Title IIA, Chapter 2, Article 59x · Commission Delegated Regulation (EU) 2019/1122

Contents

Article 59xTransfers of LRUs and AEAs between the Member State LULUCF Compliance Accounts and the ESR Compliance Accounts#

1.The central administrator shall ensure that the Union Registry identifies and displays, in the LULUCF Compliance Account of the Member State holding LRUs, the quantity of LRUs eligible for transfer to the ESR Compliance Account of that Member State by subtracting the LRUs that are not eligible for transfers under Article 59w(3) from the total quantity of LRUs in the same Compliance Account.

2.The central administrator shall ensure that, upon request of a Member State holding LRUs, the Union Registry transfers a requested amount of eligible LRUs from the LULUCF Compliance Account of the requesting Member State to its ESR Compliance Account. Such transfers shall only be carried out in accordance with the conditions laid down in Article 59k.

3.Where, in the first LULUCF compliance period, the balance of the Member State LULUCF Compliance Account calculated pursuant to Article 59u is negative, the central administrator shall ensure that, upon request of that Member State, the Union Registry transfers a requested quantity of AEAs from the ESR Compliance Account for a given year of the requesting Member State to its LULUCF Compliance Account. Such transfers shall not be carried out in any of the following cases:

(b)the Member State’s request is submitted more than three months after the calculation of the balance of the Member State LULUCF Compliance Account for the given period;

(c)the status of the ESR Compliance Account does not allow such transfer.

4.Where, in the second LULUCF compliance period, the sum of the Member State LULUCF Compliance Account calculated pursuant to Article 59u is below the target set in Column C of Annex IIA to Regulation (EU) 2018/841 for that Member State, or is below the budget set for that Member State, the central administrator shall ensure that, upon request of that Member State, the Union Registry transfers a requested quantity of AEAs from the ESR Compliance Account for a given year of the requesting Member State to its LULUCF Compliance Account. Such transfers shall not be carried out in any of the following cases:

(a)the Member State concerned has requested to transfer an amount of AEAs that exceeds the amount needed to bring the balance of the LULUCF Compliance Account calculated pursuant to Article 59u in line with the target set in Column C of Annex IIa to Regulation (EU) 2018/841 for that Member State or in line with the budget as referred to in Article 4(4) of Regulation (EU) 2018/841;

(b)the Member State’s request is submitted more than three months after the calculation of the balance of the Member State LULUCF Compliance Account for the given period;

(c)the status of the ESR Compliance Account does not allow such transfer.

5.The central administrator shall ensure that AEAs transferred in accordance with paragraphs 3 and 4 of this Article are only used for the purpose of fulfilling the Member State’s obligations under Article 4(1), (3) and (4) of Regulation (EU) 2018/841 and that those transfers are reflected in the EU LULUCF Compliance Account. The Union Registry shall block any subsequent transfer of AEAs from the LULUCF Compliance Account of the receiving Member State to the LULUCF Compliance Accounts of other Member States.

6.Where a Member State intends to make use of the flexibility referred to in Article 12(1) of Regulation (EU) 2018/841, such request shall be submitted within three months following the publication of the implementing act referred to in Article 38(4) of Regulation (EU) 2018/1999.

Defined terms · 32

Show every defined term

account holder
means a natural or legal person that holds an account in the Union Registry;
account information
means all information necessary to open an account or register a verifier, including all information on representatives assigned to them;
additional flexibility allocation unit for Finland
(‘AFAF’) means a subdivision of a maximum compensation amount available to Finland in the first LULUCF compliance period under the additional compensation for Finland, as determined in Article 13a of Regulation (EU) 2018/841, equal to one tonne of carbon dioxide equivalent;
annual emission allocation unit
means a subdivision of a Member State's annual emission allocation determined pursuant to Article 4(3) and Article 10 of Regulation (EU) 2018/842 equal to 1 tonne of carbon dioxide equivalent;
aviation allowances
means allowances created pursuant to Articles 3c and 3d of Directive 2003/87/EC that were issued before 1 January 2025 and allowances, created for the same purpose, stemming from emission trading systems that are linked to the EU ETS under Article 25 of that Directive;
central administrator
means the person designated by the Commission pursuant to Article 20 of Directive 2003/87/EC;
central counterparty
means central counterparty as defined in Article 2(1) of Regulation (EU) No 648/2012 of the European Parliament and of the Council;
competent authority
means the authority or authorities designated by a Member State pursuant to Article 18 of Directive 2003/87/EC;
deletion
means the definitive disposal of an allowance by its holder without accounting it against verified emissions;
directors
means the persons discharging managerial responsibilities as defined in Article 3(1) point (25) of Regulation (EU) No 596/2014;
execution
means the finalisation of a process proposed for execution that may result in completion if all conditions are fulfilled or in termination;
first LULUCF compliance period
means the five-year period, from 1 January 2021 to 31 December 2025, during which the Member States are to account for emissions and removals of the greenhouse gasses occurring in the land accounting categories referred to in Article 2(1) of Regulation (EU) 2018/841;
general allowances
means allowances created pursuant to Chapter III of Directive 2003/87/EC, including allowances stemming from emission trading systems that are linked with the EU ETS pursuant to Article 25 of that Directive, and allowances created pursuant to Articles 3c and 3d of that Directive that were issued after 1 January 2025;
group
means group as defined in Article 2(11) of Directive 2013/34/EU;
land removal unit
(‘LRU’) means a removal in excess in a Member State calculated as the difference between the accounted or reported emissions and removals prior to the use of any flexibilities, compared with the commitment or with the target determined for that Member State equal to one tonne of carbon dioxide equivalent;
land use flexibility allocation unit
(‘LUFA’) means a subdivision of a maximum compensation amount available to the Member States in the second LULUCF compliance period under the land use flexibility mechanism, as determined in Article 13b of Regulation (EU) 2018/841 and Annex VII to that Regulation, equal to one tonne of carbon dioxide equivalent.
managed forest land flexibility allocation unit
(‘MFLFA’) means a subdivision of a maximum compensation amount available to the Member States in the first LULUCF compliance period under the managed forest land flexibility, as determined in Article 13 of Regulation (EU) 2018/841 and Annex VII to that Regulation, equal to one tonne of carbon dioxide equivalent;
money laundering
means money laundering as defined in Article 1(3) of Directive (EU) 2015/849;
national administrator
means the entity responsible for administering on behalf of a Member State a set of user accounts under the jurisdiction of a Member State in the Union Registry, designated in accordance with Article 7;
operator accounts
means stationary installation holding accounts, aircraft operator holding accounts, maritime operator holding accounts and regulated entity holding accounts;
operators
means stationary installations, aircraft operators, shipping companies and regulated entities;
parent undertaking
means parent undertaking as defined in Article 2(9) of Directive 2013/34/EU of the European Parliament and of the Council;
process
means an automated technical means to carry out an action relating to an account or a unit in the Union Registry;
regulated entity allowances
means allowances created pursuant to Chapter IVa of Directive 2003/87/EC;
second LULUCF compliance period
means the five-year period from 1 January 2026 to 31 December 2030 during which Member States are to report for the emissions and removals of the greenhouse gases occurring in the land reporting categories or sectors referred to in Article 2(2) of Regulation (EU) 2018/841;
serious crime
means serious crime as defined in Article 3(4) of Directive (EU) 2015/849;
subsidiary undertaking
means subsidiary undertaking as defined in Article 2(10) of Directive 2013/34/EU;
surrender
means the accounting of an allowance by an stationary installation, an aircraft operator, a shipping company or a regulated entity against the verified emissions of its installation, aircraft, or ship or against fuel released for consumption;
terrorist financing
means terrorist financing as defined in Article 1(5) of Directive (EU) 2015/849;
transaction
means a process in the Union Registry that involves the transfer of an allowance, an annual emission allocation unit, a land removal unit, and a unit of any flexibility allocation as set out in Articles 13, 13a and 13b of Regulation (EU) 2018/841 from one account to another account;
verifier
means:
working day
means any day of the year from Monday to Friday;