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1. DEFINITIONS

For the purposes of this Annex and of Annexes V and VI, the following definitions apply:
(a) ‘simple goods’ means goods produced in a production process requiring exclusively input materials (precursors) and fuels having zero embedded emissions;
(b) ‘complex goods’ means goods other than simple goods;
(c) ‘specific embedded emissions’ means the embedded emissions of one tonne of goods, expressed as tonnes of CO2e emissions per tonne of goods;
(d) ‘CO2 emission factor’, means the weighted average of the CO2 intensity of electricity produced from fossil fuels within a geographic area; the CO2 emission factor is the result of the division of the CO2 emission data of the electricity sector by the gross electricity generation based on fossil fuels in the relevant geographic area; it is expressed in tonnes of CO2 per megawatt-hour;
(e) ‘emission factor for electricity’ means the default value, expressed in CO2e, representing the emission intensity of electricity consumed in production of goods;
(f) ‘power purchase agreement’ means a contract under which a person agrees to purchase electricity directly from an electricity producer;
(g) ‘transmission system operator’ means an operator as defined in Article 2, point (35), of Directive (EU) 2019/944 of the European Parliament and of the Council (1).