Article 16 lays down the Allocation Mechanism for the Individual Quotas.
- Quota are allocated annually based on the Reference Values
- Original Reference Values are based on quantities placed in the market in the 20092012 timeframe
- Reference Values are reviewed every three years, 2015, 2018 etc.
- Eligible are producers and importers that have placed HFCs on the EU Market in the previous periods.
- Non-EU producers can appoint a Only Representative analogous to the REACH Regulation
- A New Entrants Reserve (NER) of 11% of the Baseline has been made available
- New Entrants must submit requests for Quota
- Incumbents can also apply for additional quota under the NER
- All applications must identify the types of HFC and quantities
- Allocation based on equal volume principle
Article 17 provides the principles of the Electronic Registry which is managed by the European Commission
(accessible via http://ec.europa.eu/clima/policies/f-gas/reporting/index_en.htm)
Registration in the Registry is mandatory for:
- Producers and Importers of HFCs who hold quota
- Undertakings who wish to receive quota under the transfer mechanism (art 18)
- New Entrants
- Undertakings supplying or receiving HFCs for exempted uses (art 15.2)
- Importers of pre-charged equipment where the HFCs have not yet been accounted for (art 18.2)
Article 18 lays down the rules for the transfer of quota and the authorisation of quota use for pre-charged equipment.
- Quota must be transferred via the Registry. Quota transferred are valid only for the calendar year in which they are transferred (“Use it or Lose it”)
- The beneficiary which uses the quota will thus add to its baseline for the next three year cycle
- Quota transferred remain transferrable to another beneficiary
- Quota use Authorisations have unlimited validity. The corresponding quantity of HFCs in CO2 equivalent will be considered as having been placed on the market by the Quota owner in the year of authorisation.
- The European Commission will provide detailed guidelines on the actual exercise of the authorisation to use Quotas.