Introductory text

THE EUROPEAN COMMISSION,

Having regard to the Treaty on the Functioning of the European Union,

Having regard to Regulation (EU) No 517/2014 of the European Parliament and of the Council of 16 April 2014 on fluorinated greenhouse gases and repealing Regulation (EC) No 842/2006^f1, and in particular Article 17(2) thereof,

Whereas:

Article 17 of Regulation (EU) No 517/2014 provides for a central electronic registry to manage quotas, for the placing of hydrofluorocarbons on the market, and their reporting, including equipment placed on the market charged with hydrofluorocarbons (‘the registry’).

Following the Kigali Amendment to the Montreal Protocol on substances that deplete the ozone layer^f2, as from 1 January 2019 Union imports and exports of bulk quantities of hydrofluorocarbons fall under the licensing system set out in Article 4B of the Montreal Protocol. Valid registration of an undertaking acting as importer or exporter, as appropriate, in the registry under Regulation (EU) No 517/2014 is considered to constitute such a licence.

In order to ensure the smooth functioning of the registry, it is important to specify the requirements for undertakings for which registration is compulsory. Those requirements should, inter alia, include a requirement to provide information related to the financial and legal status of those undertakings. Such information may be necessary in order to ensure an effective implementation of the quota allocation, avoid distortion of quota allocations and prevent circumvention and abuses of legislative requirements.

The different situation of undertakings that have mandated an only representative in accordance with Regulation (EU) No 517/2014 should also be reflected in the registration requirements.

In order to allow the quota mechanism for placing hydrofluorocarbons on the market to be implemented effectively by means of the registry it is important to provide safeguards aimed at ensuring that the allocation of quotas is carried out in a lawful and fair manner. The function of the registry is to facilitate effective implementation of the quota mechanism. The registry should therefore be organised and managed in a way that it allows it to be used as a tool to avoid any circumvention or abuse of the requirements for quota allocations. In particular, where the same beneficial owner(s) registers several undertakings with the aim of receiving a higher allocation of quotas than a single undertaking's share of the maximum quantity of hydrofluorocarbons that can be placed on the market in the Union in accordance with Article 15(1) of Regulation (EU) No 517/2014, such undertakings registered with the same beneficial owner(s) should be considered as one for the purposes of the quota allocation stipulated in Article 16(5) of the Regulation. Beneficial ownership can be related to any type of legal entity including for example small and medium-sized enterprises.

Taking into account national laws and rules regulating the establishment and operation of undertakings, the Commission needs the assistance of Member States in order to assess the completeness and accuracy of information provided by undertakings for registration purposes. Member States should therefore be required to cooperate and exchange information with the Commission in order to ensure the smooth functioning of the registry.

The Commission is required to ensure that personal data submitted pursuant to Article 17 of Regulation (EU) No 517/2014 are processed in accordance with Regulation (EU) 2018/1725 of the European Parliament and of the Council^f3.

The measures provided for in this Regulation are in accordance with the opinion of the Committee established under Article 24(1) of Regulation (EU) No 517/2014,

HAS ADOPTED THIS REGULATION: