Sectors Regulations, 2024

L.N. 313 of 2024

CLIMATE ACTION ACT

(CAP. 643)

European Union Greenhouse Gas Emissions Trading System for

Buildings, Road Transport and Additional

Sectors Regulations, 2024

IN EXERCISE of the powers conferred by article 27 of the

Climate Action Act, the Minister responsible for climate action policy

and the Minister responsible for justice, after consultation with the

Climate Action Authority, have made the following regulations:-

(1) The title of these regulations is the European Union

Greenhouse Gas Emissions Trading System for Buildings, Road

Transport and Additional Sectors Regulations, 2024.

(2) These regulations provide for the implementation in Malta

of the European Union system for greenhouse gas emissions allowance

trading established by Directive 2003/87/EC, for the activity listed in

Schedule 1 to these regulations. These regulations also transpose

Directive 2003/87/EC as amended by Directive (EU) 2023/959.

For the purposes of these regulations and unless the context

otherwise requires

"account holder" means a natural or legal person that holds

an account in the Union registry;

"Act" means the Climate Action Act;

"allowance" means an allowance to emit one (1) tonne of

carbon dioxide equivalent during a specific period, which shall

be valid for the purposes of meeting the requirements of these

regulations and shall be transferable in accordance with the

provisions of these regulations;

"auctioneer" means the Debt Management Directorate

within the Treasury Department appointed by the Government to

auction allowances on its behalf;

"authorised representatives" means the representatives,

nominated by an account holder in respect of an account in the

Union registry, to have access to that account and undertake

processes relating to that account on behalf of the account

holder;

"Authority" means the Climate

Action

Authority

established by article 9 of the Act;

"cancellation" means the definitive disposal of an

allowance by its holder or by the national registry administrator,

as may be applicable;

"combustion" means any oxidation of fuels, regardless of

the way the heat, electrical or mechanical energy produced by

this process is used;

"Commission" means the European Commission;

"confidential information" means any non-public

information deemed to be sensitive by the regulated entity and,

or, any privileged information falling within the scope of these

regulations, disclosed only for promoting and elaborating certain

purposes. It shall include, inter alia

(a) trade secrets;

(b) any other information having a commercial value

that would be, or could reasonably be expected to be,

destroyed or diminished if the information were disclosed;

or,

(c) information other than trade secrets or information

under paragraph (b) concerning a person, organisation or

undertaking in respect of their business, professional,

commercial or financial affairs;

"Decision (EU) 2015/1814" means Decision (EU) 2015/

1814 of the European Parliament and of the Council of 6 October

2015 concerning the establishment and operation of a market

stability reserve for the Union greenhouse gas emission trading

scheme and amending Directive 2003/87/EC;

"deviation" means, in respect of monitoring of annual

emissions, the use of a monitoring approach that is different, in

full or in part, from the approved monitoring and reporting plan,

which use is of a temporary nature;

"Directive 2003/87/EC" means 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;

"Directive (EU) 2023/959" means Directive (EU) 2023/959

of the European Parliament and of the Council of 10 May 2023

amending Directive 2003/87/EC establishing a system for

greenhouse gas emission allowance trading within the Union and

Decision (EU) 2015/1814 concerning the establishment and

operation of a market stability reserve for the Union greenhouse

gas emissions trading scheme;

"emissions" means the release of greenhouse gases

specified in respect of the activity listed in Schedule 1;

"EU ETS" means the European Union Emissions Trading

System established by Directive 2003/87/EC;

"fuel" means any energy product referred to in the Fourth

Schedule to the Excise Duty Act, including the fuels listed in the

said Schedule, as well as any other product intended for use,

offered for sale or used as motor fuel or heating fuel as specified

in the said Schedule, including for the production of electricity;

"greenhouse gases" means the gases listed in Schedule 2

and other gaseous constituents of the atmosphere, both natural

and anthropogenic, that absorb and re-emit infrared radiation;

"greenhouse gas emissions permit" means the permit issued

pursuant to regulation 6;

"person" means any natural or legal person;

"the public" means one or more persons, associations,

organisations or groups of persons;

"regulated entity" means any natural or legal person, except

for any final consumer of the fuels, that engages in the activity

listed to in Schedule 1 and that falls within one of the following

categories

(a) where the fuel passes through an authorised tax

warehouse as defined in article 2 of the Excise Duty Act,

the authorised tax warehouse keeper as defined in article 2

of the Excise Duty Act, liable to pay the excise duty which

has become chargeable pursuant to article 8 of the Excise

Duty Act;

(b) if paragraph (a) is not applicable, any other

person liable to pay the excise duty which has become

chargeable pursuant to article 8 of the Excise Duty Act or

the first subparagraph of Article 21(5) of Council Directive

2003/96/EC in respect of the fuels covered by Chapter IVa

of Directive 2003/87/EC;

(c) if paragraphs (a) and (b) are not applicable, any

other person that has to be registered by the Commissioner

for Revenue for the purpose of being liable to pay the

excise duty, including any person exempt from paying the

excise duty, as referred to in the fourth subparagraph of

Article 21(5) of Directive 2003/96/EC; and

(d) if paragraphs (a), (b) and (c) are not applicable,

or if several persons are jointly and severally liable for

payment of the same excise duty, any other person

designated by the Commissioner for Revenue;

"release for consumption" means release for consumption

as defined in article 2 of the Excise Duty Act;

"surrender" means the accounting of an allowance by a

regulated entity against the verified emissions of the regulated

entity;

"tonne of carbon dioxide equivalent" means one (1) metric

tonne of carbon dioxide (CO2) or an amount of any other

greenhouse gas listed in Schedule 2 with an equivalent global-

warming potential;

"Union" and "European Union" shall have the same

meaning as assigned to “the European Union” in the European Cap. 460.

Union Act;

"Union registry" means the registry established and

maintained in accordance with Article 19 of Directive 2003/87/

EC for the execution of processes pertaining to the maintenance

of holding accounts and the allocation, surrender and

cancellation of allowances;

"verifier" means a legal person or another legal entity

carrying out verification activities pursuant to these regulations

and accredited by a national accreditation body pursuant to

Regulation (EC) No 765/2008 of the European Parliament and of

the Council of 9 July 2008 setting out the requirements for

accreditation and market surveillance relating to the marketing

of products and repealing Regulation (EEC) No 339/93 and

relevant decisions and regulations adopted by the Commission

pursuant to Directive 2003/87/EC, or natural person otherwise

authorised, without prejudice to Article 5(2) of Regulation (EC)

765/2008, at the time a verification report is issued.

These regulations shall apply to regulated entities carrying

out the activity listed in Schedule 1 resulting in emissions of the

greenhouse gases specified in the said Schedule in respect of that

activity, and to any other relevant legal bodies on which these

regulations place any obligations.

(1) From 1 January 2025, no regulated entity shall carry

out the activity listed in Schedule 1 resulting in emissions specified in

relation to that activity unless such regulated entity holds a permit

issued by the Authority in accordance with regulation 6.

(2) Where a regulated entity carries out the activity listed in

Schedule 1 without holding a permit in accordance with sub-regulation

(1), the regulated entity shall be liable to the imposition of an

administrative penalty

(a) when emissions of a regulated entity during that year

are equal to, or less than fifty thousand (50,000) tonnes carbon

dioxide equivalents, of ten thousand euro (€10,000), and one

hundred euro (€100) for each day of non-compliance from the

date of a notice given by the Authority to the regulated entity;

(b) when emissions of a regulated entity during that year

are more than fifty thousand (50,000) tonnes of carbon dioxide

equivalents, of fifty thousand euro (€50,000), and three hundred

euro (€300) for each day of non-compliance from the date of a

notice given by the Authority to the regulated entity.

(3) For the purposes of determining the administrative penalty

under sub-regulation (2), when the emissions of the regulated entity

are not known or are not reported or where the Authority is satisfied

that there is no reasonable possibility that the quantity of emissions

shall be reported by the regulated entity, the Authority may determine

itself the emissions of that regulated entity. The Authority shall use the

best available data and ensure that a conservative estimate is made that

does not underestimate emissions. The regulated entity shall be liable

to the imposition of an administrative penalty equal to the amounts

established in sub-regulation (2) in respect of the quantity of emissions

estimated in accordance with this sub-regulation.

(4) A permit issued by the Authority in accordance with sub-

regulation (1) shall be valid for the duration of the performance of an

activity listed in Schedule 1 in respect of which the permit is issued,

unless the permit is surrendered in accordance with regulation 8 or

revoked in accordance with regulation 9.

(5) The Authority shall ensure that permits issued by it in

accordance with sub-regulation (1) shall be made publicly available.

(1) The regulated entity shall apply to the Authority for a Application for

greenhouse gas

greenhouse gas emissions permit.

emissions

permit.

(2) The regulated entity shall submit an application for a

greenhouse gas emissions permit. The application shall be submitted at

least one hundred and twenty (120) days before the commencement of

the activity listed in Schedule 1 in respect of which the application for

a permit is to be submitted, unless otherwise agreed in writing between

the applicant and the Authority or, in the case of a regulated entity that

already performs the activity listed in Schedule 1 before 1 January

2025, as early as possible before that date.

(3) An application made to the Authority for a greenhouse gas

emissions permit shall include, inter alia, the following

(a) information as may be requested by the Authority

about the regulated entity;

(b) a description of the type of fuels that the regulated

entity releases for consumption and which are used in the sectors

referred to in Schedule 1 and the means through which it releases

those fuels for consumption;

(c) a description of the end use of the fuels released for

consumption for the activity referred to in Schedule 1;

(d) a description of the measures planned to monitor and

report emissions in accordance with regulations 12 and 13;

(e) any other appropriate information requested by the

Authority;

(f) any other information that the applicant wants the

Authority to take into account when considering its application;

(g) a non-technical summary of the details referred to in

paragraphs (a) to (f) of this sub-regulation.

(1) The Authority shall issue a greenhouse gas emissions Issuance of a

permit granting authorization to the regulated entity for the activity greenhouse

emissions

listed in Schedule 1, if it is satisfied that the regulated entity is capable permit,

conditions for

of complying with the requirements of these regulations and the this and

conditions of the permit. A permit shall be issued within a period of contents

permit.

ninety (90) days from the date on which the Authority receives the

application containing a complete set of information in accordance

with sub-regulation (3) of regulation 5, unless otherwise agreed in

writing between the regulated entity and the Authority.

(2) The Authority shall, when issuing a greenhouse gas

emissions permit, ensure that the permit includes, inter alia, the

following

(a)

the name and address of the regulated entity;

(b) a description of the means by which the regulated

entity releases fuels for consumption in the sectors listed in

Schedule 1;

(c) a list of fuels that the regulated entity releases for

consumption in the sectors listed in Schedule 1;

(d) a reference to monitoring, reporting and verification

requirements including the requirement to have a monitoring

plan approved by the Authority;

(e) an obligation to report verified emissions of

greenhouse gases specified for the activity listed in Schedule 1

for each calendar year, within three (3) months following the end

of that calendar year;

(f) an obligation to surrender allowances equal to the

total emissions of the regulated entity from the activity listed in

Schedule 1 in each calendar year by 31st May of the following

calendar year;

(g) any other conditions that the Authority considers

appropriate to ensure compliance with the requirements of these

regulations.

(3) The Authority may, at any time, review a greenhouse gas

emissions permit issued to a regulated entity and make amendments to

the permit as deemed appropriate and issue an updated permit

Provided that the Authority shall inform the regulated

entity covered by the permit of such amendments as early as possible

prior to the issuance of an updated permit.

(4) The Authority may, at any time, vary the conditions of a

permit in such a manner as it may deem fit, and issue an updated

permit

Provided that it shall inform the regulated entity covered by

the permit of such variations as early as possible prior to the issuance

of an updated permit.

(1) A regulated entity to which a greenhouse gas Changes

relating to

emissions permit has been issued shall notify the Authority of

regulated

entities.

(a)

any change planned to the nature of its activity; or

(b) any change planned to the fuels it releases for

consumption

Provided that any such notification shall be made in writing

at least one hundred and twenty (120) days before such a change is

effectively to take place.

(2) The Authority shall, where appropriate, update the

greenhouse gas emissions permit accordingly, within a period of

ninety (90) days from the date on which the Authority receives a

notification in accordance with sub-regulation (1), unless otherwise

agreed in writing between the regulated entity and the Authority.

(3) Where there is a change in the identity of the regulated

entity, the Authority shall update the permit to include the name and

address of the new regulated entity

Provided that the Authority shall be notified by the

regulated entity, in writing, of the change in the identity of the

regulated entity at least sixty (60) days before such a change is

effectively to take place.

(4) A regulated entity that allows the coming into effect of

changes listed under sub-regulation (1) without notifying the Authority

of such changes in accordance with this regulation, shall be liable to

the imposition of an administrative penalty of five thousand euro

(€5,000).

(5) When a change in the name of the regulated entity comes

into effect without such a change having been notified to the Authority

in accordance with sub-regulation (3), the regulated entity shall be

liable to the imposition of an administrative penalty of one thousand

euro (€1,000).

(6) The Authority shall notify the national registry

administrator of any changes made to a permit in accordance with this

regulation. The national registry administrator shall ensure that any

changes required are made to the account relating to the regulated

entity for which the changes to the permit relate, so as to reflect such

changes.

(1) A regulated entity that ceases to carry out the activity

listed in Schedule 1 shall surrender the permit.

(2) An application for the surrender of a permit shall be

submitted to the Authority, in writing, by not later than thirty (30) days

from the date on which the regulated entity has ceased to carry out the

activity to which the greenhouse gas emissions permit relates.

(3) An application for the surrender of a permit shall include

the following

(a)

the name and address of the applicant;

(b) the name and address of the regulated entity to which

the greenhouse gas emissions permit relates;

(c) the date on which the activity has ceased being

carried out.

(4) The Authority shall process an application for the surrender

of a permit submitted in accordance with this regulation within thirty

(30) days from the receipt of the application. The Authority shall issue

a notice of surrender of a permit, which shall include the following

conditions

(a) a requirement to monitor, and report by the date that

may be specified in the notice of surrender of a permit, and in

accordance with these regulations, verified emissions for the

year during which the notice becomes effective up to the date on

which the notice becomes effective;

(b) a requirement to surrender, by the date that may be

specified in the notice of surrender of a permit, and in

accordance with these regulations, a quantity of allowances

equal to the verified emissions reported under paragraph (a);

(c) a requirement to surrender, by the date that may be

specified in the notice of surrender of a permit, and in

accordance with these regulations, a quantity of allowances

equal to verified emissions not covered by surrendered

allowances in respect of years previous to the year when the

notice of surrender of a permit becomes effective.

Provided that monitoring, reporting and verification of

emissions referred to in paragraph (a) shall be carried out in

accordance with monitoring, reporting and verification requirements

in the greenhouse gas emissions permit to which the application to

surrender a permit relates.

(5) The permit shall cease to have effect from the date on

which the notice for surrender of a permit becomes effective in so far

as it authorises the carrying out of an activity covered by the permit

Provided that any conditions in the permit shall remain in

effect until the Authority is satisfied that the requirements under sub-

regulation (4) have been complied with or that there is no reasonable

possibility of further allowances being surrendered by the regulated

entity to which the notice for surrender of a permit relates.

(6) The Authority shall notify the national registry

administrator of any application for the surrender of a permit made to

it and the coming into effect of such surrender. The national registry

administrator shall ensure that any changes required are made to the

account or accounts relating to the regulated entity to which the

surrender of a permit relates so as to reflect the surrender of the permit.

(7) When a permit is surrendered without sufficient allowances

having been surrendered in accordance with regulation 17 to cover all

emissions reported in respect of the activity listed in Schedule 1, the

regulated entity shall be liable to the imposition of an administrative

penalty of one hundred euro (€100) for each tonne of carbon dioxide

equivalent emitted for which the regulated entity has not surrendered

allowances.

(8) From the 1st January, 2028 where, for the year in which

regulated entity surrendering a permit does not surrender sufficient

allowances, the annual average Harmonised European Index of

Consumer Prices published shows a percentage increase as compared

to the latest Harmonised European Index of Consumer Prices

published for the previous year, the administrative penalty shall be

increased by the same percentage. The administrative penalty as

revised pursuant to this sub-regulation shall apply to subsequent years

unless further increased in accordance with the Harmonized European

Index of Consumer Prices. For the purposes of this sub-regulation,

each allowance not surrendered by the regulated entity for a tonne of

carbon dioxide equivalent emitted shall be considered as a separate

breach.

(9) For the purposes of determining the total administrative

penalty under sub-regulation (7), where the emissions of the regulated

entity are not known, or are not reported, or where the Authority is

satisfied that there is no reasonable possibility that a verified quantity

of emissions shall be reported by the regulated entity covered by the

permit to be surrendered, the Authority may itself determine the

emissions from the activity performed by the regulated entity. The

Authority shall use the best available data and ensure that a

conservative estimate is made that does not underestimate emissions.

The regulated entity shall be liable to the imposition of an

administrative penalty equal to the amount established in sub-

regulation (7) in respect of the quantity of emissions estimated in

terms of this sub-regulation.

(1) The Authority may, at any time, revoke a greenhouse

gas emissions permit issued to a regulated entity.

(2) The Authority may revoke a permit in accordance with sub-

regulation (1) by issuing a notice of revocation of a permit to the

regulated entity, which shall include the following

(a) information clearly identifying the regulated entity

covered by the notice;

(b) the reasons for the revocation of the greenhouse gas

emissions permit;

(c) the date on which the notice takes effect, which shall

not be earlier than fifteen (15) days from the date of the notice;

(d) the requirement for the regulated entity to monitor

and report, by the date that may be specified in the notice of

revocation of a permit, and in accordance with these regulations,

verified emissions for any years in which the regulated entity

performed the activity covered by the permit and for which it did

not submit a verified emissions report; and

(e) the requirement for the regulated entity to surrender,

by the date that may be specified in the notice of revocation of a

permit, and in accordance with these regulations, a quantity of

allowances equal to the amount of emissions reported, for any

years in which the regulated entity performed the activity

covered by the permit and in respect of which it did not surrender

allowances.

(3) The permit shall cease to have effect from the date on

which the notice for revocation of a permit becomes effective in so far

as it authorises the carrying out of an activity by the regulated entity

Provided that any conditions in the permit shall remain in

effect until the Authority is satisfied that the requirements under sub-

regulation (2) have been complied with or that there is no reasonable

possibility of further allowances being surrendered by the regulated

entity to which the notice for revocation of a permit relates.

(4)

The

Authority

shall

notify

the

national

registry

administrator of any revocation of a permit and the coming into effect

of such revocation. The national registry administrator shall ensure

that any changes required are made to the account relating to the

regulated entity to which the revocation of a permit relates so as to

reflect the revocation of the permit.

(5) When a permit is revoked without sufficient allowances

having been surrendered in accordance with regulation 17 to cover all

emissions reported in respect of the activity listed in Schedule 1, the

regulated entity shall be liable to the imposition of an administrative

penalty of one hundred euro (€100) for each tonne of carbon dioxide

equivalent emitted for which the regulated entity has not surrendered

allowances.

(6) From the 1st January, 2028 where, for the year in which the

permit is revoked, the regulated entity does not surrender sufficient

allowances, the annual average Harmonised European Index of

Consumer Prices published shows a percentage increase as compared

to the latest Harmonised European Index of Consumer Prices

published for the previous year, the administrative penalty shall be

increased by the same percentage. The administrative penalty as

revised in accordance with this sub-regulation shall apply to

subsequent years unless further increased in accordance with the

Harmonised European Index of Consumer Prices. For the purposes of

this sub-regulation, each allowance not surrendered by the regulated

entity for a tonne of carbon dioxide equivalent emitted shall be

considered as a separate breach.

(7) For the purposes of determining the total administrative

penalty under sub-regulation (5), where the emissions of the regulated

entity are not known, or are not reported, or when the Authority is

satisfied that there is no reasonable possibility that a verified quantity

of emissions shall be reported by the regulated entity covered by the

permit to be surrendered, the Authority may itself determine the

emissions from the activities performed in the installation. The

Authority shall use best available data and ensure that a conservative

estimate is made that does not underestimate emissions. The regulated

entity shall be liable to the imposition of an administrative penalty

equal to the amount established in sub-regulation (5) in respect of the

quantity of emissions estimated in accordance with this sub-regulation.

(1) The quantity of allowances as determined for Malta Auctioning of

in respect of the activity listed in Schedule 1 in accordance with allowances.

Directive 2003/87/EC, shall be auctioned by the auctioneer in

accordance with the relevant decisions and regulations adopted by the

Commission pursuant to Directive 2003/87/EC.

(2) The auctioneer shall act in accordance with the relevant

decisions and regulations adopted by the Commission pursuant to

Directive 2003/87/EC.

(1) Allowances shall be held by a regulated entity in the

Union registry. A regulated entity shall have a regulated entity holding

account in the Union registry.

(2) The national registry administrator shall perform its

functions in accordance with the relevant decisions and regulations

adopted by the Commission pursuant to Directive 2003/87/EC

Provided that in respect of regulated entity holding

accounts, the Authority shall act as the national registry administrator

Provided further that where the Authority acts as the

national registry administrator there shall be no conflict of interest

between the Authority and holders of regulated entity holding

accounts.

(3) A request to open a regulated entity holding account shall

be made by the Authority or the regulated entity to the national

registry administrator.

(4) A request for the opening of a regulated entity holding

account shall include all information required by the national registry

administrator in accordance with the relevant decisions and regulations

adopted by the Commission pursuant to Directive 2003/87/EC and any

requirements and terms and conditions made by the national registry

administrator.

(5) The national registry administrator shall open and

administer a regulated entity holding account for a regulated entity in

accordance with the relevant decisions and regulations adopted by the

Commission pursuant to Directive 2003/ 87/EC and any terms and

conditions it may make. The national registry administrator shall not

open an account unless it is satisfied that the request is in accordance

with the requirements of this regulation.

(6) A regulated entity holding account holder and its

nominated authorised representatives shall act in accordance with the

relevant decisions and regulations adopted by the Commission

pursuant to Directive 2003/87/EC and any terms and conditions made

by the national registry administrator.

(7) Where a regulated entity fails to comply with any

requirements of decisions and regulations adopted by the Commission

in respect of registries or terms and conditions made by the national

registry administrator in respect of registries, the national registry

administrator may prevent the transfer of allowances or other

accounting units into or out of a regulated entity holding account held

by that regulated entity until any non-compliance is rectified

Provided that the national registry administrator shall not

prevent the surrender or cancellation of allowances in accordance with

regulation 17.

(1) A regulated entity shall submit to the Authority a Monitoring of

monitoring plan setting out measures to monitor and report emissions annual

emissions.

of greenhouse gases specified in respect of the activities carried out in

that installation as listed in Schedule 1. These measures shall be in

accordance with

(a)

the principles set out in Schedule 3;

(b) relevant decisions and regulations adopted by the

Commission pursuant to Directive 2003/87/EC; and

(c) any other requirements made by the Authority in

respect of monitoring and reporting of emissions of greenhouse

gases from activities listed in Schedule 1.

(2) The regulated entity shall submit a monitoring plan for the

first time to the Authority at the same time as an application is made

for a greenhouse gas emissions permit in accordance with regulation 4.

(3) The monitoring plan submitted by the regulated entity

pursuant to sub-regulation (1) shall be approved by the Authority if it

is satisfied that the plan is in accordance with the requirements set out

under this regulation. The Authority may request from the regulated

entity any additional information it deems appropriate for the approval

of the plan.

(4) The regulated entity shall notify the Authority of any

deviations from the monitoring plan that may occur at any time after

the approval of the plan by the Authority

Provided that the Authority shall be notified of any

deviation from the plan

(a) as early as possible before the deviation occurs, if the

deviation is known to the regulated entity, or is made known to

the regulated entity prior to its occurrence; or

(b) immediately after the deviation occurs if the

occurrence of the deviation is not known to the regulated entity,

or is not made known to the regulated entity before, or at the

time of its occurrence.

(5) The regulated entity shall maintain a documented record,

which shall include information in accordance with requirements that

may be established by the Authority, of any deviations that occur

during a monitoring year and shall submit such record to the Authority

together with the annual emissions report submitted pursuant to

regulation 13.

(6) The regulated entity shall regularly check if the approved

monitoring plan reflects the nature and function of the installation. The

regulated entity may at any time after the approval of the monitoring

plan, submit to the Authority proposed modifications that have to be

made to the plan, in accordance with the relevant decisions and

regulations adopted by the Commission pursuant to Directive 2003/87/

EC. The regulated entity shall maintain a documented record of all

modifications to the monitoring plan. No proposed significant

modifications to an approved plan shall be valid without the approval

of the Authority.

(7) Where it deems appropriate, the Authority may request the

submission of a revised plan.

(8) The regulated entity shall monitor emissions from the

activity listed in Schedule 1 during each monitoring year.

(9) Without prejudice to sub-regulation (4), a regulated entity

shall monitor the annual emissions in accordance with the monitoring

plan approved by the Authority in accordance with this regulation. The

Authority may take any action it deems necessary under these

regulations to ensure that an operator is monitoring and reporting

annual emissions in accordance with the approved monitoring plan.

(10) The regulated entity shall identify and document reliably

and accurately, per type of fuel, the precise quantities of fuel released

for consumption which are used for combustion in the sectors referred

to in Schedule 1, and the final use of the fuels released for

consumption.

(11) The regulated entity shall monitor the quantities of fuels

released for consumption, the final use of the fuels released for

consumption and emissions from fuels released for consumption in a

manner that limits the risk of double counting of emissions from the

activity listed in Schedule 1 and the emissions from the activities listed

in Schedule 1 of the European Union Greenhouse Gas Emissions S.L. 643.02.

Trading System for Stationary Installations Regulations, Schedule 1 of S.L. 643.03.

the European Union Greenhouse Gas Emissions Trading System for

Aviation Regulations and Schedule 1 of the European Union L.N. 316 of

2024. Greenhouse Gas Emissions Trading System for Maritime Transport

Regulations.

(12) Where the annual emissions of a regulated entity,

corresponding to the quantities of fuels released for consumption by

the regulated entity are less than one thousand (1,000) tonnes of

carbon dioxide equivalent, the Authority may allow the use of

simplified monitoring measures in accordance with decisions and

regulations adopted by the Commission pursuant to Directive 2003/87/

EC.

(1) A regulated entity shall report annual emissions, Reporting of

monitored in accordance with regulation 12, for each monitoring year verified

emissions.

in accordance with

(a)

the principles set out in Schedule 3; and

(b) relevant decisions and regulations adopted by the

Commission pursuant to Directive 2003/87/EC; and

(c) any other requirements made by the Authority in

respect of reporting of emissions of greenhouse gases from

activities listed in Schedule 1.

(2) The regulated entity shall submit to the Authority an annual

report on the emissions from the activity listed in Schedule 1 for a

monitoring year by not later than 30th April of the subsequent year.

(3) The report submitted by a regulated entity pursuant to sub-

regulation (2) shall be verified by a verifier in accordance with

(a)

the principles set out in Schedule 4; and

(b) relevant decisions and regulations adopted by the

Commission pursuant to Directive 2003/87/EC; and

(c) any other requirements made by the Authority in

respect of verification of annual emission reports for emissions

from the activity listed in Schedule 1.

(4) A verification report shall be submitted by the regulated

entity to the Authority with an annual emissions report submitted. The

regulated entity shall also enter the quantity of emissions reported in

the verified annual emissions report for a monitoring year into the

Union Registry, by 30th April of the subsequent year.

(5) Where a regulated entity fails to submit an annual

emissions report for a monitoring year that has been verified as

satisfactory by the 30th April of the subsequent year, the national

registry administrator shall not allow the transfer of allowances or any

other accounting units out of the regulated entity holding account until

a report from the regulated entity in respect of that installation has

been verified as satisfactory

Provided that the national registry administrator shall not

prevent the surrender or cancellation of allowances in accordance with

regulation 17.

(6) The regulated entity for which an annual emissions report

is to be verified shall notify the Authority and the National

Accreditation Board – Malta of the planned date and place of the

verification and the identity of the verifier who shall perform the

verification, by not later than thirty (30) days prior to the date when

the verification is to be performed.

(7) A regulated entity holding a permit in accordance with

regulation 4 on 1st January 2025 shall report its historical emissions

for the year 2024 by 30th April 2025. The emissions shall be reported

in accordance with the requirements set out in this regulation.

(8) Where the annual emissions of a regulated entity,

corresponding to the quantities of fuels released for consumption by

the regulated entity are less than one thousand (1,000) tonnes of

carbon dioxide equivalent, the Authority may allow the use of

simplified reporting or verification measures in accordance with

decisions and regulations adopted by the Commission pursuant to

Directive 2003/87/EC.

(1) The Authority may perform any checks it deems

necessary to ensure that a report submitted by a regulated entity is in

accordance with regulation 13.

(2) The Authority shall not accept a report of annual emissions

which has not been verified as satisfactory or for which a verification

report has not been submitted. The Authority shall inform the

regulated entity, in writing or through other documented means, of its

decision. Where it deems necessary, the Authority may require the

submission of a revised annual emissions report. The revised annual

emissions report shall be verified in accordance with regulation 13.

Where necessary the regulated entity shall also update the amount of

emissions entered into the Union Registry.

(3) Where, in respect of any monitoring year, a regulated entity

has not submitted a verified annual emissions report in accordance

with regulation 13, or where it is deemed that the regulated entity has

not submitted an annual emissions report which is in accordance with

the requirements set out in regulation 13, the Authority may, unless

there is written agreement between the Authority and the regulated

entity providing otherwise, determine itself the emissions for the

activity listed in Schedule 1 performed by that regulated entity for that

monitoring year. The Authority shall use the best available data and

ensure that a conservative estimate is made that does not underestimate

emissions. When annual emissions are determined under this sub-

regulation, the Authority shall consider the requirements set out in

Schedules 3 and 4

Provided that the Authority shall notify the regulated entity

of the emissions as determined and the methodology used to determine

such emissions

Provided further that the Authority shall enter the amount

of emissions as determined in accordance with this sub-regulation into

the Union Registry.

(1) A regulated entity that fails to submit a monitoring Administrative

plan in accordance with regulation 13, shall be liable to the imposition: penalties

relating to

monitoring and

reporting of

(a) for a regulated entity for which emissions for the first annual

year of performing an activity covered by these regulations emissions.

during the period for which the plan relates are equal to or less

than fifty thousand (50,000) tonnes carbon dioxide equivalents,

of an administrative penalty of five thousand euro (€5,000) and,

or, one hundred euro (€100) for each day of non-compliance,

from the date of a notice given by the Authority to the regulated

entity;

(b) for a regulated entity for which emissions for the first

year of performing an activity covered by these regulations

during the period for which the plan relates are more than fifty

thousand (50,000) tonnes of carbon dioxide equivalents and

equal to or less than five hundred thousand (500,000) tonnes of

carbon dioxide equivalent, to an administrative penalty of ten

thousand euro (€10,000) and, or three hundred euro (€300) for

each day of non-compliance, from the date of a notice given by

the Authority to the regulated entity.

(2) A regulated entity that fails to monitor annual emissions

during a year in accordance with regulation 12 or fails to submit a

verified annual emissions report in respect of a year in accordance

with regulation 13, shall be liable to the imposition

(a) for a regulated entity for which emissions for that

year are equal to, or less than fifty thousand (50,000) tonnes

carbon dioxide equivalents, to an administrative penalty of five

thousand euro (€5,000) and, or one hundred euro (€100) for each

day of non compliance, from the date of a notice given by the

Authority to the regulated entity;

(b) for a regulated entity for which emissions for that

year are more than fifty thousand (50,000) tonnes of carbon

dioxide equivalents and equal to, or less than five hundred

thousand (500,000) tonnes carbon dioxide equivalents, of an

administrative penalty of ten thousand euro (€10,000) and, or

three hundred euro (€300) for each day of non-compliance, from

the date of a notice given by the Authority to the regulated entity.

(3) For the purposes of determining the administrative penalty

under this regulation, when the emissions of the regulated entity are

not known or where the Authority is satisfied that there is no

reasonable possibility that a verified quantity of emissions shall be

reported by the regulated entity, the Authority may itself determine the

emissions from the activities performed in that installation. The

Authority shall use the best available data and ensure that a

conservative estimate is made that does not underestimate emissions.

The regulated entity shall be liable to the imposition of an

administrative penalty equal to the amounts established in sub-

regulations (1) and (2) in respect of the quantity of emissions

estimated by the Authority in accordance with this sub-regulation.

(1) From 1st January 2028 and until 2030, by 30th April

of each year, a regulated entity shall report to the Authority the

average share of costs relating to the surrender of allowances in

respect of the previous calendar year, which it has passed on to

consumers.

(2) The report submitted by a regulated entity pursuant to sub-

regulation (1) shall be in accordance with relevant decisions and

regulations adopted by the Commission in accordance with Directive

2003/87/EC.

(1) From 1st January 2028 a regulated entity shall, by Surrender and

31st May of each year, surrender a number of allowances that is equal cancellation

allowances.

to the total emissions of that regulated entity during the preceding

calendar year as verified in accordance with regulation 13, or as

determined by the Authority in accordance with regulation 14.

(2) Allowances issued by a competent authority of another

Member State shall be recognized by the Authority for the purpose of

meeting the obligations of a regulated entity under sub-regulation (1).

(3) Where necessary, and for as long as is necessary, in

accordance with relevant decisions and regulations adopted by the

Commission pursuant to Directive 2003/87/EC, a regulated entity shall

not surrender allowances that are issued by a Member State in respect

of which there are obligations arising from Directive 2003/87/EC

which are lapsing.

(4) The national registry administrator shall cancel allowances

surrendered in accordance with sub-regulation (1).

(5) The national registry administrator shall cancel allowances

at any time at the request of a regulated entity holding those

allowances.

(6) Surrender and cancellation of allowances shall be carried

out in accordance with the relevant decisions and regulations adopted

by the Commission pursuant to Directive 2003/87/EC.

(7) The Authority shall publish the name of any regulated

entity which is in breach of the requirement to surrender sufficient

allowances under sub-regulation (1).

(8) A regulated entity that does not surrender sufficient

allowances as required under sub-regulations (1) to cover its emissions

during the preceding year, or that has not yet surrendered allowances

to cover its emissions during any previous year, shall be liable to the

imposition of an administrative penalty of one hundred euro (€100) for

each tonne of carbon dioxide equivalent emitted for which the

regulated entity has not surrendered allowances.

(9) From the 1st January 2028 where, for the year in which a

regulated entity does not surrender sufficient allowances to cover

emissions during that year in accordance with sub-regulation (1), the

annual average Harmonized European Index of Consumer Prices

published indicates a percentage increase as compared to the latest

Harmonized European Index of Consumer Prices published for the

previous year, the administrative penalty shall be increased by the

same percentage. The administrative penalty as revised pursuant to

this sub-regulation shall apply to subsequent years unless further

increased in accordance with the Harmonized European Index of

Consumer Prices. For the purposes of this sub-regulation, each

allowance not surrendered by the regulated entity for a tonne of carbon

dioxide equivalent emitted shall be considered as a separate breach.

(10) The imposition of an administrative penalty as prescribed

in sub-regulation (8) shall not release the regulated entity from the

obligation to surrender an amount of allowances equal to those excess

emissions in respect of which the administrative penalty is paid when

surrendering allowances in relation to the following calendar year.

(11) Where a regulated entity fails to surrender allowances in

accordance with sub-regulation (1), the national registry administrator

shall not allow the transfer of allowances or any other accounting units

out of the regulated entity holding account opened in respect of that

installation until the regulated entity complies with the requirement to

surrender allowances

Provided that the national registry administrator shall not

prevent the surrender of allowances in accordance with sub-regulation

(1) or the cancellation of allowances in accordance with sub-regulation

(5).

Where a decision is taken pursuant to Article 30k of

Directive 2003/87/EC, and by way of derogation from sub-regulation

(1) of regulation 17, the first surrender of allowances in respect of

emissions of a regulated entity from the activity listed in Schedule 1

shall take place by 31st May 2029 in respect of emissions occurring in

2028.

A beneficiary of funding of any action or project funded

from EU ETS auctioning revenues shall ensure the visibility of such

source of funding.

Reports of emissions submitted in accordance with

regulation 13 shall be made available to the public in accordance with

the Freedom of Access to Information on the Environment

Regulations

Provided that any access to personal data shall be made in

accordance with the Data Protection Act and that information covered

by professional secrecy may not be disclosed to any other person or

authority except by virtue of the applicable laws, regulations,

administrative provisions and, or the provisions of the Professional

Secrecy Act

Provided further that without prejudice to this regulation

and to the obligation which may be imposed on the Authority to

disclose any information, the Authority shall not disclose any

confidential information or any parts thereof or any other information

which should be treated as commercially confidential

Provided further that any information which shall be

treated as commercially confidential shall be made known at all times

to the Authority.

The Authority may require that submissions of Submission of

applications, monitoring plans and reports in accordance with these applications,

monitoring

regulations are made in the form and manner and by means of the plans

reports.

medium as specified by it.

The revenue from the auctioning of allowances, after Revenue from

deducting the audited costs to administer the EU ETS agreed between auctioning

allowances.

the Minister responsible for finance and the Authority, shall accrue to

the Consolidated Fund.

The Administrative Review Tribunal shall have jurisdiction Right to appeal.

to hear and determine appeals from decisions of the Authority made

under these regulations in terms of the Administrative Justice Act, which Cap. 490.

appeal shall be filed by not later than twenty (20) days from the service

of the said Authority’s decision, wherein the aggrieved party shall

specify the reasons on the basis of which the said decision of the

Authority should be cancelled or modified

Provided that any party to the proceedings before the

Administrative Review Tribunal who feels aggrieved by a decision of

the said Tribunal, may appeal to the Court of Appeal on a point of law in

accordance with the Code of Organization and Civil Procedure.

Immediately after the last item of the primary legislation in Consequential

the Second Schedule of the Administrative Justice Act, there shall be amendment.

added the words "Climate Action Act Cap. 643 Superior/Inferior

Competence" and immediately after the last item of the subsidiary

legislation of the said Second Schedule there shall be added the words

"European Union Greenhouse Gas Emissions Trading System for L.N. 313 of

2024. Buildings, Road Transport and Additional Sectors Regulations S.L.

643.05, Superior/Inferior Competence".

Schedule 1

(regulations 1(2), 2, 4(1), 4(2), 4(4), 5(2), 5(3), 5(3)(b), 5(3)(c), 6(1),

6(2), 6(2)(b), 6(2)(c), 6(2)(e), 6(2)(f), 8(1), 8(7), 9(5), 10(1), 12(1),

12(1)(c), 12(8), 12(10), 12(11), 13(1), 13(1)(c), 13(2), 13(3), 13(3)(c),

14(3), 18)

Activity for which these regulations apply

Activity

Greenhouse gases

1. Release

for

Carbon

dioxide

consumption of fuels which are (CO 2 )

used for combustion in the

sectors of buildings and road

transport and additional sectors.

This

activity

shall

not

include

(a) the release for

consumption of fuels used

in the activities listed in

Schedule 1 of European

643.02.

Union Greenhouse Gas

Emissions Trading System

for Stationary Installations

Regulations, except if used

for combustion in the

activities of transport of

greenhouse

gases

for

geological storage as set

out in that Schedule or if

used for combustion in

installations excluded under

regulation 27 of European

Union Greenhouse Gas

Emissions Trading System

for Stationary Installations

Regulations;

(b) the release for

consumption of fuels for

which the emission factor is

zero (0);

(c) the release for

consumption of hazardous

or municipal waste used as

fuel.

2. The sectors of

buildings and road transport shall

correspond to the following

sources of emissions, defined in

2006 IPCC Guidelines for

National

Greenhouse

Gas

Inventories, with the necessary

modifications to those definitions

as follows

(a) Combined Heat

and Power Generation

(CHP) (source category

code 1A1a ii) and Heat

Plants (source category

code 1A1a iii), insofar as

they produce heat for

categories under (c) and (d)

of this item, either directly

or through district heating

networks;

(b) Road

Transportation

(source

category

code

1A3b),

excluding the use of

agricultural vehicles on

paved roads;

(c) Commercial

and, or Institutional (source

category code 1A4a);

(d) Residential

(source

category

code

1A4b).

3. Additional

sectors

shall correspond to the following

sources of emissions, defined in

2006 IPCC Guidelines for

National

Greenhouse

Gas

Inventories

(a) Energy

industries (source category

code 1A1), excluding the

categories defined under

item 2(a) of this Schedule;

(b) Manufacturing

Industries and Construction

(source category

code

1A2).

Schedule 2

(regulation 2)

Greenhouse gases

Carbon dioxide (CO 2 )

Methane (CH 4 )

Nitrous Oxide (N 2 O)

Hydrofluorocarbons (HFCs)

Perfluorocarbons (PFCs)

Sulphur Hexafluoride (SF 6 )

Schedule 3

(regulations 12(1)(a) and 13(1)(a))

Principles for monitoring and reporting of annual emissions

Monitoring of emissions

Emissions shall be monitored by calculation.

Calculation

Emissions shall be calculated using the following formula

Fuel released for consumption × emission factor

Fuel released for consumption shall include the quantity of fuel

released for consumption by the regulated entity.

Default IPCC emission factors, taken from the 2006 IPCC

Inventory Guidelines or subsequent updates of those Guidelines, shall

be used unless fuel-specific emission factors identified by independent

accredited laboratories using accepted analytical methods are more

accurate.

A separate calculation shall be made for each regulated entity,

and for each fuel.

Reporting of emissions

Each regulated entity shall include the following information in

Data identifying the regulated entity, including

— name of the regulated entity;

— its address, including postcode and country;

— type of the fuels it releases for consumption and its

activities through which it releases the fuels for

consumption, including the technology used;

— address, telephone, fax and email details for a

contact person; and

— name of the owner of the regulated entity, and of

any parent company.

B. For each type of fuel released for consumption and

which is used for combustion in the sectors referred to in

Schedule 1, for which emissions are calculated

— quantity of fuel released for consumption;

— emission factors;

— total emissions;

— end uses of the fuel released for consumption; and

— uncertainty.

Schedule 4

(regulation 13)

Principles for verification of annual emissions

General Principles

1. Emissions corresponding to the activity referred to in

Schedule 1 shall be subject to verification.

2. The verification process shall include consideration of the

report pursuant to regulation 13 and of monitoring during the

preceding year. It shall address the reliability, credibility and accuracy

of monitoring systems and the reported data and information relating

to emissions, and in particular

(a) the reported fuels released for consumption and

related calculations;

(b)

the choice and the employment of emission factors;

(c) the calculations leading to the determination of the

overall emissions.

3. Reported emissions may only be validated if reliable and

credible data and information allow the emissions to be determined

with a high degree of certainty. A high degree of certainty requires the

regulated entity to prove that

(a)

the reported data are free of inconsistencies;

(b) the collection of the data has been carried out in

accordance with the applicable scientific standards; and

(c) the relevant records of the regulated entity are

complete and consistent.

4. The verifier shall be given access to all sites and

information in relation to the subject of the verification.

5. The verifier shall take into account whether the regulated

entity is registered under the Union Eco-management and Audit

scheme (EMAS).

Methodology

Strategic analysis

6. The verification shall be based on a strategic analysis of all

the quantities of fuels released for consumption by the regulated entity.

This requires the verifier to have an overview of all the activities

through which the regulated entity is releasing the fuels for

consumption and their significance for emissions.

Process analysis

7. The verification of the data and information submitted

shall, where appropriate, be carried out on the site of the regulated

entity. The verifier shall use spot-checks to determine the reliability of

the reported data and information.

Risk analysis

8. The verifier shall submit all the means through which the

fuels are released for consumption by the regulated entity to an

evaluation with regard to the reliability of the data on the overall

emissions of the regulated entity.

9. On the basis of this analysis the verifier shall explicitly

identify any element with a high risk of error and other aspects of the

monitoring and reporting procedure which are likely to contribute to

errors in the determination of the overall emissions. This especially

involves the calculations necessary to determine the level of the

emissions from individual sources. Particular attention shall be given

to those elements with a high risk of error and the abovementioned

aspects of the monitoring procedure.

10. The verifier shall take into consideration any effective risk

control methods applied by the regulated entity with a view to

minimising the degree of uncertainty.

Report

11. The verifier shall prepare a report on the validation process

stating whether the report pursuant to regulation 13 is satisfactory.

This report shall specify all issues relevant to the work carried out. A

statement that the report pursuant to regulation 13 is satisfactory may

be made if, in the opinion of the verifier, the total emissions are not

materially misstated.

Minimum competency requirement for the verifier

12. The verifier shall be independent of the regulated entity,

carry out his activities in a sound and objective professional manner,

and understand

(a) the provisions of these regulations, as well as relevant

standards and guidance adopted by the Commission pursuant to

Article 14(1) of Directive 2003/87/EC and guidance adopted by

the Authority pursuant to these regulations;

(b) the legislative, regulatory, and administrative

requirements relevant to the activities being verified; and

(c) the generation of all information related to all the

means through which the fuels are released for consumption by

the regulated entity, in particular, relating to the collection,

measurement, calculation and reporting of data.

€2.61