Activities of Sara SKYTTEDAL related to 2021/0211(COD)
Shadow opinions (1)
OPINION on the proposal for a directive of the European Parliament and of the Council amending Directive 2003/87/EC establishing a system for greenhouse gas emission allowance trading within the Union, Decision (EU) 2015/1814 concerning the establishment and operation of a market stability reserve for the Union greenhouse gas emission trading scheme and Regulation (EU) 2015/757
Amendments (57)
Amendment 40 #
Proposal for a directive
Recital 13
Recital 13
(13) Greenhouse gases that are not directly released into the atmosphere should not be considered emissions under the EU ETS and allowances should be surrendered for those emissions unless they are 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 implementingdelegated 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). or they are captured and used to produce recycled carbon fuels and renewable liquid and gaseous fuels of non-biological origin. The Commission should be empowered to adopt delegated acts specifying the framework conditions under which greenhouse gases transferred for further use should be accounted for at the point of release into the atmosphere. For any other transfer of CO2 out of the installation, no subtraction of CO2 from the installation's emissions shall be allowed unless the CO2 is transferred to and used by another installation that stored CO2 in a product permanently so that the CO2 is not released into the atmosphere47a. _________________ 47aJudgement ECJ, Case C 460/15, 19.12017 Schaefer Kalk GmbH & Co. KG v Germany
Amendment 43 #
Proposal for a directive
Recital 13 a (new)
Recital 13 a (new)
(13a) Installations should receive allowances in respect of greenhouse gases that are permanently removed from the atmosphere as a result of bio-energy with carbon capture and storage (BECCS) or of greenhouse gases that are captured from the atmosphere through direct air capture and geologically stored or utilised to become permanently chemically bound in a product so that they do not enter the atmosphere under normal use. Installations should be able to sell those allowances or use those allowances to reduce the extent of their remaining surrender obligations. The Commission should be empowered to adopt delegated acts specifying the conditions for the national carbon accounting of imported biobased materials to avoid double counting and not oversee emissions;
Amendment 50 #
Proposal for a directive
Recital 17
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, the extension of the ETS to maritime transport should affect Member States proportionally and in a fair manner, while taking into account their specific circumstances, such as those relating to climate, weather and geographical location in relation to the rest of the Union. Certain northern shipping routes are dependent on ice-class ships for winter navigation, which can generate additional emissions due to higher fuel consumption. To address this situation, there should be a permanent applied method that would take into account additional energy used for navigation in ice conditions as well as additional energy used by ice-classed ships belonging to the Finnish-Swedish ice classes IA and IA Super or equivalent ice classes when sailing in open water a more gradual phase-in requirement for ice-class ships in combination with specific support for the innovation and decarbonisation of ice-class ships through an Ocean Fund. _________________ 49 Paris Agreement, Article 4(4).
Amendment 63 #
Proposal for a directive
Recital 20 a (new)
Recital 20 a (new)
(20a) The successful transition to zero emission shipping requires an integrated approach and the appropriate enabling environment to stimulate innovation, both on ships and in ports. That enabling environment involves public and private investment in research and innovation, technological and operational measures to improve the energy efficiency of ships and ports, and the deployment of sustainable alternative fuels, such as hydrogen and ammonia, that are produced from renewable, low-carbon or nuclear energy sources, including through carbon contracts for difference aimed at bridging the price difference between low- and zero-carbon fuels and conventional fuels, and of zero emission propulsion technologies, including the necessary refuelling and recharging infrastructure in ports. An Ocean Fund should be established from revenues generated from the auctioning of allowances in respect of maritime transport activities under the EU ETS to improve the energy efficiency of ships and support investment aimed at facilitating the decarbonisation of maritime transport, including as regards short sea shipping and ports. In addition, the revenues generated from penalties imposed under Regulation (EU) xxxx/xxxx [FuelEUMaritime] of the European Parliament and of the Council should be allocated to the Ocean Fund as external assigned revenue in accordance with Article 21(5)of Regulation (EU, Euratom) 2018/1046 of the European Parliament and of the Council1a. The Commission should ensure that due consideration is given to support 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 (EU) xxxx/xxxx[FuelEU Maritime]. Certain northern shipping routes are dependent on ice-class ships for winter navigation. Such ships can generate a greater quantity of emissions compared to similar ships for open-seas navigation due to higher fuel consumption when navigating through ice and the higher relative weight of their hull. In order to take into account the specific circumstances of ice-class ships and avoid undercounting actual emissions, support should be provided through the Ocean Fund for innovation and decarbonisation as regards ice-class ships.
Amendment 81 #
Proposal for a directive
Recital 30
Recital 30
(30) The Carbon Border Adjustment Mechanism (CBAM), established under Regulation (EU) […./..] of the European Parliament and of the Council51 , isntends to complement and progressively offer an alternative to free allocation to address the risk of carbon leakage without undermining the Unions competitiveness. 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, combined with a reserve and review mechanism, is needed to allow producers, importers and traders to adjust to the new regime. The reduction of and to assess the effective implementation of the CBAM. Once the CBAM has fully demonstrated its effectiveness in equalising CO2 costs between imported and domestic products and in protecting the competitiveness of European exports, the free allocation received by these sectors should be gradually phased out. Once the CBAM has fully demonstrated its effectiveness in equalising CO2 costs between imported and domestic products and in protecting the competitiveness of European exports, free allocation should be implemented by applying a factor to free allocation for CBAM sectors, while the CBAM is phased in. Nonetheless, safeguards should be provided for the products intended for exports. This percentage (CBAM factor) should be equal to 100 % during the transitional period between the entry into force of [CBAM Regulation] and 202530, 980 % in 202631 and should be reduced by 120 percentage points each year to reach 0 % and thereby eliminate free allocation by the tenfifth year. The relevant delegated acts on free allocation should be adjusted accordingly for the sectors and subsectors covered by the CBAM. Theis phase-out of 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 sectorsshould be kept under review in light of the entry into force and effective implementation of the Carbon Border Adjustment Mechanism. 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]
Amendment 89 #
Proposal for a directive
Recital 30 a (new)
Recital 30 a (new)
(30a) A temporary Carbon Leakage Protection Reserve should be established, linked to an annual review mechanism to assess the entry into force and effective implementation of the Carbon Border Adjustment Mechanism. Each year, the free allocation no longer provided to the CBAM sectors, based on the free allocation phase-out calculation, should be moved into a temporary reserve. By 28 February of the following year, the Commission should assess and report on the entry into force of the CBAM and its effectiveness during the preceding year, namely whether it ensured an equivalent level of carbon leakage protection. Where the assessment is positive, the allowances in the reserve from the preceding year should automatically be auctioned and the revenues should accrue to the Innovation Fund. Where the assessment is negative, the allowances in the reserve from the preceding year should automatically be released back to industry to fill the carbon leakage protection gap. This should limit any possible gaps in carbon leakage protection should they arise.
Amendment 94 #
(30b) The role of the EU ETS is crucial in view of Europe’s climate and energy diplomacy with the prospects of linking the EU ETS with other emission trading systems internationally. The European Commission should with priority enter into negotiations with trading partners to implement climate obligation and carbon pricing mechanisms comparable to the EU’s, before making it more expensive for European industry.
Amendment 96 #
Proposal for a directive
Recital 31
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. The adjusted benchmark values should be published as soon as the necessary information becomes available, in order for those adjusted benchmark values to be applicable from 2026.
Amendment 99 #
Proposal for a directive
Recital 31 a (new)
Recital 31 a (new)
(31a) Where ex-ante benchmarks cannot be derived for an individual sector or subsector and allowances are allocated on the basis of generic fallback approaches, it is necessary to ensure that sectorial and geographical differences amongst the sectors and subsectors covered are nevertheless appropriately reflected. When developing implementing acts pursuant to Article 10a(2), the Commission should therefore ensure that sector specific fallback approaches are devised where needed to avoid discrimination between sectors.
Amendment 105 #
Proposal for a directive
Recital 33
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 technologiesstallation of non-breakthrough technologies in industrial processes that have an large GHG-saving potential but are not market-ready as well as innovation in low-carbon technologies in particular breakthrough technologies identified in the industrial ecosystem transition pathways, 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 as zero- emission propulsion technologies like wind technologies. The Innovation Fund should support nuclear energy-related activities. 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. To foster innovation in breakthrough technologies as soon as possible, the Commission should ensure that the financing made available through the Innovation Fund is ‘frontloaded’ during the first years of implementation of the present Directive. _________________ 52[add ref to the FuelEU Maritime Regulation].
Amendment 117 #
Proposal for a directive
Recital 35
Recital 35
(35) Carbon Contracts for Difference (CCDs) are an important element to trigger emission reductions in industry, offering the opportunity to guarantee investors in innovative climate-friendly technologies a price that rewards CO2 emission reductions above those induced by the current price levels in the EU ETS. The range of measures that the Innovation Fund can support should be extended to provide support to projects through price- competitive tendering, such as CCDs. The Commission should be empowered to adopt delegated acts on the precise rules for this type of support and include technology neutral competitive tendering mechanisms. Furthermore, it is crucial to establish a common EU CCDs framework or guidelines to increase the use of CCDs to target hydrogen production in the EU.
Amendment 125 #
Proposal for a directive
Recital 38
Recital 38
(38) The scope of the Modernisation Fund should be aligned with the most recent climate objectives of the Union by requiring that investments are consistent with the objectives of the European Green Deal and Regulation (EU) 2021/1119, and eliminating the support to any investments related to fossil fuels. In addition, the percentage of the Modernisation Fund that needs to be devoted to priority investments should be increased to 80 %; energy efficiency should be targeted as a priority area at the demand side; and support of households to address energy poverty, including in rural and remote areas, should be included within the scope of the priority investments.
Amendment 129 #
Proposal for a directive
Recital 40
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 activityfor at the point of release. 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 for capturing emissions are in place, taking also into account the treatment of these fuels under Directive (EU) 2018/2001.
Amendment 133 #
Proposal for a directive
Recital 42
Recital 42
(42) The further exclusion of installations using exclusively biomass from the EU ETS haswill lead to situations where installations combusting a high share of biomass have obtained windfall profits by receiving free allowances greatly exceeding actual emissions. Therefore, aa lack of certainty over updating the benchmark values for free allocation and disincentivize a full transition to a zero- carbon energy source. A 100% threshold value for zero-rated biomass combustion should be introduced above which mainstallations 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 . _________________ 56 Commission 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)ined for installations to be excluded from the EU ETS.
Amendment 172 #
Proposal for a directive
Recital 13
Recital 13
(13) Greenhouse gases that are not directly released into the atmosphere should not be considered emissions under the EU ETS and allowances should be surrendered for those emissions unless they are 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 implementingdelegated 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). or they are captured and used to produce recycled carbon fuels and renewable liquid and gaseous fuels of non-biological origin. The Commission should be empowered to adopt delegated acts specifying the framework conditions under which greenhouse gases transferred for further use should be accounted for at the point of release into the atmosphere. For any other transfer of CO2 out of the installation, no subtraction of CO2 from the installation's emissions should be allowed unless the CO2 is transferred to and used by another installation that stored CO2 in a product permanently so that the CO2 is not released into the atmosphere47a. _________________ 47aJudgement ECJ, Case C 460/15, 19.12017 Schaefer Kalk GmbH & Co. KG v Germany
Amendment 182 #
Proposal for a directive
Article 1 – paragraph 1 – point 2 – point a
Article 1 – paragraph 1 – point 2 – point a
Directive 2003/87/EC
Article 3 – paragraph b
Article 3 – paragraph b
(b) ‘emissions’ means the release of greenhouse gases in to the atmosphere from sources in an installation or the release 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;;
Amendment 200 #
Proposal for a directive
Article 1 – paragraph 1 – point 6
Article 1 – paragraph 1 – point 6
Directive 2003/87/EC
Article 3gd a (new)
Article 3gd a (new)
in Article 3gd, the following paragraph is added: 'Article 3gd a Ocean Fund 1. A fund (‘the Ocean Fund’) shall be established for the period from … [the year of the start of auctioning of allowances in the maritime sector under this Directive] to 2030 with the objective of supporting projects and investments referred to in paragraph 3. At least 75 %of the revenues generated from the auctioning of allowances referred to in Article 3g shall be used through the Ocean Fund. Furthermore, the external as signed revenues referred to in Article21(2) of Regulation (EU) [FuelEU Maritime] shall be allocated to the Ocean Fund and used in accordance with paragraph 3. 2. The Ocean Fund shall be managed centrally through a Union body and the governance structure of the Ocean Fund shall be similar to the governance structure of the Innovation Fund established under Article 10a(8).The Ocean Fund’s governance structure and decision-making process shall be transparent and inclusive, in particular in relation to the setting of priority areas, criteria and grant allocation procedures. Relevant stakeholders shall have an appropriate consultative role. All information on the projects and investments supported by the Ocean Fund and all other relevant information on the functioning of the Ocean Fund shall be made available to the public.3. Funds provided under the Ocean Fund shall be used to support projects and investments in relation to the following: (a) improvement of the energy efficiency of ships and ports; (b) innovative technologies and infrastructure for decarbonising the maritime transport sector, including as regards short sea shipping and ports; (c) deployment of sustainable alternative fuels, such as hydrogen and ammonia, that are produced from renewable, low- carbon or nuclear energy, including through carbon contracts for difference aimed at bridging the price difference between low and zero-carbon fuels and conventional fuels; (d) zero-emission propulsion technologies, including wind technologies; (e) development of innovative technologies and fuels for ice-class ships and winter navigation in frozen areas All investment supported by the Ocean Fund shall be made public and shall be consistent with the aims of this Directive. 4. The Commission is empowered to adopt delegated acts in accordance with Article 23 to supplement this Directive concerning the implementation of this Article. In implementing the Ocean Fund, the Commission shall take all the appropriate measures in accordance with Regulation (EU, Euratom) 2020/2092 to ensure the protection of funds in relation to measures and investments supported by the Ocean Fund, in the event of failure to respect the rule of law in the Member States. To that end, the Commission shall provide an effective and efficient internal control system and shall seek recovery of amounts wrongly paid or incorrectly used.
Amendment 218 #
Proposal for a directive
Article 1 – paragraph 1 – point 11 – point a
Article 1 – paragraph 1 – point 11 – point a
In addition, 2,5 % of the total quantity of allowances between [year following the entry into force of the Directive] and 2030 shall be auctioned for the Modernisation Fund. The beneficiary Member States for this amount of allowances shall be the Member States with a GDP per capita at market prices below 65 % of the Union average during the period 2016 to 2018. The funds corresponding to this quantity of allowances shall be distributed in accordance with Part B of Annex IIband equivalent of 1.5% of the total quantity of allowances from the amount above 400 million allowances set aside in Market Stability Reserve for the purpose of Modernisation Fund shall be auctioned for the Modernisation Fund. That percentage of allowances shall be used to fund investments in the NUTS level 3 regions, or parts thereof, identified in the territorial just transition plans prepared in accordance with Article 11 of Regulation (EU) 2021/1056 of the European Parliament and of the Council1a. The revenues generated from the auctioning of that percentage of allowances shall be distributed to Member States accordance with Annex I to Regulation (EU) 2021/1056. In addition, the equivalent of 1,5% of the total quantity of allowances between [year following the entry into force of the Directive] and 2030 from the amount above 400million allowances set aside in Market Stability Reserve for the purpose of Innovation Fund shall be made available for the Innovation Fund established under Article 10a(8). _________________ 1aRegulation (EU) 2021/1056 of the European Parliament and of the Council of 24 June 2021 establishing the Just Transition Fund (OJ L 231 30.6.2021, p. 1).
Amendment 228 #
Proposal for a directive
Article 1 – paragraph 1 – point 11 – point b
Article 1 – paragraph 1 – point 11 – point b
Directive 2003/87/EC
Article 10 – paragraph 3 – subparagraph 1 – introductory part
Article 10 – paragraph 3 – subparagraph 1 – introductory part
3. Member States shall determine the use of revenues generated from the auctioning of allowances, except for the revenues established as own resources in accordance with Article 311(3) TFEU and entered in the Union budget. Member States shall use their revenues generated from the auctioning of allowances referred to in paragraph 2, with the exception of the revenues used for the compensation of indirect carbon costs referred to in Article 10a(6), for one or more of the following:; , including nuclear energy-related activities and technologies;
Amendment 245 #
Proposal for a directive
Article 1 – paragraph 1 – point 12 – point a – point i
Article 1 – paragraph 1 – point 12 – point a – point i
Directive 2003/87/EC
Article 10 a – Paragraph 1 a – subparagraph 3
Article 10 a – Paragraph 1 a – subparagraph 3
Amendment 254 #
Proposal for a directive
Article 1 – paragraph 1 – point 12 – point a – point i
Article 1 – paragraph 1 – point 12 – point a – point i
Directive 2003/87/EC
Article 10 a – paragraph 1 – subparagraph 2 b
Article 10 a – paragraph 1 – subparagraph 2 b
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](**) once CBAM has fully demonstrated its effectiveness in equalising CO2 costs between imported and domestic products.. The measures referred to in the first subparagraph shall be adjusted accordingly
Amendment 259 #
Proposal for a directive
Article 1 – paragraph 1 – point 12 – point a – point ii
Article 1 – paragraph 1 – point 12 – point a – point ii
Directive 2003/87/EC
Article 10 – paragraph 1 – subparagraph 3
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 before the period from 2026 to 2030 in view of potentially modifying the definitions and system boundaries of existing product benchmarks, ensuring that free allocation for the production of a product is independent of the type of production process, as long as the same change in chemical composition has been carried out. The adjusted benchmark values should be published as soon as the necessary information becomes available, in order for those adjusted benchmark values to be applicable from 2026.
Amendment 263 #
Proposal for a directive
Article 1 – paragraph 1 – point 12 – point a – point ii
Article 1 – paragraph 1 – point 12 – point a – point ii
Directive 2003/87/EC
Article 10 a – paragraph 8 – subparagraph 5 a (new)
Article 10 a – paragraph 8 – subparagraph 5 a (new)
In order to provide further incentives for reducing greenhouse gas emissions in the steel industry, the annual 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;
Amendment 277 #
Proposal for a directive
Article 1 – paragraph 1 – point 12 – point b
Article 1 – paragraph 1 – point 12 – point b
Directive 2003/87/EC
Article 10 – paragraph 1 a – subparagraph 2
Article 10 – paragraph 1 a – subparagraph 2
By way of derogation from the previousfirst subparagraph, for the first years of operation of Regulation [CBAM], the production of these products listed in Annex I to that Regulation shall benefit from free allocation in reduced amounts. A factor reducing the free allocation for the production of theose products shall be applied (CBAM factor). The CBAM factor shall be equal to 100 % for the period during thebetween … [ the date of entry into force of [CBAM regulation]] and the end of 202530, 980 % in 202631 and shall be reduced by 120 percentage points each year to reach 0 % by the tenfifth year.
Amendment 279 #
Proposal for a directive
Article 1 – paragraph 1 – point 12 – point b
Article 1 – paragraph 1 – point 12 – point b
Directive 2003/87/EC
Article 10 – paragraph 1 a – subparagraph 2 a (new)
Article 10 – paragraph 1 a – subparagraph 2 a (new)
To this purpose, the Commission shall every year, from 2031 to 2035, 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 reports by the Commission should assess and report on the entry into force of the CBAM and its effectiveness during the preceding year, namely whether it ensured an equivalent level of carbon leakage protection. Where the assessment is positive, the allowances in the reserve from the preceding year should automatically be auctioned and the revenues should accrue to the Innovation Fund. Where the assessment is negative, the allowances in the reserve from the preceding year should automatically be released back to industry to fill the carbon leakage protection gap. This should limit any possible gaps in carbon leakage protection should they arise.
Amendment 283 #
Amendment 286 #
Proposal for a directive
Article 1 – paragraph 1 – point 12 – point b
Article 1 – paragraph 1 – point 12 – point b
Directive 2003/87/EC
Article 1 – paragraph 1 b and 1 c (new)
Article 1 – paragraph 1 b and 1 c (new)
Amendment 301 #
Proposal for a directive
Article 1 – paragraph 1 – point 12 – point c – point ii
Article 1 – paragraph 1 – point 12 – point c – point ii
Directive 2003/87/EC
Article 10 a – paragraph 2 – subparagraph 3 – point d a (new)
Article 10 a – paragraph 2 – subparagraph 3 – point d a (new)
(da) In determining the benchmark values for fallback approaches referred to in the second subparagraph, the Commission shall consider sectorial and geographical differences, and where appropriate provide for sector specific fallback approaches.
Amendment 302 #
Proposal for a directive
Article 1 – paragraph 1 – point 12 – point c a (new)
Article 1 – paragraph 1 – point 12 – point c a (new)
(ca) Where it is not possible to derive an ex-ante benchmark for an individual sector or subsector, but greenhouse gases eligible for the free allocation of emission allowances occur, those allowances should be allocated on the basis of generic fallback approaches.
Amendment 303 #
Proposal for a directive
Article 1 – paragraph 1 – point 12 – point c b (new)
Article 1 – paragraph 1 – point 12 – point c b (new)
Directive 2003/87/EC
Article 10 a – paragraph 2
Article 10 a – paragraph 2
(cb) Article 10a - paragraph 2 "2. In defining the principles for setting ex-ante benchmarks in individual sectors or subsectors, the starting point shall be the average performance of the 10 % most efficient installations in a sector or subsector in the Union in the years 2007- 2008. The Commission shall consult the relevant stakeholders, including the sectors and subsectors concerned. Where it is not possible to derive an ex-ante benchmark for an individual sector or subsector, but greenhouse gases eligible for the free allocation of emission allowances occur, those allowances should be allocated on the basis of generic fallback approaches." Or. en (Directive 2003/87/EC)
Amendment 309 #
Proposal for a directive
Article 1 – paragraph 1 – point 12 – point e
Article 1 – paragraph 1 – point 12 – point e
Directive 2003/87/EC
Article 10 a – paragraph 6 – subparagraph 1
Article 10 a – paragraph 6 – subparagraph 1
Member States shouldall 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.
Amendment 313 #
Proposal for a directive
Article 1 – paragraph 1 – point 12 – point g
Article 1 – paragraph 1 – point 12 – point g
Directive 2003/87/EC
Article 10 a – paragraph 8
Article 10 a – paragraph 8
8. 365 million allowances from the quantity which could otherwise be allocated for free pursuant to this Article, and 8365 million allowances from the quantity which could otherwise be auctioned pursuant to Article 10, as well as the allowances resulting from the reduction of free allocation referred to in Article 10a(1afrom which are to be deducted the allowances used for the Ocean Fund established under Article 3gdb, as well as the allowances referred to in Article 10(1), fifth subparagraph, and any allowances resulting from the reduction of free allocation and released from the Carbon Leakage Protection Reserve pursuant to Article 10a(1b), third subparagraph and released from the Market Stability Reserve pursuant to Article 10(1), shall be made available to a Fund with the objective of supporting innovation in and deployment of low-carbon technologies and processes, and contribute to zero pollution objectives (the ‘Innovation Fund’). The Innovation Fund shall support nuclear energy-related activities. To foster innovation in breakthrough technologies as soon as possible, the Commission should ensure that the financing made available through the Innovation Fund is ‘frontloaded’ during the first five years of implementation of the present Directive. Allowances that are not issued to aircraft operators due to the closure of aircraft operators and which are not necessary to cover any shortfall in surrenders by those operators, shall also be used for innovation support as referred to in the first subparagraph.
Amendment 317 #
Proposal for a directive
Article 1 – paragraph 1 – point 12 – point g Directive 2003/87/EC
Article 1 – paragraph 1 – point 12 – point g Directive 2003/87/EC
In addition, 50 million unallocated allowances from the market stability reserve shall supplement any remaining revenues from the 300 million allowances available in the period from 2013 to 2020 under Commission Decision 2010/670/EU(*), and shall be used in a timely manner for innovation and deployment support as referred to in the first subparagraph. Furthermore, the external assigned revenues referred to in Article 21(2) of Regulation (EU) [FuelEU Maritime] shall be allocated to the Innovation Fund and implemented in line with this paragraph.
Amendment 322 #
Proposal for a directive
Article 1 – paragraph 1 – point 12 – point g
Article 1 – paragraph 1 – point 12 – point g
Directive 2003/87/EC
Article 10 a – paragraph 8 – subparagraph 2
Article 10 a – paragraph 8 – subparagraph 2
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, as well as products and processes 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, transport and geological storage (“CCS” including “BECCS”, “DACCS”) 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, the aviation sector, including projects that address the total climate impact of aviation and for the production of low- and zero-carbon fuels and technologies in aviation, rail and road transport while seeking synergies with Horizon Europe, in particular with European partnerships and where relevant, with other Union programmes. Special attention shall be given to projects in sectors covered by the [CBAM regulation] to support innovation in low carbon technologies, CCU, CCS, CO2 transport, renewable energy and energy storage, in a way that contributes to mitigating climate change.
Amendment 329 #
Proposal for a directive
Article 1 – paragraph 1 – point 12 – point g
Article 1 – paragraph 1 – point 12 – point g
Directive 2003/87/EC
Article 10 a – paragraph 8 – subparagraph 3
Article 10 a – paragraph 8 – subparagraph 3
Projects in the territory of all Member States, including small-scale projects, shall be eligible. Technologies receiving support shall be innovative demonstrate a potential for large-scale GHG-reduction and not be yet commercially viable at a similar scale without support but shall represent breakthrough or not yet commercially implementable solutions or be sufficiently technologically mature for application at pre-commercial scale.
Amendment 342 #
Proposal for a directive
Article 1 – paragraph 1 – point 12 – point g
Article 1 – paragraph 1 – point 12 – point g
Directive 2003/87/EC
Article 10 a – paragraph 8 – subparagraph 6
Article 10 a – paragraph 8 – subparagraph 6
The Commission is empowered to adopt delegated acts in accordance with Article 23 to supplement this Directive concerning rules on the operation of the Innovation Fund, including the selection procedure and criteria, and the eligible sectors and technological requirements for the different types of support. In case of support through Carbon Contracts for Difference (CCDs), these delegated acts shall allow for technology neutral, price-competitive tendering.
Amendment 343 #
Proposal for a directive
Recital 33
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 stallation of non-breakthrough technologies in industrial processes that have a large greenhouse gas-saving potential but are not market-ready as well as innovation in low-carbon technologies in particular breakthrough technologies identified in the industrial ecosystem transition pathways, 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 as zero- emission propulsion technologies like wind technologies. The Innovation Fund should support nuclear energy-related activities. 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. To foster innovation in breakthrough technologies as soon as possible, the Commission should ensure that the financing made available through the Innovation Fund is ‘frontloaded’ during the first years of implementation of this Directive. _________________ 52[add ref to the FuelEU Maritime Regulation].
Amendment 357 #
Proposal for a directive
Article 1 – paragraph 1 – point 14 – point a
Article 1 – paragraph 1 – point 14 – point a
Directive 2003/87/EC
Article 10 d – paragraph 1 – subparagraph 2
Article 10 d – paragraph 1 – subparagraph 2
The investments supported shall be consistent with the aims of this Directive, as well as the objectives of the Communication from the Commission of 11 December 2019 on The European Green Deal (*) and Regulation (EU) 2021/1119 of the European Parliament and of the Council (**) and the long-term objectives as expressed in the Paris Agreement. No support from the Modernisation Fund shall be provided to energy generation facilities that use solid fossil fuels.”
Amendment 366 #
Proposal for a directive
Article 1 – paragraph 1 – point 14 – point b
Article 1 – paragraph 1 – point 14 – point b
Directive 2003/87/EC
Article 10 d – paragraph 2 – point a
Article 10 d – paragraph 2 – point a
(a) the generation and use of electricity from renewable sources, low-carbon and fossil- free as well as nuclear sources over a transitional period;
Amendment 370 #
Proposal for a directive
Article 1 – paragraph 1 – point 14 – point b
Article 1 – paragraph 1 – point 14 – point b
Directive 2003/87/EC
Article 10 d – paragraph 2 – point b
Article 10 d – paragraph 2 – point b
(b) heating and cooling from renewable sources, low-carbon and fossil-free as well as nuclear sources over a transitional period;
Amendment 371 #
Proposal for a directive
Article 1 – paragraph 1 – point 14 – point b
Article 1 – paragraph 1 – point 14 – point b
(c) the improvement of demand and supply side energy efficiency, including in transport, buildings, agriculture and waste;
Amendment 373 #
Proposal for a directive
Article 1 – paragraph 1 – point 14 – point b
Article 1 – paragraph 1 – point 14 – point b
(e) the support of low-income households, including in rural and remote areas, to address energy poverty and to modernise their heating systems; andmodernisation of heating and cooling systems and energy efficiency efforts in buildings for both residential and commercial use, including in rural and remote areas;
Amendment 390 #
Proposal for a directive
Article 1 – paragraph 1 – point 15 – point e
Article 1 – paragraph 1 – point 15 – point e
Directive 2003/87/EC
Article 12 – paragraph 3 b – subparagraph 1
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 stored or utilised to become permanently chemically bound in a product so that they do not enter the atmosphere under normal use. Where recycled carbon fuels and renewable liquid and gaseous fuels of non-biological origin are produced from captured CO2 within an ETS installation, the emission should not be accounted for under the activity where the CO2 is not emitted into the atmosphere. In this regard, the Commission shall review Implementing Regulation(EU) 2018/2066 as to incentivise the capture of CO2 from process emissions.
Amendment 394 #
Proposal for a directive
Article 1 – paragraph 1 – point 15 – point e
Article 1 – paragraph 1 – point 15 – point e
Directive 2003/87/EC
Article 12 – paragraph 3 b – subparagraph 2
Article 12 – paragraph 3 b – subparagraph 2
The Commission shall adopt implementing acts concerningdelegated acts in accordance with Article 23 to supplement this Directive by setting out the requirements to consider that greenhouse gases have become permanently chemically bound in a product so that they do not enter the atmosphere under normal use as referred to in the first subparagraph of this paragraph, as well as by setting out a transparent, comparable and reliable methodology for the proportional reduction of the extent of the obligation to surrender allowances and for the life-cycle assessment of the product referred to in the second subparagraph of this paragraph. The methodology for the life-cycle assessment of the product shall take into account the double role of greenhouse gases as emissions and as feed stock, including the emissions captured in the manufacture of the product, the emissions produced during the capture and utilisation process, the emissions utilised in the manufacture of the product compared to a similar product that does not result from the utilisation of recycled carbon, and the number of years the carbon captured from greenhouse gas emissions is bound in the product.
Amendment 395 #
Proposal for a directive
Article 1 – paragraph 1 – point 15 – point e a (new)
Article 1 – paragraph 1 – point 15 – point e a (new)
Directive 2003/87/EC
Article 12 – paragraph 3 b – subparagraph 2
Article 12 – paragraph 3 b – subparagraph 2
(ea) the following paragraph 3c is inserted 3c. Installations shall receive allowances in respect of greenhouse gases that are removed from the atmosphere as a result of bio-energy with carbon capture and storage (BECCS) or greenhouse gases that are captured from the atmosphere through direct air capture and geologically stored or utilised to become permanently chemically bound in a product so that they do not enter the atmosphere under normal use. For BECCS the Commission should be empowered to adopt implementing acts specifying the condition that if the bio based material used by the installation was imported, the exporter has reported the relevant emissions of harvested wood products in its National Inventory Report under the UNFCCC Guidelines. When carbon from a carbon neutral source, for example biomass or waste or directly from atmosphere, is stored or utilized to become permanently chemically bound in a product, the party being responsible for capturing the carbon and storing or using it shall be eligible to receive allowances accordingly the amount of carbon being stored or utilised.
Amendment 396 #
Proposal for a directive
Article 1 – paragraph 1 – point 15 – point e b (new)
Article 1 – paragraph 1 – point 15 – point e b (new)
Directive 2003/87/EC
Article 12 – paragraph 3 b – subparagraph 2
Article 12 – paragraph 3 b – subparagraph 2
(eb) the following paragraph 3c is inserted 3d. By 31 December 2029, the Commission shall present a report to the European Parliament and to the Council in which it shall examine whether all economy-wide greenhouse gas emissions, in particular from waste incineration installations, are subject to carbon pricing mechanisms. The Commission shall, where appropriate, accompany that report with a legislative proposal to amend this Directive so that the obligation to surrender allowances only arises at the point of release into the atmosphere in respect of emissions of greenhouse gases which are considered to have been captured and utilised.
Amendment 397 #
Proposal for a directive
Article 1 – paragraph 1 – point 15 – point e
Article 1 – paragraph 1 – point 15 – point e
Directive 2003/87/EC
Article 12 – paragraph 3 b – subparagraph 3
Article 12 – paragraph 3 b – subparagraph 3
Amendment 397 #
Proposal for a directive
Recital 40
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 activityfor at the point of release. 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 for capturing emissions are in place, taking also into account the treatment of these fuels under Directive (EU) 2018/2001.
Amendment 432 #
Proposal for a directive
Article 2 – paragraph 1 – point 1 – point c
Article 2 – paragraph 1 – point 1 – point c
Decision (EU) 2015/1814
Article 1 – paragraph 5 a
Article 1 – paragraph 5 a
5a. Unless otherwise decided in the first review carried out in accordance with Article 3, from 2023 allowances held in the reserve above 400 million allowances shall no longer be validbe set aside for the purpose of increasing the Modernisation Fund, the Innovation Fund and prevention of triggering of the cross-sectoral correction factor.
Amendment 446 #
Proposal for a directive
Annex I – paragraph 1 – point a
Annex I – paragraph 1 – point a
Directive 2003/87/EC
Annex 1 – point 1
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 emissions are not covered by this Directive.
Amendment 451 #
Proposal for a directive - amending act
Annex I – paragraph 1 – point b – point ii – table
Annex I – paragraph 1 – point b – point ii – table
Directive 2003/87/EC
Annex I – Paragraph 1 - row 4
Annex I – Paragraph 1 - row 4
Production of iron (including sponge iron, HBI and pig iron) or steel (primary or secondary fusion) including continuous casting, with a capacity exceeding 2,5 tonnes per hour.
Amendment 452 #
Proposal for a directive - amending act
Annex I – paragraph 1 – point b – point ii – table
Annex I – paragraph 1 – point b – point ii – table
Directive 2003/87/EC
Annex I – Paragraph 1 - row 24
Annex I – Paragraph 1 - row 24
Production of hydrogen (H2) and/or synthesis gas with a production capacity exceeding 2510 tonnes per day. The extension of the EU ETS to renewable and low carbon hydrogen production facilities, goes in the right direction and could provide a positive boost to the uptake of the electrolysis route. Nevertheless, in the current proposal, the effects are expected to be rather limited because the production threshold at 25 ton of hydrogen a day – corresponding to an electrolyser between 60-100MW depending on the efficiency - will exclude many electrolyser units.Justification
Amendment 650 #
Proposal for a directive
Article 1 – paragraph 1 – point 2 – point a
Article 1 – paragraph 1 – point 2 – point a
Directive 2003/87/EC
Article 3 – paragraph 1 – point b
Article 3 – paragraph 1 – point b
(b) ‘emissions’ means the release of greenhouse gases in to the atmosphere from sources in an installation or the release 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;;
Amendment 1201 #
Proposal for a directive
Article 1 – paragraph 1 – point 12 – point g
Article 1 – paragraph 1 – point 12 – point g
Directive 2003/87/EC
Article 10a – paragraph 8 – subparagraph 4
Article 10a – paragraph 8 – subparagraph 4
Projects in the territory of all Member States, including small-scale projects, shall be eligible. Technologies receiving support shall be innovative, demonstrate a potential for large-scale greenhouse gas reduction and not yet commercially viable at a similar scale without support but shall represent breakthrough or not yet commercially implementable solutions or be sufficiently technologically mature for application at pre-commercial scale.
Amendment 1277 #
Proposal for a directive
Article 1 – paragraph 1 – point 14 – point b
Article 1 – paragraph 1 – point 14 – point b
Directive 2003/87/EC
Article 10d – paragraph 2 – point e
Article 10d – paragraph 2 – point e
(e) the support of low-income households, including in rural and remote areas, to address energy poverty and to modernise their heating systems; andmodernisation of heating and cooling systems and energy efficiency efforts in buildings for both residential and commercial use, including in rural and remote areas;
Amendment 1330 #
Proposal for a directive
Article 1 – paragraph 1 – point 15 – point e
Article 1 – paragraph 1 – point 15 – point e
Directive 2003/87/EC
Article 12 – paragraph 3 b – subparagraph 1
Article 12 – paragraph 3 b – subparagraph 1
An obligation to surrender allowances shall not arise in respect of emissions of greenhouse gases which are considered to have been captured and stored or utilised to become permanently chemically bound in a product so that they do not enter the atmosphere under normal use. Where recycled carbon fuels and renewable liquid and gaseous fuels of non-biological origin are produced from captured CO2 within an EU ETS installation, the emission should not be accounted for under the activity where the CO2 is not emitted into the atmosphere. In this regard, the Commission shall review Implementing Regulation (EU) 2018/2066 as to incentivize the capture of CO2 from process emissions.
Amendment 1660 #
Proposal for a directive
Annex I – paragraph 1 – point c – point v
Annex I – paragraph 1 – point c – point v
Directive 2003/87/EC
Annex I – table – row 24 – column 1
Annex I – table – row 24 – column 1
Production of hydrogen (H2) and/or synthesis gas with a production capacity exceeding 2510 tonnes per day.