Activities of Benoît BITEAU 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 (24)
Amendment 6 #
Proposal for a regulation
Recital 3 a (new)
Recital 3 a (new)
(3a) In its communication on the Farm to Fork Strategy, aiming at fostering a transition toward sustainable European food systems, the Commission set a target of 20% reduction in the use of fertiliser. The European Parliament acknowledged this reduction pathway. As synthetic fertiliser accounts for 1/40 of global GHG emissions, a reduction in farmers' dependency on these inputs is relevant from a climatic perspective. This reduction in fertiliser use could also mitigate the impact of an increase in synthetic fertiliser price on farmers’ income. The funds of the CAP, particularly its second pillar, and the NextGenerationEU can be put towards this goal, and in support of farmers' positive shift.
Amendment 16 #
Proposal for a regulation
Recital 12
Recital 12
(12) While the objective of the CBAM is to prevent thelower global carbon emissions and support the implementation of the goals of the Paris Agreement, including by preventing any 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.
Amendment 21 #
Proposal for a regulation
Recital 13 a (new)
Recital 13 a (new)
(13 a) Least developed countries (LDCs) are accountable for only 1.1% of the world CO2 emissions from fossil-fuels combustion and industrial processes[1].While LDCs and Small Islands Developing States bear the least historical responsibility for climate change, they are on the front lines of the climate crisis, worsening existing inequalities and creating extreme poverty.To avoid such negative effects, they should be given a special treatment concerning carbon pricing in the frame of the CBAM.LDCs, as defined by the UN, are granted an exemption period from CBAM to avoid any additional burden that would prevent them from efficiently and swiftly achieve their climate transition towards climate neutrality.This exemption should be carefully monitored through market surveillance by the Commission to avoid circumvention. [1] “Smallest footprints, largest impacts: Least developed countries need a just sustainable transition”, UNCTAD, 2019, https://unctad.org/fr/node/34943
Amendment 22 #
Proposal for a regulation
Recital 14
Recital 14
(14) This Regulation should apply to goods imported into the customs territory of the Union from third countries, except where their production has already been subject to the EU ETS, whereby it applies to third countries or territories, or to a carbon pricing system fully linked with the EU ETS. This Regulation should also not apply to third countries classified as “least-developed” by the United Nations.
Amendment 28 #
Proposal for a regulation
Recital 11
Recital 11
(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. The combined and transitionalthat the application of EU ETS allowances allocated free of charge and of the CBAM should in no casedoes not result in more favourable treatment for Union goods compared to goods imported into the customs territory of the Union, free allocation is to end upon application of the CBAM in 2025.
Amendment 32 #
Proposal for a regulation
Recital 55
Recital 55
(55) As the CBAM aims to encourage cleaner production processes, the EU stands ready to work with low and middle- income countries towards the de- carbonisation of their manufacturing industries. Moreover, the Union should support less developed countries with the necessary technical assistance in order to facilitate their adaptation to the new obligations established by this regulation and provide them. with the necessary technical assistance and with the sharing or GHG-abating technology in order to facilitate their adaptation to the new obligations established by this regulation. Least Developed Countries have limited capacity to decarbonise their industries, and compliance with the CBAM obligations would be highly demanding for them. Moreover, manufacturing capacities and associated emissions in those countries are negligible on a global scale. In order not to place a disproportionate burden on those countries, and in line with the ‘common but differentiated responsibility’ principle, as stated in Art 2. 2. of the Paris agreement, the CBAM will not apply to them. However, to prevent risks of circumvention, the Commission will set up a market surveillance monitoring system and will take measures, where appropriate.
Amendment 35 #
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 and support the Union’s increased ambition on climate mitigation, while ensuring WTO compatibility. Support measures for farmers in adapting to changes in fertiliser price or sourcing shall be made available under existing appropriate instruments, notably the CAP and the NextGenerationEU, rather than compromising the efficacy and WTO compatibility of the CBAM itself.
Amendment 37 #
Proposal for a regulation
Recital 55 a (new)
Recital 55 a (new)
(55 a) Revenues from the CBAM should flow into the general budget of the Union and should constitute internal assigned revenue for the purpose of Article 21(3) of the Financial Regulation. To further ensure that the aim of the CBAM is solely to reduce global carbon emission, those new resources should contribute to supporting the implementation of the Green Deal by stepping up the Union’s contribution to international climate finance and help to Least Developed Countries.
Amendment 43 #
Proposal for a regulation
Recital 17
Recital 17
(17) The GHG emissions to be regulated by the CBAM should correspond to those GHG emissions covered by Annex I to the EU ETS in Directive 2003/87/EC, namely carbon dioxide (‘CO2’) as well as, where relevant, nitrous oxide (‘N2O’) and perfluorocarbons (‘PFCs’). The CBAM should initially apply to direct emissions of those GHG from the production of goods up to the time of import into the customs territory of the Union, and after the end of a transition period and upon further assessment, as well to indirect emissions, mirroring the scope of the EU ETS.
Amendment 43 #
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 thereduce global carbon emissions and support the implementation of the goals of the Paris Agreement by preventing any risk of carbon leakage.
Amendment 47 #
Proposal for a regulation
Article 2 – paragraph 3
Article 2 – paragraph 3
3. By way of derogation from paragraphs 1 and 2, this Regulation does not apply to goods originating in countries and territories listed in Annex II, Section A and in Least Developed Countries (LDCs) as designated by the United Nations.
Amendment 48 #
Proposal for a regulation
Article 24 – paragraph 1 a (new)
Article 24 – paragraph 1 a (new)
Amendment 52 #
Proposal for a regulation
Article 27 – paragraph 5
Article 27 – paragraph 5
5. Where the Commission, taking into account the relevant data, reports and statistics, including when provided by the customs authorities of Member States, has sufficient reasons to believe that the circumstances referred to in paragraph 32 are occurring in one or more Member States, it can proceed according to the following options: (a) it is empowered to adopt delegated acts in accordance with Article 28 to supplement the scope of this Regulation as necessary in order to include slightly modified products for anti-circumvention purposes. additional products for anti-circumvention purposes and if necessary it may adopt a new legislative proposal; (b) if in particular the practices of circumvention referred to in point (c) of paragraph 2 materialise in a Least Developed Country, the Commission may, if appropriate, temporarily remove the relevant exemption from the CBAM referred to in paragraph 3 of Article 2; (c) in particular for the practices of circumvention referred to in point (d) of paragraph 2, the Commission shall introduce a tariff-rate quota based on export levels during the three preceding years. Beyond the level set by the tariff- rate quota, the exemption from the CBAM for the country in question shall cease to apply.
Amendment 58 #
Proposal for a regulation
Recital 32
Recital 32
(32) In particular, organic chemicals are not included in the scope of this Regulation due to technical limitations that do not allow to clearly define the embedded emissions of imported goods. For these goods the applicable benchmark under the EU ETS is a basic parameter, which does not allow for an unambiguous allocation of emissions embedded in individual imported goods. A more targeted allocation to organic chemicals will require more data and analysis, and a report assessing the possibilities to extend the scope to include organic chemicals is to be provided by the end of the transition period.
Amendment 59 #
Proposal for a regulation
Recital 34
Recital 34
(34) However, aluminium products should be included in the CBAM as they are highly exposed to carbon leakage. Moreover, in several industrial applications they are in direct competition with steel products because of characteristics closely resembling those of steel products. Inclusion of aluminium is also relevant as the scope of the CBAM maywill be extended to cover also indirect emissions in the future.
Amendment 66 #
Proposal for a regulation
Recital 37 a (new)
Recital 37 a (new)
(37a) The inclusion of the fertiliser sector in this Regulation will have an effect on fertiliser price leading to an increase of European farmers’ production costs. While avoiding carbon leakage from the fertiliser sector, this could ultimately result in carbon leakage in the food production due to climate dumping from third countries. One solution could be the inclusion of agricultural products in the scope of the CBAM. However, agricultural products are not included in the EU ETS and their inclusion would cause methodological problems in terms of emission accounting. Therefore, the impacts of the CBAM on the agricultural sector should be mitigated via other climatic legislation such as the Effort Sharing Regulation, trade measures in line with the Joint Statement on External Trade for the Achievement of the European Green Deal of 25th June 2021, and by pursing the goal of the Farm to Fork Strategy on reducing the use of synthetic fertiliser1a. _________________ 1aCommunication of the Commission on a Farm to Fork strategy for a fair, healthy and environmentally-friendly food system (COM(2020)381), and European Parliament Resolution of 20 October 2021 on a Farm to Fork strategy for a fair, healthy and environmentally-friendly food system (P9-TA(2021)0425
Amendment 102 #
Proposal for a regulation
Article 1 – paragraph 3
Article 1 – paragraph 3
3. The mechanism will progressively become an alternative toreplace the mechanisms established under Directive 2003/87/EC to prevent the risk of carbon leakage, notabamely the allocation of allowances free of charge in accordance with Article 10a of that Directive.
Amendment 114 #
Proposal for a regulation
Article 6 – paragraph 2 – point c
Article 6 – paragraph 2 – point c
(c) the total number of CBAM certificates corresponding to the total embedded emissions, to be surrendered, after the reduction due on the account of the carbon price paid in a country of origin in accordance with Article 9 and the adjustment necessary of the extent to which EU ETS allowances are allocated free of charge in accordance with Article 31.
Amendment 160 #
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 reportproposal to the European Parliament and the Council on the application of this Regulation. The report shall contain, in particular, the assessment of the possibilities toproposal shall 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, in particular organic chemicals, as well as an assessment of the governance system. It shall also contain 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 164 #
Proposal for a regulation
Article 31
Article 31
Amendment 170 #
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 173 #
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 174 #
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 177 #
(d) Articles 4, 6, 7, 8, 9, 14, 15, 16, 19, 20, 21, 22, 23, 24, 25, 26, 27 and 3127 shall apply from 1 January 20265.