Unofficial translation from Finnish language The official version in Finnish language is to be found by quoting the number of this act at web-site: www.finlex.fi Act on the Use of the Kyoto Mechanisms (Act 109/2007) Adopted in Helsinki 002 Februaiy 2007 In accordance with the decision by Parliament the following has been enacted: Chapter 1 Section 2 General provisions Scope ofapplication Section 1 This Act will be applied to: 1) projects under Article 6 of the Kyoto Purpose of the Act Protocol (Joint Implementation projects) in tended to generate Kyoto units to be recorded The purpose of this Act is to provide the in the national registry and implemented out administrative framework for participation in side Finland; project activities under the Kyoto Protocol 2) Joint Implementation projects to be im (Treaty Series of the Statute Book of Finland plemented in Finland; 12—13/2005) to the UN Framework Con 3) projects under Article 12 of the Kyoto vention on Climate Change (UNFCCC), Protocol (Clean Development Mechanism hereinafter the Kyoto Protocol, and emis projects) intended to generate Kyoto units to sions trading under the Protocol, and to lay be recorded in the national registry; down provisions for the operation of the reg 4) activities under Article 17 of the Kyoto istry established under the Emissions Trading Protocol (international emissions trading) by Act (683/2004) as the national registry re which Kyoto units are transferred between an quired for the implementation of the Kyoto account in the national registry and an ac Protocol. count in another registry connected to the In- 2 ternational Transaction Log of the Climate ments of Article 4 of the Kyoto Protocol and Change Convention; and other Protocol commitments, and that has 5) the holding of Kyoto units in accounts in been reviewed for the first commitment pe the national registry as well as transfers of riod in accordance with the process pursuant such units to and from accounts in the na to Article 8 of the Kyoto Protocol; if a corre tional registry. sponding amount of assigned emissions is However, with the exception of subsection adopted for a corresponding purpose for the 1 (2) of section 26 and section 29, this Act subsequent commitment period or periods, will not be applied to the holding of allow the assigned amount refers to this amount of ances referred to in the Emissions Trading emissions; Act in accounts in the national registry or the 7) assigned amount unit (AAU) means a transfer of allowances to and from an ac unit of the assigned amount equalling one count in the national registry. metric tonne of carbon dioxide equivalent: 8) removal unit (RMU) means a unit issued pursuant to Article 3 (3 and 4) of the Kyoto C; Section 3 Protocol and relevant decisions by the COP/MOP for an increase in net removals of Definitions greenhouse gases from the atmosphere dur ing a specified time period as a result of ac For the purposes of this act: tivities implemented within the territory or 1) Climate Change Convention means the exclusive economic zone of an Annex I United Nations Framework Convention on Party, and which is equal to one metric tonne Climate Change (TJNFCCC) (Treaty Series of carbon dioxide equivalent; of the Statute Book of Finland 61/1994); 9) host country means the country on 2) Kyoto Protocol means the protocol re whose territory or exclusive economic zone ferred to under section 1; a Joint Implementation or Clean Develop 3) Annex I Party means a party mentioned ment Mechanism project is implemented; in Annex I of the Climate Change Conven 10) participating country means an Annex tion, specified in Article 1 (7) of the Kyoto I Party which itself participates or which has Protocol; authorised a legal entity to participate in a 4) decision by the COP/MOP means a de Joint Implementation project and which is cision adopted by the Conference of the Par not the host country; ties to the Climate Change Convention serv 11) emission reduction unit (ERU) means a ing as the meeting of the Parties to the Proto unit generated by a project implemented in col, referred to in the Kyoto Protocol; the territory or exclusive economic zone of 5) commitment period means the consecu an Annex I Party, which is issued pursuant to tive time periods for which the Kyoto Proto Article 6 of the Kyoto Protocol and relevant C col or any amendments to the Protocol in decisions by the COP/MOP, and which is scribe state-specific emission limitation and equal to one metric tonne of carbon dioxide reduction commitments, the first beginning equivalent; on 1 January 2008 and ending on 31 Decem 12) certUied emission reduction (CER) ber 2012; means a unit generated by a project imple 6) assigned amount means the highest al mented in the territory or the exclusive eco lowable amount of greenhouse gas emissions nomic zone of a country not included in An resulting from activities in the Annex I Party, nex I of the Protocol, issued pursuant to Arti mentioned in subsection 3, that has been cal cle 12 of the Kyoto Protocol and relevant de culated in accordance with Article 3 (7) of cisions by the COP/MOP, and which is equal the Kyoto Protocol, relevant decisions by the to one metric tonne of carbon dioxide COP/MOP and, when involving a European equivalent; Union Member State, the provisions under 13) Kyoto unit means an assigned amount Union legislation on meeting the require- unit (AAU), a removal unit (RMU), an emis 3 sion reduction unit (ERU) or a certified the national registry pursuant to the Commis emission reduction (CER); sion registries regulation on holding Kyoto 14) International Transaction Log of the units, the purpose of which is to demonstrate Climate Change Convention means an im compliance with Finland’s emission limita partial transaction log, maintained by the Se tion and reduction commitments under Arti cretariat of the Climate Change Convention, cle 3 (1) of the Kyoto Protocol; and established in accordance with the relevant 23) cancellation account means the ac decisions by the COP/MOP to monitor com count established by the registry administra pliance with the commitments and restric tor in the national registry in accordance with tions concerning intemational transfers of the Commission registries regulation and Kyoto units, and assigned amounts; relevant decisions by the COP/MOP, to 15) Community Emissions Trading which Kyoto units are transferred, disabling Scheme, covering the Member States of the any state to use them to demonstrate its com European Union, means an arrangement in pliance with the emission limitation and re accordance with Directive 2003/87/BC of the duction commitments under Article 3 (1) of European Parliament and of the Council es the Kyoto Protocol. tablishing a scheme for greenhouse gas emis sion allowance trading within the Commu nity and amending Council Directive 96/6 1/EC, hereinafter the Emission Trading Chapter 2 Directive, that provides for trading in as signed amount units converted into allow Participation in projects and international ances within the Community; emissions trading 16) Commission registries regulation means Commission Regulation (BC) No Section 4 22 16/2004 for a standardised and secured system of registries pursuant to Directive Decision-making on particlpation in the 2003/87/BC of the European Parliament and Kyoto Mechanisms of the Council and Decision No 280/2004/EC of the European Parliament and of the Coun Pursuant to Article 6 (1 a) of the Kyoto cil; Protocol, any decision on the approval of a 17) national registry means a registry re project as a Joint Implementation project to ferred to in section 42 (1) of the Emissions be issued in the name of the State of Finland Trading Act; is made by the Ministry of the Environment. 19) registry administrator means the com The Ministry of the Environment also takes petent authority referred to in the Emissions decisions on any authorisation, pursuant to Trading Act; Article 6 (3) of the Kyoto Protocol, issued in 19) holding account means an account the name of the State of Finland, for partici opened in the national registry for holding of pation in such a project or preparation allowances referred to in the Emissions Trad thereof. ing Act, with the exception of retirement and Any decision on the approval of a project cancellation accounts; as a Clean Development Mechanism project 20) Party holding account means the hold given in the name of the State of Finland is ing account of a Party, held in the national made by the Ministry for Foreign Affairs. registry, referred to in the Commission regis The Ministry for Foreign Affairs also takes tries regulation; decisions on authorisations given in the name 21) account holder means anyone for of the State of Finland with respect to par whom the registry administrator has opened ticipation in such a project or preparation an account in the national registry; thereof. 22) retirement account means the account Decisions on separate authorisations given established by the registry administrator in in the name of the State of Finland for hold- 4 ing Kyoto units in a holding account in the shall be defined, at least for each host coun national registry and making transfers under try and project type. international emissions trading to and from Authorisation cannot concern the authority this account are made by the Ministry of the to grant approval referred to in section 7. Enviromnent. The Ministry of the Environ Project-specific authorisation is valid for ment also participates in international emis the time period during which the authorised sions trading on behalf of the State of legal person has the opportunity to acquire Finland.