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RULES FOR CALCULATING THE GREENHOUSE GAS IMPACT OF BIOFUELS, BIOLIQUIDS AND THEIR FOSSIL FUEL COMPARATORS A. TYPICAL AND DEFAULT VALUES FOR BIOFUELS IF PRODUCED WITH NO NET CARBON EMISSIONS FROM LAND-USE CHANGE B. ESTIMATED TYPICAL AND DEFAULT VALUES FOR FUTURE BIOFUELS THAT WERE NOT ON THE MARKET OR WERE ON THE MARKET ONLY IN NEGLIGIBLE QUANTITIES IN 2016, IF PRODUCED WITH NO NET CARBON EMISSIONS FROM LAND-USE CHANGE C. METHODOLOGY 1. Greenhouse gas emissions from the production and use of transport fuels, biofuels and bioliquids shall be calculated as follows:

(a) greenhouse gas emissions from the production and use of biofuels shall be calculated as: E = eec + el + ep + etd + eu – esca – eccs – eccr, where Emissions from the manufacture of machinery and equipment shall not be taken into account.

(b) Greenhouse gas emissions from the production and use of bioliquids shall be calculated as for biofuels (E), but with the extension necessary for including the energy conversion to electricity and/or heat and cooling produced, as follows:

(i) For energy installations delivering only heat:

(ii) For energy installations delivering only electricity: where ECh,el = Total greenhouse gas emissions from the final energy commodity. E = Total greenhouse gas emissions of the bioliquid before end-conversion. ηel = The electrical efficiency, defined as the annual electricity produced divided by the annual bioliquid input based on its energy content. ηh = The heat efficiency, defined as the annual useful heat output divided by the annual bioliquid input based on its energy content.

(iii) For the electricity or mechanical energy coming from energy installations delivering useful heat together with electricity and/or mechanical energy:

(iv) For the useful heat coming from energy installations delivering heat together with electricity and/or mechanical energy: where: ECh,el = Total greenhouse gas emissions from the final energy commodity. E = Total greenhouse gas emissions of the bioliquid before end-conversion. ηel = The electrical efficiency, defined as the annual electricity produced divided by the annual fuel input based on its energy content. ηh = The heat efficiency, defined as the annual useful heat output divided by the annual fuel input based on its energy content. Cel = Fraction of exergy in the electricity, and/or mechanical energy, set to 100 % (Cel = 1). Ch = Carnot efficiency (fraction of exergy in the useful heat).

The Carnot efficiency, Ch, for useful heat at different temperatures is defined as: where Th = Temperature, measured in absolute temperature (kelvin) of the useful heat at point of delivery. T0 = Temperature of surroundings, set at 273,15 kelvin (equal to 0 °C) If the excess heat is exported for heating of buildings, at a temperature below 150 °C (423,15 kelvin), Ch can alternatively be defined as follows: Ch = Carnot efficiency in heat at 150 °C (423,15 kelvin), which is: 0,3546 For the purposes of that calculation, the following definitions apply:

(a) ‘cogeneration’ means the simultaneous generation in one process of thermal energy and electricity and/or mechanical energy;

(b) ‘useful heat’ means heat generated to satisfy an economical justifiable demand for heat, for heating and cooling purposes;

(c) ‘economically justifiable demand’ means the demand that does not exceed the needs for heat or cooling and which would otherwise be satisfied at market conditions.

2. Greenhouse gas emissions from biofuels and bioliquids shall be expressed as follows:

(a) greenhouse gas emissions from biofuels, E, shall be expressed in terms of grams of CO2 equivalent per MJ of fuel, g CO2eq/MJ.

(b) greenhouse gas emissions from bioliquids, EC, in terms of grams of CO2 equivalent per MJ of final energy commodity (heat or electricity), g CO2eq/MJ. When heating and cooling are co-generated with electricity, emissions shall be allocated between heat and electricity (as under 1(b)), irrespective if the heat is used for actual heating purposes or for cooling (). Where the greenhouse gas emissions from the extraction or cultivation of raw materials eec are expressed in unit g CO2eq/dry-ton of feedstock, the conversion to grams of CO2 equivalent per MJ of fuel, g CO2eq/MJ, shall be calculated as follows (): where Emissions per dry-ton feedstock shall be calculated as follows: 3. Greenhouse gas emissions savings from biofuels and bioliquids shall be calculated as follows:

(a) greenhouse gas emissions savings from biofuels: SAVING = (EF(t) – EB)/EF(t), where

(b) greenhouse gas emissions savings from heat and cooling, and electricity being generated from bioliquids: SAVING = (ECF(h&c,el) – ECB(h&c,el))/ECF(h&c,el), where ECB(h&c,el) = total emissions from the heat or electricity; and ECF(h&c,el) = total emissions from the fossil fuel comparator for useful heat or electricity.

4. The greenhouse gases taken into account for the purposes of point 1 shall be CO2, N2O and CH4. For the purposes of calculating CO2 equivalence, those gases shall be valued as follows:

5. Emissions from the extraction or cultivation of raw materials, eec, shall include emissions from the extraction or cultivation process itself; from the collection, drying and storage of raw materials; from waste and leakages; and from the production of chemicals or products used in extraction or cultivation. Capture of CO2 in the cultivation of raw materials shall be excluded. Estimates of emissions from agriculture biomass cultivation may be derived from the use of regional averages for cultivation emissions included in the reports referred to in Article 31(4) or the information on the disaggregated default values for cultivation emissions included in this Annex, as an alternative to using actual values. In the absence of relevant information in those reports it is allowed to calculate averages based on local farming practises based for instance on data of a group of farms, as an alternative to using actual values.

6. For the purposes of the calculation referred to in point 1(a), greenhouse gas emissions savings from improved agriculture management, esca, such as shifting to reduced or zero-tillage, improved crops and crop rotation, the use of cover crops, including crop residue management, and the use of organic soil improver, such as compost and manure fermentation digestate, shall be taken into account only if they do not risk to negatively affect biodiversity. Further, solid and verifiable evidence shall be provided that the soil carbon has increased or that it is reasonable to expect to have increased over the period in which the raw materials concerned were cultivated while taking into account the emissions where such practices lead to increased fertiliser and herbicide use ().

7. Annualised emissions from carbon stock changes caused by land-use change, el, shall be calculated by dividing total emissions equally over 20 years. For the calculation of those emissions, the following rule shall be applied: el = (CSR – CSA) × 3,664 × 1/20 × 1/P – eB, () where 8. The bonus of 29 g CO2eq/MJ shall be attributed if evidence is provided that the land:

(a) was not in use for agriculture or any other activity in January 2008; and (b) is severely degraded land, including such land that was formerly in agricultural use. The bonus of 29 g CO2eq/MJ shall apply for a period of up to 20 years from the date of conversion of the land to agricultural use, provided that a steady increase in carbon stocks as well as a sizable reduction in erosion phenomena for land falling under (b) are ensured.

9. ‘Severely degraded land’ means land that, for a significant period of time, has either been significantly salinated or presented significantly low organic matter content and has been severely eroded.

10. The Commission shall review, by 31 December 2020, guidelines for the calculation of land carbon stocks () drawing on the 2006 IPCC Guidelines for National Greenhouse Gas Inventories – volume 4 and in accordance with Regulation (EU) No 525/2013 and Regulation (EU) 2018/841 of the European Parliament and of the Council (). The Commission guidelines shall serve as the basis for the calculation of land carbon stocks for the purposes of this Directive.

11. Emissions from processing, ep, shall include emissions from the processing itself; from waste and leakages; and from the production of chemicals or products used in processing including the CO2 emissions corresponding to the carbon contents of fossil inputs, whether or not actually combusted in the process. In accounting for the consumption of electricity not produced within the fuel production plant, the greenhouse gas emissions intensity of the production and distribution of that electricity shall be assumed to be equal to the average emission intensity of the production and distribution of electricity in a defined region. By way of derogation from this rule, producers may use an average value for an individual electricity production plant for electricity produced by that plant, if that plant is not connected to the electricity grid. Emissions from processing shall include emissions from drying of interim products and materials where relevant.

17. Where a fuel production process produces, in combination, the fuel for which emissions are being calculated and one or more other products (co-products), greenhouse gas emissions shall be divided between the fuel or its intermediate product and the co-products in proportion to their energy content (determined by lower heating value in the case of co-products other than electricity and heat). The greenhouse gas intensity of excess useful heat or excess electricity is the same as the greenhouse gas intensity of heat or electricity delivered to the fuel production process and is determined from calculating the greenhouse intensity of all inputs and emissions, including the feedstock and CH4 and N2O emissions, to and from the cogeneration unit, boiler or other apparatus delivering heat or electricity to the fuel production process. In the case of cogeneration of electricity and heat, the calculation is performed following point 16.