[ParlTrack]

Marco DREOSTO, Elena LIZZI, Paolo BORCHIA, Gianna GANCIA, Markus BUCHHEIT, Isabella TOVAGLIERI

Proposal for a directive
Recital 13

(13) Greenhouse gases that are not directly released into the atmosphere should be considered emissions under the EU ETS and allowances should be surrendered for those emissions unless they are captured and reused for example to produce recycled carbon fuels and renewables liquid and gaseous fuels of non-biological origin , stored in a storage site in accordance with Directive 2009/31/EC of the European Parliament and of the Council46 , or they are permanently chemically bound in a product so that they do not enter the atmosphere under normal use. The Commission should be empowered to adopt implementing acts specifying the conditions where greenhouse gases are to be considered as permanently chemically bound in a product so that they do not enter the atmosphere under normal use, including obtaining a carbon removal certificate, where appropriate, in view of regulatory developments with regard to the certification of carbon removals. _________________ 46Directive 2009/31/EC of the European Parliament and of the Council of 23 April 2009 on the geological storage of carbon dioxide and amending Council Directive 85/337/EEC, European Parliament and Council Directives 2000/60/EC, 2001/80/EC, 2004/35/EC, 2006/12/EC, 2008/1/EC and Regulation (EC) No 1013/2006 (OJ L 140, 5.6.2009, p. 114).

2022/02/04
Committee: ITRE

Marco DREOSTO, Elena LIZZI, Paolo BORCHIA, Gianna GANCIA, Markus BUCHHEIT, Isabella TOVAGLIERI

Proposal for a directive
Recital 17

(17) In the European Green Deal, the Commission stated its intention to take additional measures to address greenhouse gas emissions from the maritime transport sector through a basket of measures to enable the Union to reach its emissions reduction targets. In this context, Directive 2003/87/EC should be amended to include the maritime transport sector in the EU ETS in order to ensure this sector contributes to the increased climate objectives of the Union as well as to the objectives of the Paris Agreement, which requires developed countries to take the lead by undertaking economy-wide emission reduction targets, while developing countries are encouraged to move over time towards economy-wide emission reduction or limitation targets.49 Considering that emissions from international aviation outside Europe should be capped from January 2021 by global market-based action while there is no action in place that caps or prices maritime transport emissions, it is appropriate that the EU ETS covers a share of the emissions from voyages between a port under the jurisdiction of a Member State and port under the jurisdiction of a third country, with the third country being able to decide on appropriate action in respect of the other share of emissions. The extension of the EU ETS to the maritime transport sector should thus include half of the emissions from ships performing voyages arriving at a port under the jurisdiction of a Member State from a port outside the jurisdiction of a Member State, half of the emissions from ships performing voyages departing from a port under the jurisdiction of a Member State and arriving at a port outside the jurisdiction of a Member State, emissions from ships performing voyages arriving at a port under the jurisdiction of a Member State from a port under the jurisdiction of a Member State, and emissions at berth in a port under the jurisdiction of a Member State. This approach has been noted as a practical way to solve the issue of Common but Differentiated Responsibilities and Capabilities, which has been a longstanding challenge in the UNFCCC context. The coverage of a share of the emissions from both incoming and outgoing voyages between the Union and third countries ensures the effectiveness of the EU ETS, notably by increasing the environmental impact of the measure compared to a geographical scope limited to voyages within the EU, while limiting the risk of evasive port calls and the risk of delocalisation of transhipment activities outside the Union. To ensure a smooth inclusion of the sector in the EU ETS, the surrendering of allowances by shipping companies should be gradually increased with respect to verified emissions reported for the period 2023 to 2025. To protect the environmental integrity of the system, to the extent that fewer allowances are surrendered in respect of verified emissions for maritime transport during those years, once the difference between verified emissions and allowances surrendered has been established each year, a corresponding a number of allowances should be cancelled. As from 2026, shipping companies should surrender the number of allowances corresponding to all of their verified emissions reported in the preceding year. However, measures should be taken to ensure that the extension of the ETS to maritime transport affects Member States in a fair and not disproportionate manner, taking into account their specific circumstances. _________________ 49 Paris Agreement, Article 4(4). 49

2022/02/04
Committee: ITRE

Marco CAMPOMENOSI, Paolo BORCHIA, Massimo CASANOVA, Roman HAIDER, Annalisa TARDINO

Proposal for a directive
Recital 17

(17) In the European Green Deal, the Commission stated its intention to take additional measures to address greenhouse gas emissions from the maritime transport sector through a basket of measures to enable the Union to reach its emissions reduction targets. In this context, Directive 2003/87/EC should be amended to include the maritime transport sector in the EU ETS in order to ensure this sector contributes to the increased climate objectives of the Union as well as to the objectives of the Paris Agreement, which requires developed countries to take the lead by undertaking economy-wide emission reduction targets, while developing countries are encouraged to move over time towards economy-wide emission reduction or limitation targets.49 Considering that emissions from international aviation outside Europe should be capped from January 2021 by global market-based action while there is no action in place that caps or prices maritime transport emissions, it ~~is appropriate~~might be highly detrimental that the EU ETS would covers a share of the emissions from voyages between a port under the jurisdiction of a Member State and port under the jurisdiction of a third country, with the third country being able to decide on appropriate action in respect of the other share of emissions. The extension of the EU ETS to the maritime transport sector should thus include half of the emissions from ships performing voyages arriving at a port under the jurisdiction of a Member State from a port outside the jurisdiction of a Member State, half of the emissions from ships performing voyages departing from a port under the jurisdiction of a Member State and arriving at a port outside the jurisdiction of a Member State,because it might cause a loss of competitiveness to our ports, especially in the transhipment sector. In addition, ships operating routes included in the Motorways of the Seas or granting territorial continuity as a public service to islands should not be considered in the scope of the EU ETS, in order to avoid the concrete risk of a modal backshift to more pollutant sectors in the former case, as well as the risk of endangering territorial continuity in the latter one. The extension of the EU ETS to the maritime transport sector should thus include half of the emissions from ships performing voyages arriving at a port under the jurisdiction of a Member State from a port under the jurisdiction of a Member State, and fifty percent of emissions at berth in a port under the jurisdiction of a Member State. This approach has been noted as a practical way to solve the issue of Common but Differentiated Responsibilities and Capabilities, which has been a longstanding challenge in the UNFCCC context. The coverage of a share of the emissions from both incoming and outgoing voyages between the Union and third countries ensures the effectiveness of the EU ETS, notably by increasing the environmental impact of the measure compared to a geographical scope limited to voyages within the EU, while limiting the risk of evasive port calls and the risk of delocalisation of transhipment activities outside the Union. To ensure a smooth inclusion of the sector in the EU ETS, the surrendering of allowances by shipping companies should be gradually increased with respect to verified emissions reported for the period 20238 to 202530. To protect the environmental integrity of the system, to the extent that fewer allowances are surrendered in respect of verified emissions for maritime transport during those years, once the difference between verified emissions and allowances surrendered has been established each year, a corresponding a number of allowances should be cancelled. As from 202631, shipping companies should surrender the number of allowances corresponding to all of their verified emissions reported in the preceding year. __________________ 49 Paris Agreement, Article 4(4).

2022/02/08
Committee: TRAN

Marco DREOSTO, Elena LIZZI, Paolo BORCHIA, Gianna GANCIA, Markus BUCHHEIT, Isabella TOVAGLIERI

Proposal for a directive
Recital 29

(29) Further incentives to reduce greenhouse gas emissions by using cost- efficient techniques should be provided. To that end, the free allocation of emission allowances to stationary installations from 2026 onwards should be conditional on investments in techniques to increase energy efficiency and reduce emissions. Ensuring that this is focused on larger energy users would result in a substantial reduction in burden for businesses with lower energy use, which may be owned by small and medium sized enterprises or micro- enterprises. [Reference to be confirmed with the revised EED]. The relevant delegated acts should be adjusted accordingly.deleted

2022/02/04
Committee: ITRE

Marco DREOSTO, Elena LIZZI, Paolo BORCHIA, Gianna GANCIA, Markus BUCHHEIT, Isabella TOVAGLIERI

Proposal for a directive
Recital 30

(30) The Carbon Border Adjustment Mechanism (CBAM), established under Regulation (EU) […./..] of the European Parliament and of the Council51 , is an alternative to free allocation to address the risk of carbon leakage. To the extent that sectors and subsectors are covered by that measure, they should not receive free allocation. However, a transitional phasing-out of free allowances is needed to allow producers, importers and traders to adjust to the new regime. The reduction of free allocation should be implemented by applying a factor to free allocation for CBAM sectors, while the CBAM is phased in. Sufficient safeguards should nevertheless be provided for the products intended for exports and their producers. This percentage (CBAM factor) should be equal to 100 % during the transitional period between the entry into force of [CBAM Regulation] and 2025, 90 % in 2026 and should be reduced by 10 percentage points each year to reach 0 % and thereby eliminate free allocation by the tenth year. The relevant delegated acts on free allocation should be adjusted accordingly for the sectors and subsectors covered by the CBAM, taking into account the need to maintain free allowances for the products that are exported. The free allocation no longer provided to the CBAM sectors based on this calculation (CBAM demand) must be auctioned and the revenues will accrue to the Innovation Fund, so as to support innovation in low carbon technologies, carbon capture and utilisation (‘CCU’), carbon capture and geological storage (‘CCS’), renewable energy and energy storage, in a way that contributes to mitigating climate change. Special attention should be given to projects in CBAM sectors. To respect the proportion of the free allocation available for the non- CBAM sectors, the final amount to deduct from the free allocation and to be auctioned should be calculated based on the proportion that the CBAM demand represents in respect of the free allocation needs of all sectors receiving free allocation. _________________ 51 [please insert full OJ reference]

2022/02/04
Committee: ITRE

Marco DREOSTO, Elena LIZZI, Paolo BORCHIA, Gianna GANCIA, Markus BUCHHEIT, Isabella TOVAGLIERI

Proposal for a directive
Recital 31

(31) In order to better reflect technological progress and adjust the corresponding benchmark values to the relevant period of allocation while ensuring emission reduction incentives and properly rewarding innovation, the maximum adjustment of the benchmark values should be increased from 1,6 % to 2,5 % per year. For the period from 2026 to 2030, the benchmark values should thus be adjusted within a range of 4 % to 50 % compared to the value applicable in the period from 2013 to 2020.deleted

2022/02/04
Committee: ITRE

Marco DREOSTO, Elena LIZZI, Paolo BORCHIA, Gianna GANCIA, Markus BUCHHEIT, Isabella TOVAGLIERI

Proposal for a directive
Recital 31 a (new)

(31a) In order to reflect the actual technological progress within installations included in product benchmarks with consideration of fuel and electricity exchange ability in Commission Implementing Regulation (EU) 2021/447 and where the share of indirect emissions is higher than 50% of the relevant product benchmarks, the update of such benchmarks for the periods as of 2026 shall not be affected by the evolution of the carbon intensity of the electricity mix.

2022/02/04
Committee: ITRE

Marco DREOSTO, Elena LIZZI, Paolo BORCHIA, Gianna GANCIA, Markus BUCHHEIT, Isabella TOVAGLIERI

Proposal for a directive
Recital 32

(32) A comprehensive approach to innovation is essential for achieving the European Green Deal objectives. At EU level, the necessary research and innovation efforts are supported, among others, through Horizon Europe which include significant funding and new instruments for the sectors coming under the ETS. Consequently, the Innovation Fund should seek synergies with Horizon Europe and, where relevant, with other Union funding programmes. Member States should ensure that the national transposition provisions do not hamper innovations and are technologically neutral.

2022/02/04
Committee: ITRE

Marco CAMPOMENOSI, Paolo BORCHIA, Massimo CASANOVA, Roman HAIDER, Annalisa TARDINO

Proposal for a directive
Recital 33

(33) The scope of the Innovation Fund referred to in Article 10a(8) of Directive 2003/87/EC should be extended to support innovation in low-carbon technologies and processes that concern the consumption of fuels in the sectors of buildings and road transport. In addition, the Innovation Fund should serve to support investments to decarbonise the maritime transport sector, including investments in sustainable alternative fuels, such as hydrogen and ammonia that are produced from renewables, as well asvestments to decarbonise the maritime transport sector, including investments in sustainable alternative fuels and infrastructures, such as LNG as a middle- term solution, and hydrogen and ammonia as a long-term solution, but also zero- emission propulsion technologies like wind technologies. Considering that revenues generated from penalties raised in Regulation xxxx/xxxx [FuelEU Maritime]52 are allocated to the Innovation Fund as external assigned revenue in accordance with Article 21(5) of the Financial Regulation, the Commission should ensure that due consideration is given to support for innovative projects aimed at accelerating the development and deployment of renewable and low carbon fuels and infrastructures in the maritime sector, as specified in Article 21(1) of Regulation xxxx/xxxx [FuelEU Maritime]. To ensure sufficient funding is available for innovation within this extended scope, the Innovation Fund should be supplemented with 50 million allowances, stemming partly from the allowances that could otherwise be auctioned, and partly from the allowances that could otherwise be allocated for free, in accordance with the current proportion of funding provided from each source to the Innovation Fund. __________________ 52[add ref to the FuelEU Maritime Regulation].

2022/02/08
Committee: TRAN

Marco DREOSTO, Elena LIZZI, Paolo BORCHIA, Gianna GANCIA, Markus BUCHHEIT, Isabella TOVAGLIERI

Proposal for a directive
Recital 33

(33) The scope of the Innovation Fund referred to in Article 10a(8) of Directive 2003/87/EC should be extended to support innovation in and demonstration of low- carbon technologies and processes that concern the consumption of fuels in the sectors of buildings and road transport. In addition, the Innovation Fund should serve to support investments to decarbonise the maritime transport sector, including investments in sustainable alternative fuels, such as hydrogen and ammonia and synthetic fuels that are produced from renewables, as well as zero-emission propulsion technologies like wind technologies. Considering that revenues generated from penalties raised in Regulation xxxx/xxxx [FuelEU Maritime]52 are allocated to the Innovation Fund as external assigned revenue in accordance with Article 21(5) of the Financial Regulation, the Commission should ensure that due consideration is given to support for innovative projects aimed at accelerating the development and deployment of renewable and low carbon fuels in the maritime sector, as specified in Article 21(1) of Regulation xxxx/xxxx [FuelEU Maritime]. To ensure sufficient funding is available for innovation within this extended scope, the Innovation Fund should be supplemented with 50 million allowances, stemming partly from the allowances that could otherwise be auctioned, and partly from the allowances that could otherwise be allocated for free, in accordance with the current proportion of funding provided from each source to the Innovation Fund. _________________ 52[add ref to the FuelEU Maritime Regulation].

2022/02/04
Committee: ITRE

Marco CAMPOMENOSI, Paolo BORCHIA, Massimo CASANOVA, Roman HAIDER, Annalisa TARDINO

Proposal for a directive
Recital 43

(43) The Communication of the Commission on Stepping up Europe’s 2030 climate ambition57 , underlined the particular challenge to reduce the emissions in the sectors of road transport and buildings. Therefore, the Commission announced that a further expansion of emissions trading could include emissions from road transport and buildings. Emissions trading for these two new sectors would be established through separate but adjacent emissions trading. This would avoid any disturbance of the well-functioning emissions trading in the sectors of stationary installations and aviation. The new system is accompanied by complementary policies and measures safeguarding against undue price impacts, shaping expectations of market participants and aiming for a carbon price signal for the whole economy. Previous experience has shown that the development of the new market requires setting up an efficient monitoring, reporting and verification system. In view of ensuring synergies and coherence with the existing Union infrastructure for the EU ETS covering the emissions from stationary installations and aviation, it is appropriate to set up emissions trading for the road transport and buildings sectors via an amendment to Directive 2003/87/ЕC. __________________ 57deleted COM(2020)562 final.

2022/02/08
Committee: TRAN

Marco DREOSTO, Elena LIZZI, Paolo BORCHIA, Gianna GANCIA, Markus BUCHHEIT, Isabella TOVAGLIERI

Proposal for a directive
Recital 40

(40) Renewable liquid and gaseous fuels of non-biological origin and recycled carbon fuels can be important to reduce greenhouse gas emissions in sectors that are hard to decarbonise. Where recycled carbon fuels and renewable liquid and gaseous fuels of non-biological origin are produced from captured carbon dioxide under an activity covered by this Directive, the emissions should be accounted under that activity where the CO2 is emitted into the atmosphere. To ensure that renewable fuels of non-biological origin and recycled carbon fuels contribute to greenhouse gas emission reductions and to avoid double counting for fuels that do so, it is appropriate to explicitly extend the empowerment in Article 14(1) to the adoption by the Commission of implementing acts laying down the necessary adjustments for how and where to account for the eventual release of carbon dioxide and how to avoid double counting to ensure appropriate incentives are in place for capturing the CO2, taking also into account the treatment of these fuels under Directive (EU) 2018/2001.

2022/02/04
Committee: ITRE

Marco CAMPOMENOSI, Paolo BORCHIA, Massimo CASANOVA, Roman HAIDER, Annalisa TARDINO

Proposal for a directive
Recital 45

(45) Due to the very large number of small emitters in the sectors of buildings and road transport, it is not possible to establish the point of regulation at the level of entities directly emitting greenhouse gases, as is the case for stationary installations and aviation. Therefore, for reasons of technical feasibility and administrative efficiency, it is more appropriate to establish the point of regulation further upstream in the supply chain. The act that triggers the compliance obligation under the new emissions trading should be the release for consumption of fuels which are used for combustion in the sectors of buildings and road transport, including for combustion in road transport of greenhouse gases for geological storage. To avoid double coverage, the release for consumption of fuels which are used in other activities under Annex I to Directive 2003/87/EC should not be covered.deleted

2022/02/08
Committee: TRAN

Marco DREOSTO, Elena LIZZI, Paolo BORCHIA, Gianna GANCIA, Markus BUCHHEIT, Isabella TOVAGLIERI

Proposal for a directive
Recital 42

(42) The exclusion of installations using exclusively biomass from the EU ETS has led to situations where installations combusting a high share of biomass have obtained windfall profits by receiving free allowances greatly exceeding actual emissions. Therefore, a threshold value for zero-rated biomass combustion should be introduced above which installations are excluded from the EU ETS. The threshold value of 95 % is in line with the uncertainty parameter set out in Article 2(16) of Commission Delegated Regulation (EU) 2019/33156 . _________________ 56Commission Delegated Regulation (EU) 2019/331 of 19 December 2018 determining transitional Union-wide rules for harmonised free allocation of emission allowances pursuant to Article 10a of Directive 2003/87/EC of the European Parliament and of the Council (OJ L 59, 27.2.2019, p. 8).deleted

2022/02/04
Committee: ITRE

Marco CAMPOMENOSI, Paolo BORCHIA, Massimo CASANOVA, Roman HAIDER, Annalisa TARDINO

Proposal for a directive
Recital 48

(48) The total quantity of allowances for the new emissions trading should follow a linear trajectory to reach the 2030 emissions reduction target, taking into account the cost-efficient contribution of buildings and road transport of 43 % emission reductions by 2030 compared to 2005. The total quantity of allowances should be established for the first time in 2026, to follow a trajectory starting in 2024 from the value of the 2024 emissions limits (1 109 304 000 CO2t), calculated in accordance with Article 4(2) of Regulation (EU) 2018/842 of the European Parliament and of the Council59 on the basis of the reference emissions for these sectors for the period from 2016 to 2018. Accordingly, the linear reduction factor should be set at 5,15 %. From 2028, the total quantity of allowances should be set on the basis of the average reported emissions for the years 2024, 2025 and 2026, and should decrease by the same absolute annual reduction as set from 2024, which corresponds to a 5,43 % linear reduction factor compared to the comparable 2025 value of the above defined trajectory. If those emissions are significantly higher than this trajectory value and if this divergence is not due to small-scale differences in emission measurement methodologies, the linear reduction factor should be adjusted to reach the required emissions reduction in 2030. __________________ 59Regulation (EU) 2018/842 of the European Parliament and of the Council of 30 May 2018 on binding annual greenhouse gas emission reductions by Member States from 2021 to 2030 contributing to climate action to meet commitments under the Paris Agreement and amending Regulation (EU) No 525/2013 (OJ L 156, 19.6.2018, p. 26).deleted

2022/02/08
Committee: TRAN

Marco CAMPOMENOSI, Paolo BORCHIA, Massimo CASANOVA, Roman HAIDER, Annalisa TARDINO

Proposal for a directive
Recital 49

(49) The auctioning of allowances is the simplest and the most economically efficient method for allocating emission allowances, which also avoids windfall profits. Both the buildings and road transport sectors are under relatively small or non-existent competitive pressure from outside the Union and are not exposed to a risk of carbon leakage. Therefore, allowances for buildings and road transport should only be allocated via auctioning without there being any free allocation.deleted

2022/02/08
Committee: TRAN

Marco DREOSTO, Elena LIZZI, Paolo BORCHIA, Gianna GANCIA, Markus BUCHHEIT, Isabella TOVAGLIERI

Proposal for a directive
Recital 54

(54) Innovation and development as well as demonstration and up-scaling of new low-carbon technologies in the sectors of buildings and road transport are crucial for ensuring the cost-efficient contribution of these sectors to the expected emission reductions. Therefore, 150 million allowances from emissions trading in the buildings and road transport sectors should also be made available to the Innovation Fund to stimulate the cost-efficient emission reductions.

2022/02/04
Committee: ITRE

Marco CAMPOMENOSI, Paolo BORCHIA, Massimo CASANOVA, Roman HAIDER, Annalisa TARDINO

Proposal for a directive
Recital 50

(50) In order to ensure a smooth start to emissions trading in the buildings and road transport sectors and taking into account the need of the regulated entities to hedge or buy ahead allowances to mitigate their price and liquidity risk, a higher amount of allowances should be auctioned early on. In 2026, the auction volumes should therefore be 30 % higher than the total quantity of allowances for 2026. This amount would be sufficient to provide liquidity, both if emissions decrease in line with reduction needs, and in the event emission reductions only materialise progressively. The detailed rules for this front-loading of auction volume are to be established in a delegated act related to auctioning, adopted pursuant to Article 10(4) of Directive 2003/87/EC.deleted

2022/02/08
Committee: TRAN

Marco CAMPOMENOSI, Paolo BORCHIA, Massimo CASANOVA, Roman HAIDER, Annalisa TARDINO

Proposal for a directive
Recital 51

(51) The distribution rules on auction shares are highly relevant for any auction revenues that would accrue to the Member States, especially in view of the need to strengthen the ability of the Member States to address the social impacts of a carbon price signal in the buildings and road transport sectors. Notwithstanding the fact that the two sectors have very different characteristics, it is appropriate to set a common distribution rule similar to the one applicable to stationary installations. The main part of allowances should be distributed among all Member States on the basis of the average distribution of the emissions in the sectors covered during the period from 2016 to 2018.deleted

2022/02/08
Committee: TRAN

Marco CAMPOMENOSI, Paolo BORCHIA, Massimo CASANOVA, Roman HAIDER, Annalisa TARDINO

Proposal for a directive
Recital 52

(52) The introduction of the carbon price in road transport and buildings should be accompanied by effective social compensation, especially in view of the already existing levels of energy poverty. About 34 million Europeans reported an inability to keep their homes adequately warm in 2018, and 6,9 % of the Union population have said that they cannot afford to heat their home sufficiently in a 2019 EU-wide survey60 . To achieve an effective social and distributional compensation, Member States should be required to spend the auction revenues on the climate and energy-related purposes already specified for the existing emissions trading, but also for measures added specifically to address related concerns for the new sectors of road transport and buildings, including related policy measures under Directive 2012/27/EU of the European Parliament and of the Council61 . Auction revenues should be used to address social aspects of the emission trading for the new sectors with a specific emphasis in vulnerable households, micro-enterprises and transport users. In this spirit, a new Social Climate Fund will provide dedicated funding to Member States to support the European citizens most affected or at risk of energy or mobility poverty. This Fund will promote fairness and solidarity between and within Member States while mitigating the risk of energy and mobility poverty during the transition. It will build on and complement existing solidarity mechanisms. The resources of the new Fund will in principle correspond to 25 % of the expected revenues from new emission trading in the period 2026-2032, and will be implemented on the basis of the Social Climate Plans that Member States should put forward under Regulation (EU) 20…/nn of the European Parliament and the Council62 . In addition, each Member State should use their auction revenues inter alia to finance a part of the costs of their Social Climate Plans. __________________ 60 Data from 2018. Eurostat, SILC [ilc_mdes01]. 61Directive 2012/27/EU of the European Parliament and of the Council of 25 October 2012 on energy efficiency, amending Directives 2009/125/EC and 2010/30/EU and repealing Directives 2004/8/EC and 2006/32/EC (OJ L 315, 14.11.2012, p. 1–56). 62[Add ref to the Regulation establishing the Social Climate Fund].deleted

2022/02/08
Committee: TRAN

Marco DREOSTO, Elena LIZZI, Paolo BORCHIA, Gianna GANCIA, Markus BUCHHEIT, Isabella TOVAGLIERI

Proposal for a directive
Article 1 – paragraph 1 – point 2 – point a

Directive 2003/87/EC
Annex I

(b) ‘emissions’ means the release into the atmosphere of greenhouse gases from sources in an installation or the release into the atmosphere from an aircraft performing an aviation activity listed in Annex I or from ships performing a maritime transport activity listed in Annex I of the gases specified in respect of that activity, or the release of greenhouse gases corresponding to the activity referred to in Annex III;”;

2022/02/04
Committee: ITRE

Marco CAMPOMENOSI, Paolo BORCHIA, Massimo CASANOVA, Roman HAIDER, Annalisa TARDINO

Proposal for a directive
Recital 54

(54) Innovation and development of new low-carbon technologies in the sectors of buildings and road transport are crucial for ensuring the cost-efficient contribution of these sectors to the expected emission reductions. Therefore, 150 million allowances from emissions trading in the buildings and road transport sectors should also be made available to the Innovation Fund to stimulate the cost-efficient emission reductions.deleted

2022/02/08
Committee: TRAN

Marco CAMPOMENOSI, Paolo BORCHIA, Massimo CASANOVA, Roman HAIDER, Annalisa TARDINO

Proposal for a directive
Recital 55

(55) Regulated entities covered by the buildings and road transport emissions trading should surrender allowances for their verified emissions corresponding to the quantities of fuels they have released for consumption. They should surrender allowances for the first time for their verified emissions in 2026. In order to minimise the administrative burden, a number of rules applicable to the existing emissions trading system for stationary installations and aviation should be made applicable to emissions trading for buildings and road transport, with the necessary adaptations. This includes, in particular, rules on transfer, surrender and cancellation of allowances, as well as the rules on the validity of allowances, penalties, competent authorities and reporting obligations of Member States.deleted

2022/02/08
Committee: TRAN

Marco CAMPOMENOSI, Paolo BORCHIA, Massimo CASANOVA, Roman HAIDER, Annalisa TARDINO

Proposal for a directive
Recital 56

(56) For emissions trading in the buildings and road transport sectors to be effective, it should be possible to monitor emissions with high certainty and at reasonable cost. Emissions should be attributed to regulated entities on the basis of fuel quantities released for consumption and combined with an emission factor. Regulated entities should be able to reliably and accurately identify and differentiate the sectors in which the fuels are released for consumption, as well as the final users of the fuels, in order to avoid undesirable effects, such as double burden. To have sufficient data to establish the total number of allowances for the period from 2028 to 2030, the regulated entities holding a permit at the start of the system in 2025 should report their associated historical emissions for 2024.deleted

2022/02/08
Committee: TRAN

Marco CAMPOMENOSI, Paolo BORCHIA, Massimo CASANOVA, Roman HAIDER, Annalisa TARDINO

Proposal for a directive
Recital 57

(57) It is appropriate to introduce measures to address the potential risk of excessive price increases, which, if particularly high at the start of the buildings and road transport emissions trading, may undermine the readiness of households and individuals to invest in reducing their greenhouse gas emissions. These measures should complement the safeguards provided by the Market Stability Reserve established by Decision (EU) 2015/1814 of the European Parliament and of the Council64 and that became operational in 2019. While the market will continue to determine the carbon price, safeguard measures will be triggered by rules-based automatism, whereby allowances will be released from the Market Stability Reserve only if concrete triggering conditions based on the increase in the average allowance price are met. This additional mechanism should also be highly reactive, in order to address excessive volatility due to factors other than changed market fundamentals. The measures should be adapted to different levels of excessive price increase, which will result in different degrees of the intervention. The triggering conditions should be closely monitored by the Commission and the measures should be adopted by the Commission as a matter of urgency when the conditions are met. This is without prejudice to any accompanying measures that Member States may adopt to address adverse social impacts. __________________ 64Decision (EU) 2015/1814 of the European Parliament and of the Council of 6 October 2015 concerning the establishment and operation of a market stability reserve for the Union greenhouse gas emission trading scheme and amending Directive 2003/87/EC (OJ L 264, 9.10.2015, p. 1).deleted

2022/02/08
Committee: TRAN

Marco CAMPOMENOSI, Paolo BORCHIA, Massimo CASANOVA, Roman HAIDER, Annalisa TARDINO

Proposal for a directive
Recital 58

(58) The application of emissions trading in the buildings and road transport sectors should be monitored by the Commission, including the degree of price convergence with the existing ETS, and, if necessary, a review should be proposed to the European Parliament and the Council to improve the effectiveness, administration and practical application of emissions trading for those sectors on the basis of acquired knowledge as well as increased price convergence. The Commission should be required to submit the first report on those matters by 1 January 2028.deleted

2022/02/08
Committee: TRAN

Marco CAMPOMENOSI, Paolo BORCHIA, Massimo CASANOVA, Roman HAIDER, Annalisa TARDINO

Proposal for a directive
Recital 59

(59) In order to ensure uniform conditions for the implementation of Articles 3gd(3), 12(3b) and 14(1) of Directive 2003/87/EC, implementing powers should be conferred on the Commission. To ensure synergies with the existing regulatory framework, the conferral of implementing powers in Articles 14 and 15 of that Directive should be extended to cover the sectors of road transport and buildings. Those implementing powers should be exercised in accordance with Regulation (EU) No 182/2011 of the European Parliament and of the Council65 . __________________ 65Regulation (EU) No 182/2011 of 16 February 2011 laying down the rules and general principles concerning mechanisms for control by the Member States of the Commission's exercise of implementing powers (OJ L 55, 28.02.2011, p. 13).deleted

2022/02/08
Committee: TRAN

Marco DREOSTO, Elena LIZZI, Paolo BORCHIA, Gianna GANCIA, Isabella TOVAGLIERI

Proposal for a directive
Article 1 – paragraph 1 – point 10

Directive 2003/87/EC
Article 9 – paragraph 1a

“In [the year following entry into force of this amendment], ~~the Union-wide quantity of allowances shall be decreased by [-- million allowances (to be determined depending on year of entry into force)]. In the same year,~~ the Union-wide quantity of allowances shall be increased by 79 million allowances for maritime transport. Starting in [the year following entry into force of this amendment], the linear factor shall be ~~4,2 %~~5.09% until 2030. The Commission shall publish the Union-wide quantity of allowances within 3 months of [date of entry into force of the amendment to be inserted].”;

2022/02/04
Committee: ITRE

Marco CAMPOMENOSI, Paolo BORCHIA, Massimo CASANOVA, Roman HAIDER, Annalisa TARDINO

Proposal for a directive
Recital 60

(60) In order to adopt non-legislative acts of general application to supplement or amend certain non-essential elements of a legislative act, the power to adopt acts in accordance with Article 290 of the Treaty on the Functioning of the European Union should be delegated to the Commission in respect of Articles 10(4) and 10a(8) of that Directive. Moreover, to ensure synergies with the existing regulatory framework, the delegation in Articles 10(4) and 10a(8) of Directive 2003/87/EC should be extended to cover the sectors of road transport and buildings. It is of particular importance that the Commission carry out appropriate consultations during its preparatory work, including at expert level, and that those consultations be conducted in accordance with the principles laid down in the Interinstitutional Agreement on Better Law-Making of 13 April 2016. In particular, to ensure equal participation in the preparation of delegated acts, the European Parliament and the Council receive all documents at the same time as Member States' experts, and their experts systematically have access to meetings of Commission expert groups dealing with the preparation of delegated acts. In accordance with the Joint Political Declaration of 28 September 2011 of Member States and the Commission on explanatory documents66, Member States have undertaken to accompany, in justified cases, the notification of their transposition measures with one or more documents explaining the relationship between the components of a directive and the corresponding parts of national transposition instruments. With regard to this Directive, the legislator considers the transmission of such documents to be justified __________________ 66 OJ C 369, 17.12.2011, p. 14.deleted

2022/02/08
Committee: TRAN

Marco CAMPOMENOSI, Paolo BORCHIA, Massimo CASANOVA, Roman HAIDER, Annalisa TARDINO

Proposal for a directive
Recital 66

(66) In order to mitigate the risk of supply and demand imbalances associated with the start of emissions trading for the buildings and road transport sectors, as well as to render it more resistant to market shocks, the rule-based mechanism of the Market Stability Reserve should be applied to those new sectors. For that reserve to be operational from the start of the system, it should be established with an initial endowment of 600 million allowances for emissions trading in the road transport and buildings sectors. The initial lower and upper thresholds, which trigger the release or intake of allowances from the reserve, should be subject to a general review clause. Other elements such as the publication of the total number of allowances in circulation or the quantity of allowances released or placed in the reserve should follow the rules of the reserve for other sectors.deleted

2022/02/08
Committee: TRAN

Marco CAMPOMENOSI, Paolo BORCHIA, Massimo CASANOVA, Roman HAIDER, Annalisa TARDINO

Proposal for a directive
Recital 67

(67) It is necessary to amend Regulation (EU) 2015/757 to take into account the inclusion of the maritime transport sector in the EU ETS. Regulation (EU) 2015/757 should be amended to modify the threshold set out in that Regulation from 5 000 GT of size to 5 000 Kw of engine propulsion, in order to take into account all the relevant emitters in maritime sector. Moreover, Regulation (EU) 2015/757 should be amended to oblige companies to report aggregated emissions data at company level and to submit for approval their verified monitoring plans and aggregated emissions data at company level to the responsible administering authority. In addition, the Commission should be empowered to adopt delegated acts to amend the methods for monitoring CO2 emissions and the rules on monitoring, as well as any other relevant information set out in Regulation (EU) 2015/757, to ensure the effective functioning of the EU ETS at administrative level and to supplement Regulation (EU) 2015/757 with the rules for the approval of monitoring plans and changes thereof by administering authorities, with the rules for the monitoring, reporting and submission of the aggregated emissions data at company level and with the rules for the verification of the aggregated emissions data at company level and for the issuance of a verification report in respect of the aggregated emissions data at company level. The data monitored, reported and verified under Regulation (EU) 2015/757 might also be used for the purpose of compliance with other Union law requiring the monitoring, reporting and verification of the same ship information.

2022/02/08
Committee: TRAN

Marco DREOSTO, Elena LIZZI, Paolo BORCHIA, Gianna GANCIA, Georg MAYER, Isabella TOVAGLIERI

Proposal for a directive
Article 1 – paragraph 1 – point 12 – point a – point i

Directive 2003/87/EC
Article 8(4)

(i) the following two subparagraphs are inserted after the second subparagraph: ‘In the case of installations covered by the obligation to conduct an energy audit under Article 8(4) of Directive 2012/27/EU of the European Parliament and of the Council(*) [Article reference to be updated with the revised Directive], free allocation shall only be granted fully if the recommendations of the audit report are implemented, to the extent that the pay-back time for the relevant investments does not exceed five years and that the costs of those investments are proportionate. Otherwise, the amount of free allocation shall be reduced by 25 %. The amount of free allocation shall not be reduced if an operator demonstrates that it has implemented other measures which lead to greenhouse gas emission reductions equivalent to those recommended by the audit report. The measures referred to in the first subparagraph shall be adjusted accordingly. No free allocation shall be given to installations in sectors or subsectors to the extent they are covered by other measures to address the risk of carbon leakage as established by Regulation (EU) …./.. [reference to CBAM](**). The measures referred to in the first subparagraph shall be adjusted accordingly _________ (*) Directive 2012/27/EU of the European Parliament and of the Council of 25 October 2012 on energy efficiency, amending Directives 2009/125/EC and 2010/30/EU and repealing Directives 2004/8/EC and 2006/32/EC (OJ L 315, 14.11.2012, p. 1).”; (**) [CBAM full reference]’deleted

2022/02/08
Committee: ITRE

Marco CAMPOMENOSI, Paolo BORCHIA, Massimo CASANOVA, Roman HAIDER, Annalisa TARDINO

Proposal for a directive
Article 1 – paragraph 1 – point 2 – point d

Directive 2003/87/EC
Article 3 – point v

(v) ‘shipping company’ means the shipowner or any other organisation or person, such as the manager or the bareboat charterer, that has assumed the responsibility for the operation of the ship from the shipowner and that, on assuming such responsibility, has agreed to take over the duty to comply, entirely or partially, with this Directive as well as all the duties and responsibilities imposed by the International Management Code for the Safe Operation of Ships and for Pollution Prevention, set out in Annex I to Regulation (EC) No 336/2006 of the European Parliament and of the Council (*);

2022/02/08
Committee: TRAN

Marco DREOSTO, Elena LIZZI, Paolo BORCHIA, Gianna GANCIA, Markus BUCHHEIT, Isabella TOVAGLIERI

Proposal for a directive
Article 1 – paragraph 1 – point 12 – point a – point ii

Directive 2003/87/EC
Article 10 – paragraph 1 – subparagraph 3

In order to provide further incentives for reducing greenhouse gas emissions and improving energy efficiency, the ~~determined~~ Union- wide ex-ante benchmarks shall be ~~reviewed~~subjected to an extensive and comprehensive assessment by the European Commission to evaluate the need to review them before the period from 2026 to 2030 in view of potentially modifying the definitions and system boundaries of existing product benchmarks.

2022/02/08
Committee: ITRE

Marco CAMPOMENOSI, Paolo BORCHIA, Massimo CASANOVA, Roman HAIDER, Annalisa TARDINO

Proposal for a directive
Article 1 – paragraph 1 – point 2 – point d

Directive 2003/87/EC
Article 3 – point x

(x) ‘regulated entity’ for the purposes of Chapter IVa shall mean any natural or legal person, except for any final consumer of the fuels, that engages in the activity referred to in Annex III and that falls within one of the following categories: (i) tax warehouse as defined in Article 3(11) of Council Directive (EU) 2020/262(*), the authorised warehouse keeper as defined in Article 3(1) of that Directive, liable to pay the excise duty which has become chargeable pursuant to Article 7 of that Directive; (ii) other person liable to pay the excise duty which has become chargeable pursuant to Article 7 of Directive (EU) 2020/262 in respect of the fuels covered by this Chapter; (iii) applicable, any other person which has to be registered by the relevant competent authorities of the Member State for the purpose of being liable to pay the excise duty, including any person exempt from paying the excise duty, as referred to in Article 21(5), fourth sub-paragraph, of Council Directive 2003/96/EC(**); (iv) applicable, or if several persons are jointly and severally liable for payment of the same excise duty, any other person designated by a Member State . _________ (*) Council Directive (EU) 2020/262 of 19 December 2019 laying down the general arrangements for excise duty (OJ L 058 27.2.2020, p. 4). (**) Council Directive 2003/96/EC of 27 October 2003 restructuring the Community framework for the taxation of energy products and electricity (OJ L 283 31.10.2003, p. 51).deleted where the fuel passes through a if point (i) is not applicable, any if points (i) and (ii) are not if points (i), (ii) and (iii) are not

2022/02/08
Committee: TRAN

Marco CAMPOMENOSI, Paolo BORCHIA, Massimo CASANOVA, Roman HAIDER, Annalisa TARDINO

Proposal for a directive
Article 1 – paragraph 1 – point 2 – point d

Directive 2003/87/EC
Article 3 – point y

(y) ‘fuel’ for the purposes of Chapter IVa shall mean any fuel listed in Table-A and Table-C of Annex I to Directive 2003/96/EC, as well as any other product offered for sale as motor fuel or heating fuel as specified in Article 2(3) of that Directive;deleted

2022/02/08
Committee: TRAN

Marco DREOSTO, Elena LIZZI, Paolo BORCHIA, Gianna GANCIA, Markus BUCHHEIT, Isabella TOVAGLIERI

Proposal for a directive
Article 1 – paragraph 1 – point 12 – point b – introductory part

Directive 2003/87/EC
Article 10 a – paragraph 1 a – new

(b) the following paragraph 1a is inserted: Free allocation at benchmark level shall be given in relation to the production of products listed in Annex I of Regulation [CBAM] until the full effectiveness of the CBAM in tackling the carbon leakage risk both on the EU market and on export markets is assessed and positively verified. To this purpose, in 2029 the Commission shall present to the European Parliament and the Council a report pursuant to Regulation [CBAM] regarding the effectiveness of the CBAM. The report shall also include the selected option to address the carbon leakage risk on export markets. The report by the Commission shall be accompanied by a legislative proposal to amend this article in view of gradually phasing out free allocation after 2030 proportionally to the proven level of effectiveness of the CBAM. Allowances resulting from the reduction of free allocation shall be made available to support innovation in relation to the production of products listed in Annex I of Regulation [CBAM] in accordance with Article 10a(8).

2022/02/08
Committee: ITRE

Marco DREOSTO, Elena LIZZI, Paolo BORCHIA, Gianna GANCIA, Georg MAYER, Markus BUCHHEIT, Isabella TOVAGLIERI

Proposal for a directive
Article 1 – paragraph 1 – point 12 – point b

Directive 2003/87/EC
Article 10 a – paragraph 1 a – new

1a. No free allocation shall be given in relation to the production of products listed in Annex I of Regulation [CBAM] as from the date of application of the Carbon Border Adjustment Mechanism. By way of derogation from the previous subparagraph, for the first years of operation of Regulation [CBAM], the production of these products shall benefit from free allocation in reduced amounts. A factor reducing the free allocation for the production of these products shall be applied (CBAM factor). The CBAM factor shall be equal to 100 % for the period during the entry into force of [CBAM regulation] and the end of 2025, 90 % in 2026 and shall be reduced by 10 percentage points each year to reach 0 % by the tenth year. The reduction of free allocation shall be calculated annually as the average share of the demand for free allocation for the production of products listed in Annex I of Regulation [CBAM] compared to the calculated total free allocation demand for all installations, for the relevant period referred to in Article 11, paragraph 1. The CBAM factor shall be applied. Allowances resulting from the reduction of free allocation shall be made available to support innovation in accordance with Article 10a(8).;deleted

2022/02/08
Committee: ITRE

Marco CAMPOMENOSI, Paolo BORCHIA, Massimo CASANOVA, Roman HAIDER, Annalisa TARDINO

Proposal for a directive
Article 1 – paragraph 1 – point 2 – point d

Directive 2003/87/EC
Article 3 – point z

~~(z) ‘release for consumption’ for the purposes of Chapter IVa shall have the same meaning as in Article 6(3) of Directive (EU) 2020/262.”;~~deleted

2022/02/08
Committee: TRAN

Marco CAMPOMENOSI, Paolo BORCHIA, Massimo CASANOVA, Roman HAIDER, Annalisa TARDINO

Proposal for a directive
Article 1 – paragraph 1 – point 4

Directive 2003/87/EC
Article 3a

Articles 3b to 3f shall apply to the allocation and issue of allowances in respect of the aviation activities listed in Annex I. Articles 3g to 3ge shall apply in respect of the maritime transport activities listed in Annex I, with the exception of ships operating routes included in the Motorways of the Seas or performing services of general economic interest (SGEI) under public service obligations (PSOs), including granting territorial continuity.

2022/02/08
Committee: TRAN

Marco CAMPOMENOSI, Paolo BORCHIA, Massimo CASANOVA, Roman HAIDER, Annalisa TARDINO

Proposal for a directive
Article 1 – paragraph 1 – point 5

Directive 2003/87/EC
Article 3g – paragraph 1

1. The allocation of allowances and the application of surrender requirements in respect of maritime transport activities shall apply in respect of fifty percent (50 %) of ~~the~~CO2 emissions from ships performing voyages departing from a port under the jurisdiction of a Member State and arriving at a port outside the jurisdiction of a Member State, fifty percent (50 %) of the emissions from ships performing voyage departing from a port outside the jurisdiction of a Member State and arriving at a port under the jurisdiction of a Member State, one hundredunder the jurisdiction of a Member State and fifty percent (1050 %) of emissions from ships performing voyages departing from a port under the jurisdiction of a Member State and arriving at a port under the jurisdiction of a Member State and one hundred percent (100 %) ofCO2 emissions from ships at berth in a port under the jurisdiction of a Member State.

2022/02/08
Committee: TRAN

Marco CAMPOMENOSI, Paolo BORCHIA, Massimo CASANOVA, Roman HAIDER, Annalisa TARDINO

Proposal for a directive
Article 1 – paragraph 1 – point 5

Directive 2003/87/EC
Article 3g – paragraph 1 a (new)

1 a. The European Commission shall pursue with the establishment of global market-based measure in partnership with the International Maritime Organization (IMO) in order to extend the scope of the EU ETS for maritime transport to cover the CO2 emissions released from ships performing voyages departing from a port under the jurisdiction of a Member State and arriving at a port under the jurisdiction of a Members State and the emissions from ships at berth in a port under the jurisdiction of a Member State.

2022/02/08
Committee: TRAN

Marco CAMPOMENOSI, Paolo BORCHIA, Massimo CASANOVA, Roman HAIDER, Annalisa TARDINO

Proposal for a directive
Article 1 – paragraph 1 – point 5

Directive 2003/87/EC
Article 3g – paragraph 1 b (new)

1 b. European Commission shall pursue with the establishment of global market-based measure in partnership with the International Maritime Organization (IMO) in order to extend the scope of the EU ETS for maritime transport to cover the CO2 emissions from ships performing voyages departing from a port under the jurisdiction of a Member State and arriving at a port outside the jurisdiction of a Member State and emissions from ships performing voyages from a port outside the jurisdiction of a Member State and arriving at a port under the jurisdiction of a Member State.

2022/02/08
Committee: TRAN

Marco CAMPOMENOSI, Paolo BORCHIA, Massimo CASANOVA, Roman HAIDER, Annalisa TARDINO

Proposal for a directive
Article 1 – paragraph 1 – point 6

Directive 2003/83/EC
Article 3ga – paragraph 1 – point a.

(a) 20 % of verified emissions reported for 20239;

2022/02/08
Committee: TRAN

Marco CAMPOMENOSI, Paolo BORCHIA, Massimo CASANOVA, Roman HAIDER, Annalisa TARDINO

Proposal for a directive
Article 1 – paragraph 1 – point 6

Directive 2003/83/EC
Article 3ga – paragraph 1 – point b

(b) 45 % of verified emissions reported for 202430;

2022/02/08
Committee: TRAN

Marco DREOSTO, Elena LIZZI, Paolo BORCHIA, Gianna GANCIA, Markus BUCHHEIT, Isabella TOVAGLIERI

Proposal for a directive
Article 1 – paragraph 1 – point 12 – point c – point i

Directive 2003/87/EC
Article 10 a – paragraph 2 – subparagraph 3 – point c

(c) ~~For the period from 2026 to 2030, the benchmark values shall be determined in the sam~~In order to provide further incentives for reducing greenhouse gas emissions in the steel industry, the manner as set out in points (a) and (d) on the basis of information submitted pursuant to Article 11 for the years 2021 and 2022 and on the basis of applying the annual reduction rate in respect of each year between 2008 and 2028ual reduction rate of the product benchmark hot metal calculated pursuant to the previous sub-paragraph shall not be affected by the modification of benchmark definitions and system boundaries pursuant to the fifth sub-paragraph of article 10a1 when the calculation of such rate is influenced by installations that were operational in the period referred to the first sub-paragraph of article 10a2.

2022/02/08
Committee: ITRE

Marco CAMPOMENOSI, Paolo BORCHIA, Massimo CASANOVA, Roman HAIDER, Annalisa TARDINO

Proposal for a directive
Article 1 – paragraph 1 – point 6

Directive 2003/87/EC
Article 3ga – paragraph 1 – point c

(c) 70 % of verified emissions reported for 202531;

2022/02/08
Committee: TRAN

Marco CAMPOMENOSI, Paolo BORCHIA, Massimo CASANOVA, Roman HAIDER, Annalisa TARDINO

Proposal for a directive
Article 1 – paragraph 1 – point 6

Directive 2003/87/EC
Article 3ga – paragraph 1 – point d

(d) 100 % of verified emissions reported for 20326 and each year thereafter.

2022/02/08
Committee: TRAN

Marco DREOSTO, Elena LIZZI, Paolo BORCHIA, Gianna GANCIA, Markus BUCHHEIT, Isabella TOVAGLIERI

Proposal for a directive
Article 1 – paragraph 1 – point 12 – point c – point ii

Directive 2003/87/EC
Article 10 a – paragraph 2 – third paragraph – point d

(d) Where the annual reduction rate exceeds 2,5 % or is below 0,2 %, the benchmark values for the period from 2026 to 2030 shall be the benchmark values applicable in the period from 2013 to 2020 reduced by whichever of those two percentage rates is relevant, in respect of each year between 2008 and 2028. By way of derogation from the previous point, the maximum annual reduction rate of the fuel and heat fallback benchmarks shall remain at 1.6%.

2022/02/08
Committee: ITRE

Marco CAMPOMENOSI, Paolo BORCHIA, Massimo CASANOVA, Roman HAIDER

Proposal for a directive
Article 1 – paragraph 1 – point 6

Directive 2003/87/EC
Article 3ga – paragraph 2

To the extent that fewer allowances are surrendered compared to the verified emissions from maritime transport for the years 20239, 202430 and 202531, once the difference between verified emissions and allowances surrendered has been established in respect of each year, a corresponding quantity of allowances shall be cancelled rather than auctioned pursuant to Article 10. The phasing in of the EU ETS for the maritime sector shall be conditional on a full assessment to be conducted before 2028 that ascertain the availability of alternative fuels and technologies and an adequate infrastructural network in each EU Member State. Based on the above assessment, the phasing-in shall be further postponed and/or differentiated geographically based on the effective availability of alternative fuels and technologies at national level. By way of derogation, regular passenger and ferry services engaged in cabotage and island cabotage operations shall be temporarily exempted until a full assessment demonstrates the availability of alternative fuels and technologies in the areas concerned.

2022/02/08
Committee: TRAN

Marco DREOSTO, Elena LIZZI, Paolo BORCHIA, Gianna GANCIA, Markus BUCHHEIT, Isabella TOVAGLIERI

Proposal for a directive
Article 1 – paragraph 1 – point 12 – point e

Directive 2003/87/EC
Article 10 a – paragraph 6 – subparagraph 1

Member States sh~~ould~~all adopt financial measures in accordance with the second and fourth subparagraphs in favour of sectors or subsectors which are exposed to a genuine risk of carbon leakage due to significant indirect costs that are actually incurred from greenhouse gas emission costs passed on in electricity prices, provided that such financial measures are in accordance with State aid rules, and in particular do not cause undue distortions of competition in the internal market. The financial measures adopted should not compensate indirect costs covered by free allocation in accordance with the benchmarks established pursuant to paragraph 1. Where a Member State spends an amount higher than the equivalent of 25 % of their auction revenues of the year in which the indirect costs were incurred, it shall set out the reasons for exceeding that amount.

2022/02/08
Committee: ITRE

Marco CAMPOMENOSI, Paolo BORCHIA, Massimo CASANOVA, Roman HAIDER, Annalisa TARDINO

Proposal for a directive
Article 1 – paragraph 1 – point 6

Directive 2003/87/EC
Article 3gd a (new)

Article 3gd a The Commission shall establish a dedicated Maritime Transport Fund to support and accelerate projects, investments and innovations in the EU maritime sector. At least 75% of the revenues generated from the auctioning of allowances referred to in Article 3g shall be allocated to this Fund. The dedicated Fund shall support and facilitate the transition to energy efficient and climate resilient EU maritime sector, providing funding to companies for technological, fleet renewal and retrofitting investments as well as to support improvement of the energy efficiency of ships and ports and the deployment of the necessary infrastructure for decarbonising the maritime transport sector. The remained 25% of revenues generated from the auctioning of allowances shall be allocated to the Innovation Fund, in order to support the deployment and realization of intermodal projects, shift to rail and combined transport within the ports included in the TEN-T core network.

2022/02/08
Committee: TRAN

Marco CAMPOMENOSI, Paolo BORCHIA, Massimo CASANOVA, Roman HAIDER, Annalisa TARDINO

Proposal for a directive
Article 1 – paragraph 1 – point 6

Directive 2003/87/EC
Article 3gd – paragraph 2 – point a

(a) before 1 February 20249, publish a list of shipping companies which performed a maritime activity listed in Annex I that fell within the scope defined in Article 3g on or with effect from 1 January 20239, specifying the administering authority for each shipping company in accordance with paragraph 1; and

2022/02/08
Committee: TRAN

Marco CAMPOMENOSI, Paolo BORCHIA, Massimo CASANOVA, Roman HAIDER, Annalisa TARDINO

Proposal for a directive
Article 1 – paragraph 1 – point 6

Directive 2003/87/EC
Article 3ge – paragraph 1

1. The Commission shall consider possible amendments in relation to the adoption by the International Maritime Organization of a global market-based measure to reduce greenhouse gas emissions from maritime transport. In the event of the adoption of such a measure, and in any event before the 20328 global stocktake and no later than 30 September 20328, the Commission shall present a report to the European Parliament and to the Council in which it shall examine any such measure. Where appropriate, the Commission may follow to the report with a legislative proposal to the European Parliament and to the Council to amend this Directive as appropriate.

2022/02/08
Committee: TRAN

Marco CAMPOMENOSI, Paolo BORCHIA, Massimo CASANOVA, Roman HAIDER, Annalisa TARDINO

Proposal for a directive
Article 1 – paragraph 1 – point 6

Directive 2003/87/EC
Article 3ge – paragraph 2

2. The Commission shall monitor the implementation of this Chapter and possible trends a~~s regards companies seeking to avoid being bound by the requiremen~~nd adverse impacts as regards, inter alia, possible transport cost increases, port evasion and shift of transhipment hubs, the competitiveness of the maritime sector in the EU Member States, taking account of the specificities of each fleet segment. Particular attention should be paid to the adverse impacts ofn th~~is Directive. If appropriate, the Commission shall propose measures to prevent such avoidance.;~~ ose shipping services that provide essential services of “territorial continuity”. All potential impacts should be assessed considering the aggregated effects of the different policy measures under the Fit for 55 package as well as the specific impacts in each Member State. The Commission shall propose measures to prevent such adverse impacts and develop adequate support mechanisms.

2022/02/08
Committee: TRAN

Marco CAMPOMENOSI, Paolo BORCHIA, Massimo CASANOVA, Roman HAIDER, Annalisa TARDINO

Proposal for a directive
Article 1 – paragraph 1 – point 10

Directive 2003/87/EC
Article 9 – paragraph 3

In [the year following entry into force of this amendment], the Union-wide quantity of allowances shall be decreased by [-- million allowances (to be determined depending on year of entry into force)]. In the same year, the Union-wide quantity of allowances shall be increased by ~~79 million~~[number corresponding to scope of application to maritime transport activities as set out in Article3g of Directive 2003/87/EC] allowances for maritime transport. Starting in [the year following entry into force of this amendment], the linear factor shall be 4,2 %. The Commission shall publish the Union-wide quantity of allowances within 3 months of [date of entry into force of the amendment to be inserted].;

2022/02/08
Committee: TRAN

Marco DREOSTO, Elena LIZZI, Paolo BORCHIA, Gianna GANCIA, Markus BUCHHEIT, Isabella TOVAGLIERI

Proposal for a directive
Article 1 – paragraph 1 – point 12 – point g

Directive 2003/87/EC
Article 10 a – paragraph 8 – subparagraph 6

Projects shall be selected on the basis of objective and transparent criteria and on a technology-neutral basis, taking into account, where relevant, the extent to which projects contribute to achieving emission reductions well below the benchmarks referred to in paragraph 2. Projects shall have the potential for widespread application or to significantly lower the costs of transitioning towards a low-carbon economy in the sectors concerned. Projects involving CCU shall deliver a net reduction in emissions and ensure avoidance or permanent storage of CO2. In the case of grants provided through calls for proposals, up to 60 % of the relevant costs of projects may be supported, out of which up to 40 % need not be dependent on verified avoidance of greenhouse gas emissions, provided that pre-determined milestones, taking into account the technology deployed, are attained. In the case of support provided through competitive bidding and in the case of technical assistance support, up to 100 % of the relevant costs of projects may be supported.

2022/02/08
Committee: ITRE

Marco DREOSTO, Elena LIZZI, Paolo BORCHIA, Gianna GANCIA, Markus BUCHHEIT, Isabella TOVAGLIERI

Proposal for a directive
Article 1 – paragraph 1 – point 12 – point g Directive 2003/87/EC

The calls for proposal shall be open and transparent and clearly set out what kinds of technologies can be supported. The Commission shall take measures to ensure that the calls are communicated as widely as possible, and especially to SMEs.

2022/02/08
Committee: ITRE

Marco DREOSTO, Elena LIZZI, Paolo BORCHIA, Gianna GANCIA, Markus BUCHHEIT, Isabella TOVAGLIERI

Proposal for a directive
Article 1 – paragraph 1 – point 12 – point g

Directive 2003/87/EC
Article 10 a – paragraph 8 – subparagraph 7 a

The Innovation Fund shall, where appropriate, ensure that there are effective synergies with other relevant Union funding instruments, such as Horizon Europe, and in particular with European partnerships.

2022/02/08
Committee: ITRE

Marco DREOSTO, Elena LIZZI, Paolo BORCHIA, Gianna GANCIA, Georg MAYER, Markus BUCHHEIT, Isabella TOVAGLIERI

Proposal for a directive
Article 1 – paragraph 1 – point 12 a (new)

Directive 2003/87/EC
Article 1 – paragraph 1 – point 12 a (new)

(12a) In order to avoid an adjustment of free allocation as of Article 10a (5), in addition to the flexibility provided in paragraph 5a, allowances in the market stability reserve shall be used corresponding to an amount of up to 5% of the total quantity of allowances.

2022/02/08
Committee: ITRE

Marco CAMPOMENOSI, Paolo BORCHIA, Massimo CASANOVA, Roman HAIDER, Annalisa TARDINO

Proposal for a directive
Article 1 – paragraph 1 – point 11 – point c

Directive 2003/87/EC
Article 10 – paragraph 3 – point h

(c) in paragraph 3, point (h) is replaced by the following: (h) energy efficiency, district heating systems and insulation, or to provide financial support in order to address social aspects in lower- and middle-income households, including by reducing distortive taxes;deleted measures intended to improve

2022/02/08
Committee: TRAN

Marco DREOSTO, Elena LIZZI, Paolo BORCHIA, Gianna GANCIA, Markus BUCHHEIT, Isabella TOVAGLIERI

Proposal for a directive
Article 1 – paragraph 1 – point 14 – point a

Directive 2003/87/EC
Article 10 d – paragraph 1– subparagraph 1

1. A fund to support investments proposed by the beneficiary Member States, including the financing of small- scale investment projects, including in regions and municipalities, to modernise energy systems and improve energy efficiency shall be established for the period from 2021 to 2030 (the ‘Modernisation Fund’). The Modernisation Fund shall be financed through the auctioning of allowances as set out in Article 10, for the beneficiary Member States set out therein.

2022/02/08
Committee: ITRE

Marco CAMPOMENOSI, Paolo BORCHIA, Massimo CASANOVA, Roman HAIDER, Annalisa TARDINO

Proposal for a directive
Article 1 – paragraph 1 – point 12 – point g

Directive 2003/87/EC
Article 10a – paragraph 8 – subparagraph 3

The Innovation Fund shall cover the sectors listed in Annex I and Annex III, including environmentally safe carbon capture and utilisation (“CCU”) that contributes substantially to mitigating climate change, alternative fuels such as LNG or zero-emission fuels such as ammonia or hydrogen, as well as products substituting carbon intensive ones produced in sectors listed in Annex I, and to help stimulate the construction and operation of projects aimed at the environmentally safe capture and geological storage (“CCS”) of CO2, as well as of innovative renewable energy and energy storage technologies; in geographically balanced locations. The Innovation Fund may also support break- through innovative technologies and infrastructure to decarbonise the maritime sector and for the production of low- and zero-carbon fuels in aviation, rail and road transport. Special attention shall be given to projects in sectors covered by the [CBAM regulation] to support innovation in low carbon technologies, CCU, CCS, renewable energy and energy storage, in a way that contributes to mitigating climate change.

2022/02/08
Committee: TRAN

Marco CAMPOMENOSI, Paolo BORCHIA, Massimo CASANOVA, Roman HAIDER, Annalisa TARDINO

Proposal for a directive
Article 1 – paragraph 1 – point 15 – point c

Directive 2003/87/EC
Article 12 – paragraph 3 – point c a new

(c a) Without prejudice to Article 3gc, the following classes of vessels shall be subject to a method for surrendering and an adjusted number of allowances: (i) Ice-breakers; (ii) Ro/Ro and Ro/Pax; (iii) ships included in the scope of this Directive that are propelled, entirely or partially, by LNG and built after 2020.

2022/02/08
Committee: TRAN

Marco DREOSTO, Elena LIZZI, Paolo BORCHIA, Gianna GANCIA, Markus BUCHHEIT, Isabella TOVAGLIERI

Proposal for a directive
Article 1 – paragraph 1 – point 15 – point e

Directive 2003/87/EC
Article 12 – paragraph 3 b – subparagraph 1

3b. An obligation to surrender allowances shall not arise in respect of emissions of greenhouse gases which are considered to have been captured and utilised to become permanently chemically bound in a product so that they do not enter the atmosphere under normal use, and in respect of greenhouse gases that are captured and used to produce recycled carbon fuels and renewable liquid and gaseous fuels of non-biological origin.

2022/02/08
Committee: ITRE

Marco CAMPOMENOSI, Paolo BORCHIA, Massimo CASANOVA, Roman HAIDER, Annalisa TARDINO

Proposal for a directive
Article 1 – paragraph 1 – point 21

Directive 2003/87/EC
Chapter IVa

~~(21) The following Chapter IVa is inserted after Article 30: “CHAPTER IVa EMISSIONS TRADING SYSTEM FOR BUILDINGS AND ROAD TRANSPORT [...]~~deleted

2022/02/08
Committee: TRAN

Marco DREOSTO, Elena LIZZI, Paolo BORCHIA, Gianna GANCIA, Markus BUCHHEIT, Isabella TOVAGLIERI

Proposal for a directive
Annex I – paragraph 1 – point a

Directive 2003/87/EC
Annex 1 – point 1

1. Installations or parts of installations used for research, development and testing of new products and processes, and installations ~~where emissions from the combustion of biomass that complies with the criteria set out pursuant to Article 14 contribute to more than 95 % of the total greenhouse gas emission~~exclusively using biomass are not covered by this Directive.

2022/02/08
Committee: ITRE

Marco CAMPOMENOSI, Paolo BORCHIA, Massimo CASANOVA, Roman HAIDER, Annalisa TARDINO

Proposal for a directive
Article 3 – paragraph (-1 a) new

Regulation (EU) 2015/757
Article 2 – paragraph 1

~~1. This Regulation applies to ships above 5 000 gross tonnage~~(-1a) In Article 2, paragraph 1 is replaced by the following: "1. This Regulation applies to ships with engine of above 5 000 kW power output in respect of CO2 emissions released during their voyages from their last port of call to a port of call under the jurisdiction of a Member State and from a port of call under the jurisdiction of a Member State to their next port of call, as well as within ports of call under the jurisdiction of a Member State. Or. en (Regulation (EU) 2015/757)

2022/02/08
Committee: TRAN

Marco CAMPOMENOSI, Paolo BORCHIA, Massimo CASANOVA, Roman HAIDER, Annalisa TARDINO

Proposal for a directive
Annex I – paragraph 1 – point a

Directive 2003/87/EC
Annex I – point 2

2. When the total rated thermal input of an installation is calculated in order to decide upon its inclusion in the EU ETS, the rated thermal inputs of all technical units which are part of it, in which fuels are combusted within the installation, shall be added together. These units may include all types of boilers, burners, turbines, heaters, furnaces, incinerators, calciners, kilns, ovens, dryers, engines, fuel cells, chemical looping combustion units, flares, and thermal or catalytic post-combustion units. Units with a rated thermal input under 3 MW shall not be taken into account for the purposes of this calculation.;deleted

2022/02/08
Committee: TRAN

Marco CAMPOMENOSI, Paolo BORCHIA, Massimo CASANOVA, Roman HAIDER, Annalisa TARDINO

Proposal for a directive
Annex I – point 3 – point c

Directive 2003/87/EC
Annex IV – part C

~~(c) the following Part C is added: PART C — Monitoring and reporting of emissions corresponding to the activity referred to in Annex III~~deleted

2022/02/08
Committee: TRAN

70 Amendments of Paolo BORCHIA related to 2021/0211(COD)

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