Legal provisions of COM(2021)554 - Amendment of Regulations (EU) 2018/841 as regards the scope, simplifying the compliance rules, setting out the targets of the Member States for 2030 and committing to the collective achievement of climate neutrality by 2035 in the land use, forestry and agriculture sector, and (EU) 2018/1999 as regards improvement in monitoring, reporting, tracking of progress and review - Main contents
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dossier | COM(2021)554 - Amendment of Regulations (EU) 2018/841 as regards the scope, simplifying the compliance rules, setting out the targets of ... |
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document | COM(2021)554 ![]() |
date | April 19, 2023 |
Article 1
Regulation (EU) 2018/841 is amended as follows:
(1) | Article 1 is replaced by the following: ‘Article 1 Subject matter This Regulation sets out rules concerning:
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(2) | Article 2 is replaced by the following: ‘Article 2 Scope 1. This Regulation applies to emissions and removals of the greenhouse gases listed in Section A of Annex I to this Regulation, reported pursuant to Article 26(4) of Regulation (EU) 2018/1999 of the European Parliament and of the Council (*1) and occurring on the territories of Member States in the period from 2021 to 2025 in any of the following land accounting categories:
2. This Regulation also applies to emissions and removals of the greenhouse gases listed in Section A of Annex I to this Regulation, reported pursuant to Article 26(4) of Regulation (EU) 2018/1999 and occurring on the territories of Member States in the period from 2026 to 2030, in any of the following land reporting categories or sectors:
(*1) Regulation (EU) 2018/1999 of the European Parliament and of the Council of 11 December 2018 on the Governance of the Energy Union and Climate Action, amending Regulations (EC) No 663/2009 and (EC) No 715/2009 of the European Parliament and of the Council, Directives 94/22/EC, 98/70/EC, 2009/31/EC, 2009/73/EC, 2010/31/EU, 2012/27/EU and 2013/30/EU of the European Parliament and of the Council, Council Directives 2009/119/EC and (EU) 2015/652 and repealing Regulation (EU) No 525/2013 of the European Parliament and of the Council (OJ L 328, 21.12.2018, p.1).’;" |
(3) | Article 3 is amended as follows:
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(4) | Article 4 is replaced by the following: ‘Article 4 Commitments and targets 1. For the period from 2021 to 2025, taking into account the flexibilities provided for in Articles 12, 13 and 13a, each Member State shall ensure that greenhouse gas emissions do not exceed greenhouse gas removals, calculated as the sum of total emissions and total removals on its territory in all of the land accounting categories referred to in Article 2(1). 2. The 2030 Union target for net greenhouse gas removals shall be 310 million tonnes of CO2 equivalent as a sum of the values of the greenhouse gas net emissions and removals by Member States in 2030 set out in column D of Annex IIa, and shall be based on the average of its greenhouse gas inventory data for the years 2016, 2017 and 2018 as submitted in 2020. 3. Each Member State shall ensure that, taking into account the flexibilities provided for in Articles 12 and 13b, the sum of its greenhouse gas emissions and removals on its territory and in all of the land reporting categories referred to in Article 2(2), points (a) to (j), reported for the year 2030 in its greenhouse gas inventory submitted in 2032, compared to the average of its greenhouse gas inventory data for the years 2016, 2017 and 2018 as submitted in 2032, does not exceed the target set out for that Member State in column C of Annex IIa. 4. Each Member State shall ensure that the sum of the differences between the following points for each year in the period from 2026 to 2029 does not exceed the budget for 2026 to 2029:
The budget for 2026 to 2029 shall be defined as the sum of the differences for each year in the period from 2026 to 2029 for that Member State between:
The linear trajectory of a Member State shall start in 2022 at the average value for greenhouse gas inventory data for the years 2021, 2022 and 2023, and have as its end point for 2030 the value obtained by adding the value set out for that Member State in column C of Annex IIa to the average value for greenhouse gas inventory data for the years 2016, 2017 and 2018. The budget for 2026 to 2029 shall be defined on the basis of the greenhouse gas inventory data submitted in 2025 and the compliance with this budget shall be assessed on the basis of the greenhouse gas inventory data submitted in 2032. 5. The Commission shall adopt implementing acts setting out the annual limit values based on the linear trajectory for net greenhouse gas removals for each Member State, for each year in the period from 2026 to 2029 in terms of tonnes of CO2 equivalent. Those national trajectories shall be based on the average greenhouse gas inventory data for the years 2021, 2022 and 2023, reported by each Member State. Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 16a of this Regulation. For the purpose of those implementing acts, the Commission shall carry out a comprehensive review of the most recent national inventory data submitted by Member States pursuant to Article 26(4) of Regulation (EU) 2018/1999. 6. When adopting policies to comply with their commitments, targets and budgets as referred to in this Article, Member States shall consider the need to ensure a just and socially fair transition for all. The Commission may issue guidance to support Member States in that regard.’ ; |
(5) | in Article 5, paragraph 1 is replaced by the following: ‘1. Each Member State shall prepare and maintain accounts that accurately reflect the emissions and removals resulting from the land accounting categories referred to in Article 2. Member States shall ensure that their accounts and other data provided under this Regulation are accurate, complete, consistent, publicly accessible, comparable and transparent. Member States shall denote emissions by a positive sign (+) and removals by a negative sign (-).’ ; |
(6) | in Article 6, paragraphs 1 and 2 are replaced by the following: ‘1. Member States shall account for emissions and removals resulting from afforested land and deforested land calculated as the total emissions and total removals for each of the years in the period from 2021 to 2025. 2. By way of derogation from Article 5(3), and no later than 2025, where land use has been converted from cropland, grassland, wetland, settlements or other land to forest land, a Member State may, 30 years after the date of that conversion, change the categorisation of such land from land converted to forest land to forest land remaining forest land, where such change is duly justified based on the IPCC Guidelines.’ ; |
(7) | in Article 7, paragraphs 1, 2 and 3 are replaced by the following: ‘1. Each Member State shall account for emissions and removals resulting from managed cropland calculated as emissions and removals in the period from 2021 to 2025 minus the value obtained by multiplying by five the Member State’s average annual emissions and removals resulting from managed cropland in its base period from 2005 to 2009. 2. Each Member State shall account for emissions and removals resulting from managed grassland calculated as emissions and removals in the period from 2021 to 2025 minus the value obtained by multiplying by five the Member State’s average annual emissions and removals resulting from managed grassland in its base period from 2005 to 2009. 3. During the period from 2021 to 2025, each Member State that includes managed wetland in the scope of its commitments shall account for emissions and removals resulting from managed wetland, calculated as emissions and removals in that period minus the value obtained by multiplying by five the Member State’s average annual emissions and removals resulting from managed wetland in its base period from 2005 to 2009.’ ; |
(8) | Article 8 is amended as follows:
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(9) | Article 10 is amended as follows:
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(10) | Articles 11, 12 and 13 are replaced by the following: ‘Article 11 Flexibilities and governance 1. A Member State may use:
Finland may, besides the flexibilities referred to in the first subparagraph, use additional compensation pursuant to Article 13a. 2. If a Member State is not in compliance with the monitoring requirements laid down in Article 26 of Regulation (EU) 2018/1999, the Central Administrator designated under Article 20 of Directive 2003/87/EC (the “Central Administrator”) shall temporarily prohibit that Member State from transferring pursuant to Article 12(2) of this Regulation or using the managed forest land flexibility pursuant to Article 13 of this Regulation. The Commission may also provide additional technical support to that Member State. Article 12 General flexibilities 1. Where, in the period from 2021 to 2025, total emissions exceed total removals in a Member State, or, in the period from 2026 to 2030, the difference between the sum of the greenhouse gas emissions and removals on the territory of a Member State and the commitment, target or budget set for that Member State in accordance with Article 4 of this Regulation is positive, and that Member State has chosen to use its flexibility, and has requested to delete annual emission allocations under Regulation (EU) 2018/842, the quantity of deleted emission allocations shall be taken into account with respect to the Member State’s compliance with its commitment, target or budget, respectively, set in accordance with Article 4 of this Regulation. 2. To the extent that, in the period from 2021 to 2025, total removals exceed total emissions in a Member State, or, in the period from 2026 to 2030, the difference between the sum of the greenhouse gas emissions and removals on the territory of a Member State and the commitment, target or budget set for that Member State in accordance with Article 4 of this Regulation is negative, and after subtraction of any quantity taken into account under Article 7 of Regulation (EU) 2018/842, that Member State may transfer the remaining quantity of removals to another Member State. The quantity transferred shall be taken into account when assessing the recipient Member State’s compliance with its commitment, target or budget, respectively, set in accordance with Article 4 of this Regulation. 3. In order to avoid double counting, the quantity of net removals taken into account under Article 7 of Regulation (EU) 2018/842 shall be subtracted from that Member State’s quantity available for transfer to another Member State pursuant to paragraph 2 of this Article. 4. Member States should use revenues, or their equivalent in financial value, generated by transfers pursuant to paragraph 2 to tackle climate change in the Union or in third countries. Member States shall inform the Commission of any actions taken pursuant to this paragraph and shall make that information public in an easily accessible form. 5. Any transfer pursuant to paragraph 2 may be the result of a greenhouse gas mitigation project or programme carried out in the selling Member State and remunerated by the receiving Member State, provided that double counting is avoided and traceability is ensured. Article 13 Managed forest land flexibility 1. Where, in the period from 2021 to 2025, total emissions exceed total removals in the land accounting categories referred to in Article 2(1), accounted for in accordance with this Regulation, in a Member State, that Member State may use the managed forest land flexibility set out in this Article in order to comply with Article 4(1). 2. Where, in the period from 2021 to 2025, the result of the calculation referred to in Article 8(1) is a positive figure, the Member State concerned shall be entitled to compensate emissions corresponding to the result of that calculation, provided that the following conditions are fulfilled:
When assessing whether, within the Union, total emissions exceed total removals as referred to in the first subparagraph, point (b), of this paragraph, the Commission shall ensure that double counting is avoided by Member States, in particular in the exercise of the flexibilities set out in Article 12 of this Regulation and Article 7(1) or Article 9(2) of Regulation (EU) 2018/842. 3. The compensation referred to in paragraph 2 may only cover sinks accounted for as emissions against the forest reference level of that Member State and shall, for the period from 2021 to 2025, not exceed 50 % of the maximum amount of compensation for the Member State concerned set out in Annex VII. 4. Member States shall submit evidence to the Commission concerning the impact of natural disturbances calculated pursuant to Annex VI and the measures they plan to adopt to prevent or mitigate similar impacts in the future in order to be eligible for compensation of remaining sinks accounted for as emissions against its forest reference level, up to the amount unused by other Member States of the full amount of compensation for the period from 2021 to 2025 set out in Annex VII. Where the demand for compensation exceeds the amount of unused compensation available, that unused compensation shall be distributed on a pro rata basis among the Member States concerned. The Commission shall make the evidence submitted by the Member States publicly available.’ ; |
(11) | the following Articles are inserted: ‘Article 13a Additional compensation 1. Finland may compensate up to an additional 5 million tonnes of CO2 equivalent accounted emissions under the land accounting categories managed forest land, deforested land, managed cropland and managed grassland, in the period from 2021 to 2025, provided that the following conditions are fulfilled:
When assessing whether, within the Union, total emissions exceed total removals as referred to in the first subparagraph, point (b), of this paragraph, the Commission shall ensure that double counting is avoided by Member States, in particular in the exercise of the flexibilities set out in Articles 12 and 13 of this Regulation and Article 7(1) or Article 9(2) of Regulation (EU) 2018/842. 2. The additional compensation shall be limited to:
3. The additional compensation shall not be subject to transfer pursuant to Article 12 of this Regulation or Article 7 of Regulation (EU) 2018/842. 4. Any unused additional compensation out of the amount of 5 million tonnes of CO2 equivalent referred to in paragraph 1 shall be cancelled. 5. The Central Administrator shall carry out the operations necessary for the purposes of paragraph 2, point (a), and paragraphs 3 and 4 of this Article in the Union Registry established pursuant to Article 40 of Regulation (EU) 2018/1999 (the “Union Registry”). Article 13b Land use mechanism for the period 2026 to 2030 1. A land use mechanism corresponding to a quantity of up to 178 million tonnes of CO2 equivalent shall be established in the Union Registry, subject to the fulfilment of the Union target referred to in Article 4(2). The land use mechanism shall be available in addition to the flexibilities provided for in Article 12. 2. Where, in the period from 2026 to 2030, after a Member State has done its utmost to take account of any Commission opinion addressed to it under Article 13d, the difference between the sum of the greenhouse gas emissions and removals on the territory of a Member State and in all of the land reporting categories referred to in Article 2(2), points (a) to (j), and the corresponding target set for that Member State in accordance with Article 4(3) or the budget set for that Member State in accordance with Article 4(4), is positive, accounted and reported in accordance with this Regulation, that Member State may use the mechanism set out in this Article in order to comply with its target set in accordance with Article 4(3) or its budget set in accordance with Article 4(4). 3. Where, in the period from 2026 to 2030, the result of one or both calculations referred to in paragraph 2 is positive, the Member State shall be entitled to use the mechanism set out in this Article to compensate net emissions or net removals, or both, accounted for as emissions against the target set for that Member State in accordance with Article 4(3) or against the budget set for that Member State in accordance with Article 4(4), or both, provided that the following conditions are fulfilled:
4. The amount of the compensation referred to in paragraph 3 of this Article may, for the period from 2026 to 2030, not exceed 50 % of the maximum amount of compensation for the Member State concerned set out in Annex VII. 5. Member States shall submit evidence to the Commission concerning the impact of natural disturbances calculated pursuant to Annex VI, in order to be eligible for compensation of net emissions or net removals, or both, accounted for as emissions against the targets set for those Member States in accordance with Article 4(3), or against the budget set for those Member States in accordance with Article 4(4), up to the amount unused by other Member States of the full amount of compensation for the period from 2026 to 2030 set out in Annex VII. Where the demand for compensation exceeds the amount of unused compensation available, that unused compensation shall be distributed on a pro rata basis among the Member States concerned. 6. Member States shall be entitled to compensate net emissions or net removals, or both, accounted for as emissions against the targets set for those Member States in accordance with Article 4(3) or against the budget set for those Member States in accordance with Article 4(4), up to the amount unused by other Member States of the full amount of compensation for the period from 2021 to 2030 set out in Annex VII, after taking into account Article 13(4) and paragraph 5 of this Article, provided that those Member States:
7. The amount of compensation referred to in paragraph 6 shall not exceed 50 million tonnes of CO2 equivalent for the Union as a whole. Where the demand for compensation exceeds the maximum amount of compensation available, that compensation shall be distributed on a pro rata basis among the Member States concerned. 8. The evidence referred to in paragraph 6, point (b)(i), shall include a quantitative assessment of the effects on net emissions or net removals, in terms of million tonnes of CO2 equivalent for the affected area, and shall be based on comparable and reliable quantitative indices, on geographically explicit data and on the best scientific evidence available. Those indices and data and that evidence shall be based on observed changes covering at least the period 2001 to 2025, and on scientifically reviewed projections and observations for the period 2026 to 2030. Those indices and data and that evidence shall reflect background medium or long-term changes of climate characteristics relevant for the LULUCF sector, such as aridity, mean temperatures, mean precipitation, frost days, and the duration of meteorological or soil moisture droughts. 9. The evidence referred to in paragraph 6, point (b)(ii), shall include a justification to the effect that the proportion of organic soils on managed land area for the Member State concerned exceeds the Union average proportion for the year 2030. The evidence shall include a quantitative analysis, in million tonnes of CO2 equivalent, of the reported emissions due to the legacy effects on managed organic soils, based on reviewed observations for the period 2026-2030, comparable and reliable geographically explicit data and on the best scientific evidence available, in particular about similar sites in the Member State concerned. The evidence shall also be accompanied by a description of policy measures currently implemented that minimise the negative impacts of legacy effects on managed organic soils. 10. By 12 May 2024, the Commission shall, by means of implementing acts, set out the structure, format, technical details and process for submission of the evidence referred to in paragraph 6, point (b), of this Article. Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 16a. 11. The Commission shall make the evidence submitted by the Member States referred to in paragraph 6, point (b), publicly available, and may request a Member State to submit additional evidence if, after checking the information received from that Member State, it deems that information to be insufficiently justified or disproportionate. Article 13c Governance If, as a result of the comprehensive review carried out in in 2032, the Commission finds that, taking into account the flexibilities used pursuant to Articles 12 and 13b, the budget for 2026 to 2029 referred to in Article 4(4) is not complied with, an amount equal to the amount in tonnes of CO2 equivalent of the excess greenhouse gas net emissions, multiplied by a factor of 1,08, shall be added to the greenhouse gas net emission figure reported by that Member State in 2030, in accordance with the measures adopted pursuant to Article 15. Article 13d Corrective action 1. If the Commission finds, in its annual assessment under Article 29 of Regulation (EU) 2018/1999, that a Member State is not making sufficient progress towards meeting its target set in accordance with Article 4(3) of this Regulation, taking into account the trajectory and the budget set in accordance with Article 4(4) of this Regulation, as well as the flexibilities under this Regulation, that Member State shall, within three months, submit to the Commission a corrective action plan that includes:
Where a Member State has established a national climate advisory body, it may seek that body’s advice to identify the necessary actions referred to in point (c). 2. In accordance with its annual work programme, the European Environment Agency shall assist the Commission in its work to assess any such corrective action plans. 3. The Commission may issue an opinion regarding the robustness of the corrective action plans submitted in accordance with paragraph 1 and shall in that case do so within four months of receipt of those plans. The Member State concerned shall take utmost account of the Commission’s opinion and may revise its corrective action plan accordingly. If the Member State concerned does not address the opinion or a substantial part thereof, that Member State shall provide a justification to the Commission. 4. Each Member State shall make its corrective action plan referred to in paragraph 1 and any justification referred to in paragraph 3 publicly available. The Commission shall make its opinion referred to in paragraph 3 publicly available.’ ; |
(12) | Article 14 is amended as follows:
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(13) | in Article 15, paragraph 1 is replaced by the following: ‘1. The Commission shall adopt delegated acts in accordance with Article 16 to supplement this Regulation in order to lay down the rules for the recording and accurate carrying out of the following operations in the Union Registry:
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(14) | the following Article is inserted: ‘Article 16a Committee procedure 1. The Commission shall be assisted by the Climate Change Committee established by Article 44(3) of Regulation (EU) 2018/1999. That committee shall be a committee within the meaning of Regulation (EU) No 182/2011 of the European Parliament and of the Council (*3). 2. Where reference is made to this paragraph, Article 5 of Regulation (EU) No 182/2011 shall apply. (*3) Regulation (EU) No 182/2011 of the European Parliament and of the Council of 16 February 2011 laying down the rules and general principles concerning mechanisms for control by Member States of the Commission’s exercise of implementing powers (OJ L 55, 28.2.2011, p. 13).’;" |
(15) | Article 17 is replaced by the following: ‘Article 17 Review 1. This Regulation shall be kept under review taking into account, inter alia:
On the basis of the findings of the report prepared pursuant to Article 14(3) and the results of the assessment carried out pursuant to Article 13(2), point (b), or on the basis of the verification carried out pursuant to Article 37(4a) of Regulation (EU) 2018/1999, the Commission shall, where appropriate, submit proposals to ensure that the integrity of the Union’s overall 2030 greenhouse gas net removal target set in accordance with Article 4(2) of this Regulation and the target’s contribution to the goals of the Paris Agreement are respected. 2. The Commission shall submit a report to the European Parliament and to the Council on the operation of this Regulation, no later than six months after the first global stocktake agreed under Article 14 of the Paris Agreement. The report shall be based on the most recent data available as provided by the Member States under Regulation (EU) 2018/1999 and on Article 4(4) of Regulation (EU) 2021/1119 of the European Parliament and of the Council (*4). In view of the necessary increase in greenhouse gas emission reductions and removals in the Union and the pursuit of a socially just transition, and with regard to the need for additional Union policies and measures, the report shall include, where relevant, the following:
That report shall take into account, where relevant, the effects of the forest age structure, including where those effects are linked to specific wartime or post-war circumstances, in a scientifically robust, reliable and transparent way, and with a view to ensuring the long-term resilience and adaptive capacity of forests. That report may also, subsequent to the adoption of an appropriate science-based reporting methodology and based on progress in reporting and the latest scientific information available, assess the feasibility of analysis and the impact of reporting greenhouse gas emissions and removals from additional sectors, such as the marine and freshwater environments, as well as relevant regulatory options. Following the report and taking into account the importance of each sector making a fair contribution to the Union’s climate-neutrality objective and the Union’s intermediary climate targets pursuant to Regulation (EU) 2021/1119, the Commission shall, where appropriate, submit legislative proposals. In particular, those proposals may set out Union and Member State targets for greenhouse gas emissions and removals, taking due account of any deficit accumulated by 2030 by each Member State. The European Scientific Advisory Board on Climate Change established under Article 10a of Regulation (EC) No 401/2009 of the European Parliament and of the Council (*5) (the “Advisory Board”) may, on its own initiative, provide scientific advice or issue reports on Union measures, climate targets, annual emissions and removals levels and flexibilities under this Regulation. The Commission shall consider the relevant advice and reports of the Advisory Board, in particular as regards future measures aiming at further emission reductions and removal increases in the sub-sectors covered by this Regulation. 3. Within 12 months of the entry into force of a legislative act concerning a Union regulatory framework for the certification of carbon removals, the Commission shall submit a report to the European Parliament and to the Council on the possible benefits and trade-offs of the inclusion in the scope of this Regulation of sustainably sourced long-lived carbon storage products that have a net-positive carbon sequestration effect. The report shall assess how to consider direct and indirect emissions and removals of greenhouse gases related to those products, such as those resulting from land use change and consequent risks of leakage of related emissions, as well as possible benefits and trade-offs with other Union environmental objectives, in particular biodiversity objectives. Where appropriate, the report may consider a process for inclusion of sustainable carbon storage products in the scope of this Regulation, in a manner consistent with other Union environmental objectives, as well as IPCC Guidelines as adopted by the Conference of the Parties to the UNFCCC or the Conference of the Parties serving as the Meeting of the Parties to the Paris Agreement. The Commission’s report may be accompanied, where appropriate, by a legislative proposal to amend this Regulation accordingly. (*4) 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”) (OJ L 243, 9.7.2021, p. 1)." (*5) Regulation (EC) No 401/2009 of the European Parliament and of the Council of 23 April 2009 on the European Environment Agency and the European Environment Information and Observation Network (OJ L 126, 21.5.2009, p. 13).’;" |
(16) | Annex I is amended in accordance with Annex I to this amending Regulation; |
(17) | Annex II is amended in accordance with Annex II to this amending Regulation; |
(18) | in Annex III, the entry for the United Kingdom is deleted; |
(19) | the text set out in Annex III to this amending Regulation is inserted as Annex IIa; |
(20) | in Annex IV, Section C, the entry for the United Kingdom is deleted; |
(21) | Annex VI is amended in accordance with Annex IV to this amending Regulation; |
(22) | in Annex VII, the entry for the United Kingdom is deleted. |
Article 2
Regulation (EU) 2018/1999 is amended as follows:
(1) | in Article 2, the following points are added:
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(2) | in Article 4, point (a)(1)(ii) is replaced by the following:
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(3) | in Article 9(2), the following point is added:
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(4) | in Article 26(6), the following point is added:
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(5) | in Article 37, the following paragraph is inserted: ‘4a. Where the Commission finds during the initial check carried out pursuant to paragraph 4 of this Article a difference between the annual average of net removals in the years specified in Article 4(2) of Regulation (EU) 2018/841 reported by any Member State in the 2020 and 2023 or subsequent submission of the greenhouse gas inventory that is greater than 500 kt CO2 equivalent, the Commission shall verify:
The Commission shall make the results of that verification publicly available.’ ; |
(6) | Article 38 is amended as follows:
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(7) | Annex V is amended in accordance with Annex V to this amending Regulation. |
Article 3
This Regulation shall enter into force on the twentieth day following that of its publication in the Official Journal of the European Union.
This Regulation shall be binding in its entirety and directly applicable in all Member States.