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Directive 2003/87/EC of the European Parliament and of the Council of 13 October 2003 establishing a system for greenhouse gas emission allowance trading within the Union and amending Council Directive 96/61/EC (Text with EEA relevance) (EU Emissions Trading System (EU ETS) Directive)RecitalsChapter I General provisions (arts. 1-3)Article 1 Subject matterArticle 2 ScopeArticle 3 DefinitionsChapter II Aviation and Maritime Transport (arts. 3a-3gg)Article 3a ScopeArticle 3b Aviation activitiesArticle 3c Total quantity of allowances for aviationArticle 3d Method of allocation of allowances for aviation through auctioningArticle 3e Allocation and issue of allowances to aircraft operatorsArticle 3f Special reserve for certain aircraft operatorsArticle 3g Monitoring and reporting plansArticle 3ga Scope of application to maritime transport activitiesArticle 3gb Phase-in of requirements for maritime transportArticle 3gc Provisions for transfer of the costs of the EU ETS from the shipping company to another entityArticle 3gd Monitoring and reporting of emissions from maritime transportArticle 3ge Verification and accreditation rules for emissions from maritime transportArticle 3gf Administering authority in respect of a shipping companyArticle 3gg Reporting and reviewChapter III Stationary installations (arts. 3h-11)Article 3h ScopeArticle 4 Greenhouse gas emissions permitsArticle 5 Applications for greenhouse gas emissions permitsArticle 6 Conditions for and contents of the greenhouse gas emissions permitArticle 7 Changes relating to installationsArticle 8 Coordination with Directive 2010/75/EUArticle 9 Union-wide quantity of allowancesArticle 9a Adjustment of the Union-wide quantity of allowancesArticle 10 Auctioning of allowancesArticle 10a Transitional Union-wide rules for harmonised free allocationArticle 10b Transitional measures to support certain energy intensive industries in the event of carbon leakageArticle 10c Option for transitional free allocation for the modernisation of the energy sectorArticle 10ca Earlier deadline for transitional free allocation for the modernisation of the energy sectorArticle 10d Modernisation FundArticle 10e Recovery and Resilience FacilityArticle 10f "Do no significant harm" principleArticle 11 National implementation measuresChapter IV Provisions Applying to Aviation, Maritime Transport and Stationary Installations (arts. 11a-30)Article 11a Use of CERs and ERUs from project activities in the EU ETS before the entry into force of an international agreement on climate changeArticle 11b Project activitiesArticle 12 Transfer, surrender and cancellation of allowancesArticle 13 Validity of allowancesArticle 14 Monitoring and reporting of emissionsArticle 15 Verification and accreditationArticle 15a Disclosure of information and professional secrecyArticle 16 PenaltiesArticle 17 Access to informationArticle 18 Competent authorityArticle 18a Administering Member StateArticle 18b Assistance from the Commission, EMSA and other relevant organisationsArticle 19 RegistriesArticle 20 Central AdministratorArticle 21 Reporting by Member StatesArticle 21a Support of capacity-building activitiesArticle 22 Amendments to the AnnexesArticle 22a Committee procedureArticle 23 Exercise of the delegationArticle 24 Procedures for unilateral inclusion of additional activities and gasesArticle 24a Harmonised rules for projects that reduce emissionsArticle 25 Links with other greenhouse gas emissions trading schemesArticle 25a Third country measures to reduce the climate change impact of aviationArticle 26 Amendment of Directive 96/61/ECArticle 27 Exclusion of small installations subject to equivalent measuresArticle 27a Optional exclusion of installations emitting less than 2 500 tonnesArticle 28 Adjustments applicable upon the approval by the Union of an international agreement on climate changeArticle 28a Derogations applicable in advance of the mandatory implementation of ICAO's global market-based measureArticle 28b Reporting and review by the Commission concerning the implementation of ICAO's global market-based measureArticle 28c Provisions for monitoring, reporting and verification for the purpose of the global market-based measureArticle 29 Report to ensure the better functioning of the carbon marketArticle 29a Measures in the event of excessive price fluctuationsArticle 30 Review in the light of the implementation of the Paris Agreement and the development of carbon markets in other major economiesChapter IVa Emissions Trading System for Buildings, Road Transport and additional Sectors (arts. 30a-30k)Article 30a ScopeArticle 30b Greenhouse gas emissions permitsArticle 30c Union-wide quantity of allowancesArticle 30d Auctioning of allowances for the activity referred to in Annex IIIArticle 30e Transfer, surrender and cancellation of allowancesArticle 30f Monitoring, reporting, verification of emissions and accreditationArticle 30g AdministrationArticle 30h Measures in the event of an excessive price increaseArticle 30i Review of this ChapterArticle 30j Procedures for unilateral extension of the activity referred to in Annex III to other sectors not subject to Chapters II and IIIArticle 30k Postponement of emissions trading for buildings, road transport and additional sectors until 2028 in the event of exceptionally high energy pricesChapter IVb Scientific Advice and Visibility of Funding (arts. 30l-30m)Article 30l Scientific adviceArticle 30m Information, communication and publicityChapter V Final Provisions (arts. 31-33)Article 31 ImplementationArticle 32 Entry into forceArticle 33 AddresseesAnnex I Categories of activities to which this Directive appliesAnnex II Greenhouse gases referred to in Articles 3 and 30Annex IIa Increases in the percentage of allowances to be auctioned by Member States pursuant to Article 10(2)(a), for the purpose of Union solidarity and Growth in order to reduce emissions and adapt to the effects of climate changeAnnex IIbAnnex III Activity covered by Chapter IVaAnnex IIIa Adjustment of linear reduction factor in accordance with Article 30c(2)Annex IV Principles for monitoring and reporting referred to in Article 14(1)Annex V Criteria for verification referred to in Article 15Done at
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Version status: Inserted | Document consolidation status: Updated to reflect all known changes
Version date: 5 June 2023 - onwards

Annex IIIa Adjustment of linear reduction factor in accordance with Article 30c(2)

1. If the average emissions reported under Chapter IVa for the years 2024 to 2026 are more than 2 % higher compared to the value of the 2025 quantity defined in accordance with Article 30c(1), and if those differences are not due to the difference of less than 5 % between the emissions reported under Chapter IVa and the inventory data of 2025 Union greenhouse gas emissions from UNFCCC source categories for the sectors covered under Chapter IVa, the linear reduction factor shall be calculated by adjusting the linear reduction factor referred to in Article 30c(1).

2. The adjusted linear reduction factor in accordance with point 1 shall be determined as follows:

LRFadj = 100%* [MRV[2024-2026] – (ESR[2024] - 6* LRF[2024]* ESR[2024]) ]/ (5* MRV[2024-2026]), where,

LRFadj is the adjusted linear reduction factor;

MRV[2024-2026] is the average of verified emissions under Chapter IVa for the years 2024 to 2026;

ESR[2024] is the value of 2024 emissions defined in accordance with Article 30c(1) for the sectors covered under Chapter IVa;

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