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CHAPTER IIU.K.REGISTRIES AND TRANSACTION LOGS

Article 3U.K.Registries

1.A registry in the form of a standardised electronic database shall be established by each Member State and the Commission by the day after the entry into force of this Regulation.

2.Each registry shall incorporate the hardware and software set out in Annex I, be accessible via the Internet, and conform to the functional and technical specifications required by this Regulation.

3.Each registry shall be capable of executing correctly all the processes concerning verified emissions and accounts set out in Annex VIII, the reconciliation process set out in Annex X and all the administrative processes set out in Annex XI by the day after the entry into force of this Regulation.

Each registry shall be capable of executing correctly all the processes concerning allowances and Kyoto units set out in Annex IX by the day after the entry into force of this Regulation, with the exception of the processes with process types 04-00, 06-00, 07-00 and 08-00.

Each registry shall be capable of executing correctly the processes concerning allowances and Kyoto units with process types 04-00, 06-00, 07-00 and 08-00 set out in Annex IX by 31 March 2005.

[F1Each registry shall be capable of executing correctly all the processes concerning automatic national allocation plan table changes set out in Annex XIa from 1 February 2008 .]

Article 4U.K.Consolidated registries

A Member State or the Commission may establish, operate and maintain their registry in a consolidated manner together with one or more other Member States or the Community, provided that its registry remains distinct.

Article 5U.K.The Community independent transaction log

1.The Community independent transaction log shall be established by the Commission in the form of a standardised electronic database by the day after the entry into force of this Regulation.

2.The Community independent transaction log shall incorporate the hardware and software set out in Annex I, be accessible via the Internet, and conform to the functional and technical specifications required by this Regulation.

3.The Central Administrator designated pursuant to Article 20 of Directive 2003/87/EC shall operate and maintain the Community independent transaction log in accordance with the provisions of this Regulation.

[F24. The Central Administrator shall provide the administrative processes referred to in Annex XI in order to facilitate the integrity of the data within the registries system and shall provide the processes related to automatic national allocation plan table changes referred to in Annex XIa to ensure that national allocation plan tables reflect the number of allowances issued and allocated to installations.

5. The Central Administrator shall only perform processes concerning allowances, verified emissions, automatic national allocation plan table changes, accounts or Kyoto units where necessary to carry out its functions as Central Administrator.]

6.The Community independent transaction log shall be capable of executing correctly all the processes concerning allowances, verified emissions, accounts or Kyoto units set out in Annex VIII and Annex IX by the day after the entry into force of this Regulation.

The Community independent transaction log shall be capable of executing correctly the reconciliation process set out in Annex X and the administrative processes set out in Annex XI by the day after the entry into force of this Regulation.

[F1The Community independent transaction log shall be capable of executing correctly all the processes concerning automatic national allocation plan table changes set out in Annex XIa from 1 February 2008 .]

Article 6U.K.Communication link between registries and the Community independent transaction log

1.A communication link between each registry and the Community independent transaction log shall be established by 31 December 2004.

The Central Administrator shall activate the communication link after the testing procedures set out in Annex XIII and the initialisation procedures set out in Annex XIV have been completed successfully and notify the relevant registry administrator thereof.

[F22. From 1 February 2008 until the communication link referred to in Article 7 has been established, all processes concerning allowances, verified emissions, automatic national allocation plan table changes, and accounts shall be completed through the exchange of data via the Community independent transaction log.]

3.The Commission may instruct the Central Administrator to temporarily suspend a process referred to in Annexes VIII and IX initiated by a registry if that process is not being executed in accordance with Articles 32 to 37.

The Commission may instruct the Central Administrator to temporarily suspend the communication link between a registry and the Community independent transaction log or to suspend all or some of the processes referred to in Annexes VIII and IX, if that registry is not operated and maintained in accordance with the provisions of this Regulation.

[F34. The Central Administrator may establish a restricted communication link between the CITL and the registry of an Accession Country for the purposes of enabling such registries to communicate with the UNFCCC independent transaction log through the CITL and to record verified emissions data of operators in the CITL. Such registries must successfully complete all testing and initialisation procedures required of registries.]

[F2Article 7 U.K. Communication link between the independent transaction logs

1. A communication link between the Community independent transaction log and the UNFCCC independent transaction log shall be considered as established when these systems are linked on the basis of a decision taken by the Central Administrator after consulting the Climate Change Committee. The Central Administrator shall establish and maintain such a link when

(a) all registries have successfully completed the UNFCCC initialisation procedure; and

(b) the Community independent transaction log and the UNFCCC independent transaction log are able to provide the necessary functionality and to link to each other.

2. If the conditions provided for in paragraph 1 are not met, the Commission may, subject to the majority support of the Climate Change Committee, instruct the Central Administrator to establish and maintain such a link.

3. After having established the link described in 1., all processes concerning allowances, verified emissions, accounts, automatic national allocation plan table changes and Kyoto units shall be completed through the exchange of data via the UNFCCC independent transaction log and thereon to the Community independent transaction log.

4. The Commission shall evaluate and report to the Climate Change Committee on options for connecting registries, the UNFCCC independent transaction log and the Community independent transaction log different from the one described in 3.In particular it shall be considered whether all processes concerning allowances and Kyoto units shall be completed through the exchange of data via the Community independent transaction log and thereon to the UNFCCC independent transaction log and all processes concerning verified emissions, accounts and automatic national allocation plan table changes shall be completed through the exchange of data via the Community independent transaction log.

[F45. Six months after the establishment of the first communication link referred to in paragraph 4, the Commission shall review the functional and technical specifications for data exchange standards for registry systems under the Kyoto Protocol elaborated pursuant to Decision 24/CP.8 of the Conference of the Parties to the UNFCCC, and if it finds that they provide for the possibility of the establishment of a communication link between registries and the UNFCCC international transaction log to be established via the Community independent transaction log, thereby allowing a simplification of the architecture of the registries system, it shall promptly propose an amendment to this Regulation with the purpose of simplifying the architecture of the registries system.]

6. The decisions referred to in paragraphs 1 and 2 shall, where possible be adopted at least three months prior to their implementation.]

[F5Article 7a U.K.

Should the communication link between the transaction logs referred to in Article 7 be established after allowances for the 2008-12 period have been issued in accordance with Article 11 of Directive 2003/87/EC, registry administrators shall, upon completion of the connection, replace any allowances in their registry with an equal amount of allowances recognised as assigned amount units by the UNFCCC international transaction log.]

Article 8U.K.Registry administrators

1.Each Member State and the Commission shall designate a registry administrator to operate and maintain its registry in accordance with the provisions of this Regulation.

Member States and the Commission shall ensure that there is no conflict of interest between the registry administrator and its account holders or between the registry administrator and the Central Administrator.

2.Each Member State shall notify the Commission of the identity and contact details of the registry administrator for its registry by 1 September 2004 in accordance with the initialisation procedures set out in Annex XIV.

3.The Member States and the Commission shall retain ultimate responsibility and authority for the operation and maintenance of their registries.

4.The Commission shall coordinate the implementation of the requirements of this Regulation with the registry administrators of each Member State and the Central Administrator.