Law and Climate Change Toolkit

2

The objective of this Act is, by adopting national measures and introducing European and international
mechanisms, to ensure the reduction of greenhouse gas emissions as the main element of the climate change mitigation policy
and the long-term planning of measures for climate change adaptation.

Legal Area
Objectives
Cross-cutting Categories
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3

(1) The government policy on climate change mitigation shall be defined by the National Assembly through
this Act and shall be implemented by the Council of Ministers through the secondary legislation referred to in Article 5 and
the plans and strategies referred to in Articles 8 and 9.
(2) The Minister of Environment and Water shall be the competent authority for the overall implementation of the
government policy on climate change mitigation.
(3) The Minister of Environment and Water may delegate by order the powers vested therein to other officials.
(4) (Amended, SG No. 14/2015) The National Expert Council on Climate Change shall be established as an advisory
body with the Minister of Environment and Water for the purpose of supporting the activities under Paragraph 2; it shall
consist of representatives of the Ministry of Environment and Water, the Ministry of Agriculture and Food, the Ministry of
Energy, the Ministry of Economy, the Ministry of Transport, Information Technology and Communications, the Ministry of
Finance, the Ministry of Interior, the Ministry of Foreign Affairs, the Ministry of Regional Development and Public Works,
the Ministry of Health, the Ministry of Education and Science, the Ministry of Labour and Social Policy, the State Agency
for National Security, the Executive Environment Agency, the Bulgarian Academy of Sciences, the National Association of
Municipalities and non-profit legal entities whose activities are directly related to climate change mitigation.
(5) The operation of the National Expert Council on Climate Change shall be regulated by rules approved by order of
the Minister of Environment and Water.

Legal Area
-
Cross-cutting Categories
Duties and powers of national governments

4

(1) (Amended, SG No. 14/2015) The government policy on climate change mitigation shall be integrated
with the respective sectoral and integrated policies in the fields of transport, energy, construction, agriculture and forestry,
tourism, industry, regional development, health care and cultural heritage protection, education and science, finance and EU
funds, labour and social policy, defence, internal and foreign affairs and shall be implemented sectorally by the Minister of
Energy, the Minister of Economy, the Minister of Regional Development and Public Works, the Minister of Transport,
Information Technology and Communications, the Minister of Agriculture and Food, the Minister of Interior, the Minister of
Finance, the Minister of Foreign Affairs, the Minister of Health and the Minister of Culture in accordance with their powers
granted under this Act and the relevant special legislation.
(2) The Ministers referred to in Paragraph 1 shall:
1. provide the Minister of Environment and Water with the necessary information and render assistance for the
exercise of the Minister's powers under this Act;
2. designate and/or set up special units within their respective administrations to support them in the exercise of their
powers in the field of climate change mitigation;
3. designate experts to participate in the process of drafting and coordinating of statements and opinions for the
purposes of the working bodies to the European Commission, the Council of the European Union and UNFCCC on
questions within their competence;
4. coordinate with the Minister of Environment and Water the draft sectoral policies relating to climate change;
5. in consultation with the Minister of Environment and Water, develop measures for adaptation of their respective
sectors to climate change and ensure the control of their implementation.
(3) The Ministers referred to in Paragraph 1 shall allocate funding for the fulfilment of their obligations under Paragraph
2 in the budgets of the institutions entrusted to them.

Legal Area
Strategic plan on mitigation Body with planning/regulatory powers and functions Provisions for consultation
Cross-cutting Categories
Designating and establishing national bodies Duties and powers of national governments

5

The Council of Ministers shall, on a motion by the Minister of Environment and Water, adopt ordinances for:
1. the terms and procedure for issue and review of greenhouse gas emissions permits from installations and for
monitoring by operators and aircraft operators participating in EU ETS;
2. the conditions, terms and procedure for drafting and verification of reports by operators and aircraft operators and
for drafting and review of applications by new entrants;
3. the terms and procedure for administration of NRGGEAT;
4. the terms and procedure for making arrangements for the national inventories of emissions of harmful substances and greenhouse gases in the atmosphere;
5. (amended, SG No. 12/2017) the conditions, terms and procedure for drafting and verification of reports by
suppliers of liquid fuels and energy for transport.
4. the terms and procedure for making arrangements for the national inventories of emissions of harmful substances

Legal Area
Strategic plan on mitigation Body with planning/regulatory powers and functions Emissions trading
Cross-cutting Categories
Duties and powers of national governments

6

The Minister of Environment and Water shall:
1. jointly with the ministers referred to in Article 4, Paragraph 1, draft the National Action Plan on Climate Change and
submit it for approval to the Council of Ministers;
2. assist the ministers referred to in Article 4, Paragraph 1 in drafting key measures for adaptation of their relevant
sector to climate change and consult them with the National Expert Council on Climate Change;
3. act as the competent EU ETS implementation authority;
4. perform the functions of national auctioneer within the meaning of Article 22 of Commission Regulation (EU) No.
1031/2010 of 12 November 2010 on the timing, administration and other aspects of auctioning of greenhouse gas emission
allowances pursuant to Directive 2003/87/EC of the European Parliament and the Council establishing a scheme for
greenhouse gas emission allowances trading within the Community (OJ L 302/1, 18 November 2010), hereinafter
"Regulation (EU) No. 1031/2010";
5. exercise control over the reporting of the national inventory of greenhouse gas emissions under UNFCCC and the
Kyoto Protocol;
6. exercise control over the monitoring and reporting of other data under Regulation (EU) No. 525/2013 of the
European Parliament and of the Council of 21 May 2013 on a mechanism for monitoring and reporting greenhouse gas
emissions and for reporting other information at national and Union level relevant to climate change and repealing Decision
No. 280/2004/EC (OJ L 165/13, 18 June 2013), hereinafter "Regulation (EU) No. 525/2013";
7. review and coordinate applications made by operators and aircraft operators for free allocation of greenhouse gas
emission allowances;
8. perform the verification and reporting of the levels of greenhouse gas emissions from the categories listed under
Annex І to Decision No. 406/2009/EC;
9. oversee the development, operation and maintenance of NRGGEAT;
10. exercise other powers granted under this Act.

Legal Area
Strategic plan on mitigation Body with planning/regulatory powers and functions Monitoring, reporting and verification obligations Monitoring and reporting obligations on government Emissions trading
Cross-cutting Categories
Duties and powers of national governments

7

The Executive Director of the Executive Environment Agency (ExEA) shall:
1. issue, review, update, and revoke greenhouse gas emissions permits;
2. approve, review, and update the monitoring plan for annual emissions and tonne-kilometre data from aircraft
operators;
3. make a conservative estimate of emissions within the meaning of Commission Regulation (EU) No. 601/2012 of 21
June 2012 on the monitoring and reporting of greenhouse gas emissions pursuant to Directive 2003/87/EC of the European
Parliament and the Council (OJ L 181/30, 12 July 2012), hereinafter "Regulation (EU) No. 601/2012";
4. make and report the national inventory of greenhouse gas emissions under UNFCCC and the Kyoto Protocol;
5. perform the functions of national administrator managing NRGGEAT;
6. exercise other powers granted under this Act.

Legal Area
Body with planning/regulatory powers and functions Monitoring and reporting obligations on government
Cross-cutting Categories
Duties and powers of national governments

8

(1) The National Action Plan on Climate Change shall be an instrument defining the framework for the
government policy on climate change for each individual period in accordance with the European Union policy and the
international agreements on climate change to which the Republic of Bulgaria is a party.
(2) The National Action Plan on Climate Change shall include schedule for implementation and monitoring mechanism
for activities relating to climate change and reductions of greenhouse gas emissions.
(3) The National Action Plan on Climate Change shall be drawn up by the Minister of Environment and Water jointly
with the competent ministers referred to in Article 4, Paragraph 1 and following consultation with the National Expert
Council on Climate Change on the basis of the relevant sectoral strategies and plans shall be adopted by the Council of
Ministers.
(4) The National Action Plan on Climate Change shall be adopted and updated in accordance with any changes to the
strategies and plans under Paragraph 3 and the Republic of Bulgaria's commitments resulting from international and
European legislation.

Legal Area
Strategic plan on mitigation
Cross-cutting Categories
Duties and powers of national governments

9

1) The Minister of Environment and Water shall, jointly with the competent ministers referred to in Article 4,
Paragraph 1 and following consultation with the National Expert Council on Climate Change, prepare a national strategy
draft containing the key climate change adaptation measures.
(2) The strategy referred to in Paragraph 1 shall be prepared for a period of at least 20 years, with the exception of
the first strategy which shall cover the period until 2030.
(3) The strategy referred to in Paragraph 1 shall be adopted by the Council of Ministers.

Legal Area
Strategic plan on mitigation
Cross-cutting Categories
Duties and powers of national governments

10

(Amended, SG No. 14/2015) The Minister of Energy shall, in consultation with the Minister of
Environment and Water and the ministers referred to in Article 4, Paragraph 1, prepare the National Investment Plan for the
2013 - 2020 period under Article 4, Paragraph 2, item 18d of the Energy Act and submit it for approval to the European
Commission.

Legal Area
Strategic plan on mitigation
Cross-cutting Categories
Duties and powers of national governments

11

(1) The Republic of Bulgaria shall, on an annual basis, make and report to the Secretariat to UNFCCC a
national inventory of greenhouse gas emissions under UNFCCC and the Kyoto Protocol.
(2) The conditions, terms, and procedure for making arrangements, including the compiling and reporting of the
national greenhouse gas inventory and the requirements to data provided by the authorities referred to in Article 12, shall be
laid down in the ordinance referred to in Article 5, item 4.

Legal Area
Monitoring, reporting and verification obligations
Cross-cutting Categories
Duties and powers of national governments

12

(1) The competent authorities in the procedure for compiling the national inventory under Article 11 shall
be, as follows:
1. the Minister of Environment and Water;
2. the Minister of Agriculture and Food;
3. the Minister of Transport, Information Technology and Communications;
4. (amended, SG No. 14/2015) the Minister of Energy;
5. (new, SG No. 41/2015) the Minister of Economy;
6. (renumbered from Item 5, SG No. 41/2015) the Minister of Interior;
7. (renumbered from Item 6, SG No. 41/2015) the Executive Director of ExEA;
8. (renumbered from Item 7, SG No. 41/2015) the Chairperson of the National Statistical Institute (NSI);
9. (renumbered from Item 8, SG No. 41/2015) the Executive Director of the Bulgarian Food Safety Agency;
10. (renumbered from Item 9, SG No. 41/2015) the Executive Director of the Executive Forest Agency;
11. (renumbered from Item 10, SG No. 41/2015) the Executive Director of the Automobile Administration Executive
Agency;
12. (renumbered from Item 11, SG No. 41/2015) the Executive Director of the Railway Administration Executive
Agency;
13. (renumbered from Item 12, SG No. 41/2015) the Executive Director of the Maritime Administration Executive
Agency;
14. (renumbered from Item 13, SG No. 41/2015) the Executive Director of the Exploration and Maintenance of the
Danube River Executive Agency;
15. (renumbered from Item 14, SG No. 41/2015) the Director General of Directorate General "Civil Aviation
Administration".
(2) The authorities referred to in Paragraph 1 shall:
1. in accordance with their remit, participate in developing and/or setting the national emission factors and/or other
indicators used in determining greenhouse gas emissions within the framework of the national inventory under Article 11;
2. propose changes to the procedure for compiling the national inventory under Article 11;
3. ensure the relevant expert and technical capacity for fulfilment of their obligations under items 1 and 2 above.
(3) Industrial associations and scientific and educational institutions shall also participate in compiling the national
inventory under Article 11 to the extent of their competence by providing information and supporting the operation of the
authorities referred to in Paragraph 1 in the fulfilment of their obligations under Paragraph 2.

Legal Area
Monitoring, reporting and verification obligations
Cross-cutting Categories
Duties and powers of national governments

13

The Minister of Environment and Water shall prepare drafts of strategic documents and environmental
legislation with relation to the national inventory under Article 11.

Legal Area
Monitoring, reporting and verification obligations
Cross-cutting Categories
Duties and powers of national governments

14

The Executive Director of ExEA shall oversee the overall process of compiling the national inventory under
Article 11 and:
1. promptly inform all authorities under Article 12, Paragraph 1 of:
a) the relevant amendments in existing guidelines and/or methodologies for compiling and reporting the national
inventory under Article 11;
b) changes in relevant deadlines and format, including the scope and content, for presenting the available data on
natural indicators and other related indicators required for compiling the national inventory under Article 11;
2. annually prepare the preliminary and final inventory under Article 11 following the procedure laid down in the
ordinance referred to in Article 5, item 4;
3. submit for consultation the final version of the national inventory under Article 11 following the procedure laid down
in the ordinance referred to in Article 5, item 4 to the Minister of Environment and Water;
4. communicate the final national inventory to the Secretariat to UNFCCC;
5. make arrangements for training the experts from the authorities referred to in Article 12, Paragraph 1 with relation to
their participation in the compiling of the national inventory under Article 11.

Legal Area
Monitoring, reporting and verification obligations
Cross-cutting Categories
Duties and powers of national governments

15

1) (Amended, SG No. 41/2015) The authorities referred to in Article 12, Paragraph 1, items 2 - 6, items
8 - 10 or officials authorised thereby shall, on an annual basis, send to ExEA data for the preceding year specified in the
ordinance referred to in Article 5, item 4.
(2) (Amended, SG No. 41/2015) Annually, the authorities referred to in Article 12, Paragraph 1, item 11 - 15 or
officials authorised thereby shall send to the Minister of Transport Information Technology and Communications the data
specified in the ordinance referred to in Article 5, item 4. The Minister of Transport, Information Technology and
Communications or an official authorised thereby shall summarise the data referred to in the previous sentence and send it to
ExEA.
(3) (Amended, SG No. 41/2015) The persons referred to in Article 12, Paragraph 3 shall send the data specified in
the ordinance referred to in Article 5, item 4, to the relevant authorities referred to in Article 12, Paragraph 1, items 3 - 10.
(4) The data referred to in Paragraphs 1 and 2 shall be sent to ExEA within the deadlines set out in the ordinance
referred to in Article 5, item 4.

Legal Area
Monitoring, reporting and verification obligations
Cross-cutting Categories
Duties and powers of national governments

16

(1) This Section lays down the rules for sale and exchange of assigned amount units (AAUs) by the
Bulgarian government and the funding of the National Green Investment Scheme (NGIS) in the Republic of Bulgaria with
the proceeds from such sale.
(2) The assigned amount units shall be private state property and shall constitute a special type of rights - subject to
international trading pursuant to Article 17 of the Kyoto Protocol.

Legal Area
Economic instruments Emissions trading Use of international market mechanisms
Cross-cutting Categories
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17

1) NGIS shall provide financial and institutional assistance to investment and other projects resulting in
reduction of greenhouse gas emissions in the territory of the country or in other positive environmental effects and impact on
the environment, including by mitigation of anthropogenic factors relating to climate change and global warming, in
accordance with the requirements of European and national environmental protection legislation.
(2) The National Green Investment Scheme shall include set up of activities related to receipt, evaluation, validation
and financing of projects for green investments through the National Trust Eco Fund (NTEF), monitoring and control of the
implementation of such projects and, where applicable, verification of completion and results achieved.
(3) Activities under Paragraph 2 which include financial measures shall be implemented following assessment by NTEF
confirming their compliance with the state aid regime.

Legal Area
Economic instruments Emissions trading Use of international market mechanisms
Cross-cutting Categories
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18

(1) The requirements of the parties acquiring AAUs as to the purpose and methods of expenditure of
proceeds from the sale of AAUs shall form an integral part of the contract for sale of AAUs concluded by the Republic of
Bulgaria, respectively of the contracts for funding projects for green investments between NTEF and investors undertaking
the implementation of such projects for green investments.
2) The appropriate expenditure of proceeds from the sale of AAUs shall be additionally guaranteed by:
1. participation of representatives of the parties acquiring AAUs in the advisory council to NTEF;
2. public availability of reports on the evaluation and implementation of projects for green investments to be financed
through NGIS.

Legal Area
Economic instruments Emissions trading Use of international market mechanisms
Cross-cutting Categories
Duties and powers of national governments

19

1) The government shall participate in international trading of AAUs following the procedures for sale and
exchange of AAUs pursuant to this Act.
(2) The sale and/or exchange under Paragraph 1 shall include:
1. procedure for negotiations with interested parties or their authorised representatives;
2. adoption of a decision by the Council of Ministers to approve the draft contract outlining the key transaction
parameters;
3. conclusion of the contract for sale and/or exchange of AAUs between the Bulgarian government and the acquiring
party, and
4. write-off of sold and/or exchanged AAUs from NRGGEAT and their transfer into an account specified by the
acquiring party.
(3) (Amended, SG No. 14/2015) The procedure for sale and/or exchange of AAUs shall be opened upon request by
the interested parties - participants in international trading in AAUs, which shall form grounds for launch of negotiations with
potential acquiring parties. The negotiations shall be held by the Minister of Finance, the Minister of Environment and Water
and the Minister of Energy and/or by officials authorised thereby.
(4) The Ministers referred to in Paragraph 3 shall submit to the Council of Ministers for approval the draft contract for
sale and/or exchange of AAUs containing the key transaction parameters.
(5) (Amended, SG No. 14/2015) The contract for sale and/or exchange shall be signed by the Minister of Finance,
the Minister of Environment and Water and the Minister of Energy and respectively by the authorised representatives of the
acquiring party. The contracts for AAUs sale shall be amended and supplemented in the order in which they were
concluded.
(6) The Minister of Environment and Water shall notify in writing the ExEA Executive Director who shall write off the
relevant quantity of sold and/or exchanged AAUs from NRGGEAT and transfer them to the accounts/national registry of
the acquiring party as per the terms of the contract for sale and/or exchange.

Legal Area
Economic instruments Emissions trading Use of international market mechanisms
Cross-cutting Categories
Duties and powers of national governments

20

(1) The proceeds from the sale of AAUs shall be transferred into the budget of the Enterprise for
Management of Environmental Protection Activities (EMEPA).
(2) The Ministry of Environment and Water shall control the implementation of contracts for sale and/or exchange of
AAUs.
(3) The Enterprise for Management of Environmental Protection Activities shall control the expenditure of funds
granted to NTEF under contracts for financing NGIS projects, including administrative expenses for application of NGIS.
4. write-off of sold and/or exchanged AAUs from NRGGEAT and their transfer into an account specified by the
acquiring party.
(3) (Amended, SG No. 14/2015) The procedure for sale and/or exchange of AAUs shall be opened upon request by
the interested parties - participants in international trading in AAUs, which shall form grounds for launch of negotiations with
potential acquiring parties. The negotiations shall be held by the Minister of Finance, the Minister of Environment and Water
and the Minister of Energy and/or by officials authorised thereby.
(4) The Ministers referred to in Paragraph 3 shall submit to the Council of Ministers for approval the draft contract for
sale and/or exchange of AAUs containing the key transaction parameters.
(5) (Amended, SG No. 14/2015) The contract for sale and/or exchange shall be signed by the Minister of Finance,
the Minister of Environment and Water and the Minister of Energy and respectively by the authorised representatives of the
acquiring party. The contracts for AAUs sale shall be amended and supplemented in the order in which they were
concluded.
(6) The Minister of Environment and Water shall notify in writing the ExEA Executive Director who shall write off the
relevant quantity of sold and/or exchanged AAUs from NRGGEAT and transfer them to the accounts/national registry of
the acquiring party as per the terms of the contract for sale and/or exchange.

Legal Area
Economic instruments Emissions trading Use of international market mechanisms
Cross-cutting Categories
Duties and powers of national governments

21

The Minister of Environment and Water and the Executive Director of ExEA shall ensure fulfilment of the
conditions for the country's admissibility to international trading in AAUs under Decision 11/CMP.1 of the Conference of
the Parties to the UNFCCC serving as the meeting of the Parties to the Kyoto Protocol via the national system under
Article 1, item 4 and NRGGEAT.

Legal Area
Economic instruments Emissions trading Use of international market mechanisms
Cross-cutting Categories
Duties and powers of national governments

22

(1) The revenues from contracts for sale of AAUs shall be intended only for financing of NGIS projects,
including administrative costs for its operation, except in the cases referred to in Paragraph 3.
2) The revenues under Article 20, Paragraph 1 shall be used, as follows:
1. up to 5 per cent of revenues - to cover the administrative costs of NTEF and EMEPA for management and control
of NGIS; the admissible amount of NTEF administrative costs shall be determined by the buyer of AAUs and shall be laid
down in the contract for sale; EMEPA shall make monthly transfers of the amounts needed to cover NTEF administrative
costs in accordance with a plan/budget approved by the NTEF managing board;
2. for financing and grant funding of the respective beneficiary after conclusion of the contract between NTEF and the
beneficiary for implementation of NTEF approved projects for green investments; the funding shall be provided in
accordance with the terms and deadlines stipulated in the contract between NTEF and the beneficiary and following receipt
of a motivated request by NTEF at EMEPA.
(3) Where the party acquiring AAUs has not stipulated express requirements for the use of proceeds from the sale
through NGIS, such proceeds shall be spent through the EMEPA budget for financing projects relating to environmental
protection and for partial coverage of expenses for facilities generating electricity from renewable sources.
(4) Projects under Paragraph 3 which are to be financed by proceeds from the sale through NGIS shall be laid down
in a Council of Ministers decision.

Legal Area
Economic instruments Emissions trading Use of international market mechanisms
Cross-cutting Categories
Duties and powers of national governments

23

1) The implementation and application of NGIS, with the exception of projects financed with proceeds
under Article 22, Paragraph 3, shall be assigned to NTEF which shall be responsible for the receipt, approval, and
commissioning of projects for green investments which are to be financed by revenues from international trading in AAUs
pursuant to the requirements of this Act and the terms laid down with the contracts for sale.
(2) The revenues from sale of AAUs shall be used for financing projects in the field of energy, transport, agriculture
and forestry, waste and water management, air pollution prevention, industry, and other sectors of the national economy
which:
1. result in reduction of greenhouse gas emissions or their removal by implementation of any of the following sample
measures:
a) improved energy efficiency;
b) increased share of energy from renewable sources for household use, as well as for public expenditure for existing
projects for production of electricity from renewable sources;
c) methane capture and use;
d) afforestation, reforestation and land use change; only species indigenous to the respective region or geographic belt
may be used for afforestation and reforestation, and the methods used must be environmentally friendly and take into
account scientific progress and the experience of the parties to UNFCCC in the adaptation to climate change;
e) development and deployment of environmentally friendly technologies which stimulate energy efficiency and/or the
use of energy from renewable sources;
f) development and implementation of a climate change mitigation policy with a view to fulfilling the obligations under
the Kyoto Protocol;
g) educational measures, scientific research and measures to improve the administrative capacity and management of
activities under the climate change mitigation policy;
h) informing the general public on issues related to climate change;
i) development and implementation of measures for adaptation to climate change;
2. significantly improve the quality of the environment, including by reducing air, water and soil pollution.

Legal Area
Economic instruments Emissions trading Use of international market mechanisms
Cross-cutting Categories
Duties and powers of national governments

24

(1) The National Green Investment Scheme shall be managed in accordance with the principles of good
international practice, including:
1. transparency;
2. environmental efficiency, economic efficiency and social acceptability;
3. reliability;
4. traceability;
5. accountability.
(2) The implementation and application of NGIS shall be guaranteed by public availability of the criteria and decisions
for approval of projects, the terms under the contracts for their fulfilment, the control and monitoring systems for the
contracts and the systems for verification the results from project implementation.

Legal Area
Economic instruments Emissions trading Use of international market mechanisms
Cross-cutting Categories
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25

The National Trust Eco Fund shall conclude the contracts for financing the approved projects for
application of NGIS under Article 23, Paragraph 1 with the respective beneficiaries.

Legal Area
Economic instruments Emissions trading Use of international market mechanisms
Cross-cutting Categories
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26

(1) NTEF shall control and monitor the implementation of contracts and projects for application of NGIS
under Article 23, Paragraph 1.
(2) In accordance with Article 18, Paragraph 2 the parties acquiring AAUs shall be entitled to appoint their
representatives in the advisory council to NTEF. Each acquiring party may appoint only one representative in the advisory
council, irrespective of the number of persons acquiring AAUs as its representatives.

Legal Area
Economic instruments Emissions trading Use of international market mechanisms
Cross-cutting Categories
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27

(1) Validation of project documentation and verification of reduced greenhouse gas emissions from NGIS
projects, where this is required by the party acquiring AAUs, shall be carried out by verifiers in accordance with the
requirements of Commission Regulation (EU) No. 600/2012 of 21 June 2012 on the verification of greenhouse gas
emission reports and tonne-kilometre reports and the accreditation of verifiers pursuant to Directive 2003/87/EC of the
European Parliament and of the Council (OJ L 181/1, 12 July 2012), hereinafter "Regulation (EU) No. 600/2012", or
verifiers accredited for verification of projects under the joint implementation and clean development mechanisms.
(2) The beneficiaries of NGIS projects and the NTEF bodies may not refuse access and information to the accredited
organisations which require such access and information for the evaluation and verification of the projects and the contracts.

Legal Area
Economic instruments Emissions trading Use of international market mechanisms
Cross-cutting Categories
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28

(1) The Minister of Environment and Water shall approve project activities generating emission reduction
units (ERUs) and certified emission reductions (CERs) under the Kyoto Protocol.
(2) The Minister of Environment and Water shall only authorise project activities where all project participants have
headquarters in a country which is a party to the Kyoto Protocol or in a country or sub-federal or regional entity which is
linked to EU ETS by an international agreement.
(3) ERUs shall not be issued with a view to reducing or limiting greenhouse gas emissions from activities covered by
this Act and Commission Regulation (EU) No. 550/2011 of 7 June 2011 on determining, pursuant to Directive 2003/87/EC
of the European Parliament and of the Council, certain restrictions applicable to the use of international credits from projects
involving industrial gases (OJ L 149/1, 8 June 2011), hereinafter "Regulation (EU) No. 550/2011".
(4) The Minister of Environment and Water shall issue an order for accounting ERUs of greenhouse gases generated by approved project activities and for transfer into an account indicated by the party submitting the project to NRGGEAT.

Legal Area
Economic instruments Use of international market mechanisms Provisions on access to international climate finance
Cross-cutting Categories
Duties and powers of national governments

29

The Minister of Environment and Water shall issue an instruction for approval of projects generating ERUs
in accordance with:
1. decisions adopted under UNFCCC and the Kyoto Protocol;
2. European legislation on climate change;
3. relevant international criteria and guidelines for hydro-electric power production with a generating capacity
exceeding 20 MW, including those contained in the World Commission on Dams November 2000 Report "Dams and
Development - A New Framework for Decision-Making";
4. avoidance of negative environmental or social impacts of hydroelectric power production project activities with a
generating capacity exceeding 500 MW.

Legal Area
Economic instruments Use of international market mechanisms Provisions on access to international climate finance
Cross-cutting Categories
Duties and powers of national governments

64

(1) Suppliers of liquid fuels and energy for transport shall reduce gradually life-cycle greenhouse gas
emissions per unit of energy from liquid fuels and energy supplied compared with the fuel baseline standard in 2010, up to
final total reduction of at least 6 per cent by 31 December 2020.
(2) The persons referred to in Paragraph 1 shall achieve the reduction of life-cycle greenhouse gas emissions per unit
of energy from liquid fuels and energy for transport by complex measures, such as:
1. use of biofuels which fulfil the sustainability criteria pursuant to the Energy from Renewable Sources Act;
2. use of alternative fuels;
3. use of fossil fuels with low levels of greenhouse gas emissions in the extraction and processing of crude oil.
(3) (Amended, SG No. 12/2017) Life-cycle greenhouse gas emissions from liquid fuels other than biofuels and fuel
baseline standards under Paragraph 1 shall be calculated using a methodology approved by the Minister of Environment and
Water.
(4) Life-cycle greenhouse gas emissions from biofuels shall be calculated using the methodology referred to in Article
44, Paragraph 3 of the Energy from Renewable Sources Act.
(5) Suppliers of electricity for use in road vehicles shall be considered as complying with the obligation to reduce
greenhouse gas emissions under Paragraph 1 provided that they keep logbooks and are able to provide written evidence of
measurements and monitoring of electricity supplied for use in such vehicles.

Legal Area
Emission targets-in law
Cross-cutting Categories
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68

(1) The Voluntary Emissions Reduction Scheme (VERS) shall encompass activities, installations and
persons which are not bound by international obligations for reduction of greenhouse gas emissions.
(2) VERS projects shall be implemented in compliance with the following principles:
1. additionality;
2. avoiding the double-counting of emission reductions;
3. the principles under Article 24, Paragraph 1.
(3) VERS projects shall not be eligible for public financing.

Legal Area
Incentives for voluntary actions
Cross-cutting Categories
-

69

The Minister of Environment and Water shall cancel the amount of AAUs from NRGGEAT equal to the
volume of reduced emissions as a result of a successful VERS project, where this is required by the applicable rules for
accounting emission reductions by means of VERS.

Legal Area
Incentives for voluntary actions
Cross-cutting Categories
Duties and powers of national governments

70

The Minister of Environment and Water shall:
1. issue an instruction to determine the scope of VERS and the procedures for approval and implementation of VERS
projects following consultation with the National Expert Council on Climate Change;
2. issue a letter for preliminary approval of VERS projects;
3. ascertain VERS project results following the project completion.

Legal Area
Incentives for voluntary actions
Cross-cutting Categories
Duties and powers of national governments

71

(1) The Minister of Environment and Water or officials authorised thereby in accordance with their remit
shall enforce coercive administrative measures in cases of:
1. violation of the provisions of this Act, of the secondary legislation for its implementation, and of acts issued by the
Minister of Environment and Water or officials authorised thereby in accordance with their remit;
2. impede the exercise of their controlling functions.
(2) In the cases referred to in Paragraph 1, with a view to preventing or terminating violations, as well as to removing
the adverse effects thereof, the Minister of Environment and Water and the Executive Director of ExEA or the officials
authorised thereby in accordance with their remit shall apply the following coercive administrative measures:
1. issue binding written instructions for suspending certain activities or for mandatory performance of certain actions
within a given deadline;
2. request expert opinions, checks, tests of installations and facilities, parts, systems or components thereof;
3. temporarily suspend or limit the activity of operators or aircraft operators;
4. suspend the access of operators and aircraft operators to their accounts in NRGGEAT within the meaning of Article
34(3)(b) of Regulation (EU) No. 389/2013 where they have violated the obligations for accurate reporting of emissions
under Article 36, Paragraphs 1 and 2 until the violation has been remedied.
(3) The coercive administrative measure shall be imposed by a reasoned order by the authority referred to in
Paragraph 1; such order shall determine the type of coercive administrative measure, the method of imposing it and a
suitable deadline for its imposal.
(4) The coercive administrative measure shall remain in force until the grounds for imposing it have been removed.
(5) The order under Paragraph 3 shall be delivered to the interested party pursuant to the Civil Procedure Code.
(6) The order under Paragraph 3 may be appealed by the interested parties pursuant to the Administrative Procedure
Code. The appeal shall not stay the implementation of the order.

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(1) An operator who carries out activities without holding the permit required under Article 31 shall be
sanctioned with a fine between BGN 5,000 and BGN 10,000 - for natural persons, respectively a pecuniary penalty
between BGN 10,000 and BGN 50,000 - for sole traders or legal persons.
(2) In case of a repeated violation under Paragraph 1 the fine for natural persons shall vary between BGN 10,000 and
BGN 20,000, respectively the pecuniary penalty for sole traders and legal persons - between BGN 20,000 and BGN
100,000.

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An operator who fails to fulfil its obligations under Article 34, Paragraph 2 within the deadlines set out in
the ordinance referred to in Article 5, item 1 shall be sanctioned with a fine - for natural persons, respectively a pecuniary
penalty - for sole traders or legal persons, amounting between BGN 1,000 and BGN 10,000.

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(1) An operator or aircraft operator who fails to comply with the monitoring and reporting requirements
under Article 35 shall be sanctioned with a fine - for natural persons, respectively a pecuniary penalty - for sole traders or
legal persons, amounting between BGN 1,000 and BGN 10,000.
(2) In the cases referred to in Article 36, Paragraph 5, item 3 the verifiers shall be sanctioned with a pecuniary penalty
of BGN 2,000 to BGN 20,000.
(3) For a repeated violation the sanction shall be a fine, respectively a pecuniary penalty, as follows:
1. under Paragraph 1 - between BGN 2,000 and BGN 20,000;
2. under Paragraph 2 - between BGN 4,000 and BGN 40,000.
(4) In case of systemic violations under Article 36, Paragraph 5, item 3 the accreditation of verifiers shall be withdrawn
pursuant to the National Accreditation of Compliance Assessment Bodies Act.

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1) Natural persons violating the requirements for keeping the information in accordance with Article 66(1),
Paragraph 1 of Regulation (EU) No. 601/2012 shall be sanctioned with a fine between BGN 1,000 and BGN 5,000, and
legal persons or sole traders shall suffer a pecuniary penalty of BGN 10,000 to BGN 25,000.
(2) In case of a repeated violation under Paragraph 1 a fine shall be imposed amounting between BGN 2,000 and
BGN 10,000 - for natural persons, respectively a pecuniary penalty of BGN 20,000 to BGN 50,000 - for sole traders and
legal persons.

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(1) For breaching the requirements of Article 48, Paragraph 1 an operator or aircraft operator - legal
person or sole trader, shall be sanctioned with a pecuniary penalty of BGN 200 for each tonne of carbon dioxide equivalent
for which the operator failed to surrender allowances.
(2) (New, SG No. 41/2015) For each tonne of carbon dioxide equivalent for which the operator failed to surrender
allowances issued after 1 January 2013, a pecuniary penalty shall be imposed amounting to the pecuniary penalty under
Paragraph 1 multiplied by ratio of the European Index of Consumer Prices for the current year to the Euroepan Index of
Consumer Prices for 2013 as published by Eurostat.
(3) (Renumbered from Paragraph (2), amended, SG No. 41/2015) Payment of the property sanction under Paragraph
1 and Paragraph 2 shall not release the operator from the obligation to surrender the insufficient amount of allowances
during the next calendar year.

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(1) In the event that an aircraft operator fails to comply with the requirements of Article 35, Paragraph 1,
Article 48, Paras. 1 and 5 and where other measures have failed to ensure compliance, the Minister of Environment and
Water may request the European Commission to impose an operating ban on the aircraft operator concerned.
(2) The request referred to in Paragraph 1 shall include:
1. details of the enforcement action which has been taken by the competent authority;
2. a justification for the imposition of an operating ban at Community level;
3. a recommendation for the scope of an operating ban at Community level and any conditions that should be applied.
(3) The request referred to in Paragraph 1 shall also contain evidence that the aircraft operator has not complied with
its obligations under Paragraph 1.
(4) In the event that the European Commission adopts a decision on the request under Paragraph 2, the competent
authorities shall take the measures necessary for its implementation.
(5) The competent authorities shall inform the European Commission of any measures taken to implement the decisions
under Paragraph 4.

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(1) An applicant within the meaning of Article 20 of Regulation (EU) No. 1031/2010 who provides with
false or misleading information any auction platform auctioning two-day spot or five-day futures shall be sanctioned with a
fine between BGN 1,000 and BGN 10,000 - for natural persons, and a pecuniary penalty of BGN 10,000 to BGN 20,000
- for legal persons.
(2) An applicant under Paragraph 1 who fails to inform immediately the auction platform under Paragraph 1 of any
changes in its circumstances that could affect its application for admission to bid in auctions conducted by that auction
platform or any admission to bid already granted to it shall be sanctioned with a fine between BGN 1,000 and BGN 10,000
- for natural persons, respectively a pecuniary penalty of BGN 10,000 to BGN 20,000 - for legal persons.
(3) For a repeated violation under Paragraphs 1 and 2 the sanction shall be a fine, respectively a pecuniary penalty of
BGN 2,000 to BGN 20,000 - for natural persons, respectively a pecuniary penalty of BGN 20,000 to BGN 40,000 - for
legal persons.

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Anyone who makes an unauthorised disclosure of inside information within the meaning of Article 3(29)
and Article 37(а) of Regulation (EU) No. 1031/2010 to any person working for an auctioneer shall be sanctioned with a
fine amounting between BGN 10,000 and BGN 100,000, and in case of a repeated violation - with a fine of BGN 20,000
to BGN 200,000.

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A person who violates or fails to fulfil its obligations under Article 59, Paragraph 3, shall be sanctioned with
a fine amounting between BGN 100 and BGN 600, and in case of a repeated violation - between BGN 200 and BGN
1,200.

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(1) A supplier of liquid fuels and energy for transport who fails to fulfil its obligation under Article 64,
Paragraph 1 shall be sanctioned with a fine between BGN 1,000 and BGN 10,000 - for natural persons, respectively a
pecuniary penalty of BGN 2,000 to BGN 20,000 - for legal persons.
(2) (Supplemented, SG No. 12/2017) A supplier of liquid fuels and energy for transport who fails to fulfil its obligation
under Article 66, Paragraph 1 or violates the requirements under Article 66, Paragraph 3 or of the ordinance referred to in
Article 5, item 5 shall be sanctioned with a fine between BGN 1,000 and BGN 10,000 – for natural persons, respectively a
pecuniary penalty of BGN 2,000 to BGN 20,000 – for legal persons.

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(1) For other violations of this Act and the secondary legislation for its implementation which do not
constitute a crime, the offender, if a natural person, shall be fined between BGN 100 and BGN 6,000, and if a legal person
- by a pecuniary penalty between BGN 1,000 and BGN 20,000.
(2) In case of a repeated violation under Paragraph 1 natural persons shall be fined by BGN 200 to BGN 12,000,
while legal persons shall be imposed a pecuniary penalty of BGN 2,000 to BGN 40,000.

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(1) The written statements ascertaining administrative violations shall be drawn up by officials authorised by
the Minister of Environment and Water in accordance with their remit.
(2) The penal decrees under Paragraph 1 shall be issued by the Minister of Environment and Water or officials
authorised thereby.
(3) Violations shall be ascertained, statements shall be drawn up, and penal decrees shall be issued and appealed
pursuant to the Administrative Violations and Sanctions Act.

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