Stationary Installations (Amendment) Regulations, 2024

L.N. 315 of 2024

CLIMATE ACTION ACT

(CAP. 643)

European Union Greenhouse Gas Emissions Trading System for

Stationary Installations (Amendment) Regulations, 2024

IN EXERCISE of the powers conferred by article 27 of the

Climate Action Act, the Minister responsible for resources 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

commencement.

Greenhouse Gas Emissions Trading System for Stationary Installations

(Amendment) Regulations, 2024 and these regulations shall be read

and construed as one with the European Union Greenhouse Gas

Emissions Trading System for Stationary Installations Regulations,

hereinafter referred to as the "principal regulations".

(2) Regulation 3(b) and regulation 5(b) shall come into force

on the 1st January 2026.

Sub-regulation (3) of regulation 1 of the principal

regulations shall be substituted by the following new sub-regulation

"(3) The scope of these regulations is to

(a) transpose the provisions of

(i) Directive 2003/87/EC;

(ii) Directive 2004/101/EC amending

Directive 2003/87/EC;

(iii) Directive 2008/101/EC amending

Directive 2003/87/EC;

(iv) Directive 2009/29/EC amending

Directive 2003/87/EC;

(v) Decision

(EU)

2015/1814

amending Directive 2003/87/EC;

(vi) Directive

(EU)

2018/410

amending Directive 2003/87/EC;

(vii) Directive

(EU)

2023/959

amending Directive 2003/87/EC; and

(b) implement the requirements of

Regulation (EU) 2017/2392 amending

Directive 2003/87/EC.".

Regulation 2 of the principal regulations shall be amended Amends

regulation 2 of

as follows

the principal

regulations.

(a) immediately after the definition "Directive (EU)

2018/410" thereof there shall be added the following new

definition

" "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 emission trading

system;";

(b)

the definition "electricity generator" thereof shall be

deleted;

(c) the definition "emissions" thereof shall be substituted

by the following new definition

" "emissions" means the release of greenhouse gases

specified in respect of an activity listed in Schedule 1, from

sources in an installation performing such activity;"; and

(d) immediately after the definition "Regulation (EU)

2017/2392" thereof there shall be added the following new

definitions

" "Regulation (EU) 2021/1119" means Regulation

(EU) 2021/1119 of the European Parliament and of the

Council of 30 June 2021 establishing the framework for

achieving climate neutrality and amending Regulations

(EC) No 401/2009 and (EU) 2018/1999 (European Climate

Law);

"Regulation (EU) 2023/956" means Regulation (EU)

2023/956 of the European Parliament and of the Council of

10 May 2023 establishing a carbon border adjustment

mechanism;".

Paragraph (f) of sub-regulation (3) of regulation 6 of the Amends

principal regulations shall be substituted by the following new regulation

the principal

paragraph

regulations.

"(f) an obligation to surrender allowances equal to the

total emissions of the installation in each calendar year, as

verified in accordance with sub-regulation (3) of regulation 16,

by the 30th September of the subsequent year.".

Regulation 11 of the principal regulations shall be amended

as follows

(a) immediately after sub-regulation (2) thereof there

shall be added the following new sub-regulations

"(2a) If an installation is covered by the obligation to

conduct an energy audit or to implement a certified energy

management system under regulation 10 of the Energy

Efficiency Regulations and if the recommendations of the

audit report or of the certified energy management system

are not implemented, unless the pay-back time for the

relevant investments exceeds three (3) years or unless the

costs of those investments are disproportionate, then the

amount of free allocation shall be reduced by twenty per

cent (20%). The amount of free allocation shall not be

reduced if an operator demonstrates that it has

implemented other measures which lead to greenhouse gas

emissions reductions equivalent to those recommended by

the audit report or the certified energy management

system for the installation concerned.

(2b) The free allocation determined pursuant to sub-

regulation (1) shall be reduced by twenty per cent (20%)

where, by 1st May, 2024, the operator of an installation

whose greenhouse gas emission levels are higher than the

80th percentile of emissions levels for the relevant product

benchmarks, as determined by the relevant decisions and

regulation adopted by the Commission pursuant to

Directive 2003/87/EC, have not established a carbon

neutrality plan for such installation for its activities

covered by these regulations. The said plan shall be

consistent with the climate neutrality objective established

in Article 2(1) of Regulation (EU) 2021/1119 and shall set

out

(a) measures and investments to reach

climate-neutrality by 2050 at installation-level,

excluding the use of carbon offset credits;

(b) intermediate targets and milestones to

measure, by 31st December 2025 and by 31st

December of each fifth year thereafter, progress

made towards reaching climate-neutrality as set out

in paragraph (a); and

(c) an estimate of the impact of each of the

measures and investments referred to in paragraph

(a) as regards the reduction of greenhouse gas

emissions

Provided that the achievement of the targets

and milestones referred to in paragraph (b) shall be

verified in respect of the period until 31st December 2025

and in respect of each period ending 31st December of

each fifth year thereafter in accordance with regulation 16.

(2c) No free allocation shall be given to

installations in sectors or sub-sectors to the extent that

they are covered by measures established by Regulation

(EU) 2023/956.

(2d) Subject to the application of Regulation (EU)

2023/0956, no free allocation shall be given in relation to

the production of goods listed in Annex 1 of the said

Regulation.

(2e) By way of derogation from sub-regulation (6),

the production of goods listed in Annex I to Regulation

(EU) 2023/0956 shall benefit from free allocation in

reduced amounts. A CBAM factor reducing the free

allocation for the production of those goods shall be

applied, and shall be equal to 100% from the coming into

force of Regulation (EU) 2023/0956 until 31st December

2025, to 97.5% in 2026, to 95% in 2027, to 90% in 2028,

to 77.5% in 2029, to 51.5% in 2030, to 39% in 2031, to

Minnufih wara r-regolament 12 tar-regolamenti prinċipali

għandu jiġi miżjud ir-regolament ġdid li ġej

Benefiċjarju ta’ finanzjament ta’ kwalunkwe

"Viżibbiltà ta’

azzjoni jew proġett iffinanzjat mid-dħul mill-irkantar tal-

EU ETS għandu jiżgura l-viżibbiltà ta’ tali sors ta’

finanzjament.".

7. Fis-subregolament (1) tar-regolament 14 tar-regolamenti Jemenda r-

prinċipali, il-kliem "sat-28 ta’ Frar ta’ kull sena" għandhom jiġu regolament

sostitwiti bil-kliem "sat-30 ta’ Ġunju ta’ kull sena".

8. Ir-regolament 19 għandu jiġi emendat kif ġej

(a) Fis-subregolament (2) tiegħu, il-kliem "sat-30 ta’

April ta’ kull sena" għandhom jiġu sostitwiti bil-kliem "sat-30

ta’ Settembru ta’ kull sena"; u

(b) minnufih wara s-subregolament (4) tiegħu għandu

jiġi miżjud is-subregolament ġdid li ġej

"(4a) Obbligu ta’ ċessjoni ta’ permessi ma għandux

jinħoloq fir-rigward ta’ emissjonijiet ta’ gassijiet serra li

huma kkunsidrati li ġew maqbuda u utilizzati b’tali mod li

jkunu intrabtu kimikament b’mod permanenti fi prodott

sabiex ma jidħlux fl-atmosfera taħt użu normali, inkluż

kwalunkwe attività normali li sseħħ wara t-tmiem tal-ħajja

tal-prodott.".

9. Minnufih wara r-regolament 28 tar-regolamenti prinċipali Iżid regolament

għandu jiġi miżjud ir-regolament ġdid li ġej

" Deċiżjoni fuq

5% in 2032, to 14% in 2033, and to 0% from 2034.";

(b) sub-regulation (3) and sub-regulation (5) thereof shall

be deleted; and

(c) sub-regulation (6) thereof shall be substituted by the

following new sub-regulation

"(6) No free allocation shall be given to an

installation that has ceased operating. An installation for

which the greenhouse gas emissions permit has been

surrendered or revoked or for which the operation or

resumption of operation is technically impossible shall be

considered to have ceased operations.".

6. Immediately after regulation 12 of the principal regulations Adds new

there shall be added the following new regulation

12A. A beneficiary of funding of any action or

project funded from EU ETS auctioning revenues shall

ensure the visibility of such source of funding.".

7. In sub-regulation (1) of regulation 14 of the principal

regulations, the words "by 28th February of each year" shall be

substituted by the words "by 30th June of each year".

8. Regulation 19 of the principal regulations shall be amended

as follows

(a) in sub-regulation (2) thereof, the words "by 30th

April each year" shall be substituted by the words "by 30th

September of each year"; and

(b) immediately after sub-regulation (4) thereof there

shall be added the following new sub-regulation

"(4a) An obligation to surrender allowances shall not

arise in respect of emissions of 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.".

9. Immediately after regulation 28 of the principal regulations

there shall be added the following new regulation

(1) When an installation that is included in

an installation

the scope of these regulations due to the operation of

combustion units with a total rated thermal input

exceeding 20MW changes its production processes to

reduce its greenhouse gas emissions and no longer meets

that threshold, the operator may decide that such

installation shall remain within the scope of these

regulations until the end of the current five (5) year period

referred to in regulation 11(7), and the next five (5) year

period referred to in regulation 11(7), following the

change to its production process. The operator of such

installation shall inform the Authority of such decision.

(2) The Authority shall notify the Commission

with the changes to the lists of installations in accordance

with regulation 11(7) in respect of any decision made in

accordance with sub-regulation (1).".

10. Schedule 1 to the principal regulations shall be substituted Substitutes

Schedule 1 to

by the following new Schedule

the principal

regulations.

"Schedule 1

(regulations 1(2), 2, 3, 4(1), 4(2), 4(4), 5(1), 5(2), 5(3)(c), 5(3)(d),

5(3)(e), 6(3)(e), 7(1)(c), 9(1), 15(1)(c), 16(1)(a), 16(1)(c), 16(3)(c))

Categories of Activities to which these Regulations apply

1. Installations or parts of installations used for research,

development and testing of new products and processes are not

covered by these regulations. Installations where during the preceding

relevant five (5) year period referred to in regulation 11(7), emissions

from the combustion of biomass that complies with the criteria

established in accordance with sustainability and greenhouse gas

emission-saving criteria for the use of biomass established by the

Biofuels, Bioliquids and Biomass Fuels (Sustainability Criteria) S.L. 545.37.

Regulations contribute on average to more than 95% of the total

average greenhouse gas emissions are not covered by these

regulations.

2. The thresholds values given below generally refer to

production capacities or outputs. Where several activities falling under

the same category are carried out in the same installation, the

capacities of such activities are added together.

3. When the total rated thermal input of an installation is

calculated in order to decide upon its inclusion in the EU ETS, the

rated thermal inputs of all technical units which are part of it, in which

fuels are combusted within the installation, shall be added together.

Those units may include all types of boilers, burners, turbines, heaters,

furnaces, incinerators, calciners, kilns, ovens, dryers, engines, fuel

cells, chemical looping combustion units, flares, and thermal or

catalytic post-combustion units. Units with a rated thermal input under

3 MW shall not be taken into account for the purposes of this

calculation.

4. If a unit serves an activity for which the threshold is not

expressed as total rated thermal input, the threshold of this activity

shall take precedence for the decision about the inclusion in the EU

ETS.

5. When the capacity threshold of any activity listed in this

Schedule is found to be exceeded in an installation, all units in which

fuels are combusted, other than units for the incineration of hazardous

or municipal waste, shall be included in the greenhouse gas emission

permit.

Activities

Greenhouse gases

Combustion of fuels in

Carbon dioxide

installations with a total rated

thermal input exceeding 20 MW

(except in installations for the

incineration of hazardous or

municipal waste)

From 1 January 2024,

combustion

of

fuels

in

installations for the incineration

of municipal waste with a total

rated thermal input exceeding

20 MW, for the purposes of

regulations 15, 16, 17 and 18.

Refining of oil, where

Carbon dioxide

combustion units with a total

rated thermal input exceeding

20 MW are operated

Production of coke

Carbon dioxide

Metal ore (including

Carbon dioxide

sulphide ore) roasting or

sintering installations, including

pelletisation

Production of iron or

Carbon dioxide

steel (primary or secondary

fusion) including continuous

casting, with a capacity

exceeding 2.5 tonnes per hour

Production or processing

Carbon dioxide

of ferrous metals (including

ferro-alloys) where combustion

units with a total rated thermal

input exceeding 20MW are

operated. Processing includes,

inter alia, rolling mills, re-

heaters, annealing furnaces,

smitheries, foundries, coating

and pickling

Production of primary

Carbon dioxide

aluminium or alumina

Production of secondary

Carbon dioxide

aluminium where combustion

units with a total rated thermal

input exceeding 20MW are

operated

Production or processing

Carbon dioxide

of non-ferrous metals, including

production of alloys, refining,

foundry casting, etc., where

combustion units with a total

rated thermal input (including

fuels used as reducing agents)

exceeding 20MW are operated

Production of cement

Carbon dioxide

clinker in rotary kilns with a

production capacity exceeding

500 tonnes per day or in other

furnaces with a production

capacity exceeding 50 tonnes

per day

Production of lime or

Carbon dioxide

calcinations of dolomite or

magnesite in rotary kilns or in

other furnaces with a production

capacity exceeding 50 tonnes

per day

Manufacture of glass

Carbon dioxide

including glass fibre with a

melting capacity exceeding 20

tonnes per day

Manufacture of ceramic

Carbon dioxide

products by firing, in particular

roofing tiles, bricks, refractory

bricks, tiles, stoneware or

porcelain, with a production

capacity exceeding 75 tonnes

per day

Manufacture of mineral

Carbon dioxide

wool insulation material using

glass, rock or slag with a

melting capacity exceeding 20

tonnes per day

Drying or calcination of

Carbon dioxide

gypsum or production of plaster

boards and other gypsum

products, with a production

capacity of calcined gypsum or

dried

secondary

gypsum

exceeding a total of 20 tonnes

per day

Production of pulp from

Carbon dioxide

timber or other fibrous materials

Production of paper or

Carbon dioxide

cardboard with a production

capacity exceeding 20 tonnes

per day

Production of carbon

Carbon dioxide

black

involving

the

carbonisation

of

organic

substances such as oils, tars,

cracker and distillation residues

with a production capacity

exceeding 50 tonnes per day

Production of nitric acid

Carbon dioxide and nitrous oxide

Production of adipic acid

Carbon dioxide and nitrous oxide

Production of glyoxal

Carbon dioxide and nitrous oxide

and glyoxylic acid

Production of ammonia

Carbon dioxide

Production

of

bulk

Carbon dioxide

organic chemicals by cracking,

reforming, partial or full

oxidation

or

by

similar

processes, with a production

capacity exceeding 100 tonnes

per day

Production of hydrogen

Carbon dioxide

(H 2 ) and synthesis gas by

reforming or partial oxidation

with a production capacity

exceeding 5 tonnes per day

Carbon dioxide

Production of soda ash

(Na 2 CO 3 )

and

sodium

bicarbonate (NaHCO 3 )

Capture of greenhouse

Carbon dioxide

gases from installations covered

by the Directive for the purpose

of transport and geological

storage in a storage site

permitted under Directive 2009/

31/EC

Transport of greenhouse

Carbon dioxide

gases for geological storage in a

storage site permitted under

Directive 2009/31/EC, with the

exclusion of those emissions

covered by another activity

under the Directive 2003/87/EC

Geological storage of

Carbon dioxide

greenhouse gases in a storage

site permitted under Directive

2009/31/EC

".

11. Schedule 3 to the principal regulations shall be substituted Substitutes

Schedule 3 to

by the following new Schedule

the principal

regulations.

"Schedule 3

(regulations 15(1)(a), 16(1)(a))

Monitoring and reporting of emissions from stationary installations

Monitoring of carbon dioxide emissions

Emissions shall be monitored either by calculation or on the basis

of measurement.

Calculation

Calculations of emissions shall be performed using the formula

Activity data × Emission factor × Oxidation factor

Activity data (fuel used, production rate etc.) shall be monitored

on the basis of supply data or measurement.

Accepted emission factors shall be used. Activity-specific

emission factors are acceptable for all fuels. Default factors are

acceptable for all fuels except non-commercial ones (waste fuels such

as tyres and industrial process gases). Seam-specific defaults for coal,

and EU-specific or producer country-specific defaults for natural gas

shall be further elaborated. IPCC default values are acceptable for

refinery products. The emission factor for biomass that complies with

the sustainability criteria and greenhouse gas emission-saving criteria

for the use of biomass established by Directive (EU) 2018/2001, with

any necessary adjustments for application under these regulations, as

set out in the implementing acts referred to in Article 14 of Directive

2003/87/EC, shall be zero.

If the emission factor does not take account of the fact that some

of the carbon is not oxidised, then an additional oxidation factor shall

be used. If activity-specific emission factors have been calculated and

already take oxidation into account, then an oxidation factor need not

be applied.

Default oxidation factors developed pursuant to Directive 2010/

75/EU* * shall be used, unless the operator can demonstrate that

activity-specific factors are more accurate.

* *Directive 2010/75/EU of the European Parliament and of the Council of 24

November 2010 on industrial emissions (integrated pollution prevention and

control) (recast)

A separate calculation shall be made for each activity, installation

and for each fuel.

Measurement

Measurement of emissions shall use standardised or accepted

methods, and shall be corroborated by a supporting calculation of

emissions.

Monitoring of emissions of other greenhouse gases

Standardised or accepted methods, developed by the Commission

in collaboration with all relevant stakeholders and adopted pursuant to

Article 14(1) of Directive 2003/87/EC, shall be used.

Reporting of emissions

Each operator shall include the following information in the

report for an installation

A.

Data identifying the installation, including

— Name of the installation;

— Its address, including postcode and country;

— Type and number of Schedule 1 activities carried out in the

installation;

— Address, telephone, fax and email details for a contact person;

— Name of the owner of the installation, and of any parent

company.

B. For each Schedule 1 activity carried out on the site for

which emissions are calculated

— Activity data;

— Emission factors;

— Oxidation factors;

— Total emissions; and

— Uncertainty.

C.

For each Schedule 1 activity carried out on the site for

which emissions are measured

— Total emissions;

— Information on the reliability of measurement methods; and

— Uncertainty.

D. For emissions from combustion, the report shall also

include the oxidation factor, unless oxidation has already been taken

into account in the development of an activity-specific emission

12. Regulation 25 of the principal regulations shall be Substitutes

substituted by the following regulation

25. The Administrative Review Tribunal shall have

jurisdiction to hear and determine appeals from decisions

of the Authority made under these regulations in terms of

the Administrative Justice Act, which appeal shall be filed

by not later than twenty (20) days from the service of the

said Authority’s decision, wherein the aggrieved person

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.

13. Immediately after the last item of the Second Schedule to Consequential

the Administrative Justice Act, there shall be added the words amendment.

"European Union Greenhouse Gas Emissions Trading System for

Stationary Installations (Amendment) Regulations, 2024, S.L. 643.02,

Superior/Inferior Competence".

€1.17