S.L. 643.2 Art. 2

For the purposes of these regulations and unless the context otherwise requires, the following definitions shall apply:

"account holder" means a natural or legal person that holds an account in the Union registry; "the Act" means the Climate Action Act; "allowance" means an allowance to emit one tonne of carbon dioxide equivalent during a specific period, which shall be valid for the purposes of meeting the requirements of these regulations and shall be transferable in accordance with the provisions of these regulations;

*see regulation 1(3) of these Regulations, as originally promulgated. S.L.643.02 INSTALLATIONS

"auctioneer" means the Debt Management Office within the Treasury Department appointed by the Government to auction allowances on its behalf;

"authorised representatives" means the representatives, nominated by an account holder in respect of an account in the Union registry, to have access to that account and undertake processes relating to that account on behalf of the account holder; "the Authority" means the Malta Resources Authority established by article 3 of the Act; "cancellation" means the definitive disposal of an allowance by its holder or by the national registry administrator as may be applicable;

"certified emissions reduction" or "CER" means a unit issued pursuant to Article 12 of the Kyoto Protocol and the decisions adopted pursuant to the UNFCCC or the Kyoto Protocol; "Chapter II allowance" means an allowance allocated and issued in respect of aviation activities listed in Annex I to Directive 2003/ 87/EC, in accordance with Chapter II of Directive 2003/87/EC; "Chapter III allowance" means an allowance allocated and issued in respect of activities listed in Annex I to Directive 2003/87/EC other than aviation activities, in accordance with Chapter III of Directive 2003/87/EC; "combustion" means any oxidation of fuels, regardless of the way the heat, electrical or mechanical energy produced by this process is used, and any other directly associated activities, including waste gas scrubbing;

"the Commission" means the European Commission; "confidential information" means any non-public information deemed to be sensitive by the operator and, or, any privileged information falling within the scope of these regulations, disclosed only for promoting and elaborating certain purposes. It shall include, inter alia:

(a) trade secrets;

(b) any other information having a commercial value that would be, or could reasonably be expected to be, destroyed or diminished if the information were disclosed; or

(c) information other than trade secrets or information under paragraph (b) concerning a person, organisation or undertaking in respect of their business, professional, commercial or financial affairs; "Decision (EU) 2015/1814" means Decision (EU) 2015/1814 of the European Parliament and of the Council of 6 October 2015 concerning the establishment and operation of a market stability reserve for the Union greenhouse gas emission trading scheme and amending Directive 2003/87/EC; "deviation" means, in respect of monitoring of annual emissions, INSTALLATIONS

the use of a monitoring approach that is different, in full or in part, from the approved monitoring and reporting plan, which use is of a temporary nature; "Directive 2003/87/EC" means Directive 2003/87/EC of the European Parliament and of the Council of 13 October 2003 establishing a system for greenhouse gas emission allowance trading within the Union and amending Council Directive 96/61/EC; "Directive 2004/101/EC" means Directive 2004/101/EC of the European Parliament and of the Council of 27 October 2004 amending Directive 2003/87/EC establishing a scheme for greenhouse gas emission allowance trading within the Community, in respect of the Kyoto Protocol’s project mechanisms;"; "Directive 2008/101/EC" means Directive 2008/101/EC of the European Parliament and of the Council of 19 November 2008 amending Directive 2003/87/EC so as to include aviation activities in the scheme for greenhouse gas emission allowance trading within the Community; "Directive 2009/29/EC" means Directive 2009/29/EC of the European Parliament and of the Council of 23 April 2009 amending Directive 2003/87/EC so as to improve and extend the greenhouse gas emission allowance trading scheme of the Community;

"Directive 2009/31/EC" means Directive 2009/31/EC of the European Parliament and of the Council of 23 April 2009 on the geological storage of carbon dioxide and amending Council Directive 85/337/EEC of the European Parliament and Council Directives 2000/60/EC, 2001/80/EC, 2004/35/EC, 2006/12/EC, 2008/1/EC and Regulation (EC) No 1013/2006; "Directive (EU) 2018/410" means Directive (EU) 2018/410 of the European Parliament and of the Council of 14 March 2018 amending Directive 2003/87/EC to enhance cost-effective emission reductions and low-carbon investments, and Decision (EU) 2015/1814;

"Directive (EU) 2023/959" means Directive (EU) 2023/959 of the European Parliament and of the Council of 10 May 2023 amending Directive 2003/87/EC establishing a system for greenhouse gas emission allowance trading within the Union and Decision (EU) 2015/ 1814 concerning the establishment and operation of a market stability reserve for the Union greenhouse gas emission trading system; "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 by energy generation processes other than cogeneration;

"electricity generator" means an installation that, on or after the 1st January, 2005, has produced electricity for sale to third parties, and in which no activity listed in Schedule 1 is carried out other than the combustion of fuels; "emissions" means the release of greenhouse gases specified in respect of an activity listed in Schedule 1, from sources in an installation performing such activity; S.L.643.02 INSTALLATIONS

"emission reduction unit" or "ERU" means a unit issued pursuant to Article 6 of the Kyoto Protocol and the decisions adopted pursuant to the United Nations Framework Convention on Climate Change or the Kyoto Protocol; "EU ETS" means the European Union Emissions Trading System established by Directive 2003/87/EC; "greenhouse gases" means the gases listed in Schedule 2 and other gaseous constituents of the atmosphere, both natural and anthropogenic, that absorb and re-emit infrared radiation; "greenhouse gas emissions permit" means the permit issued pursuant to regulation 6; "high efficiency cogeneration" means cogeneration meeting the criteria for high efficiency cogeneration set out in the Cogeneration Regulations;

"installation" means a stationary technical unit where one or more activities listed in Schedule 1 are carried out and any other directly associated activities which have a technical connection with the activities carried out on that site and which could have an effect on emissions and pollution;

"Joint Implementation project activity" or "JI project activity" means a project activity undertaken in accordance with Article 12 of the Kyoto Protocol and decisions adopted pursuant to the United Nations Framework Convention on Climate Change or the Kyoto Protocol;

"Kyoto Protocol" means the Kyoto Protocol to the United Nations Framework Convention on Climate Change;

"least developed countries" means those countries included in the list of Least Developed Countries as defined by the Committee for Development Policy and endorsed by the Economic and Social Council of the United Nations; "Member State" means a state which is a member of the European Union and which, for the purpose of these regulations, includes Iceland, Liechtenstein and Norway;

"the Minister" means the Minister responsible for climate change policy;

"modification" means, in respect of monitoring of annual emissions, a permanent change in an approved monitoring plan, in full or in part, and, where it is deemed to be of a significant nature, shall require the approval of the Authority to become valid; "National Accreditation Board - Malta" means the National Accreditation Board established by the National Accreditation Board (Malta) (Establishment) Regulations;

"national registry administrator" means the entity responsible for the administering of operator holding accounts on behalf of the Government, which operator holding accounts are under the jurisdiction of the Government in the Union registry, and designated in accordance with relevant decisions and regulations INSTALLATIONS

adopted by the Commission pursuant to Directive 2003/87/EC;

"new entrant" means any installation carrying out one or more of the activities listed in Schedule 1, which has obtained a greenhouse gas emissions permit for the first time within the period starting three months before the date for submission of the list pursuant to regulation 11, and ending three months before the date for submission of the subsequent list pursuant to regulation 11; "operator" means any person who operates or controls an installation; "person" means any natural or legal person;

"proposed transferee" means a person who receives from another person the greenhouse gas emissions permit, in whole or in part, issued for the installation; "proposed transferor" means an operator of an installation who transfers to another person the greenhouse gas emissions permit, in whole or in part, issued for the installation; "the public" means one or more persons, associations, organisations or groups of persons; "Regulation (EC) No 765/2008" means Regulation (EC) No 765/ 2008 of the European Parliament and of the Council of 9 July 2008 setting out the requirements for accreditation and market surveillance relating to the marketing of products and repealing Regulation (EEC) No 339/93; "Regulation (EU) 2017/2392" means Regulation (EU) 2017/2392 of the European Parliament and of the Council of 13 December 2017 amending Directive 2003/87/EC to continue current limitations of scope for aviation activities and to prepare to implement a global market-based measure from 2021; "Regulation (EU) 2021/1119" means Regulation (EU) 2021/1119 of the European Parliament and of the Council of 30 June 2021 establishing the framework for achieving climate neutrality and amending Regulations (EC) No 401/2009 and (EU) 2018/1999 (European Climate Law); "Regulation (EU) 2023/956" means Regulation (EU) 2023/956 of the European Parliament and of the Council of 10 May 2023 establishing a carbon border adjustment mechanism;

"surrender" means the accounting of an allowance by an operator of an installation against the verified emissions of the installation;

"tonne of carbon dioxide equivalent" means one metric tonne of carbon dioxide (CO ) or an amount of any other greenhouse gas 2 listed in Schedule 2 with an equivalent global-warming potential; "the Union" or the "European Union" means the European Union as established by the Treaty on the European Union as amended by the Lisbon Treaty of 2009, as may be subject to subsequent amendments;

"Union registry" means the registry established and maintained in accordance with Article 19 of Directive 2003/87/EC as amended S.L.643.02 INSTALLATIONS

by Directive 2009/29/EC for the execution of processes pertaining to the maintenance of holding accounts and the allocation, surrender and cancellation of allowances;

"Union registry" means the registry established and maintained in accordance with Article 19 of Directive 2003/87/EC for the execution of processes pertaining to the maintenance of holding accounts and the allocation, surrender and cancellation of allowances; "UNFCCC" means the United Nations Framework Convention on Climate Change which entered into force on the 21st March, 1994;

"verifier" means a legal person or another legal entity carrying out verification activities pursuant to these regulations and accredited by a national accreditation body pursuant to Regulation

(EC) No 765/2008 and relevant decisions and regulations adopted by the Commission pursuant to Directive 2003/87/EC, or a natural person otherwise authorised, without prejudice to Article 5(2) of Regulation (EC) 765/2008, at the time a verification report is issued.