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1. Member States may use the following greenhouse gas emission reduction credits to implement their obligations under Article 3:

(a) Certified Emission Reductions (CERs) and Emission Reduction Units (ERUs), as set out in Directive 2003/87/EC, issued in respect of emission reductions until 31 December 2012 which where eligible for use in the Community scheme during the period from 2008 to 2012;

(b) CERs and ERUs issued in respect of emission reductions from 1 January 2013 from projects which were registered before 2013 and which were eligible for use in the Community scheme during the period from 2008 to 2012;

(c) CERs issued in respect of emission reductions achieved from projects implemented in LDCs which were eligible for use in the Community scheme during the period from 2008 to 2012, until those countries have ratified a relevant agreement with the Community or until 2020, whichever is the earlier;

(d) temporary CERs (tCERs) or long-term CERs (lCERs) from afforestation and reforestation projects provided that, where a Member State has used tCERs or lCERs towards its commitments under Council Decision 2002/358/EC () for the period from 2008 to 2012, the Member State commits to the continuing replacement of those credits by tCERs, lCERs or other units valid under the Kyoto Protocol before the expiry date of the tCERs or lCERs, and the Member State also commits to the continuing replacement of tCERs or lCERs used under this Decision with tCERs, lCERs or other units usable towards those commitments before the expiry date of the tCERs or lCERs. Where replacement takes place using tCERs or lCERs, the Member State shall replace also those tCERs or lCERs before their expiry date on a continuing basis, until their replacement with units of unlimited validity. Member States should ensure that their policies for purchasing these credits enhance the equitable geographical distribution of projects and the achievement of an international agreement on climate change.

2. In addition to paragraph 1 and in the event that negotiations on an international agreement on climate change are not concluded by 31 December 2009, Member States may, for the implementation of their obligations under Article 3, use additional greenhouse gas emission reduction credits resulting from projects or other emission reducing activities in accordance with the agreements referred to in Article 11a(5) of Directive 2003/87/EC.

3. Provided that an international agreement on climate change as referred to in Article 1 has been reached, Member States may, from 1 January 2013, only use credits from projects in third countries which have ratified that agreement.

4. The annual use of credits by each Member State pursuant to paragraphs 1, 2 and 3 shall not exceed a quantity equal to 3 % of the greenhouse gas emissions of that Member State in 2005, plus any quantity transferred in accordance with paragraph 6.

5. Member States with a negative limit, or a positive limit of at most 5 %, as set out in Annex II, which are listed in Annex III, shall, in addition to credits used pursuant to paragraph 4, be allowed to use additional credits amounting to 1 % of their verified emissions in 2005 from projects in LDCs and SIDS each year, subject to compliance with one of the following four conditions:

(a) the direct costs of the overall package exceed 0,70 % of GDP according to the Commission’s Impact Assessment accompanying the Package of Implementation measures for the EU’s objectives on climate change and renewable energy for 2020;

(b) there is an increase of at least 0,1 % of GDP between the target actually adopted for the Member State concerned and the cost-effective scenario according to the Commission’s Impact Assessment referred to in point (a);

(c) more than 50 % of the total emissions covered by this Decision for the Member State concerned are accounted for by transport-related emissions; or (d) the Member State concerned has a renewable energies target for 2020 in excess of 30 % as set out in Directive 2009/28/EC.

6. Each year, a Member State may transfer to another Member State the unused part of its annual quantity equal to 3 % as specified in paragraph 4. Where a Member State’s annual use of credits does not reach the quantity in paragraph 4, the Member State may carry over the unused part of that quantity to subsequent years.

7. Member States shall, in addition, be able to use credits from Community-level projects issued pursuant to Article 24a of Directive 2003/87/EC towards their emission reduction commitments, without any quantitative limit whatsoever.