14 Amendments of Ulrike MÜLLER related to 2021/0214(COD)
Amendment 1 #
Proposal for a regulation
Recital 1
Recital 1
(1) The Commission has, in its communication on the European Green Deal31 , set out a new sustainable growth strategy that aims to transform the Union into a fair and prosperous society, with a modern, resource-efficient, circular and competitive economy, where there are no net emissions (emissions after deduction of removals) of greenhouse gases (‘GHG emissions’) in 2050 and where economic growth is decoupled from resource use. The European Green Deal also aims to protect, conserve and enhance the EU’s natural capital, and protect the health and well- being of citizens from environment- related risks and impacts. At the same time, that transformation must be just and inclusive, leaving no one behindcreating sustainable growth and jobs and leaving no one behind. In addition, the European Green Deal aims to support the global efforts towards the achievement of the Sustainable Development Goals of the United Nations 2030 Agenda for Sustainable Development (UN SDGs) and the Paris Agreement. The Commission also announced in its EU Action Plan: Towards Zero Pollution for Air, Water and Soil32 the promotion of relevant instruments and incentives to better implement the polluter pays principle as set out in Article 191(2) of the Treaty on the Functioning of the European Union (‘TFEU’) and thus complete the phasing out of ‘pollution for free’ with a view to maximising synergies between decarbonisation and the zero pollution ambition. _________________ 31Communication from the Commission of 11 December 2019 on the European Green Deal (COM(2019) 640 final). 32Communication from the Commission of 12 May 2021 on Pathway to a Healthy Planet for All (COM(2021) 400).
Amendment 20 #
Proposal for a regulation
Recital 9
Recital 9
(9) The initiative for a carbon border adjustment mechanism (‘CBAM’) is a part of the ‘Fit for 55 Package’. That mechanism is to serve as an essential element of the EU toolbox to meet the objective of a climate-neutral Union by 2050 in line with the Paris Agreement by addressing risks of carbon leakage resulting from the increased Union climate ambition. That initiative should be combined with incentives for innovation, aimed to facilitate the decarbonisation process and policies aimed at promoting investments in low-carbon industrial processes.
Amendment 24 #
Proposal for a regulation
Recital 10
Recital 10
(10) Existing mechanisms to address the risk of carbon leakage in sectors or sub- sectors at risk of carbon leakage are the transitional free allocation of EU ETS allowances and financial measures to compensate for indirect emission costs incurred from GHG emission costs passed on in electricity prices respectively laid down in Articles 10a(6) and 10b of Directive 2003/87/EC. However, free allocation under the EU ETS weakens the price signal that the system provides for the installations receiving it compared to full auctioning and thus affects the incentives for investment into further abatement of emissshould be gradually phased-out, in line with Union’s commitment and targets for decarbonisation and in order to comply with the WTO’s trade rules and avoid double compensations.
Amendment 26 #
(11) The CBAM seeks to replace these existing mechanisms by addressing the risk of carbon leakage in a different way, namely by ensuring equivalent carbon pricing for imports and domestic products. To ensure a gradual transition from the current system of free allowances to the CBAM, the CBAM should be progressively phased in while free allowances in sectors covered by the CBAM are phased out. CBAM should be transparent, proportionate and easy to administer and should avoid any undue financial and administrative burden on enterprises, especially small and medium- sized enterprises (SMEs). The combined and transitional application of EU ETS allowances allocated free of charge and of the CBAM should in no case result in more favourable treatment for Union goods compared to goods imported into the customs territory of the Union nor should lead to any market distortion.
Amendment 29 #
Proposal for a regulation
Recital 12
Recital 12
(12) While the objective of the CBAM is to prevent the risk of carbon leakage, this Regulation would also encourage the use of more GHG emissions-efficient technologies by producers from third countries, so that less emissions per unit of output are generated, as well as encourage carbon pricing worldwide, thus enhancing a global level playing field.
Amendment 36 #
Proposal for a regulation
Recital 13
Recital 13
(13) As an instrument to prevent carbon leakage and reduce GHG emissions the CBAM should ensure that imported products are subject to a regulatory system that applies carbon costs equivalent to the ones that otherwise would have been borne under the EU ETS. The CBAM is a climate measure which should prevent the risk of carbon leakage, promote carbon pricing globally, enhance decarbonisation in a cost-effective and technology-neutral way and support the Union’s increased ambition on climate mitigation, while ensuring WTO compatibility.
Amendment 51 #
Proposal for a regulation
Recital 28
Recital 28
(28) Whilst the ultimate objective of the CBAM is a broad product coverage, it would be prudent to start with a selected number of sectors with relatively homogeneous products where there is a risk of carbon leakage. Union sectors deemed at risk of carbon leakage are listed in Commission Delegated Decision (EU) 2019/70842 . Any further extension of the sectors and products, covered by the CBAM, should take place after an exhaustive scientific analysis and risk assessment, based on the latest available scientific evidence. The potential contribution of such extension, and possible negative effects as well as the effects on the stability of the internal market should also be taken into consideration. _________________ 42Commission Delegated Decision (EU) 2019/708 of 15 February 2019 supplementing Directive 2003/87/EC of the European Parliament and of the Council concerning the determination of sectors and subsectors deemed at risk of carbon leakage for the period 2021 to 2030 (OJ L 120, 8.5.2019, p. 2).
Amendment 76 #
Proposal for a regulation
Recital 51 a (new)
Recital 51 a (new)
(51a) To facilitate and ensure a proper functioning of the CBAM and to avoid internal market distortions or excessive administrative burden for enterprises, in particular SMEs, the Commission should provide them with technical advice and technical assistance in order to facilitate their adaptation to the new obligations established by this Regulation and to avoid causing technical obstacles to trade.
Amendment 78 #
Proposal for a regulation
Recital 52
Recital 52
(52) The Commission should evaluate the application of this Regulation before the end of the transitional period and report to the European Parliament and the Council. The report of the Commission should, in particular, focus on possibilities to enhance climate actions towards the objective of a climate neutral Union by 2050. The Commission should, as , the actual imparct of that evaluation, initiate collection of information necessary to possibly extend the scope to indirect emissions, as well as to other goods and services at risk of carbon leakage, and to develop methods of calculating embedded emissions based on the environmental footprint methods47 . _________________ 47Commission Recommendation 2013/179/EU of 9 April 2013 on the use of common methods to measure and communicate the life cycle environmn climate and environmental protection and the impact on the competitiveness and viability of the Union’s economy. The report should also examine the effects on sustainable innovation and changes in trade flows and supply chains with regards to fertilisers, and the effects on the prices of fertilisers and agricultural production. The Commission should also assess the cumulative impact on the Union agricultural sector, what are the effects of this Regulation on Union enterprises, including a quantitative assessment of impacts, specifically on small and medium sized enterprises (SMEs), and actual compliance cost. The effects of the potential performance of products and organisations (OJ L 124, 4.5.2013, p. 1)extension of the scope of this Regulation to agricultural goods and its possible implications should also be evaluated.
Amendment 85 #
Proposal for a regulation
Recital 52 a (new)
Recital 52 a (new)
(52a) The Commission should, as part of that evaluation, initiate collection of information necessary to possibly extend the scope to indirect emissions, as well as to other goods and services at risk of carbon leakage, and to develop methods of calculating embedded emissions based on the environmental footprint methodsa47a . _________________ 47aCommission Recommendation 2013/179/EU of 9 April 2013 on the use of common methods to measure and communicate the life cycle environmental performance of products and organisations (OJ L 124, 4.5.2013, p. 1).
Amendment 87 #
Proposal for a regulation
Recital 53 a (new)
Recital 53 a (new)
(53a) To facilitate the achievement of the objectives of this Regulation, to incentivise global climate action, both within the Union and globally, and to support a market for low-carbon goods, continuous dialogue with all relevant stakeholders and Union’s trade partners should be carried.
Amendment 96 #
Proposal for a regulation
Article 1 – paragraph 1
Article 1 – paragraph 1
1. This Regulation establishes a carbon border adjustment mechanism (the ‘CBAM’) for addressing greenhouse gas emissions embedded in the goods referred to in Annex I, upon their importation into the customs territory of the Union, in order to prevent the risk of carbon leakage and encourage carbon pricing worldwide.
Amendment 131 #
Proposal for a regulation
Article 12 – paragraph 1 a (new)
Article 12 – paragraph 1 a (new)
Amendment 153 #
Proposal for a regulation
Article 30 – paragraph 2
Article 30 – paragraph 2
2. Before the end of the transitional period, the Commission shall present a report to the European Parliament and the Council on the application of this Regulation. The report shall contain, in particular, the: (a) assessment of the possibilities to further extend the scope of embedded emissions to indirect emissions and to other goods at risk of carbon leakage than those already covered by this Regulation, as well as an; (b) assessment of the governance system. It shall also contain the; (c) assessment of the possibility to further extend the scope to embedded emissions of transportation services as well as to goods further down the value chain and services that may be subject to the risk of carbon leakage in the future. ; (d) assessment of the real impact on climate and environmental protection; (e) assessment of the impact on the competitiveness and viability of the Union’s economy; (f) identification of the effects on sustainable innovation and changes in trade flows and supply chains with regards to fertilisers; (g) assessment of the effects on the prices of fertilisers and agricultural production; (h) assessment of the cumulative impact on the Union agricultural sector; (i) identification of the effects on Union enterprises, including a quantitative assessment of impacts, specifically on small and medium sized enterprises (SMEs), and actual compliance cost; (j) assessment of the effects from the potential extension of the scope of this Regulation to agricultural goods and its potential implications.