 2, the operator shall assume the absence of RFNBO, RCF or synthetic low-carbon fuel and apply a default RFNBO or RCF fraction or synthetic low-carbon fraction of 0 %.

1. The operator shall determine the following calculation factors relating to the composition of fuels based on the mass balance pursuant to Article 30(1) of Directive (EU) 2018/2001:

• (i) the zero-rated RFNBO or RCF fraction or zero-rated synthetic low-carbon fraction;

• (ii) the RFNBO or RCF fraction or synthetic low-carbon fraction.

By way of derogation from the first subparagraph, if the operator does not want to make use of zero-rating, for the RFNBO or RCF fraction or the synthetic low-carbon fraction other approaches may be used such as a material balance of the blending or production process from which the fuel or material is obtained.

1. The carbon content of fuels qualifying as RFNBOs or RCFs under Directive (EU) 2018/2001 that comply with the greenhouse gas emissions saving criteria laid down in Article 29a of that Directive, shall be considered zero-rated.

The compliance with the criteria laid down in Article 29a of Directive (EU) 2018/2001 is to be assessed in accordance with Articles 30 and 31(1) of that Directive. The criteria may also be considered complied with if the operator provides evidence for a purchase of a quantity of RFNBOs or RCFs connected to the cancellation of the respective quantity in the Union Database set up pursuant to Article 31a of Directive (EU) 2018/2001, or a national database set up by the Member States in accordance with Article 31a(5) of that Directive. In case of subsequent non-compliance regarding the proof of sustainability of the quantities cancelled in the aforementioned databases, the Competent Authority shall correct the verified emissions accordingly.

Where the RFNBO or RCF does not comply with the criteria referred to in the first subparagraph, its carbon content shall be considered as fossil carbon.

1. Synthetic low-carbon fuels shall be zero-rated when their carbon content has been subject to the prior surrendering of allowances under Directive 2003/87/EC, unless that captured carbon is zero-rated carbon as defined in Article 3(38f) of this Regulation.

The compliance with the criteria laid down in Article 29a(3) of Directive (EU) 2018/2001 is to be assessed in accordance with Articles 30 and 31(1) of that Directive. The criteria may also be considered complied with if the operator provides evidence for a purchase of a quantity of synthetic low-carbon fuels connected to the cancellation of the respective quantity in the Union Database set up pursuant to Article 31a of Directive (EU) 2018/2001, or a national database set up by the Member State in accordance with Article 31a(5) of that Directive. In case of subsequent non-compliance regarding the proof of sustainability of the quantities cancelled in the aforementioned databases, the Competent Authority shall correct the verified emissions accordingly.

In any other cases, the carbon content of synthetic low-carbon fuels shall be considered as fossil carbon.

1. The operator may determine the RFNBO or RCF fraction and identical zero-rated RFNBO or RCF fraction of natural gas where such fractions have been injected into a natural gas grid using purchase records of RFNBO or RCF of equivalent energy content, provided that the operator provides evidence to the satisfaction of the competent authority that:

• (a) there is no double counting of the same RFNBO or RCF quantity, in particular that the RFNBO or RCF purchased is not claimed to be used by anyone else, including through a disclosure of a guarantee of origin as defined in Article 2(12) of Directive (EU) 2018/2001;

• (b) the operator and the producer of the RFNBO or RCF are connected to the same gas grid.

Compliance with this paragraph may be considered demonstrated if the operator provides evidence for a purchase of a quantity of gaseous RFNBO or RCF connected to the cancellation of the respective quantity in the Union Database set up pursuant to Article 31a of Directive (EU) 2018/2001, or a national database set up by the Member States in accordance with Article 31a(5) of that Directive. In case of subsequent non-compliance regarding the proof of sustainability of the quantities cancelled in the aforementioned databases, the competent authority shall correct the verified emissions accordingly.’

;

• (20) Article 43 is amended as follows:

• (a) paragraph 4 is amended as follows:

• (i) the first subparagraph is replaced by the following:

‘4.   Where relevant, the operator shall determine separately any CO2 amount stemming from biomass. For this purpose, the operator may use:’

;

• (ii) the last subparagraph is replaced by the following:

‘Where the method proposed by the operator involves continuous sampling from the flue gas stream, EN 15259 (Air quality — Measurement of stationary source emissions — Requirements for measurement sections and sites and for the measurement objective, plan and report) shall be applied. The sampling plan pursuant to Article 33 shall be commensurate with the frequency of analysis in accordance with Annex VII to this Regulation and ensure representativeness to cover the whole reporting year.’;

• (b) the following paragraphs 4a, 4b and 4c are inserted:

‘4a.   The operator shall use the biomass fraction determined in accordance with paragraph 4 as the zero-rated biomass fraction, if the following conditions are fulfilled for all fuels or materials leading to emissions to which the measurement-based methodology is applied:

• (i) according to the first to sixth subparagraphs of Article 38(5) of this Regulation, the criteria laid down in paragraphs 2 to 7 and 10 of Article 29 of Directive (EU) 2018/2001 do not apply; or

• (ii) 100% of the biomass fraction of the used fuel or material are covered by the evidence relevant according to Article 38(5) of this Regulation.

The condition (ii) shall be deemed fulfilled for biogas monitored in accordance with Article 39(4) of this Regulation.

Where conditions (i) and (ii) are not fulfilled for fuels or materials leading to emissions to which the measurement-based methodology is applied, the operator shall determine the zero-rated biomass fraction for these fuels or materials using a calculation-based approach in accordance with Articles 24 to 39a of this Regulation.

4b.   The operator may deduct from the total emissions of the emission source the emissions from zero-rated biomass determined in accordance with paragraph 4a of this Article.

Where the method proposed by the operator for the determination of the zero-rated biomass fraction involves continuous sampling from the flue gas stream and the installation consumes natural gas from the grid, the operator shall determine the physical CO2 amount of the biogas used in accordance with Articles 32 to 35 of this Regulation and deduct the respective CO2 amount from the zero-rated CO2 determined in accordance with paragraph 4a of this Article.

4c.   Where the operator uses zero-rated RFNBOs, RCFs or synthetic low-carbon fuels in a process for which the measurement-based methodology is applied, the operator may deduct from the total emissions the emissions from zero-rated RFNBOs, RCFs or synthetic low-carbon fuels.

The emissions from zero-rated RFNBOs, RCFs or synthetic low-carbon fuels shall be determined using a calculation-based approach in accordance with Articles 24 to 39a of this Regulation. They shall equal the activity data of the relevant fuel multiplied by the preliminary emission factor and the zero-rated RFNBO or RCF fraction or the zero-rated synthetic low-carbon fraction.’

;

• (c) in paragraph 5, point (a) is replaced by the following:

• ‘(a) calculation by means of a suitable material balance, taking into account all significant parameters on the input side, including for CO2 emissions at least input material loads, input airflow and process efficiency, and on the output side, including at least the product output and the concentration of oxygen (O2), sulphur dioxide (SO2) and nitrogen oxides (NOx)’;

• (21) in Article 44(1), the first subparagraph is replaced by the following:

‘1.   The operator shall calculate hourly averages for each parameter, including concentrations and flow, relevant for determining emissions or amounts of CO2 transferred, using a measurement-based methodology by using all data points available for that specific hour.’

;

• (22) in Article 46 and in Annex I, Section 1, points (7)(a), (b) and (c), the term “transport network” is replaced by “CO2 transport infrastructure”.

• (23) in Article 47(2), the last subparagraph is deleted.

• (24) Article 48 is amended as follows:

• (a) in paragraph 2, the first subparagraph is replaced by the following:

‘2.   Where inherent CO2 originates from activities covered by Annex I to Directive 2003/87/EC or included pursuant to Article 24 of that Directive and is subsequently transferred out of the installation as part of a source stream to another installation and activity covered by that Directive, it shall not be counted as emissions of the installation where it originates. For the determination of the zero-rated biomass fraction, zero-rated RFNBO or RCF fraction or zero-rated synthetic low-carbon fraction of the inherent CO2 in accordance with Article 39 of this Regulation, the operator of the transferring installation shall ensure the chosen monitoring methodology does not systematically underestimate the transferring installation’s total emissions.’

;

• (b) in paragraph 3, the first subparagraph is replaced by the following:

‘3.   The operators may determine quantities of inherent CO2 transferred out of the installation both at the transferring and at the receiving installation. In that case, the quantities of respectively transferred and received inherent CO2 and the corresponding zero-rated biomass fraction, zero-rated RFNBO or RCF fraction and zero-rated synthetic low-carbon fraction shall be identical.’

;

• (25) Article 49 is amended as follows:

• (a) paragraph 1 is replaced by the following:

‘1.   The operator shall subtract from the emissions of the installation any amount of CO2 originating from the activities covered by Annex I to Directive 2003/87/EC that does not originate from zero-rated carbon and that is not emitted from the installation, but transferred out of the installation to any of the following installations:

• (i) a capture installation for the purpose of transport and long-term geological storage in a storage site permitted under Directive 2009/31/EC;

• (ii) a CO2 transport infrastructure with the purpose of long-term geological storage in a storage site permitted under Directive 2009/31/EC;

• (iii) a storage site permitted under Directive 2009/31/EC for the purpose of long-term geological storage.’

;

• (b) paragraphs 3 and 4 are replaced by the following:

‘3.   For the determination of the quantity of CO2 transferred from one installation or CO2 transport infrastructure to another installation or CO2 transport infrastructure in accordance with paragraph 1, the operator shall apply, subject to the further provisions set out in Annex IV to this Regulation, either a calculation-based methodology, or a measurement-based methodology, in accordance with Articles 43, 44 and 45 of this Regulation.

Where the measurement-based methodology is applied the emission source shall correspond to the measurement point and the emissions shall be expressed as the quantity of CO2 transferred.