Commission Delegated Regulation (EU) 2023/2904 as regards the functioning of the Union Registry

New Commission Delegated Regulation (EU) 2023/2904 as regards the operation of the Union Registry for emission allowances was published in the Official Journal (OJ) of the EU. The delegated regulation modifies Commission Delegated Regulation (EU) 2019/1122 on same issue primarily to bring maritime transport firms under the scope of the registry and to make targeted adjustments to reflect recent changes to the Directive on greenhouse gas emission allowance trading.
Specifically, the delegated regulation primarily modifies the 2019 delegated regulation to establish new rules addressing the inclusion of the maritime transport sector within the European Union Emissions Trading System (EU ETS) from January 1, 2024. Accordingly, such firms must be included in the Union Registry which is why the new delegated regulation sets out account opening, holding, and closing rules for maritime operators entering the scope of the EU ETS. In detail, the delegated regulation introduces detailed requirements for the information to be provided for opening maritime operator holding accounts, including specific data related to the shipowner, the organisation or person assuming responsibility for the operation of the ship, and the ships falling within the scope of the mandate. The regulation also allows for the use of digital tools to retrieve relevant information, provided that such tools are authorized under national law. Similarly, the regulation specifies the information to be provided for opening regulated entity holding accounts, including the identification of the account holder and the structure of the group, if the account holder is part of a group. Additionally, the delegated regulation introduces gradual emission allowance surrender requirements for shipping companies beginning in 2024 and provides for targeted exemptions from these obligations for certain types of emissions.
The delegated regulation also makes various other changes to the 2019 regulation, including the following, among others:
– Because a separate emissions trading system applies to fuels used in buildings, road transport, and additional industrial sectors not covered by the existing directive from January 1, 2027, the new delegated regulation also sets out rules for holding accounts and surrendering allowances for entities operating in these sectors.
– Furthermore, the regulation introduces new account types to accommodate third-country governments engaged in non-binding arrangements with the Union. These accounts enable such governments to manage and delete allowances acquired through Union markets. Similarly, it establishes separate accounts for Member States opting to exempt regulated entities subject to national carbon tax, allowing them to delete specific allowances related to combustion in designated sectors.
– The delegated regulation provides clarification as to the emission allowances for airplane operators before January 1, 2025 and thereafter.