Activities of Jakop G. DALUNDE related to 2021/0202(COD)
Shadow opinions (1)
OPINION on the proposal for a decision of the European Parliament and of the Council amending Decision (EU) 2015/1814 as regards the amount of allowances to be placed in the market stability reserve for the Union greenhouse gas emission trading scheme until 2030
Amendments (6)
Amendment 8 #
Proposal for a decision
Recital 1
Recital 1
(1) The Paris Agreement, adopted in December 2015 under the United Nations Framework Convention on Climate Change (UNFCCC) entered into force in November 2016 (“the Paris Agreement”)25 . The Parties to the Paris Agreement have agreed to hold. In its Special Reports published between 2018 and 2021, the Intergovernmental Panel on Climate Change (IPCC) illustrated the need to urgently reduce greenhouse gas (GHG) emissions in all sectors of the economy in order to limit global warming to 1.5°C. By adopting the Glasgow Climate Pact, the Parties to the Paris Agreement recognised that limiting the increase in the global average temperature well below 2 to 1.5°C above pre-industrial levels and to pursue efforts to limit would significantly reduce the risks and impacts of climate change, and committed to strengthen temperature increase to 1,5 °C above pre-industrial levelsheir 2030 targets by the end of 2022 to close the ambition gap. The revision of the EU ETS, including of its Market Stability Reserve, is a unique opportunity to contribute to stepping up EU’s climate action before COP27 in Egypt. _________________ 25 Paris Agreement (OJ L 282, 19.10.2016, p. 4).
Amendment 21 #
Proposal for a decision
Recital 14
Recital 14
(14) The analysis carried out in the context of the reserve’s review and the expected developments relevant to the carbon market demonstrate that a rate of 12 % of the total number of allowances in circulation to be placed in the reserve each year after 2023 is insufficient to prevent a significant increase of the surplus of allowances in the EU ETS. Therefore, after 2023 the percentage figure should continue to be 24 %, and the minimum number of allowances to be placed in the reserve should also continue to be 200 million.
Amendment 24 #
Proposal for a decision
Recital 14 a (new)
Recital 14 a (new)
(14a) According to the 2021 Carbon Market Report, the total number of allowances in circulation has increased in 2020 to 1579 billion allowances, compared to 1385 billion allowances in 2019. This sharp increase in the overall surplus is linked to a lower demand due to the COVID-19 crisis. The Commission estimates that it will take up to four years for that additional 2020 surplus to be absorbed. Studies suggest that, due to the increased EU 2030 climate target and the recent coal phase-out announcements from several Member States, keeping the intake rate at 24% until 2030 would only allow to prevent a new surplus to be generated but would not be sufficient to further reduce the historical surplus already accumulated in the market.2a _________________ 2aStructural Supply Side Management in the EU ETS. Study of German Environment Agency (2021)
Amendment 26 #
Proposal for a decision
Recital 15
Recital 15
(15) If the rate of the total number of allowances in circulation to be placed in the reserve each year reverts to 12 % after 2023, a potentially harmful surplus of allowances in the EU ETS maywill continue to disturb market stability. In addition, the rate of 24 % after 2023 should be established Therefore, in order to ensure that the EU ETS is fit for purpose, the intake rate should be increased to 36% as of 2024. That decision should be taken separately from the on-going general review of Directive 2003/87/EC and Decision (EU) 2015/1814 to strengthen the EU Emissions Trading System in line with the Union’s increased climate ambition for 2030 to ensure market predictabilityin order to ensure market predictability. The environmental integrity of the reserve, including the intake rate, could be further increased in the context of that general review.
Amendment 28 #
Proposal for a decision
Recital 15 a (new)
Recital 15 a (new)
(15a) The Commission should continuously monitor the functioning of the reserve. When Commission finds out that the total number of allowances in circulation has increased compared to the previous year, it should make a legislative proposal to amend this Regulation to ensure the proper functioning of the reserve in rapidly and steadily absorbing the structural imbalance between supply and demand of allowances in the market.
Amendment 34 #
Proposal for a decision
Article 1 – paragraph 1
Article 1 – paragraph 1
Decision (EU) 2015/1814
Article 1 – paragraph 5 – subparagraph 1a
Article 1 – paragraph 5 – subparagraph 1a
By way of derogation from the first and second sentences, until 31 December 2030, the percentages and the 100 million allowances referred to in those sentences shall be doubtripled.