Activities of David CORMAND related to 2021/0214(COD)
Shadow opinions (1)
OPINION on the proposal for a regulation of the European Parliament and of the Council Establishing a carbon border adjustment mechanism
Amendments (13)
Amendment 14 #
Proposal for a regulation
Recital 11
Recital 11
(11) The CBAM seeks tohould 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. 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 Unioncarbon leakage mechanisms by terminating derogations from the application of the‘polluter pays principle’, while ensuring equal treatment between EU and non-EU products through equivalent carbon pricing for imports and domestic products. Free allocations and indirect cost compensation should cease to apply as of 31 December 2023.
Amendment 17 #
Proposal for a regulation
Recital 13 a (new)
Recital 13 a (new)
(13 a) All revenues generated should be attributed to the Union budget as an own resource in accordance with the procedures set out in Article 311 TFEU, pursuant to Annex 2 of the Interinstitutional Agreement of 16 December 2020 , taking into account the Commission’s legislative proposal of 22 December 2021 to amend the Own Resources Decision. The amount of the revenues from CBAM flowing into the European Union’s budget shall equal the full amount of revenues from the sale of CBAM certificates. The CBAM-based own resource would thus be part of a basket of own resources whose total proceeds should be sufficient to cover the level of overall expected expenditure for the repayment costs of the principal and interests of the borrowing incurred under the Next Generation EU instrument, while respecting the principle of universality. Together with the ETS-based own resource, these two green own resources should also link the Union budget with the Union’s policy priorities, and thus add value, similarly as the proposal for the own resources based on the share of the residual profits of the largest and most profitable multinational enterprises that are allocated to EU member States following the OECD/G20 Inclusive Framework agreement. They should contribute to the climate mainstreaming objectives, tax justice and the resilience of the Union budget as a tool for investments and guarantees.
Amendment 24 #
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 2019/70842 . Before the end of the transitional period, the Commission will present a new legislation proposal with a view to extending the scope of this Regulation to goods other than those listed in Annex I, including oil-refineries, paper, glass, plastics, and downstream products using goods covered by this Regulation. _________________ 42 Commission 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 28 #
Proposal for a regulation
Recital 50
Recital 50
(50) A transitional period should apply during the period 2023 until 20254. 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 30 #
Proposal for a regulation
Recital 52
Recital 52
(52) The Commission should collect information, evaluate the application of this Regulation and develop methods of calculating embedded emissions based on the environmental footprint methods before the end of the transitional period and reportsubmit a report and a legislative proposal to the European Parliament and the Council. The report of the Commission should in particular focus on possibilities tolegislative proposal should focus on enhanceing climate actions towards the objective of a climate neutral Union by 2050. The Commission should, as part of that evaluation, initiate collection of information necessary to possibly extend the scope to indirect emissions, as well aspropose to extend the scope to other goods and services at risk of carbon leakage, and to develop methods of calculating embedded emissions based on the environmental footprint methods47 . _________________ 47 Commission Recommendation 2013/179/EU of 9 April 2013including oil refineries, paper, glass, plastics aiming at matching the same product scope as ETS, as well as to downstream products using goods covered by the CBAM. The Report should provide an assessment of the governance system onf 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)Regulation, it should also evaluate the risks of circumvention and fraud identified and, if appropriate, propose measures to address them.
Amendment 38 #
Proposal for a regulation
Article 1 – paragraph 3
Article 1 – paragraph 3
3. The mechanism will progressively becomshall be an alternative to the mechanisms established under Directive 2003/87/EC to prevent the risk of carbon leakage, notably the allocation of allowances free of charge and compensation of indirect costs in accordance with Articles 10a and 10b of that Directive.
Amendment 52 #
Proposal for a regulation
Article 24 a (new)
Article 24 a (new)
Article 24 a Revenues generated by the sale of CBAM certificates The revenues generated by the sale of CBAM certificates shall not constitute assigned revenue. This Regulation shall not prevent any revenue generated by the sale of CBAM certificates from being defined as own resources in accordance with Article 311 TFEU and entered in the Union budget as general income.
Amendment 57 #
Proposal for a regulation
Chapter IX – title
Chapter IX – title
IX CoordTermination with free allocation of allowances under the EU ETS
Amendment 58 #
Proposal for a regulation
Article 31 – paragraph 1
Article 31 – paragraph 1
1. The CBAM certificates to be surrendered in accordance with Article 22 shall be adjusted to reflect the extent to which EU ETS allowances are allocated free of charge in accordance with Article 10a of Directive 2003/87/EC to instreflect the price paid by the installations producing within the Union territory and being covered by the EU ETS in accordance with Directive XXXX/XX/XX(revised EU ETS), which will provide for a termination of free allocations producing, within the Union, the goods listed in Annex I of allowances as of the date referred to in paragraph 3(d) of Article 36 of this Regulation.
Amendment 59 #
Proposal for a regulation
Article 36 – paragraph 3 – point a
Article 36 – paragraph 3 – point a
(a) Articles 32 to 34 shall apply until 31 December 20254.
Amendment 60 #
Proposal for a regulation
Article 36 – paragraph 3 – point b
Article 36 – paragraph 3 – point b
(b) Article 35 shall apply until 28 February 20265.
Amendment 61 #
Proposal for a regulation
Article 36 – paragraph 3 – point c
Article 36 – paragraph 3 – point c
(c) Articles 5 and 17 shall apply from 1 September 20254.
Amendment 62 #
Proposal for a regulation
Article 36 – paragraph 3 – point d
Article 36 – paragraph 3 – point d
(d) Articles 4, 6, 7, 8, 9, 14, 15, 16, 19, 20, 21, 22, 23, 24, 25, 26, 27 and 31 shall apply from 1 January 20265.