1. Where N₂O originates from activities covered by Annex I to Directive 2003/87/EC for which that Annex specifies N₂O as relevant and an installation does not emit the N₂O but transfers it to another installation that monitors and reports emissions in accordance with this Regulation, it shall not be counted as emissions of the installation where it originates.

An installation that receives N₂O from an installation and activity in accordance with the first subparagraph shall monitor the relevant gas streams using the same methodologies, as required by this Regulation, as if the N₂O were generated within the receiving installation itself.

However, where N₂O is bottled or used as a gas in products so that it is emitted outside the installation, or where it is transferred out of the installation to entities not covered by Directive 2003/87/EC, it shall be counted as emissions of the installation where it originates, except for quantities of N₂O in respect of which the operator of the installation where the N₂O originates can demonstrate to the competent authority that the N₂O is destroyed using suitable emissions abatement equipment.

2. In its annual emissions report, the operator of the transferring installation shall provide the receiving installation's installation identification code recognised in accordance with the acts adopted pursuant to Article 19(3) of Directive 2003/87/EC, if relevant.

The first subparagraph shall also apply to the receiving installation with respect to the transferring installation's installation identification code.