81 Amendments of Isabella TOVAGLIERI related to 2021/0214(COD)
Amendment 67 #
Proposal for a regulation
Recital 1 a (new)
Recital 1 a (new)
(1 a) The European Green Deal with its ambitious objectives has brought to the increase of cost for European producers, thus it is necessary to have an instrument to ensure a level playing field with third countries, which do not have the same ambitious climate policies as the EU has.
Amendment 85 #
Proposal for a regulation
Recital 8 a (new)
Recital 8 a (new)
(8 a) Tackling carbon leakage requires a global action. The European Union must not only lead by example, but also cooperate with its partners to establish a global carbon price or create a climate club with “like-minded partners” as a long-term solution. Thus, the European Union should reinforce its climate diplomacy and open discussion with third countries, which are interested in adopting similar measure to CBAM, in order to harmonise their instruments.
Amendment 96 #
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, while at the same time ensuring a level playing field in order to preserve the competitiveness of EU industries.
Amendment 107 #
Proposal for a regulation
Recital 10
Recital 10
(10) Existing mechanisms to address the risk of carbon leakage in sectors or sub- sectors at risk of carbon leakage are the transitional free allocation of EU ETS allowances and financial measures to compensate for indirect emission costs incurred from GHG emission costs passed on in electricity prices respectively laid down in Articles 10a(6) and 10b of Directive 2003/87/EC. However, free allocation under the EU ETS weakens the price signal that the system provides for the installations receiving it compared to full auctioning and thus affects the incentives for investment into further abatement of emissions.
Amendment 119 #
Proposal for a regulation
Recital 11
Recital 11
(11) The CBAM seeks to streplace these existing mechanisms by addressing the risk ofn 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 freeprotection in view of higher EU climate ambition by 2030 and thereafter replace progressively these existing mechanisms by addressing the risk 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 Unionbon leakage in a different way.
Amendment 130 #
Proposal for a regulation
Recital 11 a (new)
Recital 11 a (new)
(11 a) First, under the import provisions, the CBAM seeks to ensure 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 progressively phased out as of 2030 and only provided that the CBAM has proved to be effective to prevent 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 132 #
Proposal for a regulation
Recital 11 b (new)
Recital 11 b (new)
(11 b) Second, under the export provisions, the CBAM seeks to limit the risk of replacement of European low- carbon exports with carbon intense products on third-country markets which would undermine the objective of reducing global emissions. It is necessary to continue addressing the risks of carbon leakage associated with European exports to third countries which have not yet limited or priced GHG emissions at the same levels as the EU, by introducing allowance adjustments for exports as of the start of the progressive phasing out of free allowances. Those allowance adjustments for exports are established as a component of the EU ETS and are introduced as part of the CBAM to prevent carbon leakage associated with European exports. To this end, the allowance adjustments for export would remain in force independently from the reduction commitments of free allowances under the EU ETS until other countries take equivalent and effective steps to impose carbon costs on competing production. .
Amendment 133 #
Proposal for a regulation
Recital 11 c (new)
Recital 11 c (new)
(11 c) Given the unique characteristics of price formation on the EU electricity market, that are not existing in third countries, the mechanism in Article 10a(6) shall remain outside the scope of CBAM until the CBAM can accurately mirror the indirect costs that are actually passed on in electricity prices in Europe.
Amendment 157 #
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 granted only to those goods imported into the customs territory of the Union which are subject to carbon cost burden equivalent to that incurred under the EU ETS.
Amendment 160 #
Proposal for a regulation
Recital 14 a (new)
Recital 14 a (new)
(14 a) This Regulation should also apply to goods produced in EU installations subject to the EU ETS and exported from the customs territory of the Union to third countries which have not yet limited or priced GHG emissions at the same levels as the EU.
Amendment 163 #
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 and where the carbon cost burden is equivalent to that under 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.
Amendment 165 #
Proposal for a regulation
Recital 17
Recital 17
(17) The GHG emissions to be regulated by the CBAM should correspond to those GHG emissions covered by Annex I to the EU ETS in Directive 2003/87/EC, namely carbon dioxide (‘CO2’) as well as, where relevant, nitrous oxide (‘N2O’) and perfluorocarbons (‘PFCs’). The CBAM should initially apply to direct emissions of those GHG from the production of goods up to the time of import into the customs territory of the Union, and after the end of a transition period and upon further assessment, as well to indirect emissions, mirroring the scope of the EU ETS. Including indirect emissions and pricing them in the CBAM should be done only once the mismatch between indirect carbon costs and indirect carbon emissions has been reduced to a minimum, as the European electricity grid decarbonises.
Amendment 174 #
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 or export, 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 or exported from the customs territory of the Union.
Amendment 180 #
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 for imports 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.
Amendment 182 #
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 import certificates available to importers, if importers had the possibility to carry forward and trade CBAM import certificates, this could result in situations where the price for CBAM import 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 objective of the CBAM. It could also result in different prices for operators of different countries. Therefore, the limits to the possibilities to trade CBAM import certificates and to carry them forward is justified 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 leverage their costs over the period of validity of the import certificates whilst preserving the overall price transmission effect, ensuring that the environmental objective of the measure is preserved.
Amendment 183 #
Proposal for a regulation
Recital 23
Recital 23
(23) Given that the CBAM, under the import provisions, applies to imports of goods into the customs territory of the Union rather than to installations, certain adaptations and simplifications would also need to apply in the CBAM regime. One of those simplifications should consist in a declarative system where importers should report the total verified GHG emissions embedded in goods imported in a given calendar year. A different timing compared to the compliance cycle of the EU ETS should also be applied to avoid any potential bottleneck resulting from obligations for accredited verifiers under this Regulation and the EU ETS.
Amendment 184 #
Proposal for a regulation
Recital 23 a (new)
Recital 23 a (new)
(23 a) Under the export provisions of the CBAM, given that the installations concerned can be easily identified, the CBAM would apply to EU installations. The adjustment allowances provided for exported products will calibrate the regulatory obligation and the net regulatory burden imposed under the CBAM regime when those goods are exported from the customs territory of the Union to third countries which have not yet limited or priced GHG emissions at the same levels as the EU.
Amendment 190 #
Proposal for a regulation
Recital 25
Recital 25
(25) While the EU ETS applies to certain production processes and activities, the CBAM should target the corresponding imports or exports of goods. That requires clearly identifying imported or exported goods by way of their classification in the Combined nomenclature41 (‘CN’) and linking them to embedded GHG emissions. __________________ 41Council Regulation (EEC) No 2658/87 of 23 July 1987 on the tariff and statistical nomenclature and on the Common Customs Tariff (OJ L 256, 7.9.1987, p. 1).
Amendment 198 #
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. 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. fourthly, the impact of Covid-19 on global supply chain disruption and the increasing of prices in raw materials and other strategic sectors.
Amendment 210 #
Proposal for a regulation
Recital 33
Recital 33
(33) Similar technical constraints apply to refinery products, for which it is not possible to unambiguously assign GHG emissions to individual output products. At the same time, the relevant benchmark in the EU ETS does not directly relate to specific products, such as gasoline, diesel or kerosene, but to all refinery output. Due to these constraints, refinery products should be eligible to be included in the scope only if an unambiguous, verifiable and effective methodology is developed in close cooperation with the refining industry.
Amendment 213 #
Proposal for a regulation
Recital 34
Recital 34
(34) However, aluminium products should be included in the CBAM as they are highly exposed to carbon leakage. Moreover, in several industrial applications they are in direct competition with steel products because of characteristics closely resembling those of steel products. Inclusion of aluminium is also relevant as the scope of the CBAM may be extended to cover also indirect emissions in the future. However, including indirect emissions and pricing them in the CBAM could be considered only once the mismatch between indirect carbon costs and indirect carbon emissions has been reduced to a minimum. If after the initial transitional period, the data collected by the Commission shows that the CBAM cannot effectively protect against carbon leakage and incentivise the reduction of global emissions, further phase-in of CBAM and phase-out of free allocation of emission allowances should be paused until an effective solution can be found.
Amendment 218 #
Proposal for a regulation
Recital 35 a (new)
Recital 35 a (new)
(35 a) In case European industries producing goods subject to the CBAM face serious difficulties as a result of its implementation, an in-depth assessment developed in close cooperation with the industrial sectors should be made as promptly as possible to examine whether a CBAM is effective and practicable.
Amendment 219 #
Proposal for a regulation
Recital 36 a (new)
Recital 36 a (new)
(36 a) Before widening the scope of the CBAM to new sectors, including downstream products using goods covered by the CBAM, a prior assessment should be made by the European Commission in consultation with the industrial sectors in order to check its practicability and effectiveness.
Amendment 220 #
Proposal for a regulation
Recital 36 b (new)
Recital 36 b (new)
(36 b) Circumvention practices must be prohibited, where a change in the pattern of trade between third countries and the Union or between third countries, 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 all types of circumvention practices, including 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 present Regulation.
Amendment 230 #
Proposal for a regulation
Recital 43
Recital 43
(43) CBAM certificates for imports differ from EU ETS allowances for which daily auctioning is an essential feature. The need to set a clear price for CBAM import 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 import 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 Commission should be tasked to calculate and publish that average price.
Amendment 232 #
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 import 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 251 #
Proposal for a regulation
Recital 50
Recital 50
(50) A transitional period should apply during the period 2023 until 2025. AUnder the import provisions, 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 254 #
Proposal for a regulation
Recital 50 a (new)
Recital 50 a (new)
(50 a) Under the export provisions of the CBAM, the allowance adjustments for exports would be implemented as of the start of the phasing out of EU ETS allowances allocated free of charge. A transitional period of two years before the implementation of allowance adjustments for exports is needed to ensure a swift implementation of the mechanism. Particular attention should be paid to the arrangements for the calculation of corresponding allowance adjustments, the operation of registries, the application of the monitoring and reporting guidelines and verification.
Amendment 266 #
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 to ensure a level playing field between the EU and third countries. . 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 mismatch between indirect carbon costs and indirect carbon emissions and that EU producers are exposed to carbon costs passed on in electricity prices due to the functioning of the EU energy market (indirect carbon costs). __________________ 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 295 #
Proposal for a regulation
Recital 59
Recital 59
(59) It is of particular importance that the Commission carry out appropriate consultations during its preparatory work, including at expert and industry level, and that those consultations be conducted in accordance with the principles laid down in the Interinstitutional Agreement on Better Law-Making of 13 April 201651 . In particular, to ensure equal participation in the preparation of delegated acts, the European Parliament and the Council receive all documents at the same time as Member States' experts, and their experts systematically have access to meetings of Commission expert groups dealing with the preparation of delegated acts. __________________ 51Interinstitutional Agreement between the European Parliament, the Council of the European Union and the European Commission on Better Law-Making (OJ L 123, 12.5.2016, p. 1).
Amendment 304 #
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 or exportation from the customs territory of the Union, in order to prevent the risk of carbon leakage.
Amendment 307 #
Proposal for a regulation
Article 1 – paragraph 2
Article 1 – paragraph 2
2. The CBAM complements the system 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 or export from the customs territory of the Union of goods referred to in Article 2.
Amendment 311 #
Proposal for a regulation
Article 1 – paragraph 3
Article 1 – paragraph 3
3. The mechanism willshould, if effective, 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, without prejudice to the maintenance of EU ETS allowances allocated free of charge until 2030 and only provided that the CBAM 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.
Amendment 325 #
Proposal for a regulation
Article 2 – paragraph 2 a (new)
Article 2 – paragraph 2 a (new)
2a. This Regulation also applies to goods listed in Annex I when those goods are produced in EU installations subject to the EU ETS and exported from the Customs territory of the European Union to third countries which have not yet limited or priced GHG emissions at the same levels as the EU.
Amendment 326 #
Proposal for a regulation
Article 2 – paragraph 3
Article 2 – paragraph 3
3. By way of derogation from paragraphs 1, 2 and 2a, this Regulation does not apply to goods originating in or exported to countries and territories listed in Annex II, Section A.
Amendment 329 #
Proposal for a regulation
Article 2 – paragraph 5 a (new)
Article 2 – paragraph 5 a (new)
5a. the regulatory obligation and the net regulatory burden imposed in the country where the goods are originating in are equivalent to those imposed under the EU ETS.
Amendment 331 #
Proposal for a regulation
Article 2 – paragraph 6
Article 2 – paragraph 6
6. The Commission is empowered to adopt implementing acts in order to determine the conditions for applying the CBAM to goods referred to in paragraph 2 and 2a. Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 29(2).
Amendment 365 #
Proposal for a regulation
Article 3 – paragraph 1 – point 4 a (new)
Article 3 – paragraph 1 – point 4 a (new)
(4 a) ‘exportation’ means the release for export of goods produced in EU installations subject to the EU ETS as provided in Article 269 of regulation (EU) N° 952/2013;
Amendment 369 #
Proposal for a regulation
Article 3 – paragraph 1 – point 13
Article 3 – paragraph 1 – point 13
(13) ‘declarant’ means a person lodging a customs declaration, either for release for free circulation in its own name or for export, or the person in whose name such a declaration is lodged in accordance with Regulation (EU) No 952/2013;
Amendment 373 #
Proposal for a regulation
Article 3 – paragraph 1 – point 19
Article 3 – paragraph 1 – point 19
(19) ‘surrender’ means offsetting of CBAM certificates against the declared embedded emissions in imported or exported goods;
Amendment 376 #
Proposal for a regulation
Article 3 – paragraph 1 – point 28 a (new)
Article 3 – paragraph 1 – point 28 a (new)
(28 a) ‘indirect emissions costs’ mean EUA costs passed on in electricity prices. These are not an indication of the physical indirect emissions in the production.
Amendment 377 #
Proposal for a regulation
Article 4 – title
Article 4 – title
Importation and exportation of goods
Amendment 378 #
Proposal for a regulation
Article 4 – paragraph 1
Article 4 – paragraph 1
Goods shall only be imported into or exported from the customs territory of the Union by a declarant that is authorised by the competent authority in accordance with Article 17 (‘authorised declarant’).
Amendment 380 #
Proposal for a regulation
Article 5 – title
Article 5 – title
Application for an import authorisation
Amendment 389 #
Proposal for a regulation
Article 5 a (new)
Article 5 a (new)
Amendment 390 #
Proposal for a regulation
Article 6 – title
Article 6 – title
CBAM import declaration
Amendment 402 #
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 409 #
Proposal for a regulation
Article 8 – paragraph 1
Article 8 – paragraph 1
1. The authorised declarant shall ensure that the total embedded emissions declared in the CBAM declaration submitted pursuant to Article 6 are verified by a verifier accredited pursuant to Article 18, based on the verification principles set out in Annex V. The competent authority is authorised to verify the accuracy of the information in the CBAM declaration.
Amendment 412 #
Proposal for a regulation
Article 8 – paragraph 3 – introductory part
Article 8 – paragraph 3 – introductory part
3. 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 429 #
Proposal for a regulation
Article 10 – paragraph 6
Article 10 – paragraph 6
6. The records referred to in paragraph 5, point (c), shall be sufficiently detailed to enable the verification in accordance with paragraph 5, point (b), and to enable any competent authority to verify and to review, in accordance with Article 19(1), the CBAM declaration made by an authorised declarant to whom the relevant information was disclosed in accordance with paragraph 8.
Amendment 433 #
Proposal for a regulation
Article 10 – paragraph 8 a (new)
Article 10 – paragraph 8 a (new)
8a. The central database should, insofar as possible, mirror the information provided in the ETS database.
Amendment 446 #
Proposal for a regulation
Article 11 – paragraph 1 – subparagraph 1
Article 11 – paragraph 1 – subparagraph 1
The Commission shall make available to the Member States a list of all competent national authorities and publish this information in the Official Journal of the European Union.
Amendment 484 #
Proposal for a regulation
Article 14 – paragraph 4
Article 14 – paragraph 4
4. The Commission shall establish a central database at the EU level accessible to the public containing the names, addresses and contact details of the operators and the location of installations in third countries in accordance with Article 10(2). An operator may choose not to have its name, address and contact details accessible to the public. The central database should insofar as possible, mirror the ETS database.
Amendment 550 #
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. This information shall be submitted to the competent authority.
Amendment 565 #
Proposal for a regulation
Article 20 – paragraph 2 – point 1 (new)
Article 20 – paragraph 2 – point 1 (new)
(1) 1. Part of the revenues generated by CBAM needs to be used to support research and innovation in carbon- reducing technologies such as renewable hydrogen uptake, storage, and other types of zero carbon industrial innovation, as well as to spur decarbonisation effort in CBAM sectors through financing to companies operating in exporting both developing and least developed countries. 2. The revenues generated from the sale of CBAM certificates, or the equivalent in financial value of these revenues, shall be used to help European industries in decarbonising their production and in deploying low-carbon technologies, since they are facing higher production costs due to the ambitious objectives set by the European Green Deal, as well as to cover the cost of administration of the CBAM. 3. To ensure transparency of the use of revenues generated from the sale of CBAM certificates the Commission shall, on a yearly basis, report to the European Parliament and the Council on how the revenues from the sale of CBAM certificates, or the equivalent in financial value of these revenues, from the previous year has been used.
Amendment 569 #
Proposal for a regulation
Article 20 a (new)
Article 20 a (new)
Article 20 a CBAM Export certificates 1. The competent authority shall register the export of goods listed in Annex I by the declarant. 2. For those export of goods listed in Annex I, the competent authority shall grant adjustment allowances certificates for goods produced in EU installations subject to the EU ETS and exported from the customs territory of the Union to third countries which have not yet limited or priced GHG emissions at the same level as the EU to calibrate the regulatory obligation and the net regulatory burden imposed under the CBAM. The adjustment allowances for the emissions embedded in the good exported mentioned in the certificate shall be deducted in accordance with Article 5 from the annual amount of allowances above the benchmark, or by default, the amount of allowances not covered by the fallback benchmarks to be surrendered to the competent authority.
Amendment 570 #
Proposal for a regulation
Article 21 – title
Article 21 – title
Price of CBAM import certificates
Amendment 579 #
Proposal for a regulation
Article 22 – title
Article 22 – title
Surrender of CBAM import certificates
Amendment 586 #
Proposal for a regulation
Article 23 – title
Article 23 – title
Re-purchase of CBAM import certificates
Amendment 588 #
Proposal for a regulation
Article 24 – title
Article 24 – title
Cancellation of CBAM import certificates
Amendment 599 #
Proposal for a regulation
Article 26 – title
Article 26 – title
Penalties in relation to imports of goods
Amendment 608 #
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 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 – and any of its related parties - who has certified the accuracy of the information in the CBAM declaration has its certification withdrawn by the competent authority.
Amendment 609 #
Proposal for a regulation
Article 26 – paragraph 5
Article 26 – paragraph 5
5. Member States may apply administrative or criminal sanctions for failure to comply with the CBAM legislation in accordance with their national rules in addition to penalties referred to in paragraphs 2 and 4a. Such sanctions shall be effective, proportionate and dissuasive.
Amendment 614 #
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 Regulationbetween third countries and the Union or between third countries themselves or between individual companies or within the same undertaking in relation to goods included in the scope of this Regulation , whether slightly modified or not, stems from a practice, process or work that has insufficient due cause or economic justification other than avoiding obligations or seeking benefits 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 Regulationor undermining their effects, including on overall GHG emissions and on prices of the goods concerned.
Amendment 621 #
Proposal for a regulation
Article 27 – paragraph 2 a (new)
Article 27 – paragraph 2 a (new)
2a. The practice, process or work referred to in paragraph 2 include, inter alia: (a) the slight modification of the goods included in the scope of this Regulation to make it fall under customs codes which are normally not subject to the obligations of this Regulation, provided that the modification does not alter its essential characteristics; (b) false declarations as to the identity of the producer of the goods or of the nature of the goods or the production process involved to product these goods; (c) the consignment of the goods via third countries to which more favourable obligations apply; (d) the reorganisation by exporters or producers of their patterns and channels of sales in order to avoid obligations as laid down in this Regulation, or undermine their effects, including on overall GHG emissions and on prices of the goods, for instance via practices of resource shuffling. (e) the assembly of parts by an assembly operation in the Union or a third country to avoid obligations as laid down in this Regulation.
Amendment 622 #
Proposal for a regulation
Article 27 – paragraph 2 b (new)
Article 27 – paragraph 2 b (new)
2b. Following a complaint made by any party, or at the request of Member States or on its own initiative, the Commission may decide, following an investigation, to extend obligations laid down in this regulation, in whatever way is necessary to prevent future circumvention of the present Regulation, when circumvention of the measures in force is taking place. This includes the possibility for the Commission to impose a penalty on an authorised Declarant involved in the circumvention, if this is proportionate, from the date of registration of imports. Given the circumstances of the individual case, the Commission may also decide to ban those imports from entering the Union territory during a certain period or to prevent the authorized Declarant and any of its related parties to import goods subject to the present Regulation into the Union for a certain period.
Amendment 623 #
Proposal for a regulation
Article 27 – paragraph 2 c (new)
Article 27 – paragraph 2 c (new)
2c. Decisions referred to in paragraph 2b shall be subject to an appeal procedure.
Amendment 624 #
Proposal for a regulation
Article 27 – paragraph 2 d (new)
Article 27 – paragraph 2 d (new)
2d. Investigations 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 possible circumvention practices as defined in paragraphs 2 and 2a. Initiations shall be made by means of a Commission regulation which shall also instruct customs authorities of Member States to subject imports to registration in accordance with Article 27(5). The Commission shall provide information to the Member States once a party or a Member State has submitted a request to initiate an investigation and the Commission has completed its analysis thereof, or where the Commission has itself determined that there is a need to initiate an investigation.
Amendment 625 #
Proposal for a regulation
Article 27 – paragraph 2 e (new)
Article 27 – paragraph 2 e (new)
2e. Investigations shall be carried out by the Commission. The Commission may be assisted by customs authorities and the investigation shall be concluded within 4 months.
Amendment 626 #
Proposal for a regulation
Article 27 – paragraph 2 f (new)
Article 27 – paragraph 2 f (new)
2f. Where the facts as finally ascertained justify the extension of obligations, this shall be done by the Commission adopting delegated acts.
Amendment 627 #
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 paragraphs 2 to 2f 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 goods included in the scope of this Regulation and an increase of volume of imports of slightly modified products, which are not included in the list of goods in Annex I. The Commission shall continually monitor any significant change of pattern of trade of goods and slightly modified products at Union level.
Amendment 633 #
Proposal for a regulation
Article 27 a (new)
Article 27 a (new)
Amendment 646 #
Proposal for a regulation
Article 30 – paragraph 1
Article 30 – paragraph 1
1. The Commission shall collect the information necessary with a view to extending the scope of this Regulation to indirect emissions and goods other than those listed in Annex I, including downstream products using goods covered by this Regulation, and develop methods of calculating embedded emissions based on environmental footprint methods.
Amendment 656 #
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 assessmentan in-depth assessment - developed in close cooperation with the industrial sectors - of the rules to be applied during the trial period established pursuing to article 30a and 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, including 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 678 #
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 Article22 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 680 #
Proposal for a regulation
Article 30 b (new)
Article 30 b (new)
Article 30 b Emergency clause In case European industries producing goods subject to the CBAM face serious difficulties in relation to its implementation during the transitional period or the trial period, an individual assessment should be made as promptly as possible to examine whether a CBAM is still effective and practicable for the sector concerned.
Amendment 699 #
Proposal for a regulation
Article 32 – paragraph 1
Article 32 – paragraph 1
During the transitional period of this Regulation, the import provision of the CBAM mechanism shall apply as a reporting obligation as set out in Articles 33 to 35.
Amendment 704 #
Proposal for a regulation
Article 35 – paragraph 1
Article 35 – paragraph 1
1. Each declarant shall, for each quarter of a calendar year, submit a report (‘CBAM report’) containing information on the goods imported or exported during that quarter, to the competent authority of the Member State of importation or exportation or, if goods have been imported or exported to more than one Member State, to the competent authority of the Member State at the declarant’s choice, no later than one month after the end of each quarter.
Amendment 705 #
Proposal for a regulation
Article 35 – paragraph 2 – introductory part
Article 35 – paragraph 2 – introductory part
2. The CBAM report shall include the following information for imports and where relevant for exports:
Amendment 730 #
Proposal for a regulation
Annex I – subheading 3 a (new)
Annex I – subheading 3 a (new)
Amendment 731 #
Proposal for a regulation
Annex I – table 5
Annex I – table 5
CN code Greenhouse gas 7601 – Unwrought aluminium Carbon dioxide and perfluorocarbons 7603 – Aluminium powders and flakes Carbon dioxide and perfluorocarbons 7604 – Aluminium bars, rods and profiles Carbon dioxide and perfluorocarbons 7605 – Aluminium wire Carbon dioxide and perfluorocarbons 7606 – Aluminium plates, sheets and strip, Carbon dioxide and perfluorocarbons of a thickness exceeding 0,2 mm 7607 – Aluminium foil (whether or not Carbon dioxide and perfluorocarbons printed or backed with paper, paper-board, plastics or similar backing materials) of a thickness (excluding any backing) not exceeding 0,2 mm 7608 – Aluminium tubes and pipes Carbon dioxide and perfluorocarbons 7609 00 00 – Aluminium tube or pipe Carbon dioxide and perfluorocarbons fittings (for example, couplings, elbows, sleeves) 7610 - Aluminium structures (excluding Carbon dioxide and perfluorocarbons prefabricated buildings of heading 9406) and parts of structures (for example, bridges and bridge sections, towers, lattice masts, roofs, roofing frameworks, doors and windows and their frames and thresholds for doors, balustrades, pillars and columns); aluminium plates, rods, profiles, tubes and the like, prepared for use in structures: 7611 00 00 - Aluminium reservoirs, tanks, Carbon dioxide and perfluorocarbons vats and similar containers, for any material (other than compressed or liquefied gas), of a capacity exceeding 300 litres, whether or not lined or heat- insulated, but not fitted with mechanical or thermal equipment 7612 - Aluminium casks, drums, cans, Carbon dioxide and perfluorocarbons boxes and similar containers (including rigid or collapsible tubular containers), for any material (other than compressed or liquefied gas), of a capacity not exceeding 300 litres, whether or not lined or heat-insulated, but not fitted with mechanical or thermal equipment: 7613 00 00 - Aluminium containers for Carbon dioxide and perfluorocarbons compressed or liquefied gas 7614 - Stranded wire, cables, plaited Carbon dioxide and perfluorocarbons bands and the like, of aluminium, not electrically insulated: 7615 - Table, kitchen or other household Carbon dioxide and perfluorocarbons articles and parts thereof, of aluminium; pot scourers and scouring or polishing pads, gloves and the like, of aluminium; sanitary ware and parts thereof, of aluminium: 7616 - Other articles of aluminium: Carbon dioxide and perfluorocarbons