CGNI Financial and ESG Update

4 Regulatory/policy topics 2023: FF55 Package is being finalized in EU EU gas market: Unbundling rules and governance • . Vertical unbundling (for vertically integrated DSOs only): in the proposed form may lead to ownership unbundling for DSOs Horizontal unbundling: at least in terms of legal form • EU DSO association: Inclusion of gas DSOs into the association established already for electricity DSOs GHG emissions reduction: ETS 2 ETS 2: Carbon,,tax" in road transport and individual heating (2027) Green hydrogen definition ກ & Methane emissions Regulation ZEB definition in EPBD . Definition of green hydrogen (Delegated act to RED II), expected entry into force in July 2023 - Requirements for production of green H2 only from RES sources Unfavorable and uncompetitive conditions for CZ producers • LDAR: Increased frequency of leakage surveys regardless of the technical condition of the networks(for vertically integrated Repair requirements: leaks to be repaired regardless of their size Passing on costs to end users: increase in the regulated component of the gas price Standard for new private buildings as of 2030, for public ones already since 2027 . • 100% RES energy produced on-site, nearby or supplied by energy community; Residual energy supplied also by RES energy from grids or as waste heat from DHC Need to transform all buildings by 2050 to ZEB standard . gasnet.cz 25 25

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