25 Amendments of Nicola BEER related to 2021/0214(COD)
Amendment 95 #
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., whilst preserving and promoting the development of European industries and ensuring an equal level playing field with regard to their competitiveness on EU and global markets;
Amendment 115 #
Proposal for a regulation
Recital 11
Recital 11
(11) The CBAM seeks to gradually 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 and by ensuring that EU export products are not replaced by more carbon intensive products, which would undermine the objective of reducing global emissions. To ensure a gradual transition from the current system of free allowances to the CBAM while preserving EU competitiveness, the CBAM should be progressively phased in while free allowances in sectors covered by the CBAM are phased outgradually phased out after an assessment by the Commission has proven that the regulation is effective in protection from the risk of carbon leakage for both imports and exports. The gradual phase-out of free allowance is essential to ensure a just transition for energy- intensive sectors. 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.
Amendment 128 #
Proposal for a regulation
Recital 11 a (new)
Recital 11 a (new)
(11 a) The phasing-out of free allowances has to take into consideration the EU´s exporting industry. A phase-out of free allowances can only happen gradually as it otherwise would put European exports at a stark competitive disadvantage and, in the absence of a global carbon price, consequently lead to carbon leakage. It needs to be ensured that EU export products are not replaced by more carbon intensive products, which would undermine the objective of reducing global emissions. Therefore free allowances shouldn’t be fully erased with the introduction of the CBAM and should be reserved for EU export goods to ensure a level playing field. These measures for exports have to remain WTO-compliant and consistent with the EU’s environmental objectives. The gradual phasing out should only happen after an assessment by the Commission has proven that the CBAM is effective in protection from the risk of carbon leakage from both imports and exports.
Amendment 131 #
Proposal for a regulation
Recital 11 a (new)
Recital 11 a (new)
(11a) The phasing-out of free allowances has to take into consideration the EU´s exporting industry. A phase-out of free allowances can only happen gradually as it otherwise would put European exports at a stark competitive disadvantage and, in the absence of a global carbon price, consequently lead to carbon leakage. It needs to be ensured that EU export products are not replaced by more carbon intensive products, which would undermine the objective of reducing global emissions. Therefore, free allowances should not be fully erased with the introduction of the CBAM and should be reserved for EU export goods to ensure a level playing field. These measures for exports have to remain WTO-compliant and consistent with the EU’s environmental objectives. The gradual phasing out should only happen after an assessment by the Commission has proven that the CBAM is effective in protection from the risk of carbon leakage from both imports and exports.
Amendment 131 #
Proposal for a regulation
Recital 11 a (new)
Recital 11 a (new)
(11 a) The progressive phase-in of the CBAM and phase-out of free allocations should be accompanied by an annual review mechanism in order to realistically assess the feasibility of any further phase- out of free allocations should the CBAM be unable to adequately protect European industry against carbon leakage. Key indicators of this assessment include the profitability of European producers in the sectors covered by the CBAM, the evolution of EU market and domestic demand, as well as trade flows of European imports and exports in CBAM sectors;
Amendment 135 #
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. The Commission should regularly assess and monitor whether the CBAM encourages the use of more GHG emission-efficient technologies in third countries, in coordination with the affected industrial sectors and broader stakeholders, and provide additional measures where necessary.
Amendment 148 #
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, resulting in an equalisation of carbon costs between imported and domestic products. The CBAM is a climate measure which should prevent the risk of carbon leakage and support the Union’s increased ambition on climate mitigation, while ensuring WTO compatibility.
Amendment 175 #
Proposal for a regulation
Recital 19 a (new)
Recital 19 a (new)
(19 a) In order to not disproportionately hinder existing trade flows by CBAM obligations, we must do the utmost to reduce unnecessary administrative burden, for instance by recognition of third countries’ emission monitoring systems.
Amendment 176 #
Proposal for a regulation
Recital 20
Recital 20
(20) The CBAM system has some specific features compared with the EU ETS, including on the calculation of the price of CBAM certificates, on the possibilities to trade certificates and on their validity over time. These are due to the need to preserve the effectiveness of the CBAM as a measure preventing carbon leakage over time and to ensure that the management of the system is not excessively burdensome, in particular for SMEs, in terms of obligations imposed on the operators and of resources for the administration, while at the same time preserving an equivalent level of flexibility available to operators under the EU ETS.
Amendment 185 #
Proposal for a regulation
Recital 23 a (new)
Recital 23 a (new)
(23 a) Given the unique nature of the CBAM and the need for close EU coordination, a centralized CBAM authority at EU level should be established to properly implement and monitor the import and export provisions of the CBAM, and to avoid unnecessary administrative burdens on competent national authorities.
Amendment 248 #
Proposal for a regulation
Recital 50
Recital 50
(50) A transitional period should apply during the period 2023 until 2025 and shall be used for data collection and analysis of the impact of CBAM on the industries concerned, with particular focus of the potential impact of the phase- out of free allocations . A CBAM without financial adjustment should apply, with the objective to facilitate a smooth roll out of the mechanism hence reducing the risk of disruptive impacts on trade. Declarants should have to report on a quarterly basis the actual embedded emissions in goods imported during the transitional period, detailing direct and indirect emissions as well as any carbon price paid abroad.
Amendment 255 #
Proposal for a regulation
Recital 50 a (new)
Recital 50 a (new)
(50 a) The transitional period should serve to evaluate the overall efficiency of the CBAM in preventing carbon leakage and achieving emission reduction targets, as well as to evaluate its WTO compatibility and its effectiveness in encouraging external trade partners to adopt more ambitious climate policies.
Amendment 267 #
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 assessing the risk of EU exports on global markets being replaced by more carbon intensive goods or by goods that are not subject to equivalent carbon costs. The Commission report shall be accompanied by a legislative proposal to develop WTO- compatible solutions such as export adjustments mechanisms to avoid carbon leakage on European exports, while preserving emission reduction targets. The report should also include possibilities to enhance climate actions towards the objective of a climate neutral Union by 2050. The Commission should, as part of that evaluation, initiate collection of information and evidence-based impact assessments 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 environmental performance of products and organisations (OJ L 124, 4.5.2013, p. 1).
Amendment 276 #
Proposal for a regulation
Recital 52 a (new)
Recital 52 a (new)
(52 a) If after the transitional period, the evidence collected by the Commission indicates that the potential costs of the CBAM outweigh its benefits and the CBAM cannot effectively protect European industries falling with its scope against carbon leakage, a further phase- in of the CBAM and phase-out of free allowances should be paused until an effective solution is found.
Amendment 291 #
Proposal for a regulation
Recital 55 a (new)
Recital 55 a (new)
(55 a) The Commission shall regularly inform the European Parliament on its progress in dialogue with third countries and on any possible negative impacts of the CBAM on the industries affected by this Regulation.
Amendment 336 #
Proposal for a regulation
Article 2 – paragraph 7 – point c
Article 2 – paragraph 7 – point c
(c) the third country or territory has submitted a public and verifiable roadmap to the Commission, containing a timetable for the adoption of measures to implement the conditions set out in points (d) and (e);
Amendment 337 #
Proposal for a regulation
Article 2 – paragraph 7 – point d
Article 2 – paragraph 7 – point d
(d) the third country or territory has committed to climate neutrality by 2050 and has accordingly formally formulated and communicated, where applicable, to the United Nations Framework Convention on Climate Change a mid-century, long- term low greenhouse gas emissions development strategy aligned with that objective, and has credibly and effectively implemented that obligation in its domestic legislation;
Amendment 367 #
Proposal for a regulation
Article 3 – paragraph 1 – point 11
Article 3 – paragraph 1 – point 11
(11) ‘competent authority’ means the CBAM authority, established at EU level and the national authority designated by each Member State in accordance with Article 11 of this Regulation;
Amendment 408 #
Proposal for a regulation
Article 8 – paragraph 1
Article 8 – paragraph 1
1. The authorised declarant shall ensure that the total embedded emissions declared in the CBAM declaration submitted pursuant to Article 6 are verified by a verifier accredited pursuant to Article 18, based on the verification principles set out in Annex V. The competent authority is authorised to verify the accuracy of the information in the CBAM declaration.
Amendment 443 #
Proposal for a regulation
Article 11 – paragraph 1 – introductory part
Article 11 – paragraph 1 – introductory part
1. Each Member State shall designate the competent authority to carry out the obligations under this Regulation and inform the Commission thereofA central CBAM authority at EU level is established for the purpose of implementing and managing this Regulation.
Amendment 487 #
Proposal for a regulation
Article 14 – paragraph 4
Article 14 – paragraph 4
4. The CommissionEU CBAM authority shall establish a central database at EU level accessible to the public containing the names, addresses and contact details of the operators and the location of installations in third countries in accordance with Article 10(2). An operator may choose not to have its name, address and contact details accessible to the public.
Amendment 493 #
Proposal for a regulation
Article 15 – paragraph 1
Article 15 – paragraph 1
1. The CommissionEU CBAM authority shall act as central administrator to maintain an independent transaction log recording the purchase of CBAM certificates, their holding, surrender, re-purchase and cancellation and ensure coordination of national registries.
Amendment 649 #
Proposal for a regulation
Article 30 – paragraph 1
Article 30 – paragraph 1
1. The Commission shall collect , in consultation with the relevant stakeholders, the information necessary with a view to extending the scope of this Regulation to indirect emissions and goods other than those listed in Annex I, and develop methods of calculating embedded emissions based on environmental footprint methods.
Amendment 653 #
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,highlight, in particular: a) whether the Regulation effectively achieves carbon cost equalisation between imported and domestic products. b) whether the CBAM effectively mitigates carbon leakage for both imports and exports. c) whether the CBAM effectively contributes to reducing carbon emissions in third countries. d) whether the CBAM operates effectively and does not lead to forms of circumvention. e) whether, based on the above, the gradual phase-out of free allocations given in relation to the production of products listed in Annex I of the Regulation shall be initiated. f) the 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 assessment of the governance system. It shall also containg) the 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.
Amendment 670 #
Proposal for a regulation
Article 30 – paragraph 3
Article 30 – paragraph 3
3. The report by the Commission shall, if appropriate, be accompanied by a legislative proposal to address in particular the risk of carbon leakage on export markets. This proposal shall consider WTO-compatible solutions such as export adjustment mechanisms that would equalise carbon costs, taking into account the carbon pricing schemes developed by third countries. Such export mechanisms shall be emission performance-based in order to preserve an incentive for GHG emission reduction.