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1. For the purposes of this Article, Article 15 and Annex V, the production of hydrofluorocarbons is the amount of hydrofluorocarbons produced minus the amount destroyed by technology approved by the Parties to the Protocol, and minus the amount entirely used as feedstock in the manufacture of other chemicals, but including hydrofluorocarbons generated as a by-product, unless not captured or unless that by-product is destroyed as part of or after the production process by the producer or handed over to another undertaking for destruction. No amount of reclaimed hydrofluorocarbons shall be considered in the calculation of the production of hydrofluorocarbons.

2. The production of hydrofluorocarbons shall be allowed to the extent that producers have been allocated production rights by the Commission in accordance with this Article.

3. Before 1 January 2025, the Commission shall, by means of implementing acts, allocate production rights on the basis of Annex V for producers that produced hydrofluorocarbons in 2022, based on data reported under Article 19 of Regulation (EU) No 517/2014. Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 34(2).

4. The Commission may, by means of implementing acts, at the request of the competent authority of a Member State, amend the implementing acts referred to in paragraph 3 in order to allocate additional production rights to the producers referred to in paragraph 3 or any other undertakings established in the Union, unless the production limits of the Member State under the Protocol are exceeded. Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 34(2).

5. In the absence of an implementing act being effective before 1 January 2025, producers may continue to produce hydrofluorocarbons without production rights being allocated. The hydrofluorocarbons produced during such period shall count towards the allocation of production rights once issued in accordance with the implementing act referred to in paragraph 3.

6. Three years following the adoption of the implementing acts referred to in paragraph 3, and every 3 years thereafter, the Commission shall review and, if needed, amend those implementing acts, taking into account the changes to the production rights pursuant to Article 15 during the preceding 3 years. Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 34(2).