Scope:

Evaluation of Regulation (EC) No 1005/2009 on substances that deplete the ozone layer

Which objective(s) did the Commission pursue?

The Regulation was proposed in order to establish a simplified system of annual verification and accreditation of CO2 emissions, drawing on national best practices. This system aims to apply a consistent approach based on internationally agreed standards and a proportionate basis including the possibility to reduce as much as possible the number of site visits without affecting the robustness of the verifier's opinion.

To this end, the Regulation defines conditions for waiving the necessity of site visits to certain installations. It mainly concerns installations:

• Analysed through a risk analysis and where all relevant data can be remotely accessed by the verifier

• With low emissions, i.e. emitting less than 25 000 tonnes of CO₂ per annum

• With straightforward processes and systems

This Commission Regulation lays down provisions for the verification of emissions reports submitted pursuant to the EU Emissions Trading System (Directive 2003/87/EC) and for the accreditation and supervision of verifiers.

Estimated savings and benefits

The cost of verification varies greatly depending on the relative wealth of the country (affecting the wages and other costs), the scale of emissions and the size and complexity of the installation concerned. Due to the limited availability of data, the savings could not be quantified. A study commissioned by the European Commission in 2016 estimates the average cost of verification, for EU ETS operators to be ca. €6 800 per installation. The verification system adds credibility to reported data and reduces the costs that would otherwise be incurred by the Member States (the need for them to validate data, systems and carry out site inspections).

Implementation reported by Member States

Information is available on the implementation of Commission Regulation (EU) No 600/2012, which was applicable from 1 January 2013 to 31 December 2018, followed by Implementing Regulation (EU) 2018/2067 from 1 January 2019. As most of the substantive requirements of Regulation 600/2012 remain in Regulation 2018/2067, implementation of Regulation 600/2012 is also relevant.

All installations benefit from the risked-based approach forming the basis of the Commission Regulation.

The Member States are only required to approve the verifier's decision not to carry out a site visit in the case of larger installations. All small emitters (60% of all installations) may waive site visits simply based on the verifier's professional recommendation. Since 2014, the data reported by aircraft operators with emissions lower than 25 000 tonnes CO₂ per annum, provided by Eurocontrol from the ETS support facility, can automatically be considered verified without further involvement of a third party verifier.

The Commission, in consultation with the Member States regularly updates its templates and guidance documents with a view to continual improvement of the cost-effectiveness of the system, minimising costs for operators and Member States.

From January 2017, the Commission worked with Member States to further simplify and clarify Commission Regulation (EU) No 600/2012, and to set the legal framework for verification of a new set of data, requested under the Emission Trading System Directive. As a consequence, Commission Regulation (EU) No 600/2012 was repealed and replaced by 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. From February 2019, the Commission worked further with Member States to amend Commission Implementing Regulation (EU) 2018/2067, in order to align it with the updates of relevant internationally agreed standards, to further strengthen impartiality of the verifiers, and to adapt site visits requirement to the potential impact of the COVID19 pandemic.

Estimated savings and benefits

The main benefit of verification is the additional confidence provided by independent endorsement of the quality of reported data (and consequently the accuracy in the number of allowances that need to be surrendered). This is particularly important for a system driven by the need to consider financial as well as environmental savings.

The Regulation reduces the costs of verification for Member States and for EU ETS operators through a proportionate approach and a reduced number of site visits. The specific cost savings differ from year to year and from operator to operator. It is therefore difficult to estimate a cost average.