After Article 2 insert—

“Article 2aEligibility for free allocation

1.

An application for free allocation of allowances may not be made under this Regulation in respect of:

(a)

an installation used for any of the following:

(i)

the capture of greenhouse gases from other installations for the purpose of transport and geological storage in a storage site;

(ii)

the transport of greenhouse gases by pipelines for geological storage in a storage site;

(iii)

the geological storage of greenhouse gases in a storage site;

(b)

an electricity generator, except in relation to measurable heat:

(i)

produced by an electricity generator that produced measurable heat by means of high-efficiency cogeneration (as defined in Article 2(34) of Directive 2012/27/EU of the European Parliament and of the Council of 25 October 2012 M1) in the relevant period, calculated over the relevant period as a whole; or

(ii)

exported for the purposes of district heating.

2.

For the purposes of paragraph 1(b)(i):

(a)

the “relevant period” is:

(i)

in the case of a deemed application for free allocation in the 2021-2025 allocation period or an application for free allocation in the 2026-2030 allocation period under Article 4, the baseline period;

(ii)

in the case of an application for free allocation under Article 5, the period from the start of normal operation until the end of the year before the year in which the application is made;

(b)

Directive 2012/27/EU has effect as if in Annex 2 in point (a) in the first indent after “heat and electricity” there were inserted “ ; and for the purposes of this indent, cogeneration production from cogeneration units certified under the standard applying from time to time for the purposes of the Combined Heat and Power Quality Assurance Programme M2 that provides primary energy savings during the period of certification must be treated as providing primary energy savings of at least 10% during that period ”.”.