Activities of Manon AUBRY 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 (57)
Amendment 84 #
Proposal for a regulation
Recital 1
Recital 1
(1) The Commission has, in its communication on the European Green Deal31, set out a new growth strategy that aims toas a first step in the transformation of the Union into a fair and prosperous society, with a modern, resource-efficient and competitiven environmentally sustainable, carbon- neutral, toxic-free and fully circular economy, where there are no net emissions (emissions after deduction of removals) of greenhouse gases (‘GHG emissions’) in 2050 and where economic growth is decoupled from resource use. The European Green Deal also aims to protect, conserve and enhance the EU’s natural capital, and protect the health and well-being of citizens from environment- related risks and impacts. At the same time, that transformation must be just and inclusive, leaving no one behindithin the limits of the planet by 2050 at the latest. The European Green Deal also aims to strengthen global efforts to implement the One Health approach, which recognises the intrinsic link between human health, animal health and a healthy and resilient nature, and to contribute to the achievement of the objectives of the Paris Agreement and the Convention on Biological Diversity, as well as the United Nations Sustainable Development Goals. At the same time, that transformation must effectively guarantee the right of all to dignified and recognised work in a society of solidarity. The Commission also announced in its EU Action Plan: Towards Zero Pollution for Air, Water and Soil32 the promotion of relevant instruments and incentives to better implement the polluter pays principle as set out in Article 191(2) of the Treaty on the Functioning of the European Union (‘TFEU’) and thus complete the phasing out of ‘pollution for free’ with a view to maximising synergies between decarbonisation and the zero pollution ambition. _________________ 31 Communication from the Commission of 11 December 2019 on the European Green Deal (COM(2019) 640 final). 32 Communication from the Commission of 12 May 2021 on Pathway to a Healthy Planet for All (COM(2021) 400).
Amendment 87 #
Proposal for a regulation
Recital 3
Recital 3
(3) Tackling climate and other environmental-related challenges and, reaching the objectives of the Paris Agreement are at the core of the European Green Deal. The value of the European Green Dealnd creating a safe and equitable space for humanity in which a society that assures sustainable human development can thrive are the objectives to which the European Green Deal must contribute. The urgent need to meet these objectives has only grown in light of the very severe effects of the COVID-19 pandemic on the health and economic well- being of the Union’s citizens.
Amendment 91 #
Proposal for a regulation
Recital 6 a (new)
Recital 6 a (new)
(6a) The new emissions gap report published by the United Nations Environment Programme (UNEP) shows that the updated Nationally Determined Contributions (NDCs) could lead to a global temperature increase of around 2.7°C by the end of the century. The various international commitments to climate neutrality, if fully implemented, would still lead to a global temperature increase of 2.2°C. The Union and its main trading partners must step up efforts to contain global warming and limit the global temperature increase to 1.5°C.
Amendment 92 #
Proposal for a regulation
Recital 6 b (new)
Recital 6 b (new)
(6b) The 2021 WHO health and climate change global survey report notes that more than three quarters of the countries surveyed have developed or are in the process of developing national health and climate change plans or strategies. Insufficient funding remains the main stumbling block for the full implementation of national health and climate change plans for 70% of the countries surveyed. According to the United Nations Environment Programme (UNEP), the cost of adaptation is expected to be in the upper part of the estimated range of USD 140-300 billion per year by 2030, and USD 280-500 billion per year by 2050. In addition, UNEP estimates that the cost in developing countries is five to ten times higher than current public financing flows for adaptation. Developing countries therefore need financial, technological and capacity- building support to increase their level of ambition, in terms both of reducing emissions and of enhancing adaptation to the effects of climate change.
Amendment 93 #
Proposal for a regulation
Recital 7
Recital 7
(7) The Union has beento date pursuinged an ambitious policy on climate action and has put in place awhich has been insufficient to limit the global temperature increase to below 1.5°C. The current regulatory framework tofor achieveing its 2030 GHG emissions reduction target. The legislation implementing that target, which consists, inter alia, of Directive 2003/87/EC of the European Parliament and of the Council37, which establishes a system for GHG emission allowance trading within the Union (‘EU ETS’) and delivers harmonised pricing of GHG emissions at Union level for energy- intensive sectors and subsectors, Regulation (EU) 2018/842 of the European Parliament and of the Council38, which introduces national targets for reduction of GHG emissions by 2030, and Regulation (EU) 2018/841 of the European Parliament and of the Council39, which requires Member States to compensate GHG emissions from land use with removals of emissions from the atmosphere, must be fundamentally revised. _________________ 37 Directive 2003/87/EC of the European Parliament and of the Council of 13 October 2003 establishing a system for greenhouse gas emission allowance trading within the Union and amending Council Directive 96/61/EC (OJ L 275, 25.10.2003, p. 32). 38 Regulation (EU) 2018/842 of the European Parliament and of the Council of 30 May 2018 on binding annual greenhouse gas emission reductions by Member States from 2021 to 2030 contributing to climate action to meet commitments under the Paris Agreement and amending Regulation (EU) No 525/2013 (OJ L 156, 19.6.2018, p. 26). 39 Regulation (EU) 2018/841 of the European Parliament and of the Council of 30 May 2018 on the inclusion of greenhouse gas emissions and removals from land use, land use change and forestry in the 2030 climate and energy framework, and amending Regulation (EU) No 525/2013 and Decision No 529/2013/EU (OJ L 156, 19.6.2018, p. 1).
Amendment 95 #
Proposal for a regulation
Recital 8
Recital 8
(8) As long as a significant number of the UnThe Union’s contribution to greenhouse gas emission’s international partners have policy approaches that do not result in the same level of climate ambition, theres not limited to emissions generated within its territory, but also includes emissions associated with its a risk of carbon leakage. Carbon leakage occurs if, for reasons of costs related to climate policies, businesses in certain industry sectors or subsectors were to transfer production to other countries or imports from those countinternational trade. The latter consist of emissions from international transport, exported emissions and imported emissions. Emissions exported from the Union are accounted for in the Nationally Determined Contribution of the European Union and its Member States under the Paries would replace equivalent but less GHG emissions intensive products. That could lead toAgreement. By contrast, emissions from international transport and increase in their total emissions globally, thus jeopardising the rmported emissions are not yet subject to a reduction strategy. Reductions of GHG emissions that is urgently needed if the world is to keep the global average temperature to well below 2 °C above pre-industrial levelsin the Union as part of its contribution under the Paris Agreement must not lead to an increase in global emissions through the relocation of emissions associated with the Union’s final demand.
Amendment 98 #
Proposal for a regulation
Recital 8 a (new)
Recital 8 a (new)
(8a) Imported emissions and emissions from international transport must have a specific strategy, which must also include a legal framework to minimise the EU’s contribution to deforestation and forest degradation worldwide. The Union’s imported emissions must follow a trajectory consistent with the Paris Agreement target of a 65% reduction in imported emissions by 2050 compared to 2005. Ultimately, in order to ensure that the objective of climate neutrality also applies to the Union’s imported emissions, the Union should strive to achieve a balance between its imported and exported emissions by 2060.
Amendment 101 #
Proposal for a regulation
Recital 8 b (new)
Recital 8 b (new)
(8b) The reduction in the Union’s imported emissions is currently based solely on the reduction commitments of its trading partners, which are currently insufficient to meet the objectives of the Paris Agreement. It is therefore imperative that the Union focus on the means at its disposal to reduce its imported emissions.
Amendment 103 #
Proposal for a regulation
Recital 9
Recital 9
(9) The initiative for a carbon border adjustment mechanism (‘CBAM’)In order to ensure that the Union’s imported emissions contribute as little as possible to global warming and that the EU cannot be suspected of reducing its territorial emissions through increased use of imports – thus placing the burden of mitigation on its a part of the ‘Fit for 55 Package’. Thatrading partners – imported emissions need to decrease. By creating a framework contributing to that objective, the carbon border adjustment mechanism (‘CBAM’) 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 ambitionensure its compliance with the Paris Agreement.
Amendment 113 #
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. between 2008 and 2019, industrial sectors received more free allowances (37 million tonnes of CO2 equivalent) than needed to cover their emissions, allowing them to sell their excess free allowances and make additional profits totalling around EUR 1.6 billion. Moreover, between 2008 and 2019, these sectors generated additional benefits worth EUR 3 billion from international offsets, and between EUR 26 and EUR 46 billion through the partial passing on of the opportunity costs of free allowances in product prices. In addition, in its 2020 audit report, the European Court of Auditors found that the transitional free allocation of allowances under the EU ETS between 2013 and 2018 was not well enough targeted to encourage the reduction of greenhouse gas emissions. Free allocation under the EU ETS has therefore been clearly contrary to the polluter pays principle enshrined in Article 191 TFEU.
Amendment 121 #
Proposal for a regulation
Recital 11
Recital 11
(11) The CBAM seeks to replace these existing mechanisms by addressing the potential 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 Union as rapidly as possible.
Amendment 137 #
Proposal for a regulation
Recital 12
Recital 12
(12) While the objective of the CBAM is to preventomote the risk of carbon leakageeduction of the Union’s imported emissions, 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 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 at least 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 compatibilityand environmental protection measure which should support increased ambition on the Union’s part on climate mitigation.
Amendment 154 #
Proposal for a regulation
Recital 13 a (new)
Recital 13 a (new)
(13a) While not its main objective, the CBAM could also indirectly contribute to improving the Union’s strategic resilience and autonomy, to shortening, making more sustainable and diversifying European industries’ supply chains in order to reduce over-dependence on a few markets, to relocating industrial production in sectors of strategic importance to the Union and to creating quality jobs at local level.
Amendment 158 #
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.
Amendment 159 #
Proposal for a regulation
Recital 15
Recital 15
Amendment 165 #
Proposal for a regulation
Recital 17
Recital 17
(17) The GHG emissions to be regulated by the CBAM should correspond initially 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 ETSso as to best reflect the carbon footprints of different productions.
Amendment 167 #
Proposal for a regulation
Recital 18
Recital 18
(18) The EU ETS and the CBAM have a common objective of pricing GHG emissions embedded in the same sectors and goods According to a report of the United Nations Conference on Trade and Development (UNCTAD), a CBAM which would merely be a competitiveness policy compensating for a difference in production costs between the EU and regions withrough the use of specific allowances or certificates. Both systems have a regulatory nature and are justified by the need to curb GHG emisst a binding climate policy would have a limited contribution to climate change mitigations, in line with the environmental objective set out in Unas it would reduce only 0.1% of global CO2 emissions.
Amendment 168 #
Proposal for a regulation
Recital 19
Recital 19
(19) However, while the EU ETSThe CBAM should therefore sets an absolute cap on the GHG emissions from the activities under its scope and allows tradability of allowances (so called ‘cap and trade system’), the CBAM should not establish quantitative limits to import, so as to ensure that trade flows are not restricted. Moreover, while the EU ETS applies to installations based in the Union, the CBAM should be applied to certain goods imported into the customs territory of the Unionassociated with goods imported into the customs territory of the Union along the lines of the absolute cap set by the EU ETS for GHG emissions from the activities falling within its scope.
Amendment 171 #
Proposal for a regulation
Recital 20
Recital 20
(20) The CBAM system has some specific features compared with the EU ETS, including on its own target for reducing imported emissions, 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 timeframework for organising the reduction of the Union’s imported emissions and to ensure that the management of the system is not excessively burdensome 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 176 #
Proposal for a regulation
Recital 21
Recital 21
(21) In order to preserve its effectiveness as a carbon leakage measure, the CBAM needs to reflect closely the EU ETS price. While on the EU ETS market the price of allowances is determined through auctions, the price of CBAM certificates should reasonably reflect the price of such auctions through averages calculated on a weekly basis. Such weekly average prices reflect closely the price fluctuations of the EU ETS and allowensure that the CBAM does not unduly disadvantage developing and vulnerable countries, it is important that goods imported into the Union and goods produced within the Union a reasonable margin for importers to take advantage of the price changes of the EU ETS while at the same ensuring that the system remains manageable for the administrative authorities subject to equivalent carbon pricing consistent with the Paris Agreement.
Amendment 179 #
Proposal for a regulation
Recital 22
Recital 22
(22) Under the EU ETS, the total number of allowances issued (the ‘cap’) determines the supply of emission allowances and provides certainty about the maximum emissions of GHG. The carbon price is determined by the balance of this supply against the demand of the market. Scarcity is necessary for there to be a price incentive. As it is not possible to impose a cap on the number of CBAM certificates available to importers, if importers In order to address the risk that the carbon price may fluctuate too much, making it too uncertain for importers to plan the reduction of imported emissions, or thadt the possibility to carry forward and trade CBAM certificates, this could result in situations where the price for CBAM certificates would no longer reflect the evolution of the price in the EU ETS. That would weaken the incentive for decarbonisation between domestic and imported goods, favouring carbon leakage and impairing the overarching climate objecarbon price may be too low to encourage the reduction of imported emissions, a new independent agency should be set up with a mandate to ensure the irreversible and gradual reductiveon of the CBAM. It could also result in different prices for operators of different countries. Therefore, the limits to the possibilities to trade CBAM certificates and to carry them forward is justiUnion’s imported emissions through a monopoly on the issuance of CBAM certificates with a fixed by the need to avoid undermining the effectiveness and climate objective of the CBAM and to ensure even handed treatment to operators from different countries. However, in order to preserve the possibility for importers to optimise their costs, this Regulation should foresee a system where authorities can re- purchase a certain amount of excess certificates from the importers. Such amount is set at a level which allows a reasonable margin for importers to leveraprice, the number of which decreases over time: the European Central Carbon Authority. Competent national authorities should sell CBAM certificates to a limited number of importers. Toge their costs over the period of validity of the certificates whilst preserving the overall price transmission effect, ensuring that the environmental objective of the measure is preservedwith the European Central Carbon Authority, they should form a European System of Carbon Authorities.
Amendment 187 #
Proposal for a regulation
Recital 26
Recital 26
(26) TInitially, the product coverage of the CBAM should reflect the activities covered by the EU ETS as that scheme is based on quantitative and qualitative criteria linked to the environmental objective of Directive 2003/87/EC and is the most comprehensive GHG emissions regulatory system in the Union.
Amendment 193 #
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 potential risk of carbon leakage. Union sectors deemed at risk of carbon leakage are listed in Commission Delegated Decision 2019/70842. _________________ 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 204 #
Proposal for a regulation
Recital 43
Recital 43
(43) CBAM certificates differ from EU ETS allowances for which daily auctioning is an essential feature. The need to set a clear price for CBAM certificates makes a daily publication excessively burdensome and confusing for operators, as daily prices risk becoming obsolete upon publication. Thus, the publication of CBAM prices on a weekly basis would accurately reflect the pricing trend of EU ETS allowances and pursue the same climate objective. The calculation of the price of CBAM certificates should therefore be set on the basis of a longer timeframe (on a weekly basis) than in the timeframe established by the EU ETS (on a daily basis). The Commissionis the most reasonable option. The European central carbon authority should be tasked to calculate, set and publish that average price.
Amendment 205 #
Proposal for a regulation
Recital 44
Recital 44
(44) In order to give the authorised declarants flexibility in complying with their CBAM obligations and allow them to benefit from fluctuations in the price of EU ETS allowances, the CBAM certificates should be valid for a period of two years from the date of purchase. The authorised declarant should be allowed to re-sell to the national authority a portion of the certificates bought in excess. The authorised declarant should build up during the year the amount of certificates required at the time of surrendering, with thresholds set at the end of each quarter.
Amendment 207 #
Proposal for a regulation
Recital 49
Recital 49
(49) Once third countries will be closely integrated into the Union electricity market via market coupling, technical solutions should be found to ensure the application of the CBAM to electricity exported from such countries into the customs territory of the Union. If technical solutions cannot be found, third countries that are market coupled should benefit from a time limited exemption from the CBAM until at the latest 2030 with regard solely to the export of electricity, provided that certain conditions are satisfied. However, those third countries should develop a roadmap and commit to implement a carbon pricing mechanism providing for an equivalent price as the EU ETSto the price paid by the EU’s domestic producers, and should commit to achieving carbon neutrality by 2050 [as well as?] to align with Union legislation in the areas of environment, climate, competition and energy. That exemption should be withdrawn at any time if there are reasons to believe that the country in question does not fulfil its commitments or it has not adopted by 2030 an ETS equivalent to the EU ETS.
Amendment 213 #
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 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 that risk of carbon leakageare imported into the EU, including agricultural products, to introduce carbon content requirements for imported products for distribution, consumption or use on the EU market, and to develop methods of calculating embedded emissions based on the environmental footprint methods47. _________________ 47 Commission 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 221 #
Proposal for a regulation
Recital 53
Recital 53
(53) In light of the above, a dialogue with third countries should continue and there should be space for cooperation and solutions that could inform the specific choices that will be made on the details of the design of the measure during the implementatiwith a view to establishing a new international economic order based on the principles of equity, sovereign equality, interdependence, common, in particular during the transitional periodterest, cooperation and solidarity among all states.
Amendment 223 #
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.
Amendment 230 #
Proposal for a regulation
Recital 55
Recital 55
(55) As the CBAM aims to encourage cleaneGiven the different roles played in global environmental degradation, and in line with the principle of common but differentiated responsibility for produtection processes, the EU stands ready to work with low and middle- income countries towards the de- carbonisation of their manufacturing industrng the environment and promoting sustainable development, the EU has a duty to cooperate with low and middle- income countries to help them to implement green industrial policies. Moreover, the Union should supporthelp to improve less developed countries with the necessary technical assistanc’ access to the best techniques available in order to facilitate their adaptation to the new obligations established by this regulation.
Amendment 234 #
Proposal for a regulation
Recital 55 a (new)
Recital 55 a (new)
(55a) To support low and middle-income countries’ decarbonisation, the Commission will need to implement policies to accompany the CBAM that can reduce, and eventually eliminate, the gaps between developed and developing countries, including by using part of the revenues generated by the CBAM to speed up the dissemination and adoption of cleaner production technologies and to tighten up climate change adaptation policies and planning.
Amendment 243 #
Proposal for a regulation
Article premier – paragraph 1
Article premier – paragraph 1
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 help to progressively reduce the EU’s imported emissions, reduce its overall carbon footprint and prevent the risk of any carbon leakage.
Amendment 248 #
Proposal for a regulation
Article premier – paragraph 2
Article premier – paragraph 2
2. The CBAM complements the systemEU’s regulatory framework for achieving its goal of reducing greenhouse gases by 2030 and its goal of climate neutrality in every economic sector by 2050 at the latest by applying, initially, a set of rules equivalent to those established for greenhouse gas emission allowance trading within the Union by Directive 2003/87/EC by applying an equivalent set of rules to imports into the customs territory of the Union of goods referred to in Article 2.
Amendment 256 #
Proposal for a regulation
Article premier – paragraph 3
Article premier – paragraph 3
3. The mechanism will progressively, and by 2030 at the latest, 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.
Amendment 257 #
Proposal for a regulation
Article premier a (new)
Article premier a (new)
Article 1a Goal of balancing the EU’s imported and exported emissions 1. A balance between the EU’s imported and exported emissions shall be achieved by 2060 at the latest, bringing net exported emissions to zero as part of the Union’s climate neutrality objective under Regulation 2021/1119. 2. The Commission and the Member States shall take the requisite measures, at EU and national level respectively, to make it possible to collectively achieve the goal set out in paragraph 1 of balancing the EU’s imported and exported emissions, taking into account the importance of promoting fairness and solidarity among Member States in achieving this objective.
Amendment 258 #
Proposal for a regulation
Article premier b (new)
Article premier b (new)
Amendment 260 #
Proposal for a regulation
Article 2 – paragraph 5 – point a
Article 2 – paragraph 5 – point a
(a) the EU ETS established pursuant to Directive 2003/87/EC applies to that country or territory or an agreement has been concluded between that third country or territory and the Union fully linking the EU ETS and the third country or territthat provides a carbon pricing mechanism similar ory emission trading systemquivalent to the EU ETS;
Amendment 268 #
Proposal for a regulation
Article 3 – paragraph 1 – point 10 a (new)
Article 3 – paragraph 1 – point 10 a (new)
(10a) ‘European central carbon authority’ means the authority established in accordance with Article 11 of this Regulation;
Amendment 320 #
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 thereofThe European central carbon authority and competent national authorities shall form the European System of Carbon Authorities (‘ESCA’).
Amendment 325 #
Proposal for a regulation
Article 11 – paragraph 1 – subparagraph 1
Article 11 – paragraph 1 – subparagraph 1
Each Member State shall designate the competent authority to carry out the obligations under this Regulation and inform the Commission thereof. The Commission shall make available to the Member States a list of all competent authorities and publish this information in the Official Journal of the European Union.
Amendment 330 #
Proposal for a regulation
Article 11 – paragraph 2 a (new)
Article 11 – paragraph 2 a (new)
2a. The main objective of the ESCA shall be to ensure that the EU’s imported emissions are irreversibly and progressively reduced and that the goals set out in Article 1 and Articles 1a and 1b of this Regulation are achieved. The ESCA shall provide support for the EU’s climate and environmental policies with a view to achieving the EU’s climate neutrality objective as defined in Article 1 of Regulation (EU) 2021/1119. The ESCA shall operate in line with the principles of a fair and socially equitable transition for everyone, common but differentiated responsibilities, taking into account the best and most recent scientific data available, social, economic and environmental factors, including costs linked to inaction, and with a view to the proper application of the polluter pays principle, as defined in Article 191 TFEU.
Amendment 332 #
Proposal for a regulation
Article 11 – paragraph 2 b (new)
Article 11 – paragraph 2 b (new)
(2b) The European central carbon authority shall have legal personality. It alone shall authorise the issue of CBAM certificates. It shall be independent in the exercise of its powers. Union institutions, bodies, offices and agencies and the governments of the Member States shall respect that independence.
Amendment 334 #
Proposal for a regulation
Article 11 – paragraph 2 c (new)
Article 11 – paragraph 2 c (new)
2c. The basic tasks to be carried out by the ECSA shall be: - the setting of the price of CBAM certificates - the setting of the annual quantity of CBAM certificates to be issued for the EU as a whole; - CBAM certificates’ linear reduction factor.
Amendment 335 #
Proposal for a regulation
Article 11 – paragraph 2 d (new)
Article 11 – paragraph 2 d (new)
2d. The European Parliament and the Council, acting in accordance with the ordinary legislative procedure, shall adopt detailed arrangements concerning the composition and running of the European central carbon authority.
Amendment 359 #
Proposal for a regulation
Article 15 – paragraph 1
Article 15 – paragraph 1
1. The CommissionEuropean central carbon 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 424 #
Proposal for a regulation
Article 20 a (new)
Article 20 a (new)
Article 20 a Quantity of CBAM certificates for the EU as a whole 1. For the period starting on 1 January 2026, the European Central Carbon Authority shall decide on the total quantity of CBAM certificates it will allocate for the EU as a whole. It shall take that decision at least three months before the beginning of that period on the basis of its European CBAM allocation plan, drawn up in accordance with this article, drawing on the CBAM reports received during the period 2023-2026 and taking due account of comments from the public. 2. For the five-year period beginning on 1 January 2026, the quantity of CBAM certificates issued each year for the EU as a whole shall decrease in a linear manner with a view to achieving the goals set out in Articles 1, 1a and 1b of this Regulation, in relation to the average annual total emissions reported in the CBAM reports received during the period 2023-2026. For each subsequent five-year period, this quantity shall be reduced by a linear factor determined by the European Central Carbon Authority, with a view to achieving the targets set out in Articles 1, 1a and 1b of this Regulation, in relation to the average annual total of CBAM certificates issued by national authorities for the preceding five-year period. 3. For each five-year period provided for in the second paragraph of this article, the European Central Carbon Authority shall draw up a European plan specifying the total quantity of CBAM certificates that it intends to allocate for that period. That plan shall be based on objective and transparent criteria, taking comments from the public into consideration.
Amendment 425 #
Proposal for a regulation
Article 20 b (new)
Article 20 b (new)
Article 20 b Sectoral roadmaps for reducing imported emissions The Commission shall conduct a dialogue with the economic sectors in the EU affected by the implementation of the CBAM with a view to achieving the objectives set out in Articles 1, 1a and 1b of this Regulation. The Commission shall periodically draw up strategies for decarbonising emissions imported by relevant sectors of the economy, with quantified targets, in collaboration with stakeholders and building on the most ambitious existing initiatives.
Amendment 426 #
Proposal for a regulation
Article 21 – paragraph 1 – introductory part
Article 21 – paragraph 1 – introductory part
1. The Commission shall calculate the price of CBAM certificates as the average price of the closing prices of EU ETS allowances on the common auction platform in accordance with the procedures laid down in Commission Regulation (EU) No 1031/201054 for each calendar week. _________________ 54 Commission Regulation (EU) No 1031/2010 of 12 November 2010 onEuropean Central Carbon Authority shall calculate and set the timing, administration and other aspects of auctioning of greenhouse gas emission allowances pursuant to Directive 2003/87/EC (OJ L 302, 18.11.2010, p. 1)imum price of CBAM certificates.
Amendment 428 #
Proposal for a regulation
Article 21 – paragraph 2
Article 21 – paragraph 2
2. This averageminimum price shall be published by the CommissionEuropean Central Carbon Authority on its website on the first working day of the following calendar week and shall be applied from the following working day to the first working day of the following calendar week.
Amendment 429 #
Proposal for a regulation
Article 21 – paragraph 3
Article 21 – paragraph 3
3. The Commission is empowered to adopt implementing acts to further define the methodology to calculate the average price of CBAM certificates and practical arshall ensure that European producers pay an averangements for the publication of the price. Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 29(2) carbon price equivalent to the price of CBAM certificates.
Amendment 502 #
Proposal for a regulation
Article 30 – paragraph 1
Article 30 – paragraph 1
Amendment 510 #
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, the assessment of the possibilities to further, accompanied by a legislative proposal. In line with the assessment of the arrangements, the legislative proposal shall extend the scope of embedded emissions to indirect emissions and to other goods at risk of carbon leakage other 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 furtherlisted by Commission Delegated Decision 2019/708. The legislative proposal shall also 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. Lastly, the legislative proposal shall introduce carbon content requirements for products imported for distribution, consumption or use on the EU market.
Amendment 521 #
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. Commission shall collect all the information needed to eventually extend the scope of this Regulation to all imported goods. By 31 December 2030, the Commission shall present an assessment report to the European Parliament on this matter, including whether the scope of this Regulation could be extended to agricultural products.
Amendment 529 #
Proposal for a regulation
Chapter IX – title
Chapter IX – title
IX Coordination with free allocation of allowances under the EU ETS during the transitional period until their abolition.
Amendment 530 #
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 installations producing, within the Union, the goods listed in Annex I, during the transitional period until the abolition of free allocation by 2030 at the latest.
Amendment 538 #
Proposal for a regulation
Article 35 – paragraph 3
Article 35 – paragraph 3
3. The competent authority shall communicate the information referred to in paragraph 2 to the CommissionEuropean Central Carbon Authority at the latest two months after the end of the quarter covered by a report.