67 Amendments of Alexandr VONDRA related to 2021/0214(COD)
Amendment 156 #
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 of carbon leakage resulting from the increased Union climate ambition. These political guidelines could lead to a significant increase in global emissions if the issue of substitutions with non EU/EEA products in global trade flows remains unaddressed.
Amendment 179 #
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 allocatSuch measures are based on strict benchmarks set by the best performing installations so that they preserve an incentive to reduce emissions under the EU ETS weakens the price signal that the system providesand provide a carbon price signal for emissions above the benchmark level; they have proven so foar the installations receiving it compared to full auctioning o be effective in mitigating the risk of carbon leakage, although in the context of lower carbon prices thand thus affects the incentives for investment into further abatement of emissionsose experienced recently and those forecasted by 2030.
Amendment 194 #
Proposal for a regulation
Recital 11
Recital 11
(11) The CBAM seeks to strengthen carbon leakage protection in view of higher EU climate ambition by 2030 and thereafter 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 and by ensuring that EU products exported in the global market are not replaced by more carbon intensive products, which would undermine the objective of reducing global emissions. As indicated in the Impact Assessment accompanying the Commission proposal, “changes in employment are largely driven by the presence (or not) of free allocation”, since retaining free allocation results in better impact on employment. 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 as of 2030 after a test phase and an assessment by the Commission has proven the effectiveness of the CBAM regulation in terms of protection from the risk of carbon leakage both for imports and exports. 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 241 #
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 wshould 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. This scheme aims at boosting the export of more sustainable products manufactured in the EU and avoid substitutes at a global level less sustainable and with higher carbon footprint.
Amendment 254 #
Proposal for a regulation
Recital 12 a (new)
Recital 12 a (new)
(12a) CBAM is unlikely to provide a profound incentive for other countries to introduce their own systems of carbon pricing, once they realise that the global economy is gradually shifting away from the Union towards emerging and middle- income countries and that such a system would damage their total export and domestic consumption.
Amendment 259 #
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 to guarantee an equal treatment to domestic and imported products. The CBAM is a climate measure impacting the competitiveness of EU industries which should prevent the risk of carbon leakage and support the Union’s climate goals, while ensuring WTO compatibility and representing a step towards levelling the competitive playing field for sectors under CBAM without neglecting export competitiveness of EU industries. It is necessary to have a pragmatic and in depth assessment of trade implications before continuing the political process of CBAM and the extension of its scope.
Amendment 284 #
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. Exceptions will be only granted to those goods subject to carbon costs equal to the ones incurred by EU producers under EU ETS.
Amendment 288 #
Proposal for a regulation
Recital 15
Recital 15
(15) In order to exclude from the CBAM third countries or territories fully integrated into, or linked, to the EU ETS in the event of future agreements, the power to adopt acts in accordance with Article 290 of TFEU should be delegated to the Commission in respect of amending the list of countries in Annex II. Conversely, those third countries or territories should be excluded from the list in Annex II and be subject to CBAM whereby they do not effectively charge the ETS price on goods exported to the Union. The Commission will monitor and address the potential circumvention practices in third countries.
Amendment 298 #
Proposal for a regulation
Recital 15 a (new)
Recital 15 a (new)
(15a) If CBAM is not properly implemented, there is a risk that CBAM might lead to severe restrictions on key commodities whilst increasing the Union's geopolitical vulnerability and dependency from third countries.
Amendment 314 #
Proposal for a regulation
Recital 18 a (new)
Recital 18 a (new)
(18a) In order to prevent carbon leakage, it is imperative to preserve the competitiveness of European industry at global level. The CBAM will only be effective if appropriate measures are taken to not undermine the capacity of European industries to compete in third countries markets. A review mechanism will guarantee that the CBAM phase in takes into consideration eventual distortions in its implementation.
Amendment 317 #
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 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 progressively applied to certain goods imported into the customs territory of the Union. An extension of the scope will follow the legislative ordinary procedure to provide legal certainty to economic operators.
Amendment 328 #
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 allow 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. The CBAM should provide a better carbon leakage protection than the existing regulatory framework.
Amendment 360 #
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 or circumvention practices . 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 407 #
Proposal for a regulation
Recital 38 a (new)
Recital 38 a (new)
(38a) The Commission should prepare a report before the end of the transitional period on the impact of CBAM on downstream sectors, in particular regarding the potential increase in costs of production and increase of cost of input materials and the ability of such sectors to pass any such increases to their customers. The Commission should propose measures to address any negative impact of CBAM on the competitiveness of the Union downstream sectors.
Amendment 422 #
Proposal for a regulation
Recital 46 a (new)
Recital 46 a (new)
(46a) This regulation prohibits practices of circumvention where a change in the pattern of trade between third countries and the Union or between individual companies or within the same undertaking in relation with products included in the scope of this regulation, whether slightly modified or not, stems from a practice, process or work that have insufficient due cause or economic justification other than avoiding obligations as laid down in this regulation. Those practices should include 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 thereby avoiding the payment of the levy.
Amendment 425 #
Proposal for a regulation
Recital 46 b (new)
Recital 46 b (new)
(46b) Reporting, verification, traceability and monitoring are key aspects for a proper functioning of the CBAM. A clear and quick procedure will be set up to ensure that when a possible circumvention or a lack of CBAM compliance occurs, that they are solved in a reduced time to avoid both circumvention but also trade disruptions.
Amendment 443 #
Proposal for a regulation
Recital 50
Recital 50
(50) A transitional period should apply during the period 2023 until 20256. 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 448 #
Proposal for a regulation
Recital 50 a (new)
Recital 50 a (new)
(50a) If after the initial transitional period the data collected by the European Commission shows that the CBAM cannot effectively protect against carbon leakage addressing the reduction of global emissions, further phase in of CBAM and phase out of free allocation of emission allowances should be suspended until an effective solution can be implemented through a new legislative proposal.
Amendment 462 #
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 and possibilities to improve carbon leakage measures. The Commission shouldall, 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, including downstream products using goods covered by the CBAM, and to develop methods of calculating embedded emissions based on the environmental footprint methods47 . With regard to indirect emissions, the evaluation shall take into account the exposure of EU 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 472 #
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 and its impact on competitiveness of EU industry. The Commission shouldall, as part of that evaluation, initiate collection of information necessary to possibly extend the scope to indirect emissions, as well as to other goodssectors, goods and downstream products of the goods listed in Annex I and services at risk of carbon leakage, and to develop methods of calculating embedded emissions based on the environmental footprint methods47 . __________________ 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 506 #
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 522 #
Proposal for a regulation
Recital 58
Recital 58
(58) In order to remedy circumvention of the provisions of this Regulation, the power to adopt acts in accordance with Article 290 of TFEUFor CBAM to achieve its objectives, circumvention in all its forms, including slight modification of products, transhipments and resource shuffling, should be delegataddressed toby the Commission in respect of supplementing the list of goods in Annex Iis Regulation. Commission should take any necessary action to remedy circumvention.
Amendment 538 #
Proposal for a regulation
Article 1 – paragraph 1
Article 1 – 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 prevent the risk of carbon leakage and to establish a level playing field between domestic and imported products.
Amendment 555 #
Proposal for a regulation
Article 1 – paragraph 3
Article 1 – paragraph 3
3. The mechanism willshould progressively become an alternativecomplementary 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, and 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 589 #
Proposal for a regulation
Article 2 – paragraph 4
Article 2 – paragraph 4
4. Imported goods shall be considered as originating in third countries in accordance with non-preferential rules of origin as defined in Article 59 of Regulation (EU) No 952/2013. Default values applicable under Article 7(2) and Annex III of this Regulation shall be applied based on the country where emissions took place, regardless of the origin of goods.
Amendment 621 #
Proposal for a regulation
Article 2 – paragraph 11
Article 2 – paragraph 11
11. The Commission is empowered to adopt delegated actstable a legislative proposal in accordance with Article 28 to amend the lists in Annex II, Sections A or B, depending on whether the conditions in paragraphs 5, 7 or 9 are satisfied.
Amendment 629 #
Proposal for a regulation
Article 2 – paragraph 12
Article 2 – paragraph 12
12. The Union, may should conclude agreements with third countries with a view to take account of carbon pricing mechanisms in these countries in the application of Article 9and to promote creation of carbon pricing mechanisms and carbon reduction measures of equivalent efficiency other than carbon pricing mechanisms in these countries in the application of Article 9. Such agreements shall not lead to undue preferential treatment of imports from the third countries as regards the CBAM certificates to be surrendered and cannot take into account any carbon pricing mechanisms that are considered to be practices of circumvention within the meaning of Article 27(2).
Amendment 670 #
Proposal for a regulation
Article 3 – paragraph 1 – point 28 a (new)
Article 3 – paragraph 1 – point 28 a (new)
(28a) Verifier is a legal person accredited either according to the criteria of this Regulation or of Implementing Regulation (EU) No 2018/2067.
Amendment 684 #
Proposal for a regulation
Article 5 – paragraph 3 – point h a (new)
Article 5 – paragraph 3 – point h a (new)
(ha) the name and contact details of the third country competent authority in charge of collecting the carbon price paid by the operator in that third country, when relevant
Amendment 709 #
Proposal for a regulation
Article 7 – paragraph 6
Article 7 – paragraph 6
6. The Commission is empowered to adopt implementing acts concerning detailed rules regarding the elements of the calculation methods set out in Annex III, including determining system boundaries of production processes, emission factors, installation-specific values of actual emissions and default values and their respective application to individual goods as well as laying down methods to ensure the reliability of data on the basis of which the default values shall be determined, including the level of detail and the verification of the data. Where necessary, those acts shall provide that the default values can be adapted to particular areas, regions or countries to take into account specific objective factors such as geography, natural resources, market conditions, prevailing energy sources, or industrial processes. The implementing acts shall build upon existing legislation for the verification of emissions and activity data for installations covered by Directive 2003/87/EC, in particular Implementing Regulation (EU) No 2018/2067.
Amendment 737 #
Proposal for a regulation
Article 8 – paragraph 3 – subparagraph 1
Article 8 – paragraph 3 – subparagraph 1
The Commission is empowered to adopt implementing acts concerning the principles of verification referred to in paragraph 1 as regards the possibility to waive the obligation for the verifier to visit the installation where relevant goods are produced and the obligation to set thresholds for deciding whether misstatements or non-conformities are material and concerning the supporting documentation needed for the verification report. Provisions laid down in such implementing acts shall be equivalent to the provisions set in Regulation 2018/2067.
Amendment 740 #
Proposal for a regulation
Article 8 – paragraph 3 – subparagraph 1
Article 8 – paragraph 3 – subparagraph 1
The Commission is empowered to adopt implementing acts concerning the principles of verification referred to in paragraph 1 as regards the possibility to waive the obligation for the verifier to visit the installation where relevant goods are produced and the obligation to set thresholds for deciding whether misstatements or non-conformities are material and concerning the supporting documentation needed for the verification report. Such implementing acts shall be equivalent to the provisions set in Regulation 2018/2067
Amendment 747 #
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 759 #
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 personaccredited verifier, 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 766 #
Proposal for a regulation
Article 9 – paragraph 4
Article 9 – paragraph 4
4. The Commission is empowered to adopt implementing acts establishing the methodology for calculating the reduction in the number of CBAM certificates to be surrendered, regarding the conversion of the carbon price paid in foreign currency into euro at yearly average exchange rate in accordance with paragraph 1, and regarding the qualifications of the independent personaccredited verifier certifying the information as well as elements of proof of the carbon price paid and the absence of export rebates or other forms of compensation on exportation being applied as referred to in paragraph 2. Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 29(2).
Amendment 771 #
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 on those installations in a central database referred to in Article 14(4).
Amendment 789 #
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 839 #
Proposal for a regulation
Article 14 – paragraph 3
Article 14 – paragraph 3
3. The information in the database referred to in paragraph 2 shall be confidentialpublic and accessible unless considered as confidential business information.
Amendment 852 #
Proposal for a regulation
Article 15 – paragraph 3
Article 15 – paragraph 3
3. If irregularities are identified as a result of the controls carried out under paragraph 2, the Commission shall inform the Member State or Member States concerned for further investigation in order to correct the identified irregularities. Identified irregularities shall be corrected at the latest within one month from the day where they were identified, and, where appropriate, penalties pursuant to Article 27 shall apply.
Amendment 867 #
Proposal for a regulation
Article 17 – paragraph 1 – point a
Article 17 – paragraph 1 – point a
(a) the declarant hasand the operators of installations located in third countries from whom the declarants sources goods have respectively not been involved in a serious infringement or repeated infringements of customs legislation, circumvention of antidumping or antisubsidy duties, taxation rules and market abuse rules and has no record of serious criminal offences relating to its economic activity during the five years preceding the application;
Amendment 877 #
Proposal for a regulation
Article 17 – paragraph 1 – point b a (new)
Article 17 – paragraph 1 – point b a (new)
(ba) The declarant has not infringed CBAM obligations and has not been involved in practices of circumvention in accordance with Article 27.
Amendment 908 #
Proposal for a regulation
Article 18 – paragraph 2
Article 18 – paragraph 2
Amendment 910 #
Proposal for a regulation
Article 18 – paragraph 3
Article 18 – paragraph 3
Amendment 920 #
Proposal for a regulation
Article 19 – paragraph 1
Article 19 – paragraph 1
1. The competent authority may review the CBAM declaration within the period ending with the fourth year after the year in which the declaration should have been submitted. The review may consist in verifying the information provided in the CBAM declaration on the basis of the information communicated by the customs authorities in accordance with Article 25(2) and any other relevant evidence, and on the basis of any audit deemed necessary, including at the premises of the authorised declarant.
Amendment 924 #
Proposal for a regulation
Article 19 – paragraph 2
Article 19 – paragraph 2
2. Where a CBAM declaration in accordance with Article 6 has not been submitted, the competent authority of the Member State of establishment of the authorised declarant shall assess the CBAM obligations of that declarant on the basis of the information at its disposal and calculate the total number of CBAM certificates due at the latest by the 31 December of the fourth year following that when the CBAM declaration should have been submitted.
Amendment 955 #
Proposal for a regulation
Article 24 – paragraph 1 a (new)
Article 24 – paragraph 1 a (new)
The revenues generated by the sale of CBAM certificates shall constitute internal assigned revenue in accordance with Article 21 (3) of Regulation (EU, Euratom) 2018/1046 of the European Parliament and of the Council. They shall be assigned to cover the costs of the operation and maintenance of the CBAM scheme and to support European industries through the creations of sectoral funds to tackle competitive disadvantages triggered by CBAM.
Amendment 978 #
Proposal for a regulation
Article 26 – paragraph 4 a (new)
Article 26 – paragraph 4 a (new)
4a. In case of repeated failure to surrender a number of CBAM certificates corresponding to the emissions embedded in goods imported during the previous year, or in case of submission of false or inaccurate information in the CBAM declaration, an authorized declarant, and any of its related parties, may be automatically excluded from the register for a period of 3 years from the date of exclusion. The respective verifier who has certified the accuracy of the information in the CBAM declaration has its certification withdrawn by the issuing national authority.
Amendment 989 #
Proposal for a regulation
Article 27 – paragraph 2
Article 27 – paragraph 2
2. Practices of circumvention include a wide range of situations where a change in the pattern of trade in relation to goods included in the scope of this Regulation 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 i. This regulation prohibits practices of circumvention where a change in the pattern of trade between third countries and the Union or between individual companies or within the same undertaking in relation with products included in the scope of this regulation, whether slightly modified or not, stems from a practice, process or work that have insufficient due cause or economic justification othe scope ofr than avoiding obligations as laid down in this Rregulation.
Amendment 1031 #
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 ofobligations laid down in this Rregulation 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 level, in whatever way is necessary to prevent future circumvention of the Mechanism, when circumvention of the measures in force is taking place.
Amendment 1033 #
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 imported goodsFollowing a complaint from a Member State or an interested party the Commission may decide, after investigation, to take the appropriate measures, included ing 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 Iwithdrawal of import authorisation, to avoid the circumvention of the mechanism. The Commission shall continually monitor any significant change of pattern of trade of goods and slightly modified products at Union level as well as other potential circumvention practices.
Amendment 1037 #
Proposal for a regulation
Article 27 – paragraph 3 – subparagraph 1 a (new)
Article 27 – paragraph 3 – subparagraph 1 a (new)
Circumvention practices include 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 thereby avoiding the payment of the levy. The Commission shall pay special attention to control the following non exhaustive list of circumvention practices: a) Substitution of products b) Slightly modified products c) Absorption of the CBAM levy d) Changes in the value chain e) Resource shuffling
Amendment 1040 #
Proposal for a regulation
Article 27 – paragraph 4
Article 27 – paragraph 4
4. The notificatDecisions referred to in 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 1051 #
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 1059 #
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 with the support of custom authorities and Member States. These investigations shall be concluded within nine months.
Amendment 1060 #
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 1069 #
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 1070 #
Proposal for a regulation
Article 27 – paragraph 5 b (new)
Article 27 – paragraph 5 b (new)
5b. The Commission shall make public all cases of circumvention, the results of the investigation and the potential penalties. The Commission shall present an annual report including all relevant information on circumvention cases.
Amendment 1078 #
Proposal for a regulation
Article 27 a (new)
Article 27 a (new)
Article 27 a Absorption 1. Where any party submits sufficient information showing that, after the entry into force of this Regulation, an Authorised Declarant has been absorbing the cost of the CBAM Certificates, such that there has been no movement, or insufficient movement, in the resale prices or subsequent selling prices of the imported product in the Union, and that such situation has insufficient due cause or economic justification other than undermining the effects of the obligations as laid down in this Regulation, the Commission shall open an investigation. The Commission shall provide information to the Member States once a party has submitted sufficient information justifying the opening of the investigation and the Commission has completed its analysis thereof. 2. The investigation may also be opened, under the conditions set out in the first subparagraph, on the initiative of the Commission or at the request of a Member State. 3. During an investigation pursuant to this Article, any interested party shall be provided with an opportunity to clarify the situation with regard to resale prices and subsequent selling prices. 4. Investigations shall be carried out by the Commission. The Commission may be assisted by customs authorities and the investigation shall be concluded within nine months. 5. If it is concluded that the obligations as laid down in this Regulation should have led to movements in such prices, the Commission shall take appropriate measures to re-establish the effectiveness of the obligations as set out in this Regulations. Such measures imposed pursuant to this Article shall not exceed the amount of the penalties as set out in Article 26.
Amendment 1120 #
Proposal for a regulation
Article 30 – paragraph 1 a (new)
Article 30 – paragraph 1 a (new)
1a. The Commission shall monitor and evaluate the CBAM 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 downstream sectors, present a legislative proposal to the European Parliament and the Council.
Amendment 1126 #
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 transitional application of this Regulation. The report shall contain, in particular, the assessment of the possibilities and assess if the conditions are in place for the effective implementation of a CBAM before phasing out free allocations. The report by the European Commission shall be accompanied by a legislative proposal to amend the scope of this regulation, including if the assessment of the effectiveness of the CBAM in tackling carbon leakage shows that EU ETS allowances allocated free of charge in accordance with Article 10a of Directive 2003/87 remain necessary to prevent the risk of carbon leakage after 2030 The report shall contain, in particular, the assessment to further extend the scope of embedded emissions to indirect emissions and to other sectors and goods at risk of carbon leakage than those already covered by this Regulation, such as downstream products using goods 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 1128 #
Proposal for a regulation
Article 30 – paragraph 2
Article 30 – paragraph 2
2. Before the end of the transitional period, the Commission shall presensubmit a report to the European Parliament and the Council on the transitional application of this Regulation. The report shall contain, in particular,: (a) 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,, with a particular focus on energy-intensive sectors and any potential loss of indirect ETS cost compensation under Article 10a(6) of Directive 2003/87/EC; (b) the assessment of the possibilities to further extend the scope of CBAM to other goods at risk of carbon leakage than those already covered by this Regulation; (c) the impact of CBAM on downstream users with a proposal to remedy any negative impact on the competitiveness of such users; (d) 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 1150 #
Proposal for a regulation
Article 30 – paragraph 2 a (new)
Article 30 – paragraph 2 a (new)
Amendment 1161 #
Proposal for a regulation
Article 30 – paragraph 3
Article 30 – paragraph 3
3. The report by the Commission shall, if appropriate, be accompani be accompanied by a legislative proposal. Impacted sectors addressed by athe legislative proposal. shall be informed at least two years ahead of its publication and fully involved in the consultation process by the European Commission.
Amendment 1169 #
Proposal for a regulation
Article 30 – paragraph 3 a (new)
Article 30 – paragraph 3 a (new)
3a. A legislative proposal shall be presented at least one year before the start of removal of free allowances in ETS, to prevent distortion of competition in the EU and on global markets, that will occur as an indirect effect from the removal of free allocations of ETS, between products containing goods as listed under Annex I produced in the EU and those produced in third countries. The legislative proposal shall take into account Article 2.5to prevent carbon leakage and be in line with WTO rules.
Amendment 1184 #
Proposal for a regulation
Article 30 a (new)
Article 30 a (new)
Article 30 a Further review and reporting by the Commission of the import provisions of the CBAM 1. Following the transitional period, the Commission shall introduce a two-year testing period during which it shall collect and verify data on the surrendering obligations set in Article 22 in order to assess the effectiveness of the CBAM in addressing the risk of carbon leakage. 2. In 2029, the European Commission shall present a report to the European Parliament and the Council regarding the effectiveness of the CBAM based on the data collected according to paragraph 1. The report by the European Commission may be accompanied by a legislative proposal to amend the scope of this Regulation, including if the assessment of the effectiveness of the CBAM in tackling carbon leakage shows that EU ETS allowances allocated free of charge in accordance with Article 10a of Directive 2003/87/EC remain necessary to prevent the risk of carbon leakage after 2030.
Amendment 1205 #
Proposal for a regulation
Article 31 – paragraph 2
Article 31 – paragraph 2
Amendment 1229 #
Proposal for a regulation
Article 35 – paragraph 6
Article 35 – paragraph 6
6. The Commission is empoweredshall to adopt implementing acts concerning the information to be reported, the procedures for communicating the information referred to in paragraph 3 and the conversion of the carbon price paid in foreign currency into euro at yearly average exchange rate. The Commission is also empowered toshall adopt implementing acts to further define the necessary elements of the calculation method set out in Annex III, including determining system boundaries of production processes, emission factors, installation-specific values of actual emissions and their respective application to individual goods as well as laying down methods to ensure the reliability of data, including the level of detail and the verification of this data. The Commission is further empowered toshall adopt implementing acts to develop a calculation method for indirect emissions embedded in imported goods.