Commission Implementing Regulation (EU) 2018/2066 of 19 December 2018 on the monitoring and reporting of greenhouse gas emissions pursuant to Directive 2003/87/EC of the European Parliament and of the Council and amending Commission Regulation (EU) No 601/2012 (Text with EEA relevance)

This Regulation lays down rules for the following:

1. from 1 January 2021 and subsequent trading periods, monitoring and reporting of greenhouse gas emissions and activity data pursuant to Directive 2003/87/EC in the trading period of the Union emissions trading system;

2. from 1 January 2025, monitoring and reporting of non-CO2 aviation effects pursuant to Article 14 of Directive 2003/87/EC.

This Regulation shall apply to the monitoring and reporting of greenhouse gas emissions specified in relation to the activities listed in Annex I and III to Directive 2003/87/EC, to activity data from stationary installations, to aviation activities, including non-CO2 aviation effects, and to released fuel amounts from activities referred to in Annex III to that Directive.

It shall apply to the following:

1. from 1 January 2021, emissions, activity data and released fuel amounts occurring;

2. from 1 January 2025, non-CO2 aviation effects.

The monitoring and reporting of non-CO2 aviation effects from 2025 shall cover all non-CO2 effects from aviation activities listed in Annex I to the Directive involving an aerodrome located in the EEA. However, in respect of the monitoring and reporting of non-CO2 aviation effects taking place in 2025 and 2026, such reporting shall only be required in respect of routes involving two aerodromes located in the EEA, and routes from an aerodrome located in the EEA departing to Switzerland or to the United Kingdom. In respect of 2025 and 2026, the non-CO2 aviation effects taking place from other flights may be reported on a voluntary basis.

For the purposes of this Regulation, the following definitions shall apply:

1. ‘activity data’ means data on the amount of fuels or materials consumed or produced by a process relevant for the calculation-based monitoring methodology, expressed in terajoules, mass in tonnes or (for gases) volume in normal cubic metres, as appropriate;

2. ‘trading period’ means a period as referred to in Article 13 of Directive 2003/87/EC;

3. ‘source stream’ means any of the following:

   1. a specific fuel type, raw material or product giving rise to emissions of relevant greenhouse gases at one or more emission sources as a result of its consumption or production;

   2. in the case of a mass balance methodology in accordance with Article 25 of this Regulation, one of the following:

      1. a specific fuel type, raw material or product containing carbon;

      2. CO2 transferred in accordance with Article 49 of this Regulation;

4. ‘emission source’ means a separately identifiable part of an installation or a process within an installation, from which relevant greenhouse gases are emitted or, for aviation activities, an individual aircraft;

5. ‘uncertainty’ means a parameter, associated with the result of the determination of a quantity, that characterises the dispersion of the values that could reasonably be attributed to the particular quantity, including the effects of systematic as well as of random factors, expressed in per cent, and describes a confidence interval around the mean value comprising 95 % of inferred values taking into account any asymmetry of the distribution of values;

6. ‘calculation factors’ means net calorific value, emission factor, preliminary emission factor, oxidation factor, conversion factor, carbon content, fossil fraction, biomass fraction, zero-rated biomass fraction, RFNBO or RCF fraction, zero-rated RFNBO or RCF fraction, synthetic low-carbon fraction, zero-rated synthetic low-carbon fraction, zero-rated fraction, or unit conversion factor;

7. ‘tier’ means a set requirement used for determining activity data, calculation factors, annual emission and annual average hourly emission, released fuel amount and scope factor;

8. ‘inherent risk’ means the susceptibility of a parameter in the annual emissions report to misstatements that could be material, individually or when aggregated with other misstatements, before taking into consideration the effect of any related control activities;

9. ‘control risk’ means the susceptibility of a parameter in the annual emissions report to misstatements that could be material, individually or when aggregated with other misstatements, and not prevented or detected and corrected on a timely basis by the control system;

10. ‘combustion emissions’ means greenhouse gas emissions occurring during the exothermic reaction of a fuel with oxygen;

11. ‘reporting period’ means a calendar year during which emissions have to be monitored and reported;

12. ‘emission factor’ means the average emission rate of a greenhouse gas relative to the activity data of a source stream or a fuel stream assuming complete oxidation for combustion and complete conversion for all other chemical reactions;

13. ‘oxidation factor’ means the ratio of carbon oxidised to CO2 as a consequence of combustion to the total carbon contained in the fuel, expressed as a fraction, considering carbon monoxide (CO) emitted to the atmosphere as the molar equivalent amount of CO2;

14. ‘conversion factor’ means the ratio of carbon emitted as CO2 to the total carbon contained in the source stream before the emitting process takes place, expressed as a fraction, considering CO emitted to the atmosphere as the molar equivalent amount of CO2. In the case of CO2 emissions considered to be permanently chemically bound in a product, conversion factor means the ratio of CO2 bound as carbon in a product during a process, to the total CO2 contained as carbon in a product leaving that same process;

15. ‘accuracy’ means the closeness of the agreement between the result of a measurement and the true value of the particular quantity or a reference value determined empirically using internationally accepted and traceable calibration materials and standard methods, taking into account both random and systematic factors;

16. ‘calibration’ means the set of operations, which establishes, under specified conditions, the relations between values indicated by a measuring instrument or measuring system, or values represented by a material measure or a reference material and the corresponding values of a quantity realised by a reference standard;

17. ‘flight’ means flight as defined in point 1(1) of the Annex to Decision 2009/450/EC;

18. ‘passengers’ means the persons onboard the aircraft during a flight excluding its on duty crew members;

19. ‘conservative’ means that a set of assumptions is defined in order to ensure that no under-estimation of annual emissions occurs;

20. ‘biomass’ means the biodegradable fraction of products, waste and residues from biological origin from agriculture, including vegetal and animal substances, from forestry and related industries, including fisheries and aquaculture, as well as the biodegradable fraction of waste, including industrial and municipal waste of biological origin;

21. ‘biomass fuels’ means gaseous and solid fuels produced from biomass;

22. ‘biogas’ means gaseous fuels produced from biomass;

23. ‘waste’ means waste as defined in point (1) of Article 3 of Directive 2008/98/EC, excluding substances that have been intentionally modified or contaminated in order to meet this definition;

24. ‘municipal waste’ means municipal waste as defined in Article 3, point (2b), of Directive 2008/98/EC;

25. ‘residue’ means a substance that is not the end product(s) that a production process directly seeks to produce; it is not a primary aim of the production process and the process has not been deliberately modified to produce it;

26. ‘agricultural, aquaculture, fisheries and forestry residues’ means residues that are directly generated by agriculture, aquaculture, fisheries and forestry and that do not include residues from related industries or processing;

27. ‘bioliquids’ means liquid fuel for energy purposes other than for transport, including electricity and heating and cooling, produced from biomass;

28. ‘biofuels’ means liquid fuels for transport produced from biomass;

29. ‘eligible aviation fuel’ means fuel types eligible for the support under Article 3c(6) of Directive 2003/87/EC;

30. ‘alternative aviation fuels’ means neat aviation fuels containing carbon other than stemming from the neat fossil fuels listed in Table 1 of Annex III to this Regulation;

31. ‘zero-rating’ means the mechanism by which the emission factor of a fuel or material is reduced in order to acknowledge:

    1. in case of biomass, its compliance with sustainability or greenhouse gas savings criteria provided by Article 29(2) to (7) and (10) of Directive (EU) 2018/2001, as specified in Article 38(5) of this Regulation;

    2. in case of RFNBO or RCF, its compliance with the greenhouse gas savings criteria in accordance with Article 29a of Directive (EU) 2018/2001, as specified in Article 39a(3) of this Regulation;

    3. in case of synthetic low-carbon fuels, its compliance with the greenhouse gas savings criteria provided by Article 2 point 13 of Directive (EU) 2024/1788 on common rules for the internal markets in renewable gas and natural gas and in hydrogen; and the prior surrendering of allowances under Directive 2003/87/EC for the captured carbon necessary to produce the synthetic low-carbon fuels, as specified in Article 39a(4) of this Regulation, unless that captured carbon is zero-rated carbon as defined in Article 3(38f).

32. ‘zero-rated fuels’ means biofuels, bioliquids, biomass fuels, synthetic low-carbon fuels, RFNBO or RCF or fractions of mixed fuels or materials which comply with the criteria as specified in Articles 38(5) or 39a(3) or 39a(4) of this Regulation, as applicable;

33. ‘recycled carbon fuels’ (RCF) means recycled carbon fuels as defined in Article 2, point (35) of Directive (EU) 2018/2001;

34. ‘renewable fuels of non-biological origin’ (RFNBO) means renewable fuels of non-biological origin as defined in Article 2, point (36) of Directive (EU) 2018/2001;

35. ‘neat fuel’ means a fuel in its pure form containing only one of the following fractions:

    1. fossil fraction;

    2. non-zero-rated biomass fraction;

    3. zero-rated biomass fraction;

    4. non-zero-rated RFNBO or RCF fraction;

    5. zero-rated RFNBO or RCF fraction;

    6. non-zero-rated synthetic low-carbon fraction;

    7. zero-rated synthetic low-carbon fraction;

    8. fraction of fuels containing carbon other than stemming from the fossil fuels listed in Table 1 of Annex III to this Regulation or from biomass, RFNBO, RCF or synthetic low-carbon fuels;

36. ‘synthetic low-carbon fuels’ means gaseous and liquid fuels, the energy content of which is derived from low-carbon hydrogen as defined in Article 2, point (13) of Directive (EU) 2024/1788, which meet the greenhouse gas emission reduction threshold of 70 % compared to the fossil fuel comparator for renewable fuels of non-biological origin set out in the methodology adopted according to Article 29a(3) of Directive (EU) 2018/2001, as certified in accordance with Article 9 of Directive (EU) 2024/1788;

37. ‘legal metrological control’ means the control of the measurement tasks intended for the field of application of a measuring instrument, for reasons of public interest, public health, public safety, public order, protection of the environment, the levying of taxes and duties, the protection of consumers and fair trading;

38. ‘maximum permissible error’ means the error of measurement allowed as specified in Annex I and instrument-specific annexes to Directive 2014/32/EU of the European Parliament and of the Council⁽¹⁾, or national rules on legal metrological control, as appropriate;

39. ‘data-flow activities’ mean activities related to the acquisition, processing and handling of data that are needed to draft an emissions report from primary source data;

40. ‘tonnes of CO2(e)’ means metric tonnes of CO2 or CO2(e);

41. ‘CO2(e)’ means any greenhouse gas, other than CO2, listed in Annex II to Directive 2003/87/EC with an equivalent global-warming potential as CO2;

42. ‘measurement system’ means a complete set of measuring instruments and other equipment, such as sampling and data-processing equipment, used to determine variables such as the activity data, the carbon content, the calorific value or the emission factor of the greenhouse gas emissions;

43. ‘net calorific value’ (NCV) means the specific amount of energy released as heat when a fuel or material undergoes complete combustion with oxygen under standard conditions, less the heat of vaporisation of any water formed;

44. ‘process emissions’ means greenhouse gas emissions other than combustion emissions occurring as a result of intentional and unintentional reactions between substances or their transformation, including the chemical or electrolytic reduction of metal ores, the thermal decomposition of substances and the formation of substances for use as product or feedstock;

45. ‘commercial standard fuel’ means the internationally standardised commercial fuels that exhibit a 95 % confidence interval of not more than 1 % for their specified calorific value, including gas oil, light fuel oil, gasoline, lamp oil, kerosene, ethane, propane, butane, jet kerosene (jet A1 or jet A), jet gasoline (jet B) and aviation gasoline (AvGas);

46. ‘batch’ means an amount of fuel or material representatively sampled and characterised, and transferred as one shipment or continuously over a specific period of time;

47. ‘mixed fuel’ means a fuel which contains at least two of the following:

    1. carbon stemming from biomass;

    2. carbon stemming from a RFNBO or RCF;

    3. carbon stemming from synthetic low-carbon fuels;

    4. other fossil carbon;

    or which contains both zero-rated carbon and other carbon.

48. ‘mixed aviation fuel’ means a fuel which contains at least two different neat fuels;

49. ‘mixed material’ means a material which contains both biomass and fossil carbon;

50. ‘preliminary emission factor’ means the assumed total emission factor of a fuel or material based on its total carbon content before multiplying it by the fossil fraction to produce the emission factor;

51. ‘fossil fraction’ means the ratio of fossil carbon to the total carbon content of a fuel or material, expressed as a fraction;

52. ‘biomass fraction’ means the ratio of carbon stemming from biomass to the total carbon content of a fuel or material, expressed as a fraction, independent of whether the biomass complies with the criteria of Article 38(5) of this Regulation;

53. ‘eligible fraction’ means the ratio of eligible aviation fuel blended in the fossil fuel;

54. ‘zero-rated biomass fraction’ means the ratio of carbon stemming from biomass which complies with the criteria of Article 38(5) of this Regulation to the total carbon content of a fuel or material, expressed as a fraction;

55. ‘RFNBO or RCF fraction’ means the ratio of carbon stemming from an RFNBO or RCF to the total carbon content of a fuel, expressed as a fraction, independent of whether the RFNBO or RCF complies with the criteria of Article 39a(3) of this Regulation;

56. ‘zero-rated RFNBO or RCF fraction’ means the ratio of carbon stemming from an RFNBO or RCF that complies with the criteria of Article 39a(3) of this Regulation, to the total carbon content of a fuel, expressed as a fraction;

57. ‘zero-rated carbon fraction’ means:

    1. in case of a fuel, the sum of its zero-rated biomass fraction, its zero-rated synthetic low-carbon fraction and its zero-rated RFNBO or RCF fraction without double counting of any carbon;

    2. in case of a material, its zero-rated biomass fraction.

58. ‘zero-rated carbon’ means carbon contained in a fuel or material that belongs to the zero-rated carbon fraction of that fuel or material;

59. ‘synthetic low-carbon fraction’ means the ratio of carbon stemming from synthetic low-carbon fuel to the total carbon content of a fuel, expressed as a fraction, independent of whether the synthetic low-carbon fuel complies with the criteria of Article 39a(4) of this Regulation;

60. ‘zero-rated synthetic low-carbon fraction’ means the ratio of carbon stemming from a synthetic low-carbon fuel that complies with the criteria of Article 39a(4) of this Regulation, to the total carbon content of a fuel;

61. ‘energy balance method’ means a method to estimate the amount of energy used as fuel in a boiler, calculated as the sum of utilisable heat and all relevant losses of energy by radiation, transmission and via the flue gas;

62. ‘continuous emission measurement’ means a set of operations having the objective of determining the value of a quantity by means of periodic measurements, applying either measurements in the stack or extractive procedures with a measuring instrument located close to the stack, whilst excluding measurement methodologies based on the collection of individual samples from the stack;

63. ‘inherent CO2’ means CO2 which is part of a source stream;

64. ‘fossil carbon’ means inorganic and organic carbon that is not zero-rated carbon;

65. ‘measurement point’ means the emission source for which continuous emission measurement systems (CEMS) are used for emission measurement, or the cross-section of a pipeline system for which the CO2 flow is determined using continuous measurement systems;

66. ‘mass and balance documentation’ means the documentation specified in international or national implementation of the standards and recommended practices (SARPs) laid down in Annex 6 to the Convention on International Civil Aviation, signed in Chicago on 7 December 1944 and specified in Section 3 of Subpart C of Annex IV to Commission Regulation (EU) No 965/2012⁽²⁾, or equivalent applicable international rules;

67. ‘distance’ means the great-circle distance between the aerodrome of departure and the aerodrome of arrival, in addition to a fixed factor of 95 km;

68. ‘aerodrome of departure’ means the aerodrome at which a flight constituting an aviation activity listed in Annex I to Directive 2003/87/EC begins;

69. ‘aerodrome of arrival’ means the aerodrome at which a flight constituting an aviation activity listed in Annex I to Directive 2003/87/EC ends;

70. ‘fugitive emissions’ means irregular or unintended emissions from sources that are not localised, or too diverse or too small to be monitored individually;

71. ‘aerodrome’ means aerodrome as defined in point 1(2) of the Annex to Decision 2009/450/EC;

72. ‘aerodrome pair’ means a pair constituted by the aerodrome of departure and the aerodrome of arrival;

73. ‘standard conditions’ means temperature of 273,15 K and pressure conditions of 101 325 Pa defining normal cubic metres (Nm³);

74. ‘storage site’ means storage site as defined in Article 3(3) of Directive 2009/31/EC;

75. ‘CO2 capture’ means the activity of capturing from gas streams CO2 that would otherwise be emitted, for the purposes of transport and geological storage in a storage site permitted under Directive 2009/31/EC;

76. ‘CO2 transport’ means the transport of CO2 for geological storage in a storage site permitted under Directive 2009/31/EC;

77. ‘geological storage of CO2’ means geological storage of CO2 as defined in Article 3(1) of Directive 2009/31/EC;

78. ‘vented emissions’ means emissions deliberately released from an installation by provision of a defined point of emission;

79. ‘enhanced hydrocarbon recovery’ means the recovery of hydrocarbons in addition to those extracted by water injection or other means;

80. ‘proxy data’ means annual values which are empirically substantiated or derived from accepted sources and which an operator or regulated entity as defined in Article 3 of Directive 2003/87/EC uses to substitute the activity data, the released fuel amounts or the calculation factors for the purpose of ensuring complete reporting when it is not possible to generate all the required activity data, released fuel amounts or calculation factors in the applicable monitoring methodology;

81. ‘water column’ means water column as defined in Article 3(2) of Directive 2009/31/EC;

82. ‘leakage’ means leakage as defined in Article 3(5) of Directive 2009/31/EC;

83. ‘storage complex’ means storage complex as defined in Article 3(6) of Directive 2009/31/EC;

84. ‘CO2 transport infrastructure’ means an infrastructure as defined in Article 3(29) of Regulation (EU) 2024/1735;

85. ‘CO2 in transit’ means any amount of transferred CO2 in a CO2 transport infrastructure that has not been transferred to another installation or CO2 transport infrastructure within the same reporting period it was received;

86. ‘fuel stream’ means a fuel as defined in Article 3, point (af), of Directive 2003/87/EC, released for consumption through specific physical means, such as pipelines, trucks, rail, ships or fuel stations, and giving rise to emissions of relevant greenhouse gases as a result of its consumption by categories of consumers in sectors covered by Annex III to Directive 2003/87/EC;

87. ‘national fuel stream’ means the aggregation, per fuel type, of fuels streams of all regulated entities in the territory of a Member State;

88. ‘scope factor’ means the factor between zero and one that is used to determine the share of a fuel stream that is used for combustion in sectors covered by Annex III to Directive 2003/87/EC;

89. ‘released fuel amount’ means data on the amount of fuel as defined in Article 3, point (af), of Directive 2003/87/EC which is released for consumption and expressed as energy in terajoules, mass in tonnes or volume in normal cubic metres or the equivalent in litres, where appropriate, before application of a scope factor;

90. ‘unit conversion factor’ means a factor converting the unit in which released fuel amounts are expressed, into amounts expressed as energy in terajoules, mass in tonnes or volume in normal cubic metres or the equivalent in litres, where appropriate, which comprises all relevant factors such as the density, the net calorific value or (for gases) the conversion from gross calorific value to net calorific value, as applicable;

91. ‘final consumer’ for the purposes of applying the definition of regulated entity, in accordance with Article 3(ae) of Directive 2003/87/EC, in this Regulation, means any natural or legal person that is the consumer of the fuel, whose annual fuel consumption does not exceed 1 tonne of CO2;

92. ‘released for consumption’ for the purposes of this Regulation means the moment where the excise duty on a fuel, as defined in Article 3, point (af), of Directive 2003/87/EC, becomes chargeable in accordance with Articles 6(2) and (3) of Council Directive (EU) 2020/262⁽³⁾ or, where applicable, in accordance with Article 21(5) of Council Directive 2003/96/EC⁽⁴⁾, unless the Member State has used the flexibility provided under Article 3 (ae), point (iv), of Directive 2003/87/EC, in which case it means the moment designated by the Member State as creating obligations under Chapter IVa of that Directive;

93. ‘non-CO2 aviation effects’ means non-CO2 aviation effects as defined in Article 3(v) of Directive 2003/87/EC;

94. ‘CO2(e) per flight’ means the non-CO2 aviation effects that warm the atmosphere, expressed as the equivalent amount of CO2 emissions of the given flight;

95. ‘radiative forcing’ means an imposed change of the planetary energy balance, measured in watts per square meter (W/m²);

96. ‘efficacy’ is the change in global mean temperature per unit radiative forcing exerted by the climate agent, relative to the response generated by a standard CO2 forcing starting from the same initial climate state;

97. ‘CO2(e) calculation model’ means a model used to calculate the total climate impact of non-CO2 aviation effects, in accordance with Annex IIIa Section 4 to this Regulation;

98. ‘weather-based approach’ means Method C, as provided in Annex IIIa Section 4 to this Regulation, using primarily enhanced weather data, as well as flight information, trajectory, aircraft properties and fuel properties;

99. ‘location-based simplified approach’ means Method D, as provided in Annex IIIa Section 4 to this Regulation, using primarily aircraft in-flight location-related data such as flight information, trajectory, but also basic weather data and aircraft properties;

100. ‘non-CO2 aviation effects tracking system (NEATS)’ means an information technology (IT) tool, that is provided by the Commission to aircraft operators, to accredited verifiers and to competent authorities for the purpose of facilitating and, to the extent possible, automating monitoring, reporting and verification of non-CO2 aviation effects, in line with Article 14(5) of Directive 2003/87/EC;

101. ‘aircraft properties’ means the category of information encompassing as a minimum and for each flight, the aircraft type, the engine(s) identifier(s) and the aircraft mass.

102. ‘aeroplane’ means a power-driven heavier-than-air aircraft, which derives its lift in flight chiefly from aerodynamic reactions on surfaces which remain fixed under given conditions of flight.