1.   For the purpose of the sixth subparagraph of Article 3c(6) of Directive 2003/87/EC, the commercial aircraft operator shall establish, document, implement and maintain a written procedure in order to monitor any amounts of eligible aviation fuel used for subsonic flights, and shall report the amounts of eligible aviation fuels claimed as a separate memo item in its annual emission report.

2.   For the purpose of paragraph 1 of this Article, the aircraft operator shall ensure that any amount of eligible aviation fuel claimed is certified in accordance with Article 30 of Directive (EU) 2018/2001. The aircraft operator may use the data recorded in the Union database set up in accordance with Article 28(2) of Directive (EU) 2018/2001.

3.   For mixed aviation fuels, the aircraft operator may either assume the absence of eligible aviation fuel and apply a default fossil fraction of 100 %, or determine an eligible fraction in accordance with paragraph 4 or 5. The aircraft operator may also report neat eligible aviation fuel with 100 % eligible fraction.

4.   Where eligible aviation fuels are physically mixed with fossil fuels and delivered to the aircraft in physically identifiable batches, the aircraft operator may base the estimation of the eligible content on a mass balance of fossil fuels and eligible aviation fuels purchased.

Additionally, the aircraft operator shall provide evidence to the satisfaction of the competent authority that the eligible aviation fuel is attributed to the flight immediately following the uplift of that flight.

Where several subsequent flights are carried out without fuel uplift between these flights, the aircraft operator shall split the amount of eligible aviation fuel and assign it to these flights proportionally to the emissions from those flights calculated using the preliminary emission factor.

5.   Where eligible aviation fuel cannot be physically attributed at an aerodrome to a specific flight, the aircraft operator shall attribute eligible aviation fuels to its flights for which allowances have to be surrendered in accordance with Article 12(3) of Directive 2003/87/EC proportionally to the emissions from those flights departing from that aerodrome calculated using the preliminary emission factor.

The aircraft operator may determine the eligible fraction using purchase records of the eligible aviation fuel of equivalent energy content, provided that the aircraft operator provides evidence to the satisfaction of the competent authority that the eligible aviation fuel was delivered to the fuelling system of the departure aerodrome in the reporting period or 3 months before the start, or 3 months after the end, of that reporting period.

6.   For the purpose of paragraphs 4 and 5 of this Article, the aircraft operator shall provide evidence to the satisfaction of the competent authority that:

(a)

the total amount of eligible aviation fuel claimed does not exceed the total fuel usage of that aircraft operator for flights for which allowances have to be surrendered according to Article 12(3) of Directive 2003/87/EC, originating from the aerodrome at which the eligible aviation fuel is supplied;

(b)

the amount of eligible aviation fuel for flights for which allowances have to be surrendered according to Article 12(3) of Directive 2003/87/EC does not exceed the total quantity of eligible aviation fuel purchased from which the total quantity of eligible aviation fuel sold to third parties is subtracted;

(c)	the eligible fraction of the eligible aviation fuel attributed to flights aggregated per aerodrome pair does not exceed the maximum blending limit for that eligible aviation fuel as certified according to a recognised international standard, if such limitation applies;

(d)	there is no double counting of the same eligible aviation fuel quantity, in particular that the eligible aviation fuel purchased is not claimed to be used in an earlier report or by anyone else, or in another system.

For the purpose of points (a) to (c) of the first subparagraph, any fuel remaining in tanks after a flight and before an uplift is assumed to be 100 % fossil fuel.

For the purpose of demonstrating compliance with the requirements referred to under point (d) of the first subparagraph of this paragraph and where applicable, the aircraft operator may use the data recorded in the Union database set up in accordance with Article 28(2) of Directive (EU) 2018/2001.

7.   Where the emission factor of an eligible aviation fuel is zero, the emission factor of each mixed aviation fuel shall be calculated and reported as the preliminary emission factor multiplied by the fossil fraction of the fuel.’;

1.   Article 11, Article 12(2), Articles 13 and 14, Article 15(1) and (2), and Article 16 shall apply. For that purpose:

(a)	any reference to operator or aircraft operator shall be read as if it were a reference to the regulated entity;

(b)	any reference to aviation activity shall be read as if it were a reference to the activity of the regulated entity.

2.   At the latest 4 months before a regulated entity commences the activity covered by Annex III to Directive 2003/87/EC, it shall submit to the competent authority a monitoring plan for approval, unless the competent authority has set an alternative time limit for this submission.

The monitoring plan shall consist of a detailed, complete and transparent documentation of the monitoring methodology of a specific regulated entity and shall contain at least the elements laid down in Annex I.

Together with the monitoring plan, the regulated entity shall submit the results of a risk assessment providing evidence that the proposed control activities and procedures for control activities are commensurate with the inherent risks and control risks identified.

3.   In accordance with Article 15, significant modifications to the monitoring plan of a regulated entity include:

(a)	changes to the category of the regulated entity where such changes require a change in the monitoring methodology or lead to a change of the applicable materiality level pursuant to Article 23 of Implementing Regulation (EU) 2018/2067;

(b)	notwithstanding Article 75n, changes regarding whether the regulated entity is considered a “regulated entity with low emissions”;

(c)	a change in the tier applied;

(d)	the introduction of new fuel streams;

(e)	a change in the categorisation of fuel streams – between major or de-minimis fuel streams where such a change requires a change to the monitoring methodology;

(f)	a change to the default value for a calculation factor, where the value is to be laid down in the monitoring plan;

(g)	a change in the default value for the scope factor;

(h)	the introduction of new methods or changes to existing methods related to sampling, analysis or calibration, where this has a direct impact on the accuracy of emissions data.

1.   Where a regulated entity claims that applying a specific monitoring methodology would incur unreasonable costs, the competent authority shall assess whether the costs are unreasonable, taking into account the regulated entity’s justification.

The competent authority shall consider costs unreasonable where the cost estimate exceeds the benefit. To that end, the benefit shall be calculated by multiplying an improvement factor by a reference price of EUR 60 per allowance. The costs shall include an appropriate depreciation period based on the economic lifetime of the equipment.

2.   Notwithstanding paragraph 1, the regulated entity shall consider costs of applying a specific monitoring methodology incurred by consumers of the released fuel streams, including by final consumers. For the purposes of this subparagraph, the regulated entity may apply conservative estimates of the costs.

For the monitoring and reporting of historical emissions for the year 2024 in accordance with Article 30f(4) of Directive 2003/87/EC, Member States may exempt regulated entities from justifying that a specific monitoring methodology would incur unreasonable costs.

3.   When assessing the unreasonable nature of the costs with regard to the choice of tier levels for the regulated entity’s released fuel amounts, the competent authority shall use as the improvement factor referred to in paragraph 1 the difference between the uncertainty currently achieved and the uncertainty threshold of the tier that would be achieved by the improvement multiplied by the average annual emissions caused by that fuel stream over the 3 most recent years.

In the absence of such data on the average annual emissions caused by that fuel stream over the three most recent years, the regulated entity shall provide a conservative estimate of the annual average emissions, with the exclusion of CO2 stemming from biomass. For measuring instruments under national legal metrological control, the uncertainty currently achieved may be substituted by the maximum permissible error in service allowed by the relevant national legislation.

For the purpose of this paragraph, Article 38(5) shall apply, provided that the relevant information on the sustainability and the greenhouse gas emissions saving criteria of biofuels, bioliquids and biomass fuels used for combustion is available to the regulated entity.

4.   When assessing the unreasonable nature of the costs with regard to the choice of tier levels for the regulated entity’s scope factor determination and with regard to measures increasing the data quality of reported emissions but without direct impact on the accuracy of data on released fuel amounts, the competent authority shall use an improvement factor of 1 % of the average annual emissions of the respective fuel streams in the three most recent reporting periods. The measures increasing the quality of reported emissions but without direct impact on the accuracy of data on released fuel amounts may include:

(a)	switching from default values to analyses to determine calculation factors;

(b)	an increase of the number of analyses per fuel stream;

(c)

where the specific measuring task does not fall under national legal metrological control, the substitution of measuring instruments with instruments complying with relevant requirements of legal metro- logical control of the Member State in similar applications, or to measuring instruments meeting national rules adopted pursuant to Directive 2014/31/EU of the European Parliament and of the Council (*4) or Directive 2014/32/EU;

(d)	shortening calibration and maintenance intervals of measuring instruments;

(e)	improvements to data-flow activities and control activities that significantly reduce the inherent or control risk;

(f)	regulated entities switching to more accurate identification of the scope factor.

5.   Measures relating to the improvement of a regulated entity’s monitoring methodology shall not be deemed to incur unreasonable costs up to an accumulated amount of EUR 4 000 per reporting period. For regulated entities with low emissions that threshold shall be EUR 1 000 per reporting period.

1.   For the purpose of monitoring emissions and determining the minimum requirements for tiers for the related calculation factors, each regulated entity shall determine its category pursuant to paragraph 2, and, where relevant, of each fuel stream pursuant to paragraph 3.

2.   The regulated entity shall classify itself in one of the following categories:

(a)	a category A entity, where from 2027 to 2030 the average verified annual emissions in the 2 years preceding the reporting period, with the exclusion of CO2 stemming from biomass, are equal to or less than 50 000 tonnes of CO2(e);

(b)	a category B entity, where from 2027 to 2030 the average verified annual emissions in the 2 years preceding the reporting period, with the exclusion of CO2 stemming from biomass, are more than 50 000 tonnes of CO2(e).

From 2031 onwards, the category A and B entities referred to in points (a) and (b) of the first subparagraph shall be determined on the basis of the average verified annual emissions in the trading period immediately preceding the current trading period.

By way of derogation from Article 14(2), the competent authority may allow the regulated entity not to modify the monitoring plan where, on the basis of verified emissions, the threshold for the classification of the regulated entity referred to in the first subparagraph is exceeded, but the regulated entity demonstrates to the satisfaction of the competent authority that this threshold has not already been exceeded within the previous five reporting periods and will not be exceeded again in subsequent reporting periods.

3.   The regulated entity shall classify each fuel stream in one of the following categories:

(a)	de minimis fuel streams, where the fuel streams selected by the regulated entity jointly account for less than 1 000 tonnes of fossil CO2 per year;

(b)	major fuel streams, where the fuel streams do not fall within the category referred to in point (a).

By way of derogation from Article 14(2), the competent authority may allow the regulated entity not to modify the monitoring plan where, on the basis of verified emissions, the threshold for the classification of a fuel stream as a de minimis fuel stream referred to in the first subparagraph is exceeded, but the regulated entity demonstrates to the satisfaction of the competent authority that this threshold has not already been exceeded within the past five reporting periods and will not be exceeded again in subsequent reporting periods.

4.   Where the average annual verified emissions used to determine category of the regulated entity as referred to in paragraph 2 are not available or no longer representative for the purpose of paragraph 2, the regulated entity shall use a conservative estimate of annual average emissions, with the exclusion of CO2 stemming from biomass to determine the category of the regulated entity.

5.   For the purpose of this Article, Article 38(5) shall apply.

1.   Where it is for technical reasons temporarily not feasible to apply the monitoring plan as approved by the competent authority, the regulated entity concerned shall apply the highest achievable tier or, except for the scope factor, a conservative no-tier approach if application of a tier is not achievable, until the conditions for application of the tier approved in the monitoring plan have been restored.

The regulated entity shall take all necessary measures to allow the prompt resumption of the application of the monitoring plan as approved by the competent authority.

2.   The regulated entity concerned shall notify the competent authority of the temporary change referred to in paragraph 1 to the monitoring methodology without undue delay to the competent authority, specifying:

(a)	the reasons for deviating from the monitoring plan as approved by the competent authority;

(b)	the details of the interim monitoring methodology that the regulated entity is using to determine the emissions until the conditions for the application of the monitoring plan as approved by the competent authority have been restored;

(c)	the measures the regulated entity is taking to restore the conditions for the application of the monitoring plan as approved by the competent authority;

(d)	the anticipated point in time when application of the monitoring plan as approved by the competent authority will be resumed.

1.   When defining the relevant tiers for major fuel streams, to determine the released fuel amounts and each calculation factor, each regulated entity shall apply the following:

(a)	at least the tiers listed in Annex V, in the case of a category A entity, or where a calculation factor is required for a fuel stream that is a commercial standard fuel;

(b)	in cases other than those referred to in point (a), the highest tier as defined in Annex IIa.

However, for released fuel amounts and calculation factors of major fuel streams the regulated entity may apply a tier up to two levels lower than required in accordance with the first subparagraph, with a minimum of tier 1, where it shows to the satisfaction of the competent authority that the tier required in accordance with the first subparagraph, or where applicable the next highest tier, is technically not feasible or incurs unreasonable costs.

2.   For de minimis fuel streams, the regulated entity may determine released fuel amounts and each calculation factor by using conservative estimates instead of using tiers, unless a defined tier is achievable without additional effort.

For fuel streams referred to under the first subparagraph, the regulated entity may determine released fuel amounts based on invoices or purchase records, unless a defined tier is achievable without additional effort.

3.   Where the competent authority has allowed the use of emission factors expressed as t CO2/t or t CO2/Nm3 for fuels, the unit conversion factor may be monitored using a conservative estimate instead of using tiers, unless a defined tier is achievable without additional effort.

1.   When defining the relevant tiers for fuel streams, to determine the scope factor, each regulated entity shall apply the highest tier as defined in Annex IIa.

However, the regulated entity may apply a tier one level lower than required in accordance with the first subparagraph where it shows to the satisfaction of the competent authority that the tier required in accordance with the first subparagraph is technically not feasible, incurs unreasonable costs, or that methods listed in Article 75l(2), points (a) to (d), are not available.

If the second subparagraph is not applicable, the regulated entity may apply a tier two levels lower than required in accordance with the first subparagraph, with a minimum of tier 1, where it shows to the satisfaction of the competent authority that the tier required in accordance with the first subparagraph is technically not feasible, incurs unreasonable costs, or that, based on a simplified uncertainty assessment, the methods set out in lower tiers lead to a more accurate determination of whether the fuel is used for combustion in sectors covered by Annex III to Directive 2003/87/EC.

Where, for a fuel stream, the regulated entity uses more than one method listed in Article 75l(2), (3) and (4), it shall be required to show that the conditions of this paragraph are met only with respect to the share of the released fuel amount for which the lower tier method is requested.

2.   For de minimis fuel streams, the regulated entity shall not be required to show that the conditions in paragraph 1 are met, unless a defined tier is achievable without additional effort.

1.   The regulated entity shall determine the released fuel amounts of a fuel stream in one of the following ways:

(a)

where the regulated entities and the fuel streams covered correspond to entities with reporting obligations under and energy products subject to national legislation transposing Directives 2003/96/EC and (EU) 2020/262, on the basis of the measurement methods used for the purposes of those acts when those methods are based on national metrological control;

(b)	on the basis of aggregation of measurement of quantities at the point where the fuel streams are released for consumption;

(c)	on the basis of continual measurement at the point where the fuel streams are released for consumption.

However, the competent authorities may require the regulated entities to use, where applicable, only the method referred to in the first subparagraph, point (a).

2.   Where it is technically not feasible or would incur unreasonable costs to determine released fuel amounts for the entire calendar year, and subject to the approval by the competent authority, the regulated entity may choose the next most appropriate day to separate one monitoring year from the subsequent year, and reconcile accordingly to the calendar year required. The deviations involved for one or more fuel streams shall be documented in the monitoring plan, clearly recorded, form the basis of a value representative for the calendar year, and be considered consistently in relation to the next year. The Commission may provide the relevant guidelines.

When determining the released fuel amounts in accordance with paragraph 1, point (b) and (c) of this Article, Articles 28 and 29 shall apply, with the exception of Article 28(2), second subparagraph, second sentence and third subparagraph. For that purpose, any reference to operator or installation is to be read as if it were a reference to the regulated entity.

The regulated entity may simplify the uncertainty assessment by assuming that the maximum permissible errors specified for the measuring instrument in service is to be regarded as the uncertainty over the whole reporting period as required by the tier definitions in Annex IIa.

3.   By way of derogation from Article 75h, where the method referred to in point (a) of paragraph 1 of this Article is used, the regulated entity may determine the released fuel amounts without using tiers. The competent authorities shall report to the Commission by 30 June 2026 on the practical application and levels of uncertainty of the method referred to in that point.

1.   Article 30, Article 31(1), (2) and (3) and Articles 32, 33, 34, and 35 shall apply. For that purpose:

(a)	any reference to operator is to be read as if it were a reference to the regulated entity;

(b)	any reference to activity data is to be read as if it were a reference to the released fuel amounts;

(c)	any reference to fuels or materials is to be read as if it were a reference to fuels as defined in Article 3(af) of Directive 2003/87/EC;

(d)	any reference to Annex II is to be read as if it were a reference to Annex IIa.

2.   The competent authority may require the regulated entity to determine the unit conversion factor and emission factor of fuels as defined in Article 3(af) of Directive 2003/87/EC using the same tiers as required for commercial standard fuels provided that, at the national or regional level, any of the following parameters exhibit a 95 % confidence interval of:

(a)	below 2 % for net calorific value;

(b)	below 2 % for emission factor, where the released fuel amounts are expressed as energy content.

Before application of this derogation, the competent authority shall submit for the approval of the Commission a summary of the method and data sources used to determine whether one of these conditions is met in the last 3 years and to ensure that the values used are consistent with the average values used by operators at the corresponding national or regional level. The competent authority may collect or request such evidence. At least every 3 years it shall review the values used and notify the Commission if there are any significant changes, taking into account the average of the values used by the operators at the corresponding national or regional level.

The Commission may regularly review the relevance of this provision and the conditions set in this paragraph in light of developments on the fuels market and European standardisation processes.

1.   Where the released fuel amounts of a fuel stream are used only for combustion in sectors covered by Annex III to Directive 2003/87/EC, the scope factor shall be set at 1.

Where the released fuel amounts of a fuel stream are used only for combustion in sectors covered by Chapters II and III of Directive 2003/87/EC, with the exception of installations excluded under Article 27a of that Directive, the scope factor shall be set at zero, provided that the regulated entity demonstrates that double counting referred to in Article 30f(5) of Directive 2003/87/EC was avoided.

The regulated entity shall determine a scope factor for each fuel stream either by applying the methods referred to in paragraph 2, or a default value in accordance with paragraph 3, depending on the applicable tier.

2.   The regulated entity shall determine the scope factor on the basis of one or more of the following methods, in accordance with the requirements of the applicable tier as set out in Annex IIa to this Regulation:

(a)	methods based on the physical distinction of fuel flows, including methods based on the distinction of geographical region or based on the use of separate measuring instruments;

(b)	methods based on the chemical properties of fuels, which allow regulated entities to demonstrate that the relevant fuel can only be used for combustion in specific sectors, due to legal, technical or economic reasons;

(c)	use of fiscal marker in accordance with Council Directive 95/60/EC (*5);

(d)	use of the verified annual emissions report referred to in Article 68(1);

(e)	chain of traceable contractual arrangements and invoices (“chain of custody”), representing the whole supply chain from the regulated entity to the consumers, including final consumers;

(f)	use of national markers or colours (dyes) for fuels, based on national legislation;

(g)

indirect methods allowing an accurate differentiation of the end uses of the fuels at the time when they are released for consumption, such as sector-specific consumption profiles, typical ranges of capacity of consumers’ fuel consumption levels, and pressure levels such as those of gaseous fuels, provided that the use of that method is approved by the competent authority. The Commission may provide guidelines on applicable indirect methods.

3.   Where subject to the required tiers, applying the methods listed in paragraph 2 is technically not feasible or would incur unreasonable costs, the regulated entity may use a default value of 1.

4.   By way of derogation from paragraph 3, the regulated entity may apply a default value lower than 1, provided that:

(a)	for the purposes of reporting emissions in the reporting years 2024 to 2026 the regulated entity demonstrates to the satisfaction of the competent authority that using default values lower than 1 leads to a more accurate determination of emissions, or

(b)

for the purposes of reporting emissions in the reporting years as from 1 January 2027 the regulated entity demonstrates to the satisfaction of the competent authority that using default values lower than 1 leads to a more accurate determination of emissions and that at least one of the following conditions is met: (i) the fuel stream is a de-minimis fuel stream; (ii) the default value for the fuel stream is not lower than 0,95 for fuel uses in sectors covered by Annex III to Directive 2003/87/EC or not higher than 0,05 for fuel uses in sectors not covered by that Annex.

5.   Where, for a fuel stream, the regulated entity uses more than one method listed in paragraphs 2, 3 and 4, it shall determine the scope factor as the weighted average of the different scope factors resulting from the use of each method. For each method used, the regulated entity shall submit information on the type of method, the associated scope factor, released fuel amount and the code from the common reporting format for national greenhouse gas inventory systems, as approved by the respective bodies of the United Nations Framework Convention on Climate Change (Common Reporting Format (CRF) code), at the level of detail available.

6.   By way of derogation from paragraph 1 of this Article and Article 75i, a Member State may require regulated entities to use a specific method referred to in paragraph 2 of this Article or a default value for a certain fuel type or in a certain region within their territory. The use of default values on national level shall be subject to the approval of the Commission.

When approving the default value in accordance with the first subparagraph, the Commission shall consider the appropriate level of harmonisation of methodologies between Member States, the balance between accuracy, administrative efficiency and cost pass-on implications for consumers, as well as possible risk of evasion of obligations under Chapter IVa of Directive 2003/87/EC.

Any default value for the national fuel stream used under this paragraph shall not be lower than 0,95 for fuel uses in sectors covered by Annex III to Directive 2003/87/EC or not higher than 0,05 for fuel uses in sectors not covered by that Annex.

7.   The regulated entity shall specify the applied methods or default values in the monitoring plan.

1.   Article 38 and Article 39, with the exception of paragraphs 2 and 2a, shall apply. For that purpose:

(a)	any reference to operator is to be read as if it were a reference to the regulated entity;

(b)	any reference to activity data is to be read as if it were a reference to the released fuel amounts;

(c)	any reference to source streams is to be read as if it were a reference to fuel streams;

(d)	any reference to Annex II is to be read as if it were a reference to Annex IIa;

(e)	any reference to paragraph 39(2) is to be read as a reference to paragraph 3 of this Article.

2.   Where Article 38(5) is applicable, the threshold derogations in accordance with Article 29(1), fourth subparagraph, of Directive (EU) 2018/2001 shall be taken into consideration, provided that the regulated entity can show the relevant evidence to the satisfaction of the competent authority. The Commission may provide guidelines on how to further apply these thresholds derogations.

3.   Where, subject to the tier level required, the regulated entity has to carry out analyses to determine the biomass fraction, it shall do so on the basis of a relevant standard and the analytical methods therein, provided that the use of that standard and analytical method are approved by the competent authority.

Where, subject to the tier level required, the regulated entity has to carry out analyses to determine the biomass fraction, but the application of the first subparagraph is technically not feasible or would incur unreasonable costs, the regulated entity shall submit an alternative estimation method to determine the biomass fraction to the competent authority for approval.

1.   The competent authority may consider a regulated entity to be a regulated entity with low emissions where at least one of the following conditions is met:

(a)	from 2027 to 2030 the average verified annual emissions in the 2 years preceding the reporting period, with the exclusion of CO2 stemming from biomass, were less than 1 000 tonnes of CO2 per year;

(b)	from 2031 the average annual emissions of that regulated entity reported in the verified emissions reports during the trading period immediately preceding the current trading period, with the exclusion of CO2 stemming from biomass, were less than 1 000 tonnes of CO2 per year;

(c)

where the average annual emissions referred to in point (a) are not available or no longer representative for the purpose of point (a), but the annual emissions of that regulated entity for the next 5 years, with the exclusion of CO2 stemming from biomass, will be, based on a conservative estimation method, less than 1 000 tonnes of CO2(e) per year.

For the purpose of this paragraph, Article 38(5) shall apply.

2.   The regulated entity with low emissions shall not be required to submit the supporting documents referred to in Article 12(1), third subparagraph.

3.   By way of derogation from Article 75j, the regulated entity with low emissions may determine the amount of fuel released by using available and documented purchasing records and estimated stock changes.

4.   By way of derogation from Articles 75h, the regulated entity with low emissions may apply as a minimum tier 1 for the purposes of determining released fuel amounts and calculation factors for all fuel streams, unless higher accuracy is achievable without additional effort for the regulated entity.

5.   For the purpose of determining calculation factors on the basis of analyses in accordance with Article 32, the regulated entity with low emissions may use any laboratory that is technically competent and able to generate technically valid results using the relevant analytical procedures and provides evidence for quality assurance measures as referred to in Article 34(3).

6.   Where a regulated entity with low emissions subject to simplified monitoring exceeds the threshold referred to in paragraph 2 in any calendar year, this regulated entity shall notify the competent authority thereof without undue delay.

The regulated entity shall, without undue delay, submit a significant modification of the monitoring plan within the meaning of Article 15(3), point (b), to the competent authority for approval.

However, the competent authority shall allow that the regulated entity continues simplified monitoring provided that that regulated entity demonstrates to the satisfaction of the competent authority that the threshold referred to in paragraph 2 has not already been exceeded within the past five reporting periods and will not be exceeded again from the following reporting period onwards.

1.   From 2026, the regulated entity shall submit to the competent authority by 30 April of each year an emissions report that covers the annual emissions in the reporting period and that is verified in accordance with Implementing Regulation (EU) 2018/2067.

In 2025, the regulated entity shall submit to the competent authority by 30 April an emissions report that covers the annual emissions in 2024. The competent authorities shall ensure that the information provided in that report is in accordance with the requirements of this Regulation.

However, competent authorities may require regulated entities to submit the annual emission reports referred to in this paragraph before 30 April, provided the report is submitted at the earliest 1 month after the deadline set out in Article 68(1).

2.   The annual emissions reports referred to in paragraph 1 shall contain at least the information listed in Annex X.

1.   Each regulated entity shall regularly check whether the monitoring methodology applied can be improved.

Regulated entities shall submit to the competent authority for approval a report containing the information referred to in paragraph 2 or 3, where appropriate, by the following deadlines:

(a)	for a category A entity, by 31 July every 5 years;

(b)	for a category B entity, by 31 July every 3 years;

(c)	for any regulated entity that is using the default scope factor as referred to in Article 75l(3) and (4), by 31 July 2026.

However, the competent authority may set an alternative date for submission of the report, but no later date than 30 September of the same year and may approve, together with the monitoring plan or the improvement report, an extension of the deadline applicable pursuant to the second subparagraph, if the regulated entity provides evidence to the satisfaction of the competent authority upon submission of a monitoring plan in accordance with Article 75b or upon notification of updates in accordance with that Article, or upon submission of an improvement report in accordance with this Article, that the reasons for unreasonable costs or for improvement measures being technically not feasible will remain valid for a longer period of time. The extension shall take into account the number of years for which the regulated entity provides evidence. The total time period between improvement reports shall not exceed 4 years for a category B regulated entity or 5 years for a category A regulated entity.

2.   Where the regulated entity does not apply to major fuel streams at least the tiers required pursuant to the first subparagraph of Article 75h(1) and pursuant to Article 75i(1), the regulated entity shall provide a justification as to why it is technically not feasible or would incur unreasonable costs to apply the required tiers.

However, where evidence is found that measures needed for reaching those tiers have become technically feasible and do not any more incur unreasonable costs, the regulated entity shall notify the competent authority of appropriate modifications of the monitoring plan in accordance with Article 75b, and submit proposals for implementing the related measures and its timing.

3.   Where the regulated entity applies a default scope factor as referred to in Article 75l(3) and (4), the regulated entity shall providea justification as to why it is technically not feasible or would incur unreasonable costs to apply any other method referred to in Article 75l(2) for one or more major or de minimis fuel streams.

However, where evidence is found that for those fuel streams it has become technically feasible and does not any more incur unreasonable costs to apply any other method referred to in Article 75l(2), the regulated entity shall notify the competent authority of appropriate modifications of the monitoring plan in accordance with Article 75b and submit proposals for implementing the related measures and its timing.

4.   Where the verification report established in accordance with Implementing Regulation (EU) 2018/2067 states outstanding non- conformities or recommendations for improvements, in accordance with Articles 27, 29 and 30 of that Implementing Regulation, the regulated entity shall submit to the competent authority for approval a report by 31 July of the year in which that verification report is issued by the verifier. That report shall describe how and when the regulated entity has rectified or plans to rectify the non- conformities identified by the verifier and to implement recommended improvements.

The competent authority may set an alternative date for submission of the report as referred to in this paragraph, but no later date than 30 September of the same year. Where applicable, such report may be combined with the report referred to in paragraph 1 of this Article.

Where recommended improvements would not lead to an improvement of the monitoring methodology, the regulated entity shall provide a justification of why that is the case. Where the recommended improvements would incur unreasonable costs, the regulated entity shall provide evidence of the unreasonable nature of the costs.

5.   Paragraph 4 of this Article shall not apply where the regulated entity has already resolved all non-conformities and recommendations for improvement and has submitted related modifications of the monitoring plan to the competent authority for approval in accordance with Article 75b of this Regulation before the date set pursuant to paragraph 4 of this Article.

1.   The competent authority shall make a conservative estimate of the emissions of a regulated entity, taking into account cost pass-on implications for consumers, in any of the following situations:

(a)	no verified annual emission report has been submitted by the regulated entity by the deadline required pursuant to Article 75p;

(b)	the verified annual emissions report referred to in Article 75p is not in compliance with this Regulation;

(c)	the annual emissions report of a regulated entity has not been verified in accordance with Implementing Regulation (EU) 2018/2067.

2.   Where a verifier has stated, in the verification report pursuant to Implementing Regulation (EU) 2018/2067, the existence of non-material misstatements which have not been corrected by the regulated entity before issuing the verification report, the competent authority shall assess those misstatements and, where appropriate, make a conservative estimate of the emissions of the regulated entity, taking into account cost pass-on implications for consumers. The competent authority shall inform the regulated entity whether and which corrections are required to the annual emissions report. The regulated entity shall make that information available to the verifier.

3.   Member States shall establish an efficient exchange of information between competent authorities responsible for approval of monitoring plans and competent authorities responsible for acceptance of annual emissions reports.

1.   Member States shall facilitate the efficient exchanges of information which enable the regulated entities to determine the end use of the fuel released for consumption.

2.   Each operator shall, together with their verified emission report in accordance with Article 68(1), submit information in accordance with Annex Xa. Member States may require that operators make the relevant information listed in Annex Xa available to the regulated entity concerned earlier than 31 March of the reporting year.

3.   Each regulated entity shall, together with their verified emission report in accordance with Article 75p(1), submit information on the consumers of the fuels it released for consumption as listed in Annex Xb.

4.   Each regulated entity which releases fuel for combustion, in sectors covered by Chapter III of Directive 2003/87/EC, shall determine their emissions in the report referred to in Article 75p(1) of this Regulation by using the information from operator’s reports submitted in accordance with Annex Xa to this Regulation and by deducting the relevant amounts of fuels referred to in those reports. The amounts of fuels acquired but not used in the same year may only be deducted if the operator’s verified emission report of the year following the reporting year confirms they have been used for activities referred to in Annex I to Directive 2003/87/EC. Otherwise, the difference shall be reflected in the verified emission reports of the regulated entity of that year.

5.   Where the amounts of fuels used are deducted in the year following the reporting year, the deduction shall be established in the form of absolute emissions reductions, derived from multiplying the amount of fuels used by the operator by the corresponding emission factor in the monitoring plan of the regulated entity.

6.   Where the regulated entity cannot establish that the fuels released for consumption are used for combustion in sectors subject to Chapter III of Directive 2003/87/EC, paragraphs 4 and 5 shall not apply.

7.   Member States may require that the provisions of this Article which concern operators are also applied by aircraft operators.

1.   In order to ensure the accurate monitoring and reporting of emissions covered by Chapter IVa of Directive 2003/87/EC, Member States shall establish measures against fraud and determine the penalties to be imposed in the event of fraud which are commensurate with their purpose and which have an adequate deterrent effect.

2.   In addition to obligations established pursuant to Article 10, the competent authorities designated pursuant to Article 18 of Directive 2003/87/EC, shall cooperate and exchange information with competent authorities charged with supervision pursuant to national legislation transposing Directives 2003/96/EC and (EU) 2020/262, where relevant, for the purposes of this Regulation, including to detect infringements and impose penalties referred to in paragraph 1 or other corrective measures in accordance with Article 16 of Directive 2003/87/EC.

‘ANNEX IIa

Tier definitions for calculation-based methodologies related to regulated entities

1.   DEFINITION OF TIERS FOR RELEASED FUEL AMOUNTS

The uncertainty thresholds in Table 1 shall apply to tiers relevant to released fuel amounts’ requirements in accordance with Article 28(1), point (a), and Article 29(2), first subparagraph. The uncertainty thresholds shall be interpreted as maximum permissible uncertainties for the determination of fuel streams over a reporting period.

Table 1

Tiers for released fuel amounts (maximum permissible uncertainty for each tier)

Fuel stream type

Parameter to which the uncertainty is applied

Tier 1

Tier 2

Tier 3

Tier 4

Combustion of fuels

Commercial standard fuels	Amount of fuel [t] or [Nm3] or [TJ]	±7,5  %	±5  %	±2,5  %	±1,5  %
Other gaseous and liquid fuels	Amount of fuel [t] or [Nm3] or [TJ]	±7,5  %	±5  %	±2,5  %	±1,5  %
Solid fuels	Amount of fuel [t] or [TJ]	±7,5  %	±5  %	±2,5  %	±1,5  %

2.   DEFINITION OF TIERS FOR CALCULATION FACTORS AND THE SCOPE FACTOR

Regulated entities shall monitor CO2 emissions from all types of fuels released for consumption in sectors listed in Annex III to Directive 2003/87/EC or included in the Union system under Article 30j of that Directive using the tier definitions laid down in this section.

2.1.   Tiers for emission factors

Where a biomass fraction is determined for a mixed fuel, the tiers defined shall relate to the preliminary emission factor. For fossil fuels, the tiers shall relate to the emission factor.

Tier 1: The regulated entity shall apply one of the following:

(a)	the standard factors listed in section 1 of Annex VI;

(b)	other constant values in accordance with Article 31(1), point (e), where no applicable value is contained in section 1 of Annex VI.

Tier 2a: The regulated entity shall apply country specific emission factors for the respective fuel in accordance with Article 31(1), points (b) and (c).

Tier 2b: The regulated entity shall derive emission factors for the fuel based on net calorific value for specific coal types, in combination with an empirical correlation as determined at least once per year in accordance with Articles 32 to 35 and 75m.

The regulated entity shall ensure that the correlation satisfies the requirements of good engineering practice and that it is applied only to values of the proxy which fall into the range for which it was established.

Tier 3: The regulated entity shall apply one of the following:

(a)	determination of the emission factor in accordance with the relevant provisions of Articles 32 to 35;

(b)

the empirical correlation as specified for Tier 2b, where the regulated entity demonstrates to the satisfaction of the competent authority that the uncertainty of the empirical correlation does not exceed 1/3 of the uncertainty value to which the regulated entity has to adhere with regard to the released fuel amounts determination of the relevant fuel.

2.2.   Tiers for unit conversion factor

Tier 1: The regulated entity shall apply one of the following:

(a)	the standard factors listed in section 1 of Annex VI;

(b)	other constant values in accordance with Article 31(1), point (e), where no applicable value is contained in section 1 of Annex VI.

Tier 2a: The regulated entity shall apply country specific factors for the respective fuel in accordance with Article 31(1), point (b) or (c).

Tier 2b: For commercially traded fuels the unit conversion factor as derived from the purchasing records for the respective fuel shall be used provided it has been derived based on accepted national or international standards.

Tier 3: The regulated entity shall determine the unit conversion factor in accordance with Articles 32 to 35.

2.3.   Tiers for biomass fraction

Tier 1: The regulated entity shall apply an applicable value published by the competent authority or the Commission, or values in accordance with Article 31(1).

Tier 2: The regulated entity shall apply an estimation method approved in accordance with Article 75m(3), second subparagraph.

Tier 3a: The regulated entity shall apply analyses in accordance with Article 75m(3), first subparagraph, and in accordance with Articles 32 to 35.

Where a regulated entity assumes a fossil fraction of 100 % in accordance with Article 39(1), no tier shall be assigned for the biomass fraction.

Tier 3b: For fuels originating from a production process with defined and traceable input streams, the regulated entity may base the estimation on a mass balance of fossil and biomass carbon entering and leaving the process, such as the mass balance system in accordance with Article 30(1) of Directive (EU) 2018/2001.

2.4.   Tiers for the scope factor

Tier 1: The regulated entity shall apply a default value in accordance with Article 75l(3) or (4).

Tier 2: The regulated entity shall apply methods in accordance with Article 75l(2), points (e) to (g).

Tier 3: The regulated entity shall apply methods in accordance with Article 75l(2), points (a) to (d).

‘ANNEX IX

Minimum data and information to be retained in accordance with Article 67(1)

Operators, aircraft operators and regulated entities shall retain at least the following:

1.   COMMON ELEMENTS FOR INSTALLATIONS, AIRCRAFT OPERATORS AND REGULATED ENTITIES

(1)	The monitoring plan approved by the competent authority;

(2)	Documents justifying the selection of the monitoring methodology and the documents justifying temporal or non-temporal changes of monitoring methodologies and, where applicable, tiers approved by the competent authority;

(3)	All relevant updates of monitoring plans notified to the competent authority in accordance with Article 15, and the competent authority’s replies;

(4)	All written procedures referred to in the monitoring plan, including the sampling plan where relevant, the procedures for data flow activities and the procedures for control activities;

(5)	A list of all versions used of the monitoring plan and all related procedures;

(6)	Documentation of the responsibilities in connection to the monitoring and reporting;

(7)	The risk assessment performed by the operator, aircraft operator or regulated entity, where applicable;

(8)	The improvement reports in accordance with Article 69;

(9)	The verified annual emission report;

(10)	The verification report;

(11)	Any other information that is identified as required for the verification of the annual emissions report.

2.   SPECIFIC ELEMENTS FOR STATIONARY SOURCE INSTALLATIONS

(1)	The greenhouse gas emissions permit, and any updates thereof;

(2)	Any uncertainty assessments, where applicable;

(3)

For calculation-based methodologies applied in installations: (a) the activity data used for any calculation of the emissions for each source stream, categorised according to process and fuel or material type; (b) a list of all default values used as calculation factors, where applicable; (c) the full set of sampling and analysis results for the determination of calculation factors; (d) documentation about all ineffective procedures corrected and correction action taken in accordance with Article 64; (e) any results of calibration and maintenance of measuring instruments.

(4)

For measurement-based methodologies in installations, the following additional elements: (a) documentation justifying the selection of a measurement-based methodology; (b) the data used for the uncertainty analysis of emissions from each emission source, categorised according to process; (c) the data used for the corroborating calculations and results of the calculations; (d) a detailed technical description of the continuous measurement system including the documentation of the approval from the competent authority; (e) raw and aggregated data from the continuous measurement system, including documentation of changes over time, the log-book on tests, down-times, calibrations, servicing and maintenance; (f) documentation of any changes to the continuous measurement system; (g) any results of the calibration and maintenance of measuring instruments; (h) where applicable, the mass or energy balance model used for the purpose of determining surrogate data in accordance with Article 45(4) and underlying assumptions;

(5)

Where a fall-back methodology as referred to in Article 22 is applied, all data necessary for determining the emissions for the emission sources and source streams for which that methodology is applied, as well as proxy data for activity data, calculation factors and other parameters which would be reported under a tier methodology;

(6)

For primary aluminium production, the following additional elements: (a) documentation of results from measurement campaigns for the determination of the installation specific emission factors for CF4 and C2F6; (b) documentation of the results of the determination of the collection efficiency for fugitive emissions; (c) all relevant data on primary aluminium production, anode effect frequency and duration or overvoltage data;

(7)

For CO2 capture, transport and geological storage activities, where applicable, the following additional elements: (a) documentation of the amount of CO2 injected into the storage complex by installations carrying out geological storage of CO2; (b) representatively aggregated pressure and temperature data from a transport network; (c) a copy of the storage permit, including the approved monitoring plan, pursuant to Article 9 of Directive 2009/31/EC; (d) the reports submitted in accordance with Article 14 of Directive 2009/31/EC; (e) reports on the results of the inspections carried out in accordance with Article 15 of Directive 2009/31/EC; (f) documentation on corrective measures taken in accordance with Article 16 of Directive 2009/31/EC.

3.   SPECIFIC ELEMENTS FOR AVIATION ACTIVITIES

(1)	A list of aircraft owned, leased-in and leased-out, and necessary evidence for the completeness of that list; for each aircraft the date when it is added to or removed from the aircraft operator’s fleet;

(2)	A list of flights covered in each reporting period including, for each flight, the ICAO designator of the two aerodromes, and necessary evidence for the completeness of that list;

(3)	Relevant data used for determining the fuel consumption and emissions;

(4)

Documentation on the methodology for data gaps where applicable, the number of flights where data gaps occurred, the data used for closing the data gaps, where they occurred, and, where the number of flights with data gaps exceeded 5 % of flights that were reported, reasons for the data gaps as well as documentation of remedial actions taken.

4.   SPECIFIC ELEMENTS FOR REGULATED ENTITIES

(1)	A list of fuel streams in each reporting period and necessary evidence for completeness of that list, including the categorisation of fuel streams;

(2)	the means through which the fuels as defined in Article 3, point (af) of Directive 2003/87/EC are released for consumption and where available, the types of intermediate consumers, where this would not cause disproportionate administrative burden;

(3)	the type of end use, including the relevant CRF code of the final sectors in which the fuel as defined in Article 3, point (af), of Directive 2003/87/EC is consumed, at the level of aggregation available;

(4)	relevant data used for determining the released fuel amounts for each fuel stream;

(5)	a list of default values used and calculation factors, where applicable;

(6)	the scope factor for each fuel stream, including an identification of each final consumption sector and all relevant underlying data for this identification;

(7)	the tiers applicable including justifications for deviation from required tiers;

(8)	the full set of sampling and analysis results for the determination of calculation factors;

(9)	documentation about all ineffective procedures corrected and correction action taken in accordance with Article 64;

(10)	any results of calibration and maintenance of measuring instruments;

(11)	a list of installations to which fuel as defined in Article 3 (af) of Directive 2003/87/EC is released for consumption, including names, address and permit number and released fuel amounts supplied to those installations for the reporting periods.

‘ANNEX Xa

Reports on fuel suppliers and fuel use of stationary installations and, where relevant, aircraft operators and shipping companies

Together with the information contained in the annual emission report pursuant to Annex X to this Regulation, the operator shall submit a report with the following information for each purchased fuel as defined in Article 3(af) of Directive 2003/87/EC:

(a)

name, address and unique permit number of the fuel supplier which is registered as regulated entity. In cases where the fuel supplier is not a regulated entity, the operators shall submit, where available, a list of all suppliers of fuels, from direct fuel suppliers up to the regulated entity, including their name, address and unique permit number;

(b)	the types and amounts of fuels acquired from each supplier referred to in point (a) during the relevant reporting period;

(c)	the amount of fuel used for activities referred to in Annex I to Directive 2003/87/EC from each fuel supplier during the relevant reporting period.

ANNEX Xb

Reports on released fuels by regulated entities

Together with the information contained in the annual emission report pursuant to Annex X to this Regulation, the regulated entity shall submit a report with the following information for each purchased fuel as defined in Article 3, point (af), of Directive 2003/87/EC:

(a)

name, address and unique permit number of the operator and, where relevant, the aircraft operator and shipping company, to whom the fuel is released. In other cases where the fuel is meant for end use in sectors covered by Annex I to Directive 2003/87/EC the regulated entity shall submit, where available, a list of all consumers of fuels, from direct buyer down to the operator, including their name, address and unique permit number, where this would not cause disproportionate administrative burden;

(b)	the types and amounts of fuels sold to each buyer referred to in point (a) during the relevant reporting period.

(c)	the amount of fuel used for activities referred to in Annex I to Directive 2003/87/EC for each buyer referred to in point (a) during the relevant reporting period.