19 Amendments of François-Xavier BELLAMY related to 2021/0214(COD)
Amendment 79 #
Proposal for a regulation
Recital 8
Recital 8
(8) As long as a significant number of the Union’s international partners have policy approaches that do not result indo not achieve the same level of climate ambition, there is a risk of carbon leakage, which would undermine the Union’s competitiveness on global markets. 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 countries would replace equivalent but less GHG emissions intensive products-intensive products on the internal market, as well as export markets, or investment into such sectors and subsectors would predominantly flow to such countries and not the Union. That cwould lead to an increase in their total emissions globally, thus jeopardising the reduction 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 levels.
Amendment 100 #
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 ofpreventing carbon leakage resulting from the increased Union climate ambition.
Amendment 109 #
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. Free allocation at the level of best performers has been an adequate policy instrument for certain industrial sectors to address the risk of carbon leakage in the absence of a fair level playing field.
Amendment 134 #
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 CBAM hence might be an effective measure to lower emissions in third countries while ensuring European industry competitiveness. Reducing emissions in the Union as well as in third countries is an effective way to reduce the risk of carbon leakage. The CBAM should be seen as a step towards global pricing on carbon emissions which would further reduce the risk of carbon leakage globally.
Amendment 149 #
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 and industrial competitiveness.
Amendment 151 #
Proposal for a regulation
Recital 13 a (new)
Recital 13 a (new)
(13 a) As CBAM is a mechanism that addresses the risk of carbon leakage on the EU market for EU imports, it is essential to avoid the risk that EU exports are replaced by more carbon intensive goods on the global market. Hence, the Commission shall analyse its implementation and effectiveness throughout the administrative transitional period and shall by the end of this period submit a report to the European Parliament and Council that specifies the carbon leakage risk on export markets accompanied with a proposal preventing the carbon leakage risk on export markets with safeguards of products intended for exports, such as export rebates.
Amendment 166 #
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 athe administrative transitional period and upon further assessment on the impact on carbon leakage for energy-intensive sectors with a withdrawal of EU ETS compensation, as well to indirect emissions, mirroring the scope of the EU ETS.
Amendment 173 #
Proposal for a regulation
Recital 19
Recital 19
(19) However, while the EU ETS 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 shouldmust not establish quantitative limits to import, so as to ensure that trade flows are not restricted or disrupted. 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 Union to ensure a level playing field and prevent the risk of carbon leakage while ensuring compatibility with WTO.
Amendment 189 #
Proposal for a regulation
Recital 24
Recital 24
(24) In terms of sanctions, Member States should apply penalties to infringements or circumvention practises of this Regulation and ensure that they are implemented. The amount of those penalties should be identical to penalties currently applied within the Union in case of infringement of EU ETS according to Article 16(3) and (4) of Directive 2003/87/EC.
Amendment 193 #
Proposal for a regulation
Recital 28
Recital 28
(28) Whilst the ultimate objective of the CBAM is a broader product coverage, it would beis prudent to start with a selected number of sectors with relatively homogeneous products where there is a risk of carbon leakage. The Commission should consider to further extend the scope of included goods, when CBAM is proven efficient to reduce carbon leakage for the sectors included in Annex I of this Regulation. A proposal of the inclusion of finished goods shall be presented by the Commission before the comprehensive transitional period. Union sectors deemed at risk of carbon leakage are listed in Commission Delegated Decision 2019/70842 . __________________ 42Commission 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 200 #
Proposal for a regulation
Recital 29
Recital 29
(29) The goods under this Regulation should be selected after a careful analysis of their relevance in terms of cumulated GHG emissions and risk of carbon leakage in the corresponding EU ETS sectors while limiting complexity and administrative burden for European industry, affected authorities, companies and SMEs. In particular, the actual selection should take into account basic materials and basic products covered by the EU ETS with the objective of ensuring that imports of energy intensive products into the Union are on equal footing with EU products in terms of EU ETS carbon pricing, and to mitigate risks of carbon leakage. Other relevant criteria to narrow the selection should be: firstly, relevance of sectors in terms of emissions, namely whether the sector is one of the largest aggregate emitters of GHG emissions; secondly, sector’s exposure to significant risk of carbon leakage, as defined pursuant to Directive 2003/87/EC; thirdly, the need to balance broad coverage in terms of GHG emissions while limiting complexity and administrative effort.
Amendment 236 #
Proposal for a regulation
Recital 46
Recital 46
(46) To avoid risks of circumvention and improve the traceability of actual CO2 emissions from import of electricity and its use in goods, the calculation of actual emissions should only be permitted through a number of strict conditions. In particular, it should be necessary to demonstrate a firm nomination of the allocated interconnection capacity and that there is a direct contractual relation between the purchaser and the producer of the renewable and low carbon electricity, or between the purchaser and the producer of electricity having lower than default value emissions. .
Amendment 238 #
Proposal for a regulation
Recital 46 a (new)
Recital 46 a (new)
(46 a) To reduce the risk of carbon leakage as well as to ensure a level playing field for European industry, all practices of circumvention shall be prohibited. The Commission shall evaluate the risk of circumvention practices, especially the likelihood of modified trade patterns towards downstream products, as well as resource shuffling, cost absorption, manipulation of emissions data, wrongful labelling of goods and slight modifications of the product so as to import a product under a different customs code of all sectors included in Annex I of this Regulation. The Commission shall be empowered to adopt delegated acts to strengthen anti- circumvention measures when appropriate.
Amendment 243 #
Proposal for a regulation
Recital 48
Recital 48
(48) Integration of third countries into the Union electricity market is an important drive for those countries to accelerate their transition to energy systems with high shares of renewable energies. Market coupling for electricity, as set out in Commission Regulation (EU) 2015/122246 , enables third countries to better integrate electricity from renewable and low carbon energies into the electricity market, to exchange such electricity in an efficient manner within a wider area, balancing supply and demand with the larger Union market, and reduce the carbon intensity of their electricity generation. Integration of third countries into the Union electricity market also contributes to the security of electricity supplies in those countries and in the neighbouring Member States. __________________ 46Commission Regulation (EU) 2015/1222 of 24 July 2015 establishing a guideline on capacity allocation and congestion management (OJ L 197, 25.7.2015, p. 24).
Amendment 250 #
Proposal for a regulation
Recital 50
Recital 50
(50) An administrative transitional period without financial adjustment should apply during the period 2023 until 2025. A CBAM without financial adjustment should applyto 2025, with the objective to facilitate a smooth roll out of the mechanism hence reducing the risk of disruptive impacts on trade and European industry. Declarants should have to report on a quarterly basis the actual embedded emissions in goods imported during the administrative transitional period, detailing direct and indirect emissions as well as any carbon price paid abroad.
Amendment 293 #
Proposal for a regulation
Recital 58
Recital 58
(58) In order for CBAM to be efficient in lowering carbon leakage, all possible circumvention practices should be addressed by this Regulation. In order to remedy circumvention of the provisions of this Regulation, the power to adopt acts in accordance with Article 290 of TFEU should be delegated to the Commission in respect of supplementing the list of goods in Annex I.
Amendment 312 #
Proposal for a regulation
Article 1 – paragraph 3
Article 1 – paragraph 3
3. The mechanism willshould 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, if it has proven to be effective to prevent the risk of carbon leakage both for imports into or exports from the customs territory of the Union, maintaining EU ETS free allowances until it has proven such effectiveness.
Amendment 616 #
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 that have 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 652 #
Proposal for a regulation
Article 30 – paragraph 2
Article 30 – paragraph 2