Dóra Fazekas Carbon Market Implications for new EU - UniCredit ...

and logs and expenses related to cooperation with other state authorities. During the pilot
phase, this supervisory fee amounted to 3 HUF per emissions allowance. (Law XV of 2005,
Section 19)
Participants of joint implementations projects are also required to pay supervisory fees. The
amount of these fees depends on the total amount of planned emissions reductions during the
pilot phase; 10 HUF per tonne of CO2e allowance, but no less than 1.5 million HUF. (Law XV
of 2005, Section 15, Paragraph 4)
(2) A service provision fee is to be paid for the permit procedure of GHG emissions, as well as for
registration in the Registry of Auditors, the Auditor Expert Registry and the European
Community Registry of Auditors, or for the termination or suspension of the auditor’s permit.
(Ministry of Environment and Water Decree no. 32/2005, Section 1)
(3) An account management fee is to be paid for the official maintenance and monitoring of
emissions allowances (Government Decree no. 143/2005, Section 15/A-C). “The basis of this
fee is to be determined according the quantity of emissions allowances, per installation,
provided for the particular year in the National Allocation List.” (Government Decree no.
143/2005, Appendix 2, item 2)
Hungary’s Law on Accounting includes the stipulation (Section 78, Paragraph 4) that official fees
and other public administration fees are to be recorded for accounting purposes as costs for other
services.
The other major types of administrative expenses are the penalties levied as a result of non-
compliance. Operators are required to pay fines, of varying types and amounts, if they fail to
comply with requirements outlined in the relevant legal regulations. These costs are to be listed, for
accounting purposes, as other expenses; Appendix IV. provides a detailed list of possible penalties.
Penalties must be consistent and predictable in order to act as efficient motivators of compliance.
According to Article 16 of the directive, Member States are required to determine the actual
penalties themselves. The EU directive provides the following guidelines for fines to be levied in
case emissions are greater than allowed by surrendered allowances:
(1) The surplus-emissions penalty levied for each tonne of emissions emitted by the installation
but not covered by surrendered allowances was 40 EUR during the pilot phase, but was raised
to 100 EUR beginning in 2008. The payment of the surplus emissions penalty shall not exempt
the operator from its obligation to surrender emissions allowances in a quantity corresponding
to the surplus emissions, when allowances relating to the following year are surrendered.
(Article 16 of Directive 2003/87/EC) The EU directive further stipulates that operators who fail
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