Key Benefits:
Publics concerned: companies with facilities subject to the Greenhouse Gas Emission Exchange System.
Subject: technical rules for the allocation of emission quotas to existing facilities, adaptation of these rules to specific situations: vapocraqueurs, monomer vinyl chloride and facilities in which there is interchangeability between fuels and electricity.
Entry into force: the rules set out in this Order apply to the Greenhouse Gas Emission Exchange System for the third exchange period, 2013-2020. The Order comes into force on the day after its publication.
Notice: This Order contains technical rules for allocation of emission quotas in addition to articles R. 229-5 et seq. of the Environmental Code.
It establishes definitions, sets out general rules for the allocation of quotas to facilities, rules specific to certain facilities. It provides provisions to avoid double counting and establish adjustment coefficients. It sets out the methods for calculating special allowances for vapocraquing, monomer vinyl chloride and installations that use electricity to replace fossil fuels.
References: This Order is available on the website Légifrance (http://www.legifrance.gouv.fr).
Minister of Productive Recovery and Minister of Ecology, Sustainable Development and Energy,
Considering the amended Directive 2003/87/EC establishing a system for the exchange of greenhouse gas emission quotas in the community and amending Council Directive 96/61/EC;
Having regard to European Commission decision 2011/278/EU of 27 April 2011 defining transitional rules for the whole Union concerning the harmonized allocation of free-of-charge emission quotas in accordance with Article 10 bis of Directive 2003/87/EC;
Considering the environmental code, including articles L. 229-5 et seq. and R. 229-5 et seq.;
Vu le Decree No. 2012-1343 of 3 December 2012 the Greenhouse Gas Emission Exchange System (period 2013-2020) and the implementation of project activities;
Considering the opinion of the simplification commissioner dated 6 April 2012;
Based on the advice of the Local Finance Committee (the Standards Assessment Advisory Board) dated 12 April 2012,
Stop:
Definitions.
For the purposes of this Order, the following means:
(a) "Sub-installation with product reference": inputs, outputs and corresponding emissions related to the manufacture of a product for which a repository was defined in Annex I to Decision 2011/278/EU of 27 April 2011 of the European Commission defining transitional rules for the whole Union regarding the harmonized allocation of free-of-charge emission quotas in accordance with Directive 10 bis 2003
(b) "Sub-installation with heat repository": inputs, outputs and corresponding emissions that are not covered by a sub-installation with product reference and that are related to measurable heat production or to the importation of measurable heat from a facility or other entity covered by the heat exchange system, or two times the greenhouse gas emission quotas,
― consumed within the limits of the installation for the manufacture of products, for the production of mechanical energy other than that used for the production of electricity for heating or cooling, excluding consumption for the production of electricity, or
- exported to a facility or other entity not covered by the quota exchange system, excluding export for the purposes of electricity generation;
(c) "Sub-installation with fuel repository": inputs, outputs and corresponding emissions that do not fall within a sub-installation with product reference and are related to the production, by combustion of fuels, of non-measurable heat consumed for the manufacture of products, for the production of mechanical energy other than that used for the purpose of the production of electricity or for heating or for the purpose of the production of electricity
(d) "Measurable heat": a net thermal flux transported in identifiable pipes or pipes by means of a caloporting medium, such as steam, hot air, water, oil, metals and liquid salts, for which a thermal energy meter is installed or could be installed;
(e) "thermal energy meter": a thermal energy meter within the meaning of Annex MI-004 of Directive 2004/22/EC of the European Parliament and of the Council or any other device designed to measure and record the amount of thermal energy produced on the basis of volumes of fluxes and temperatures;
(f) “Non-measurable heat”: any heat other than measurable heat;
(g) "Sub-installation with process emissions": the emissions of the greenhouse gases listed in the annex to article R. 229-5, other than the carbon dioxide, that are produced outside the limits of the system of a reference of product set out in annex I to decision 2011/278/EU of 27 April 2011 referred to above or the emissions of carbon dioxide that are produced outside the limits of the system of a reference
(i) The chemical or electrolytic reduction of metal compounds in minerals, concentrates and secondary raw materials;
(ii) The removal of impurities in metals and metal compounds;
(iii) The decomposition of carbonates, excluding those used for the treatment of smoke;
(iv) Chemical synthesis in which the carbonated material participates in the reaction, when the main objective is other than heat production;
(v) Use of additives or raw materials containing carbon, where the main objective is other than heat production;
(vi) The chemical or electrolytic reduction of metalloid oxides or non-metallic oxides, such as silicon oxides and phosphates;
(h) "Distortion for safety reasons": the combustion of pilot fuels and very variable amounts of residual gas or process gas in a unit exposed to atmospheric disturbances, as this combustion is expressly required for safety reasons by the relevant authorizations of the facility;
(i) "Private cleaning": a residential unit in which people make arrangements, individually or in a group, to provide measurable heat.
Allocation of free quotas to each facility.
I. ― To calculate the number of free quotas assigned under section R. 229-8 of the Environmental Code, the Minister responsible for the Environment begins by determining, separately for each sub-installation, the annual provisional number of emission quotas assigned for free, as follows:
(a) For each sub-installation with a product repository, the annual provisional number of emission quotas assigned free of charge for a given year corresponds to the value of this product reference set out in Appendix I to Decision 2011/278/EU of 27 April 2011 referred to above multiplied by the level of historical activity for the corresponding product;
(b) For the sub-installation with heat repository, the annual provisional number of emission quotas allocated free of charge for a given year corresponds to the value of the heat repository applicable to the measurable heat set out in Appendix I of the decision of 27 April 2011 multiplied by the level of historical heat activity for measurable heat consumption;
(c) For the sub-installation with fuel reference, the annual provisional number of emission quotas allocated free of charge for a given year corresponds to the value of the fuel reference set out in Appendix I of the above-mentioned decision of 27 April 2011 multiplied by the level of historical activity for fuels consumed;
(d) For process-emission sub-installation the annual provisional number of emission quotas allocated free of charge for a given year corresponds to the historical activity level of the process multiplied by 0.970 0.
II. ― When the measurable heat is exported to private households and the annual provisional emission quota for 2013, determined in accordance with I, point b (i), is less than the median value of annual historical emissions related to the measurable heat production exported by the sub-installation to private households during the period from 1 January 2005 to 31 December 2008, the annual provisional emission quota for 2013 is adjusted to two because of the difference For each of the years 2014 to 2020, the provisional annual number of emission quotas determined in accordance with I, point b (i) is adjusted when the provisional annual number of emission quotas is less than a given percentage of the median value of historical annual emissions. This percentage is 90 per cent in 2014 and a 10 per cent decrease each consecutive year.
III. ― The factors set out in Appendix VI of the decision of 27 April 2011 referred to above are applied to the annual provisional number of emission quotas allocated free of charge determined for each sub-installation for the year concerned, in accordance with I of this article, when the processes implemented in these sub-installations are used for sectors or sub-sectors considered to be not exposed to a significant risk of carbon leakage, in accordance with Decision 2010/2/EU 2003
When the processes in these sub-installations are used for sectors or sub-sectors considered to be exposed to a significant risk of carbon leakage in accordance with the above-mentioned decision 2010/2/EU, the factor to be applied for the years 2013 and 2014 is equal to 1. The sectors or subsectors for which the factor is 1 for the years 2015 to 2020 are determined in accordance with Article 10 bis, paragraph 13, of Directive 2003/87/EC.
IV. ― Where 95% at least of the historical level of activity of the sub-installation with heat repository, sub-installation with fuel repository or sub-installation with process emissions are used for sectors or sub-sectors considered to be exposed to a significant risk of carbon leakage in accordance with Decision 2010/2/EU, the sub-installation as a whole is considered to be exposed to a significant risk of carbon leakage.
When at least 95% of the historical level of activity of the sub-installation with heat repository, sub-installation with fuel repository or sub-installation with process emissions are used for sectors or sub-sectors considered not to be exposed to a significant risk of carbon leakage in accordance with Decision 2010/2/EU, the sub-installation as a whole is considered to be not exposed to a significant risk of carbon leakage.
V. ― The total annual provisional amount of emission quotas allocated free of charge to each facility is the sum of the annual provisional emission quotas allocated free of charge to all sub-installations, calculated in accordance with I to III of this section.
VI. ― The total annual final amount of emission quotas allocated free of charge to each facility in place, with the exception of facilities under section 10 bis, paragraph 3, of Directive 2003/87/EC, corresponds to the total annual provisional amount of emission quotas allocated free of charge to each facility, determined in accordance with paragraph 6, multiplied by the transsectoral correction factor defined in accordance with section 16, paragraph 3, April 2011.
For facilities under section 10 bis, paragraph 3, of Directive 2003/87/EC that meet the conditions for the allocation of free-of-charge emission quotas, the final annual total amount of free-of-charge emission quotas corresponds to the provisional annual total amount of free-of-charge emission quotas allocated to each facility, adjusted annually by means of the linear factor defined in section 10 bis, paragraph 4, of the total amount allocated as
Facilities. - Special provisions.
I. ― The annual provisional number of emission quotas allocated free of charge to sub-installations that have received measurable heat from sub-installations that manufacture products covered by the nitric acid repositories set out in Appendix I is reduced by the annual historical consumption of the said heat during the reference period referred to in I of section R. 229-7 of the environmental code multiplied by
II. ― Where an installation includes sub-installations producing paper paste (kraft short fibres, kraft long fibres, thermomechanical paste and mechanical paste, bisulite paste or other paper paste not covered by a product reference) that export measurable heat to other technically related sub-installations, the total provisional amount of emission quotas allocated for
Double counting and adjustment coefficients.
I. ― When determining the total provisional annual amount of free-of-charge emission quotas for each facility, the Minister for the Environment shall ensure that the emissions are not double-counted and that the allocation is not negative. In particular, in the event of the importation, by installation, of an intermediate product referred to in a product repository in accordance with the definition of the respective limits of the system set out in Appendix I to the above-mentioned decision of April 27, 2011, the emissions are not the subject of a double count when determining the total amount of emission quotas allocated free of charge to the two facilities concerned.
II. ― The final total annual total amount of emission quotas allocated free of charge to each facility in place, with the exception of facilities under section 10 bis, paragraph 3, of Directive 2003/87/EC, corresponds to the provisional total annual total amount of emission quotas assigned free of charge to each facility, as determined in section 3-I above, multiplied by the transsectoral correction factor referred to in section 10 bis, 2003
For facilities under section 10 bis, paragraph 3, of Directive 2003/87/EC that meet the conditions for the allocation of free-of-charge emission quotas, the total annual total amount of free-of-charge emission quotas corresponds to the total annual provisional amount of free-of-charge emission quotas allocated to each facility determined in accordance with Article 3-I, adjusted annually by means of the linear factor defined in Article 10 bis
Allocation of quotas for vapocraquation.
By derogation from section 2-I a, the annual provisional number of emission quotas allocated free of charge to a sub-installation with a product repository for the production of high-value added chemicals (hereinafter referred to as "CHVA", high-value added chemicals) corresponds to the following product. The value of the reference point for vapocraquing in Annex I to the above-mentioned decision of 27 April 2011 is multiplied by the level of historical activity determined in accordance with Annex III to this decision and by the quotient of the total direct emissions, including emissions from net imported heat, during the reference period referred to in Article R. 229-7-I of the code of sum of carbon, The result of this calculation is added: 1.78 tonnes of carbon dioxide per ton of hydrogen, multiplied by the median value of the historical hydrogen production from the extra charge, expressed in tons of hydrogen, 0.24 tonnes of carbon dioxide per tonne of ethylene, multiplied by the median value of the median production of ethylene from the extra charge, expressed in tons of ethylene
Allowance for monomer vinyl chloride.
By derogation from section 2-I, point a, the annual provisional number of emission quotas allocated free of charge to a sub-installation producing monomer vinyl chloride (hereinafter "CVM") is the product:
- the value of the CVM repository;
― multiplied by the level of historical activity of the production of CVM, expressed in tons,
and multiplied by the quotient of direct emissions related to the production of CVM, including emissions related to the net imported heat during the reference period referred to in Article R. 229-7-I of the environmental code, calculated in accordance with Article 8-II of this Order, expressed in tonnes carbon dioxide equivalent, and the sum of these direct emissions and emissions related to hydrogen emissions resulting from the production of CVM
Thermal fluxes between installations.
When a sub-installation with a product reference includes measurable heat imported from a facility or other entity not included in the emission quota exchange system, the annual provisional number of emissions quotas allocated free of charge to the sub-installation with the relevant product reference, determined in accordance with Article 2-I, is reduced from the amount of heat historically imported
Fuel interchangeability/electricity.
I. ― For each sub-installation with a product reference referred to in Appendix I to the above-mentioned decision of April 27, 2011 for which it is taken into account the fuel/electricity interchangeability, the annual provisional number of emission quotas assigned for free is the value of the applicable product reference set out in Appendix I to this decision multiplied by the level of historical activity for the product and multiplied by the
- total direct emissions, including emissions from net imported heat, during the reference period referred to in Article 8-I, of the above-mentioned decision, expressed in tonnes of carbon dioxide equivalent; and
- the sum of these total direct emissions and relevant indirect emissions during the reference period referred to in section R. 229-7-I. of the Environmental Code.
II. ― For the purposes of the calculation under the first paragraph, the relevant indirect emissions relate to the consumption of relevant electricity, as specified in the definition of processes and emissions covered by Annex I to the decision of April 27, 2011 referred to above, during the reference period referred to in Article R. 229-7-I, expressed in megawatt hours, related to the manufacture of the carbon dioxide megawatt hour expressed by
For the purposes of the calculation under the first paragraph, emissions from net imported heat correspond to the quantity of measurable heat imported for the manufacture of the product concerned from facilities covered by the emission quota exchange system during the reference period referred to in section R. 229-7 I of the environmental code, multiplied by the value of the heat reference referred to in April 2011 of decision 27
The Minister of Productive Recovery and the Minister of Ecology, Sustainable Development and Energy are responsible for the execution of this Order, which will be published in the Official Journal of the French Republic.
Done on 7 January 2013.
The Minister of Ecology,
Sustainable Development
and energy,
For the Minister and by delegation:
Director General
energy and climate,
L. Michel
Minister of Productive Recovery
For the Minister and by delegation:
The Director General of Competitiveness,
industry and services,
P. Faure
