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 before the application of the scope factor, with the exclusion of CO₂ stemming from zero-rated fuels, 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 before the application of the scope factor, with the exclusion of CO₂ stemming from zero-rated fuels, 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.