34 Amendments of Ondřej KNOTEK related to 2021/0214(COD)
Amendment 169 #
Proposal for a regulation
Recital 10
Recital 10
(10) Existing mechanisms to address the risk of carbon leakage in sectors or sub- sectors at risk of carbon leakage are the transitional free allocation of EU ETS allowances and financial measures to compensate for indirect emission costs incurred from GHG emission costs passed on in electricity prices respectively laid down in Articles 10a(6) and 10b of Directive 2003/87/EC. However, free allocation under the EU ETS weakens the price signal that the system provides for the installations receiving it compared to full auctioning and thus affects the incentives for investment into further abatement of emissions.
Amendment 198 #
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 Union 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, t while preserving Union 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 this 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 216 #
Proposal for a regulation
Recital 11 a (new)
Recital 11 a (new)
(11a) While the surrendering of CBAM certificates for Union imports addresses the risk of carbon leakage on the Union market, it is essential to avoid also the risk that Union exports to global markets are replaced by more carbon intensive goods or by goods that are not subject to equivalent climate policy and carbon costs. To this purpose if the assessment of the effectiveness of the CBAM in tackling carbon leakage both on the internal market and global markets is positive, after the test period 2026-2028, in 2029 the Commission should present a report to the European Parliament and to the Council accompanied with a legislative proposal to address the carbon leakage risk on export markets . If the report concludes that the surrendering of CBAM certificates by importers is effective in addressing the carbon leakage risk on the Union market and that the free allocation rules related to Union domestic sales should be amended, the legislative proposal should ensure the maintenance of free allocation related to Union exports and provide the calculation methodology for determining this allocation.
Amendment 322 #
Proposal for a regulation
Recital 19 a (new)
Recital 19 a (new)
(19a) In order not to 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 426 #
Proposal for a regulation
Recital 47
Recital 47
(47) Contracting Parties to the Treaty establishing the Energy Community45 or Parties to Association Agreements including Deep and Comprehensive Free Trade Areas are committed to decarbonisation processes that should eventually result in the adoption of carbon pricing mechanisms similar or equivalent to the EU ETS or in their participation in the EU ETS. to the EU ETS should benefit from CBAM exemption with regard to the goods originating in those countries provided that certain conditions are satisfied. Those third countries should develop a roadmap and commit to implement an effective system of monitoring, reporting and verification of greenhouse gas emissions, a carbon pricing mechanism similar to the EU ETS, and should commit to achieving carbon neutrality. That exemption should be withdrawn if there are reasons to believe that the country in question does not fulfil its commitments. The Union is committed to providing those third countries with financial support for the adoption of carbon pricing mechanisms similar to the EU ETS, the deployment of decarbonisation technologies, and the implementation of other measures aimed at achieving climate neutrality. __________________ 45 Council Decision 2006/500/EC of 29 May 2006 on the conclusion by the European Community of the Energy Community Treaty (OJ L 198, 20.7.2006, p. 15).
Amendment 463 #
Proposal for a regulation
Recital 52
Recital 52
(52) The Commission should evaluate the application of this Regulation before the endstart of the transitional periodremoval of free allowances in ETS and report to the European Parliament and the Council. The report of the Commission should in particular focus on 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 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 . With regards to indirect emissions, the evaluation should take into account the exposure of Union producers to carbon costs passed on in electricity prices due to the functioning of the EU energy market. __________________ 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 502 #
Proposal for a regulation
Recital 54
Recital 54
(54) The Commission should strive to engage in an even handed manner and in line with the international obligations of the EU, with the third countries whose trade to the EU is affected by this Regulation, to explore possibilities for dialogue and cooperation with regard to the implementation of specific elements of the Mechanism set out this Regulation and related implementing acts. It should also explore possibilities for concluding agreements to take into account their carbon pricing mechanism, provided that they deliver equivalent GHG emissions reductions and carbon costs constraints.
Amendment 553 #
Proposal for a regulation
Article 1 – paragraph 3
Article 1 – paragraph 3
3. The mechanism will progressively become 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 in accordance with Article 10a of that Directive. The mechanism shall first prove to be effective to prevent the risk of carbon leakage both for imports into or exports from the customs territory of the Union, without prejudice to maintaining EU ETS allowances free of charge at benchmark level until a test period with actual surrendering obligation by declarants running until 2030.
Amendment 622 #
Proposal for a regulation
Article 2 – paragraph 11 – point a (new)
Article 2 – paragraph 11 – point a (new)
(a) the third country is a party to the Treaty establishing the Energy Community and/or a party to Association Agreement, including a Deep and Comprehensive Free Trade Area with the Union;
Amendment 623 #
Proposal for a regulation
Article 2 – paragraph 11 – point b (new)
Article 2 – paragraph 11 – point b (new)
(b) the third country has put in place an effective system of monitoring, reporting and verification of greenhouse gas emissions;
Amendment 624 #
Proposal for a regulation
Article 2 – paragraph 11 – point c (new)
Article 2 – paragraph 11 – point c (new)
(c) the third country has submitted a roadmap to the Commission, containing a timetable for the adoption of measures to implement the conditions set out in points (d), (e), and (f);
Amendment 626 #
Proposal for a regulation
Article 2 – paragraph 11– point e (new)
Article 2 – paragraph 11– point e (new)
(e) the third country has committed to climate neutrality and has accordingly formally formulated and communicated, where applicable, to the United Nations Framework Convention on Climate Change a long-term low greenhouse gas emissions development strategy aligned with that objective, and has implemented that obligation in its domestic legislation;
Amendment 627 #
Proposal for a regulation
Article 2 – paragraph 11 – point f (new)
Article 2 – paragraph 11 – point f (new)
(f) the third country has, when implementing the roadmap pursuant to point (c), demonstrated substantial progress towards the alignment of domestic law with Union law in the field of climate action on the basis of that roadmap. The implementation of an emission trading system by 1 January 2030 is conditional upon third country’s receipt of the financial, institutional, and expert support from the Union.
Amendment 628 #
Proposal for a regulation
Article 2 – paragraph 12
Article 2 – paragraph 12
12. The Union, may conclude agreements with third countries with a view to take account of carbon pricing mechanisms in these countries in the application of Article 9A third country satisfying the conditions set out in paragraph 11, points (a) to (f), shall be listed in Annex II, Section C, of this Regulation, and shall submit two reports on the fulfilment of the conditions pursuant to paragraph 7, points (a) to (f), one before 1 July 2025 and another before 1 July 2029. By 31 December 2025 and by 31 December 2029, the Commission shall assess, notably on the basis of the roadmap pursuant to paragraph 11, point (c), and the reports received from the third country, whether that third country continues to respect the conditions set out in paragraph 11.
Amendment 633 #
Proposal for a regulation
Article 2 – paragraph 12 a (new)
Article 2 – paragraph 12 a (new)
12a. A third country listed in Annex II, Section C of this Regulation, shall be removed from that list if the Commission has reasons to consider that the country has not shown sufficient progress to comply with one of the requirements listed in paragraph 11, points (a) to (f), or if the country has taken action incompatible with the objectives set out in the Union climate and environmental legislation.
Amendment 634 #
Proposal for a regulation
Article 2 – paragraph 12 b (new)
Article 2 – paragraph 12 b (new)
12b. The Commission is empowered to adopt delegated acts in accordance with Article 28 to amend the lists in Annex II, Sections A, B or C, depending on whether the conditions in paragraphs 5, 7, 9, 11 or 13 are satisfied.
Amendment 635 #
Proposal for a regulation
Article 2 – paragraph 12 c (new)
Article 2 – paragraph 12 c (new)
12c. The Union may conclude agreements with third countries with a view to take account of carbon pricing mechanisms in these countries.
Amendment 746 #
Proposal for a regulation
Article 9 – paragraph 2
Article 9 – paragraph 2
2. The authorised declarant shall keep records of the documentation, certified by an independent person, verifier accredited pursuant to article 18 and in line with the competences established in Article 8 (1) concerning the verification of embedded emissions. The accredited verifier is required to demonstrate that the declared embedded emissions were subject to a carbon price in the country of origin of the goods and keep evidence of the proof of the actual payment for that carbon price which should not have been subject to an export rebate or any other form of compensation on exportation.
Amendment 773 #
Proposal for a regulation
Article 10 – paragraph 1
Article 10 – paragraph 1
1. The Commission shall, upon request by a register the information on operators of an installations located in a third country, register the information on that operator and on itsies and those installations in a central database referred to in Article 14(4).
Amendment 791 #
Proposal for a regulation
Article 10 – paragraph 8
Article 10 – paragraph 8
8. The operator may, at any timefter 10 years, ask to be deregistered from the database.
Amendment 990 #
Proposal for a regulation
Article 27 – paragraph 2
Article 27 – paragraph 2
2. Practices of circumvention include situations where a change in the pattern of trade in relation to goods included in the scope of this Regulation, whether slightly modified or not, stems from a practice, process or work has insufficient due cause or economic justification other than avoiding obligations as laid down in this Regulation and consist in replacing those goods with slightly modified products, which are not included in the list of goods in Annex I but belong to a sector included in the scope of this Regulation. or undermining their effects, including on overall GHG emissions and on prices of the like products.
Amendment 1014 #
Proposal for a regulation
Article 27 – paragraph 2 a (new)
Article 27 – paragraph 2 a (new)
2a. The practice, processor work referred to in the first subparagraph include, inter alia: (a) the slight modification of the product concerned to make it fall under customs codes which are normally not subject to the obligations of this Regulation, provided that the modification does not alter its essential characteristics; (b) false declarations as to the identity of the producer of the product concerned or of the nature of the product concerned or the production process involved in making it; (c) the consignment of the product concerned via third countries to which no or more favourable obligations apply; (d) the reorganisation by exporters or producers of their patterns and channels of sales in order to eventually avoid obligations as laid down in this Regulation, or undermine their effects, including on overall GHG emissions and on prices of the like products, for instance via practices of resource shuffling. For the purposes of this sub-point, resource shuffling shall be defined as any practice, process or work that that have insufficient due cause or economic justification other than avoiding obligations as laid down in this Regulation, or undermining their effects, without delivering environmental benefits on global GHG emissions; (e) in the circumstances indicated in paragraph 2, the assembly of parts by an assembly operation in the Union or a third country; (f) Any other measure to eventually avoid 6 or evade obligations as laid down in this Regulation, or undermine their effects, including on overall GHG.
Amendment 1030 #
Proposal for a regulation
Article 27 – paragraph 3
Article 27 – paragraph 3
3. A Member State or any party affected or benefitted by the situations described in paragraph 2 may notify the Commission if it is confronted, over a two- month period compared with the same period in the preceding year with a significant decrease in the volume of imporFollowing a complaint from an interested party or on its own initiative, the Commission may decide, following an investigation, to extend goods included in the scope of this Regulation and an increase of volume of imports of slightly modified products, which are not included in the list of goods in Annex I. The Commission shall continually monitor any significant change of pattern of trade of goods and slightly modified products at Union levelobligations laid down in this Regulation, in whatever way is necessary to prevent future circumvention of the Mechanism, when circumvention of the measures in force is taking place.
Amendment 1041 #
Proposal for a regulation
Article 27 – paragraph 4
Article 27 – paragraph 4
4. The notificatDecisions referred to in the third paragraph 3 shall state the reasons on which it is based and shall include relevant data and statistics regarding the goods and products referred to in paragraph 2be subject to the appeal procedure as set out in Article 30.
Amendment 1049 #
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 3 are occurring in one or more Member States, it is empowered to adopt delegated acts in accordance with Article 28 to supplement the scope of this Regulation in ordInvestigations shall be initiated pursuant to this Article on the initiative of the Commission or at the request of a Member State or of any interested party on the basis of sufficient evidence regarding the factors set out in the second paragraph. Initiations shall be made by means of a Commission regulation which shall also instruct customs authorities of Member States to subject imports to registration. The Commission shall provide information to the Member States once an interested party or a Member State has submitted a request justifying the initiation of an investigation and the Commission has completed its analysis thereof, or where to include slightly modified products for anti-circumvention purposeshe Commission has itself determined that there is a need to initiate an investigation.
Amendment 1062 #
Proposal for a regulation
Article 27 – paragraph 5 a (new)
Article 27 – paragraph 5 a (new)
5a. Investigations shall be carried out by the Commission. The Commission may be assisted by customs authorities and the investigation shall be concluded in due time.
Amendment 1067 #
Proposal for a regulation
Article 27 – paragraph 5 b (new)
Article 27 – paragraph 5 b (new)
5b. The Commission Decision finding circumvention shall impose a penalty pursuant to article 26 on an Authorised Declarant involved in the circumvention and, if appropriate, the operator of the installation located in the third country that is linked to the Authorised Declarant. Where appropriate, the penalty shall also entail the withdrawal of import authorisation and be extended to the operator.
Amendment 1093 #
Proposal for a regulation
Article 28 – paragraph 2
Article 28 – paragraph 2
2. The power to adopt delegated acts referred to in Articles 2(10), 2(114), 18(3) and 27(5) shall be conferred on the Commission for an indeterminate period of time.
Amendment 1098 #
Proposal for a regulation
Article 28 – paragraph 3
Article 28 – paragraph 3
3. The delegation of power referred to in Articles 2(10), 2(114), 18(3) and 27(5) may be revoked at any time by the European Parliament or by the Council.
Amendment 1103 #
Proposal for a regulation
Article 28 – paragraph 7
Article 28 – paragraph 7
7. A delegated act adopted pursuant to Articles 2(10), 2(114), 18(3) and 27(5) shall enter into force only if no objection has been expressed either by the European Parliament or by the Council within a period of two months of notification of that act to the European Parliament and to the Council or if, before the expiry of that period, the European Parliament and the Council have both informed the Commission that they will not object. That period shall be extended by two months at the initiative of the European Parliament or of the Council.
Amendment 1116 #
Proposal for a regulation
Article 30 – paragraph 1
Article 30 – paragraph 1
1. The Commission shall collect, in consultation with 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 1134 #
Proposal for a regulation
Article 30 – paragraph 2
Article 30 – paragraph 2
2. Before the endstart of the transitional periodremoval of free allowances under ETS, 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, and assess if the conditions are in place for the effective implementation of a CBAM before phasing out free allocation. The report shall contain, in addition, the assessment of the rules to be applied in the testing period established pursuing to article 30bis and 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 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 1189 #
Proposal for a regulation
Article 30 a (new)
Article 30 a (new)
Article 30 a The Commission shall monitor and evaluate the mechanism’s effectiveness with regard to the risk of carbon leakage before phasing out free allocation to sectors at risk of carbon leakage covered by this regulation. To this end, the Commission shall, after consultation of the sectors subject to this regulation, present a report to the European Parliament and the Council evaluating: - the first three years (2026-2028) of the surrendering obligation pursuant to article 22; - the risk of carbon leakage on export markets. Only if the evaluation is clearly positive, the report shall be accompanied by a legislative proposal phasing out free allocation to sectors subject to this regulation, as set out in Article 10.a.1of Directive 2003/87/EC, and implementing a solution to address the risk of carbon leakage on export market.
Amendment 1259 #
Proposal for a regulation
Annex II – Part 2 a (new)
Annex II – Part 2 a (new)
Section C - Countries outside the scope of this Regulation who are committed to decarbonisation processes that should result in the adoption of emission trading system similar to the EU ETS [Currently empty]