Activities of Marco DREOSTO related to 2021/0211(COD)
Shadow opinions (1)
OPINION on the proposal for a directive of the European Parliament and of the Council amending Directive 2003/87/EC establishing a system for greenhouse gas emission allowance trading within the Union, Decision (EU) 2015/1814 concerning the establishment and operation of a market stability reserve for the Union greenhouse gas emission trading scheme and Regulation (EU) 2015/757
Amendments (102)
Amendment 41 #
Proposal for a directive
Recital 13
Recital 13
(13) Greenhouse gases that are not directly released into the atmosphere should be considered emissions under the EU ETS and allowances should be surrendered for those emissions unless they are captured and reused for example to produce recycled carbon fuels and renewables liquid and gaseous fuels of non-biological origin , stored in a storage site in accordance with Directive 2009/31/EC of the European Parliament and of the Council46 , or they are permanently chemically bound in a product so that they do not enter the atmosphere under normal use. The Commission should be empowered to adopt implementing acts specifying the conditions where greenhouse gases are to be considered as permanently chemically bound in a product so that they do not enter the atmosphere under normal use, including obtaining a carbon removal certificate, where appropriate, in view of regulatory developments with regard to the certification of carbon removals. _________________ 46Directive 2009/31/EC of the European Parliament and of the Council of 23 April 2009 on the geological storage of carbon dioxide and amending Council Directive 85/337/EEC, European Parliament and Council Directives 2000/60/EC, 2001/80/EC, 2004/35/EC, 2006/12/EC, 2008/1/EC and Regulation (EC) No 1013/2006 (OJ L 140, 5.6.2009, p. 114).
Amendment 54 #
Proposal for a directive
Recital 17
Recital 17
(17) In the European Green Deal, the Commission stated its intention to take additional measures to address greenhouse gas emissions from the maritime transport sector through a basket of measures to enable the Union to reach its emissions reduction targets. In this context, Directive 2003/87/EC should be amended to include the maritime transport sector in the EU ETS in order to ensure this sector contributes to the increased climate objectives of the Union as well as to the objectives of the Paris Agreement, which requires developed countries to take the lead by undertaking economy-wide emission reduction targets, while developing countries are encouraged to move over time towards economy-wide emission reduction or limitation targets.49 Considering that emissions from international aviation outside Europe should be capped from January 2021 by global market-based action while there is no action in place that caps or prices maritime transport emissions, it is appropriate that the EU ETS covers a share of the emissions from voyages between a port under the jurisdiction of a Member State and port under the jurisdiction of a third country, with the third country being able to decide on appropriate action in respect of the other share of emissions. The extension of the EU ETS to the maritime transport sector should thus include half of the emissions from ships performing voyages arriving at a port under the jurisdiction of a Member State from a port outside the jurisdiction of a Member State, half of the emissions from ships performing voyages departing from a port under the jurisdiction of a Member State and arriving at a port outside the jurisdiction of a Member State, emissions from ships performing voyages arriving at a port under the jurisdiction of a Member State from a port under the jurisdiction of a Member State, and emissions at berth in a port under the jurisdiction of a Member State. This approach has been noted as a practical way to solve the issue of Common but Differentiated Responsibilities and Capabilities, which has been a longstanding challenge in the UNFCCC context. The coverage of a share of the emissions from both incoming and outgoing voyages between the Union and third countries ensures the effectiveness of the EU ETS, notably by increasing the environmental impact of the measure compared to a geographical scope limited to voyages within the EU, while limiting the risk of evasive port calls and the risk of delocalisation of transhipment activities outside the Union. To ensure a smooth inclusion of the sector in the EU ETS, the surrendering of allowances by shipping companies should be gradually increased with respect to verified emissions reported for the period 2023 to 2025. To protect the environmental integrity of the system, to the extent that fewer allowances are surrendered in respect of verified emissions for maritime transport during those years, once the difference between verified emissions and allowances surrendered has been established each year, a corresponding a number of allowances should be cancelled. As from 2026, shipping companies should surrender the number of allowances corresponding to all of their verified emissions reported in the preceding year. However, measures should be taken to ensure that the extension of the ETS to maritime transport affects Member States in a fair and not disproportionate manner, taking into account their specific circumstances. _________________ 49 Paris Agreement, Article 4(4). 49
Amendment 75 #
Proposal for a directive
Recital 29
Recital 29
Amendment 85 #
Proposal for a directive
Recital 30
Recital 30
(30) The Carbon Border Adjustment Mechanism (CBAM), established under Regulation (EU) […./..] of the European Parliament and of the Council51 , is an alternative to free allocation to address the risk of carbon leakage. To the extent that sectors and subsectors are covered by that measure, they should not receive free allocation. However, a transitional phasing-out of free allowances is needed to allow producers, importers and traders to adjust to the new regime. The reduction of free allocation should be implemented by applying a factor to free allocation for CBAM sectors, while the CBAM is phased in. Sufficient safeguards should nevertheless be provided for the products intended for exports and their producers. This percentage (CBAM factor) should be equal to 100 % during the transitional period between the entry into force of [CBAM Regulation] and 2025, 90 % in 2026 and should be reduced by 10 percentage points each year to reach 0 % and thereby eliminate free allocation by the tenth year. The relevant delegated acts on free allocation should be adjusted accordingly for the sectors and subsectors covered by the CBAM, taking into account the need to maintain free allowances for the products that are exported. The free allocation no longer provided to the CBAM sectors based on this calculation (CBAM demand) must be auctioned and the revenues will accrue to the Innovation Fund, so as to support innovation in low carbon technologies, carbon capture and utilisation (‘CCU’), carbon capture and geological storage (‘CCS’), renewable energy and energy storage, in a way that contributes to mitigating climate change. Special attention should be given to projects in CBAM sectors. To respect the proportion of the free allocation available for the non- CBAM sectors, the final amount to deduct from the free allocation and to be auctioned should be calculated based on the proportion that the CBAM demand represents in respect of the free allocation needs of all sectors receiving free allocation. _________________ 51 [please insert full OJ reference]
Amendment 95 #
Proposal for a directive
Recital 31
Recital 31
Amendment 100 #
Proposal for a directive
Recital 31 a (new)
Recital 31 a (new)
(31a) In order to reflect the actual technological progress within installations included in product benchmarks with consideration of fuel and electricity exchange ability in Commission Implementing Regulation (EU) 2021/447 and where the share of indirect emissions is higher than 50% of the relevant product benchmarks, the update of such benchmarks for the periods as of 2026 shall not be affected by the evolution of the carbon intensity of the electricity mix.
Amendment 102 #
Proposal for a directive
Recital 32
Recital 32
(32) A comprehensive approach to innovation is essential for achieving the European Green Deal objectives. At EU level, the necessary research and innovation efforts are supported, among others, through Horizon Europe which include significant funding and new instruments for the sectors coming under the ETS. Consequently, the Innovation Fund should seek synergies with Horizon Europe and, where relevant, with other Union funding programmes. Member States should ensure that the national transposition provisions do not hamper innovations and are technologically neutral.
Amendment 111 #
Proposal for a directive
Recital 33
Recital 33
(33) The scope of the Innovation Fund referred to in Article 10a(8) of Directive 2003/87/EC should be extended to support innovation in and demonstration of low- carbon technologies and processes that concern the consumption of fuels in the sectors of buildings and road transport. In addition, the Innovation Fund should serve to support investments to decarbonise the maritime transport sector, including investments in sustainable alternative fuels, such as hydrogen and ammonia and synthetic fuels that are produced from renewables, as well as zero-emission propulsion technologies like wind technologies. Considering that revenues generated from penalties raised in Regulation xxxx/xxxx [FuelEU Maritime]52 are allocated to the Innovation Fund as external assigned revenue in accordance with Article 21(5) of the Financial Regulation, the Commission should ensure that due consideration is given to support for innovative projects aimed at accelerating the development and deployment of renewable and low carbon fuels in the maritime sector, as specified in Article 21(1) of Regulation xxxx/xxxx [FuelEU Maritime]. To ensure sufficient funding is available for innovation within this extended scope, the Innovation Fund should be supplemented with 50 million allowances, stemming partly from the allowances that could otherwise be auctioned, and partly from the allowances that could otherwise be allocated for free, in accordance with the current proportion of funding provided from each source to the Innovation Fund. _________________ 52[add ref to the FuelEU Maritime Regulation].
Amendment 127 #
Proposal for a directive
Recital 40
Recital 40
(40) Renewable liquid and gaseous fuels of non-biological origin and recycled carbon fuels can be important to reduce greenhouse gas emissions in sectors that are hard to decarbonise. Where recycled carbon fuels and renewable liquid and gaseous fuels of non-biological origin are produced from captured carbon dioxide under an activity covered by this Directive, the emissions should be accounted under that activity where the CO2 is emitted into the atmosphere. To ensure that renewable fuels of non-biological origin and recycled carbon fuels contribute to greenhouse gas emission reductions and to avoid double counting for fuels that do so, it is appropriate to explicitly extend the empowerment in Article 14(1) to the adoption by the Commission of implementing acts laying down the necessary adjustments for how and where to account for the eventual release of carbon dioxide and how to avoid double counting to ensure appropriate incentives are in place for capturing the CO2, taking also into account the treatment of these fuels under Directive (EU) 2018/2001.
Amendment 130 #
Proposal for a directive
Recital 42
Recital 42
Amendment 155 #
Proposal for a directive
Recital 54
Recital 54
(54) Innovation and development as well as demonstration and up-scaling of new low-carbon technologies in the sectors of buildings and road transport are crucial for ensuring the cost-efficient contribution of these sectors to the expected emission reductions. Therefore, 150 million allowances from emissions trading in the buildings and road transport sectors should also be made available to the Innovation Fund to stimulate the cost-efficient emission reductions.
Amendment 156 #
Proposal for a directive
Recital 8
Recital 8
(8) The EU ETS should incentivise production from installations that partly or fully reduce greenhouse gas emissions. Therefore, the description of some categories of activities in Annex I to Directive 2003/87/EC should be amended to ensure an equal treatment of installations in the sectors concerned. In addition, free allocation for the production of a product should be independent of the nature of the production process. It is therefore necessary to modify the definition of the products and of the processes and emissions covered for some benchmarks to ensure a level playing field for new and existing technologies. It is also necessary to decouple the update of the benchmark values for refineries and for hydrogen to reflect the increasing importance of production of hydrogen outside the refineries sectorCommission Implementing Regulation (EU) 2018/2066 should be reviewed accordingly to take into account lower emissions associated with the low-carbon fuels.
Amendment 176 #
Proposal for a directive
Recital 13
Recital 13
(13) Greenhouse gases that are not directly released into the atmosphere should be considered emissions under the EU ETS and allowances should be surrendered for those emissions unless they are stored in a storage site in accordance with Directive 2009/31/EC of the European Parliament and of the Council46 , or they are permanently chemically bound in a product so that they do not enter the atmosphere under normal use, or they are captured and used to produce recycled carbon fuels and renewable liquid and gaseous fuels of non-biological origin. The Commission should be empowered to adopt implementing acts specifying the conditions where greenhouse gases are to be considered as permanently chemically bound in a product so that they do not enter the atmosphere under normal use, including obtaining a carbon removal certificate, where appropriate, in view of regulatory developments with regard to the certification of carbon removals. _________________ 46Directive 2009/31/EC of the European Parliament and of the Council of 23 April 2009 on the geological storage of carbon dioxide and amending Council Directive 85/337/EEC, European Parliament and Council Directives 2000/60/EC, 2001/80/EC, 2004/35/EC, 2006/12/EC, 2008/1/EC and Regulation (EC) No 1013/2006 (OJ L 140, 5.6.2009, p. 114).
Amendment 181 #
Proposal for a directive
Article 1 – paragraph 1 – point 2 – point a
Article 1 – paragraph 1 – point 2 – point a
Directive 2003/87/EC
Annex I
Annex I
(b) ‘emissions’ means the release into the atmosphere of greenhouse gases from sources in an installation or the release into the atmosphere from an aircraft performing an aviation activity listed in Annex I or from ships performing a maritime transport activity listed in Annex I of the gases specified in respect of that activity, or the release of greenhouse gases corresponding to the activity referred to in Annex III;”;
Amendment 206 #
Proposal for a directive
Recital 17
Recital 17
(17) In the European Green Deal, the Commission stated its intention to take additional measures to address greenhouse gas emissions from the maritime transport sector through a basket of measures to enable the Union to reach its emissions reduction targets. In this context, Directive 2003/87/EC should be amended to include the maritime transport sector in the EU ETS in order to ensure this sector contributes to the increased climate objectives of the Union as well as to the objectives of the Paris Agreement, which requires developed countries to take the lead by undertaking economy-wide emission reduction targets, while developing countries are encouraged to move over time towards economy-wide emission reduction or limitation targets.49 Considering that emissions from international aviation outside Europe should be capped from January 2021 by global market-based action while there is no action in place that caps or prices maritime transport emissions, it is appropriatemight be highly detrimental that the EU ETS would covers a share of the emissions from voyages between a port under the jurisdiction of a Member State and port under the jurisdiction of a third country, with the third country being able to decide on appropriate action in respect of the other share of emissions. The extension of the EU ETS to the maritime transport sector should thus include half of the emissions from ships performing voyages arriving at a port under the jurisdiction of a Member State from a port outside the jurisdiction of a Member State, half of the emissions from ships performing voyages departing from a port under the jurisdiction of a Member State and arriving at a port outside the jurisdiction of a Member State, emissions from ships performing voyages arriving at a port under the jurisdiction of a Member State from a port under the jurisdiction of a Member State, and emissions at berth in a port under the jurisdiction of a Member State. This approach has been noted as a practical way to solve the issue of Common but Differentiated Responsibilities and Capabilities, which has been a longstanding challenge in the UNFCCC context. The coverage of a share of the emissions from both incoming and outgoing voyages between the Union and third countries ensures the effectiveness of the EU ETS, notably by increasing the environmental impact of the measure compared to a geographical scope limited to voyages within the EU, while limiting the risk of evasive port calls and the risk of delocalisation of transhipment activities outside the Unionbecause it might cause a loss of competitiveness to our ports, especially in the transhipment sector. In addition, ships operating routes included in the Motorways of the Seas or granting territorial continuity as a public service to islands should not be considered in the scope of the EU ETS, in order to avoid the concrete risk of a modal backshift to more pollutant sectors in the former case, as well as the risk of endangering territorial continuity in the latter one. The extension of the EU ETS to the maritime transport sector should thus include half of the emissions from ships performing voyages arriving at a port under the jurisdiction of a Member State from a port under the jurisdiction of a Member State, and fifty percent of emissions at berth in a port under the jurisdiction of a Member State. To ensure a smooth inclusion of the sector in the EU ETS, the surrendering of allowances by shipping companies should be gradually increased with respect to verified emissions reported for the period 20238 to 202530. To protect the environmental integrity of the system, to the extent that fewer allowances are surrendered in respect of verified emissions for maritime transport during those years, once the difference between verified emissions and allowances surrendered has been established each year, a corresponding a number of allowances should be cancelled. As from 202631, shipping companies should surrender the number of allowances corresponding to all of their verified emissions reported in the preceding year. _________________ 49 Paris Agreement, Article 4(4).
Amendment 213 #
Proposal for a directive
Article 1 – paragraph 1 – point 10
Article 1 – paragraph 1 – point 10
Directive 2003/87/EC
Article 9 – paragraph 1a
Article 9 – paragraph 1a
“In [the year following entry into force of this amendment], the Union-wide quantity of allowances shall be decreased by [-- million allowances (to be determined depending on year of entry into force)]. In the same year, the Union-wide quantity of allowances shall be increased by 79 million allowances for maritime transport. Starting in [the year following entry into force of this amendment], the linear factor shall be 4,2 %5.09% until 2030. The Commission shall publish the Union-wide quantity of allowances within 3 months of [date of entry into force of the amendment to be inserted].”;
Amendment 240 #
Proposal for a directive
Article 1 – paragraph 1 – point 12 – point a – point i
Article 1 – paragraph 1 – point 12 – point a – point i
Directive 2003/87/EC
Article 8(4)
Article 8(4)
Amendment 249 #
Proposal for a directive
Recital 27
Recital 27
(27) Bearing in mind that this Directive amends Directive 2003/87/EC in respect of a period of implementation that has already started on 1 January 2021, for reasons of predictability, environmental effectiveness and simplicity, the steeper linear reduction pathway of the EU ETS should be a straight line from 2021 to 2030, such as to achieve emission reductions in the EU ETS of 61 % by 2030, as the appropriate intermediate step towards Union economy- wide climate neutrality in 2050. As the increased linear reduction factor can only apply from the year following the entry into force of this Directive, a one-off reduction of the quantity of allowances should reduce the total quantity of allowances so that it is in line with this level of annual reduction having been made from 2021 onwards.
Amendment 262 #
Proposal for a directive
Article 1 – paragraph 1 – point 12 – point a – point ii
Article 1 – paragraph 1 – point 12 – point a – point ii
Directive 2003/87/EC
Article 10 – paragraph 1 – subparagraph 3
Article 10 – paragraph 1 – subparagraph 3
In order to provide further incentives for reducing greenhouse gas emissions and improving energy efficiency, the determined Union- wide ex-ante benchmarks shall be reviewedsubjected to an extensive and comprehensive assessment by the European Commission to evaluate the need to review them before the period from 2026 to 2030 in view of potentially modifying the definitions and system boundaries of existing product benchmarks.
Amendment 266 #
Proposal for a directive
Article 1 – paragraph 1 – point 12 – point b – introductory part
Article 1 – paragraph 1 – point 12 – point b – introductory part
Directive 2003/87/EC
Article 10 a – paragraph 1 a – new
Article 10 a – paragraph 1 a – new
(b) the following paragraph 1a is inserted: Free allocation at benchmark level shall be given in relation to the production of products listed in Annex I of Regulation [CBAM] until the full effectiveness of the CBAM in tackling the carbon leakage risk both on the EU market and on export markets is assessed and positively verified. To this purpose, in 2029 the Commission shall present to the European Parliament and the Council a report pursuant to Regulation [CBAM] regarding the effectiveness of the CBAM. The report shall also include the selected option to address the carbon leakage risk on export markets. The report by the Commission shall be accompanied by a legislative proposal to amend this article in view of gradually phasing out free allocation after 2030 proportionally to the proven level of effectiveness of the CBAM. Allowances resulting from the reduction of free allocation shall be made available to support innovation in relation to the production of products listed in Annex I of Regulation [CBAM] in accordance with Article 10a(8).
Amendment 267 #
Proposal for a directive
Article 1 – paragraph 1 – point 12 – point b
Article 1 – paragraph 1 – point 12 – point b
Directive 2003/87/EC
Article 10 a – paragraph 1 a – new
Article 10 a – paragraph 1 a – new
Amendment 277 #
Proposal for a directive
Recital 29
Recital 29
Amendment 292 #
Proposal for a directive
Article 1 – paragraph 1 – point 12 – point c – point i
Article 1 – paragraph 1 – point 12 – point c – point i
Directive 2003/87/EC
Article 10 a – paragraph 2 – subparagraph 3 – point c
Article 10 a – paragraph 2 – subparagraph 3 – point c
(c) For the period from 2026 to 2030, the benchmark values shall be determined in the samIn order to provide further incentives for reducing greenhouse gas emissions in the steel industry, the manner as set out in points (a) and (d) on the basis of information submitted pursuant to Article 11 for the years 2021 and 2022 and on the basis of applying the annual reduction rate in respect of each year between 2008 and 2028ual reduction rate of the product benchmark hot metal calculated pursuant to the previous sub-paragraph shall not be affected by the modification of benchmark definitions and system boundaries pursuant to the fifth sub-paragraph of article 10a1 when the calculation of such rate is influenced by installations that were operational in the period referred to the first sub-paragraph of article 10a2.
Amendment 298 #
Proposal for a directive
Article 1 – paragraph 1 – point 12 – point c – point ii
Article 1 – paragraph 1 – point 12 – point c – point ii
Directive 2003/87/EC
Article 10 a – paragraph 2 – third paragraph – point d
Article 10 a – paragraph 2 – third paragraph – point d
(d) Where the annual reduction rate exceeds 2,5 % or is below 0,2 %, the benchmark values for the period from 2026 to 2030 shall be the benchmark values applicable in the period from 2013 to 2020 reduced by whichever of those two percentage rates is relevant, in respect of each year between 2008 and 2028. By way of derogation from the previous point, the maximum annual reduction rate of the fuel and heat fallback benchmarks shall remain at 1.6%.
Amendment 303 #
Proposal for a directive
Recital 30
Recital 30
(30) The Carbon Border Adjustment Mechanism (CBAM), established under Regulation (EU) […./..] of the European Parliament and of the Council51 , is an alternative to free allocation to address the risk of carbon leakage. To the extent that sectors and subsectors are covered by that measure, they should not receive free allocation. However, a transitional phasing-out of free allowances as of 2030 is needed to allow producers, importers and traders to adjust to the new regime. The reduction of free allocation should be implemented by applying a factor to free allocation for CBAM sectors, while the CBAM is phased in. This percentage (CBAM factor) should be equal to 100 % during the transitional period between the entry into force of [CBAM Regulation] and 20259, 90 % in 202630 and should be reduced by 10 percentage points each year to reach 0 % and thereby eliminate free allocation by the tenth year. The relevant delegated acts on free allocation should be adjusted accordingly for the sectors and subsectors covered by the CBAM. The free allocation no longer provided to the CBAM sectors based on this calculation (CBAM demand) must be auctioned and the revenues will accrue to the Innovation Fund, so as to support innovation in low carbon technologies, carbon capture and utilisation (‘CCU’), carbon capture and geological storage (‘CCS’), renewable energy and energy storage, in a way that contributes to mitigating climate change. Special attention should be given to projects in CBAM sectors. To respect the proportion of the free allocation available for the non- CBAM sectors, the final amount to deduct from the free allocation and to be auctioned should be calculated based on the proportion that the CBAM demand represents in respect of the free allocation needs of all sectors receiving free allocation. Free allowances in sectors covered by the CBAM are phased out as of 2030 only provided that the CBAM has proved to be effective to prevent the risk of carbon leakage. _________________ 51 [please insert full OJ reference]
Amendment 311 #
Proposal for a directive
Article 1 – paragraph 1 – point 12 – point e
Article 1 – paragraph 1 – point 12 – point e
Directive 2003/87/EC
Article 10 a – paragraph 6 – subparagraph 1
Article 10 a – paragraph 6 – subparagraph 1
Member States shouldall adopt financial measures in accordance with the second and fourth subparagraphs in favour of sectors or subsectors which are exposed to a genuine risk of carbon leakage due to significant indirect costs that are actually incurred from greenhouse gas emission costs passed on in electricity prices, provided that such financial measures are in accordance with State aid rules, and in particular do not cause undue distortions of competition in the internal market. The financial measures adopted should not compensate indirect costs covered by free allocation in accordance with the benchmarks established pursuant to paragraph 1. Where a Member State spends an amount higher than the equivalent of 25 % of their auction revenues of the year in which the indirect costs were incurred, it shall set out the reasons for exceeding that amount.
Amendment 315 #
Proposal for a directive
Recital 30 a (new)
Recital 30 a (new)
(30a) Because third-country governments have still not limited or priced greenhouse gas emissions at the same levels as the EU, there is a difference in regulatory ambition that creates a risk of carbon leakage through the substitution of EU exports to third- country markets by products not subject to equivalent carbon limitation and pricing policies. In this situation, emissions limited in the EU would then be simply emitted in another third country, jeopardizing the EU’s overall objective to reduce global greenhouse gas emissions.
Amendment 318 #
Proposal for a directive
Recital 30 b (new)
Recital 30 b (new)
(30b) Therefore, allowance adjustments for the emissions embedded in the goods exported is justified as long as significant numbers of EU’s international partners have policy approaches that do not result in the same level of climate ambition as the Union, with a view to calibrate the regulatory obligation and the net regulatory burden imposed under the EU ETS. Allowances adjustments for exports should be introduced as of the start of the progressive phasing out of free allowances and should remain in force until other countries take equivalent and effective steps to impose carbon costs on competing foreign production, independently from any 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 320 #
Proposal for a directive
Recital 31
Recital 31
Amendment 330 #
Proposal for a directive
Recital 31 a (new)
Recital 31 a (new)
(31a) In order to reflect the actual technological progress within installations included in product benchmarks with consideration of fuel and electricity exchangeability in Commission Implementing Regulation (EU) 2021/447 and where the share of indirect emissions is higher than 50 % of the relevant product benchmarks, the update of such benchmarks for the periods as of 2026 should not be affected by the evolution of the carbon intensity of the electricity mix.
Amendment 337 #
Proposal for a directive
Recital 31 b (new)
Recital 31 b (new)
(31b) Where ex-ante benchmarks cannot be derived for an individual sector or subsector and allowances are allocated on the basis of generic fall back approaches, it is necessary to ensure that sectorial and geographical differences amongst the sectors and subsectors covered are nevertheless appropriately reflected. In developing implementing acts pursuant to Article 10a(2), the Commission should therefore ensure that sector specific fall back approaches are devised where needed to avoid discrimination between sectors.
Amendment 339 #
Proposal for a directive
Article 1 – paragraph 1 – point 12 – point g
Article 1 – paragraph 1 – point 12 – point g
Directive 2003/87/EC
Article 10 a – paragraph 8 – subparagraph 6
Article 10 a – paragraph 8 – subparagraph 6
Projects shall be selected on the basis of objective and transparent criteria and on a technology-neutral basis, taking into account, where relevant, the extent to which projects contribute to achieving emission reductions well below the benchmarks referred to in paragraph 2. Projects shall have the potential for widespread application or to significantly lower the costs of transitioning towards a low-carbon economy in the sectors concerned. Projects involving CCU shall deliver a net reduction in emissions and ensure avoidance or permanent storage of CO2. In the case of grants provided through calls for proposals, up to 60 % of the relevant costs of projects may be supported, out of which up to 40 % need not be dependent on verified avoidance of greenhouse gas emissions, provided that pre-determined milestones, taking into account the technology deployed, are attained. In the case of support provided through competitive bidding and in the case of technical assistance support, up to 100 % of the relevant costs of projects may be supported.
Amendment 343 #
Proposal for a directive
Article 1 – paragraph 1 – point 12 – point g Directive 2003/87/EC
Article 1 – paragraph 1 – point 12 – point g Directive 2003/87/EC
The calls for proposal shall be open and transparent and clearly set out what kinds of technologies can be supported. The Commission shall take measures to ensure that the calls are communicated as widely as possible, and especially to SMEs.
Amendment 344 #
Proposal for a directive
Article 1 – paragraph 1 – point 12 – point g
Article 1 – paragraph 1 – point 12 – point g
Directive 2003/87/EC
Article 10 a – paragraph 8 – subparagraph 7 a
Article 10 a – paragraph 8 – subparagraph 7 a
The Innovation Fund shall, where appropriate, ensure that there are effective synergies with other relevant Union funding instruments, such as Horizon Europe, and in particular with European partnerships.
Amendment 346 #
Proposal for a directive
Article 1 – paragraph 1 – point 12 a (new)
Article 1 – paragraph 1 – point 12 a (new)
Directive 2003/87/EC
Article 1 – paragraph 1 – point 12 a (new)
Article 1 – paragraph 1 – point 12 a (new)
(12a) In order to avoid an adjustment of free allocation as of Article 10a (5), in addition to the flexibility provided in paragraph 5a, allowances in the market stability reserve shall be used corresponding to an amount of up to 5% of the total quantity of allowances.
Amendment 352 #
Proposal for a directive
Recital 33
Recital 33
(33) The scope of the Innovation Fund referred to in Article 10a(8) of Directive 2003/87/EC should be extended to support innovation in low-carbon technologies and processes that concern the consumption of fuels in the sectors of buildings and road transport. In addition, the Innovation Fund should serve to support investments to decarbonise the maritime transport sector, including investments in sustainable alternative fuels, such as hydrogen and ammonia that are produced from renewables, as well as zero-emission propulsion technologies like wind technologies. Considering that revenues generated from penalties raised in Regulation xxxx/xxxx [FuelEU Maritime]52 are allocated to the Innovation Fund as external assigned revenue in accordance with Article 21(5) of the Financial Regulation, the Commission should ensure that due consideration is given to support for innovative projects aimed at accelerating the development and deployment of renewable and low carbon fuels in the maritime sector, as specified in Article 21(1) of Regulation xxxx/xxxx [FuelEU Maritime]. To ensure sufficient funding is available for innovation within this extended scope, the Innovation Fund should be supplemented with 50 million allowances, stemming partly from the allowances that could otherwise be auctioned, and partly from the allowances that could otherwise be allocated for free, in accordance with the current proportion of funding provided from each source to the Innovation Fund. _________________ 52[add ref to the FuelEU Maritime Regulation].
Amendment 353 #
Proposal for a directive
Article 1 – paragraph 1 – point 14 – point a
Article 1 – paragraph 1 – point 14 – point a
Directive 2003/87/EC
Article 10 d – paragraph 1– subparagraph 1
Article 10 d – paragraph 1– subparagraph 1
1. A fund to support investments proposed by the beneficiary Member States, including the financing of small- scale investment projects, including in regions and municipalities, to modernise energy systems and improve energy efficiency shall be established for the period from 2021 to 2030 (the ‘Modernisation Fund’). The Modernisation Fund shall be financed through the auctioning of allowances as set out in Article 10, for the beneficiary Member States set out therein.
Amendment 374 #
Proposal for a directive
Recital 38
Recital 38
(38) The scope of the Modernisation Fund should be aligned with the most recent climate objectives of the Union by requiring that investments are consistent with the objectives of the European Green Deal and Regulation (EU) 2021/1119, and eliminating the support to any investments related to fossil fuels. In addition, the percentage of the Modernisation Fund that needs to be devoted to priority investments should be increased to 80 %; energy efficiency should be targeted as a priority area at the demand side; and support of households to address energy poverty, including in rural and remote areas, should be included within the scope of the priority investments.
Amendment 392 #
Proposal for a directive
Article 1 – paragraph 1 – point 15 – point e
Article 1 – paragraph 1 – point 15 – point e
Directive 2003/87/EC
Article 12 – paragraph 3 b – subparagraph 1
Article 12 – paragraph 3 b – subparagraph 1
3b. An obligation to surrender allowances shall not arise in respect of emissions of greenhouse gases which are considered to have been captured and utilised to become permanently chemically bound in a product so that they do not enter the atmosphere under normal use, and in respect of greenhouse gases that are captured and used to produce recycled carbon fuels and renewable liquid and gaseous fuels of non-biological origin.
Amendment 392 #
Proposal for a directive
Recital 40
Recital 40
(40) Renewable liquid and gaseous fuels of non-biological origin and recycled carbon fuels can be important to reduce greenhouse gas emissions in sectors that are hard to decarbonise. Where recycled carbon fuels and renewable liquid and gaseous fuels of non-biological origin are produced from captured carbon dioxide under an activity covered by this Directive, the emissions should be accounted under thate activity where the CO2 is emitted into the atmosphere. To ensure that renewable fuels of non-biological origin and recycled carbon fuels contribute to greenhouse gas emission reductions and to avoid double counting for fuels that do so, it is appropriate to explicitly extend the empowerment in Article 14(1) to the adoption by the Commission of implementing acts laying down the necessary adjustments for how and where to account for the eventual release of carbon dioxide and how to avoid double counting to ensure appropriate incentives are in place for capturing CO2, taking also into account the treatment of these fuels under Directive (EU) 2018/2001.
Amendment 402 #
Proposal for a directive
Recital 41
Recital 41
(41) As carbon dioxide is also expected to be transported by means other than pipelines, such as by ship and by truck, the current coverage in Annex I to Directive 2003/87/EC for transport of greenhouse gases for the purpose of storage should be extended to all means of transport for reasons of equal treatment and irrespective of whether the means of transport are covered by the EU ETS. Where the emissions from the transport are also covered by another activity under Directive 2003/87/EC, the emissions should be accounted for under that other activity to prevent double counting. Commission Implementing Regulation (EU) 2018/2066 should be reviewed accordingly in order to reflect all modalities of CO2 transport.
Amendment 423 #
Proposal for a directive
Recital 43
Recital 43
(43) The Communication of the Commission on Stepping up Europe’s 2030 climate ambition57 , underlined the particular challenge to reduce the emissions in the sectors of road transport and buildings. Therefore, the Commission announced that a further expansion of emissions trading could include emissions from road transport and buildings. Emissions trading for these two new sectors would be established through separate but adjacent emissions trading, ideally with a long-term aim to achieve convergence on a uniform and durable carbon price for the whole economy, once the abatement costs of different sectors will converge, in order to enable emission reductions at the lowest societal costs. Considering especially the vulnerable consumers and the risk of mobility poverty as a result of the proposed expansion of carbon pricing, the Commission should carefully assess the impact of the proposed regulation as well as the adequacy of the proposed mitigation measures. This would avoid any disturbance of the well-functioning emissions trading in the sectors of stationary installations and aviation. The new system is accompanied by complementary policies and measures safeguarding against undue price impacts, shaping expectations of market participants and aiming for a carbon price signal for the whole economy. Previous experience has shown that the development of the new market requires setting up an efficient monitoring, reporting and verification system. In view of ensuring synergies and coherence with the existing Union infrastructure for the EU ETS covering the emissions from stationary installations and aviation, it is appropriate to set up emissions trading for the road transport and buildings sectors via an amendment to Directive 2003/87/ЕC. _________________ 57 COM(2020)562 final.
Amendment 433 #
Proposal for a directive
Recital 43 a (new)
Recital 43 a (new)
(43a) The possible further expansion of emissions trading for these two new sectors should not lead to the introduction of multiple additional CO2 taxes, charges and duties being levied on these sectors where such charge taxes and duties are already levied through other means.
Amendment 447 #
Proposal for a directive
Annex I – paragraph 1 – point a
Annex I – paragraph 1 – point a
Directive 2003/87/EC
Annex 1 – point 1
Annex 1 – point 1
1. Installations or parts of installations used for research, development and testing of new products and processes, and installations where emissions from the combustion of biomass that complies with the criteria set out pursuant to Article 14 contribute to more than 95 % of the total greenhouse gas emissionexclusively using biomass are not covered by this Directive.
Amendment 448 #
Proposal for a directive
Recital 44 a (new)
Recital 44 a (new)
(44a) Given the slow development of and accessibility to low and zero emission vehicles in the various market segments of road transport and the millions of vehicles that would be affected by additional charges being introduced, for road transport, the system should be gradually introduced over a ten-year period once allowances and compliance obligations start in 2026. Re-evaluations should take place every two to three years. The starting point and the evaluation process should depend on a number of conditions, including the availability of alternative fuel technology, the speed in deploying sufficient numbers of alternative fuel light- and heavy-duty vehicles, as well as an alternative fuel infrastructure for the sector and its various niches.
Amendment 497 #
Proposal for a directive
Recital 49 a (new)
Recital 49 a (new)
(49a) The eventual inclusion of road transport in the EU ETS should not lead to commercial road transport undertaking established in a non-member State being given more favourable treatment than commercial road transport undertaking established in a Member State.
Amendment 529 #
Proposal for a directive
Recital 52
Recital 52
(52) The introduction of the carbon price in road transport and buildings should be accompanied by effective social compensation, especially in view of the already existing levels of energy poverty. About 34 million Europeans reported an inability to keep their homes adequately warm in 2018, and 6,9 % of the Union population have said that they cannot afford to heat their home sufficiently in a 2019 EU-wide survey60 . To achieve an effective social and distributional compensation, Member States should be required to spend the auction revenues on the climate and energy-related purposes already specified for the existing emissions trading, but also for measures added specifically to address related concerns for the new sectors of road transport and buildings, including related policy measures under Directive 2012/27/EU of the European Parliament and of the Council61 . Auction revenues should be used to address social aspects of the emission trading for the new sectors with a specific emphasis in vulnerable households, micro, small and medium- sized-enterprises and transport users. In this spirit, a new Social Climate Fund will provide dedicated funding to Member States to support the European citizens most affected or at risk of energy or mobility poverty. This Fund will promote fairness and solidarity between and within Member States while mitigating the risk of energy and mobility poverty during the transition. It will build on and complement existing solidarity mechanisms. The resources of the new Fund will in principle correspond to 25 % of the expected revenues from new emission trading in the period 2026-2032, and will be implemented on the basis of the Social Climate Plans that Member States should put forward under Regulation (EU) 20…/nn of the European Parliament and the Council62 . In addition, each Member State should use their auction revenues inter alia to finance a part of the costs of their Social Climate Plans. _________________ 60 Data from 2018. Eurostat, SILC [ilc_mdes01]. 61Directive 2012/27/EU of the European Parliament and of the Council of 25 October 2012 on energy efficiency, amending Directives 2009/125/EC and 2010/30/EU and repealing Directives 2004/8/EC and 2006/32/EC (OJ L 315, 14.11.2012, p. 1–56). 62[Add ref to the Regulation establishing the Social Climate Fund].
Amendment 588 #
Proposal for a directive
Recital 58
Recital 58
(58) The application of emissions trading in the buildings and road transport sectors should be monitored by the Commission, including the degree of price convergence with the existing ETS, and, if necessary, a review should be proposed to the European Parliament and the Council to improve the effectiveness, administration and practical application of emissions trading for those sectors on the basis of acquired knowledge as well as increased price convergence. The Commission should be required to submit the first report on those matters by 1 January 2028 and every two years thereafter.
Amendment 632 #
Proposal for a directive
Recital 67
Recital 67
(67) It is necessary to amend Regulation (EU) 2015/757 to take into account the inclusion of the maritime transport sector in the EU ETS. Regulation (EU) 2015/757 should be amended to modify the threshold set out in that Regulation from 5 000 GT of size to 5 000 Kw of engine propulsion, in order to take into account all the relevant emitters in maritime sector. Moreover, Regulation (EU) 2015/757 should be amended to oblige companies to report aggregated emissions data at company level and to submit for approval their verified monitoring plans and aggregated emissions data at company level to the responsible administering authority. In addition, the Commission should be empowered to adopt delegated acts to amend the methods for monitoring CO2 emissions and the rules on monitoring, as well as any other relevant information set out in Regulation (EU) 2015/757, to ensure the effective functioning of the EU ETS at administrative level and to supplement Regulation (EU) 2015/757 with the rules for the approval of monitoring plans and changes thereof by administering authorities, with the rules for the monitoring, reporting and submission of the aggregated emissions data at company level and with the rules for the verification of the aggregated emissions data at company level and for the issuance of a verification report in respect of the aggregated emissions data at company level. The data monitored, reported and verified under Regulation (EU) 2015/757 might also be used for the purpose of compliance with other Union law requiring the monitoring, reporting and verification of the same ship information.
Amendment 662 #
Proposal for a directive
Article 1 – paragraph 1 – point 2 – point d
Article 1 – paragraph 1 – point 2 – point d
Directive 2003/87/EC
Article 3 – paragraph 1 – point v
Article 3 – paragraph 1 – point v
(v) ‘shipping company’ means the shipowner or any other organisation or person, such as the manager or the bareboat charterer, that has assumed the responsibility for the operation of the ship from the shipowner and that, on assuming such responsibility, has agreed to take over the duty to comply, entirely or partially, with this Directive as well as all the duties and responsibilities imposed by the International Management Code for the Safe Operation of Ships and for Pollution Prevention, set out in Annex I to Regulation (EC) No 336/2006 of the European Parliament and of the Council(*); _______________ (*) Regulation (EC) No 336/2006 of the European Parliament and of the Council of 15 February 2006 on the implementation of the International Safety Management Code within the Community and repealing Council Regulation (EC) No 3051/95 (OJ L 64, 4.3.2006, p. 1).
Amendment 684 #
Proposal for a directive
Article 1 – paragraph 1 – point 4
Article 1 – paragraph 1 – point 4
Directive 2003/87/EC
Article 3a – paragraph 1
Article 3a – paragraph 1
Articles 3b to 3f shall apply to the allocation and issue of allowances in respect of the aviation activities listed in Annex I. Articles 3g to 3ge shall apply in respect of the maritime transport activities listed in Annex I, with the exception of ships operating routes included in the Motorways of the Seas or performing services of general economic interest (SGEI) under public service obligations(PSOs), including granting territorial continuity.
Amendment 691 #
Proposal for a directive
Article 1 – paragraph 1 – point 5
Article 1 – paragraph 1 – point 5
Directive 2003/87/EC
Article 3g – paragraph 1
Article 3g – paragraph 1
1. The allocation of allowances and the application of surrender requirements in respect of maritime transport activities shall apply in respect of fifty percent (50 %) of theCO2 emissions from ships performing voyages departing from a port under the jurisdiction of a Member State and arriving at a port outside the jurisdiction of a Member State, fifty percent (50 %) of the emissions from ships performing voyage departing from a port outside the jurisdiction of a Member State and arriving at a port under the jurisdiction of a Member State, one hundred percent (100 %) of emissions from ships performing voyages departing from a port under the jurisdiction of a Member State and arriving at a port under the jurisdiction of a Member State and one hundredunder the jurisdiction of a Member State and fifty percent (1050 %) of CO2 emissions from ships at berth in a port under the jurisdiction of a Member State.
Amendment 702 #
Proposal for a directive
Article 1 – paragraph 1 – point 5
Article 1 – paragraph 1 – point 5
Directive 2003/87/EC
Article 3g – paragraph 1 a (new)
Article 3g – paragraph 1 a (new)
1a. If a thorough ex ante impact assessment regarding the risks of cargo diversion establishes that no major negative impacts on EEA port activities are expected, the Commission shall propose an amendment to this Directive aiming at applying the allocation of allowances of X percent (X%) of the emissions from ships performing voyages departing from a port under the jurisdiction of a Member State and arriving at a third country port and X percent (X %) of the emissions from ships performing voyages departing from a third country port and arriving at a port under the jurisdiction of a Member State.
Amendment 706 #
Proposal for a directive
Article 1 – paragraph 1 – point 5
Article 1 – paragraph 1 – point 5
Directive 2003/87/EC
Article 3g – paragraph 1 b (new)
Article 3g – paragraph 1 b (new)
1b. The Commission shall pursue with the establishment of global market-based measure in partnership with the International Maritime Organization (IMO) in order to extend the scope of the EU ETS for maritime transport to cover the CO2emissions released from ships performing voyages departing from a port under the jurisdiction of a Member State and arriving at a port under the jurisdiction of a Members State and the emissions from ships at berth in a port under the jurisdiction of a Member State.
Amendment 709 #
Proposal for a directive
Article 1 – paragraph 1 – point 5
Article 1 – paragraph 1 – point 5
Directive 2003/87/EC
Article 3g – paragraph 1 c (new)
Article 3g – paragraph 1 c (new)
1c. The Commission shall pursue with the establishment of global market-based measure in partnership with the International Maritime Organization (IMO) in order to extend the scope of the EU ETS for maritime transport to cover the CO2 emissions from ships performing voyages departing from a port under the jurisdiction of a Member State and arriving at a port outside the jurisdiction of a Member State and emissions from ships performing voyages from a port outside the jurisdiction of a Member State and arriving at a port under the jurisdiction of a Member State.
Amendment 719 #
Proposal for a directive
Article 1 – paragraph 1 – point 6
Article 1 – paragraph 1 – point 6
Directive 2003/87/EC
Article 3ga – paragraph 1 – point a
Article 3ga – paragraph 1 – point a
(a) 20 % of verified emissions reported for 20236;
Amendment 723 #
Proposal for a directive
Article 1 – paragraph 1 – point 6
Article 1 – paragraph 1 – point 6
Directive 2003/87/EC
Article 3ga – paragraph 1 – point b
Article 3ga – paragraph 1 – point b
(b) 45 % of verified emissions reported for 20247;
Amendment 728 #
Proposal for a directive
Article 1 – paragraph 1 – point 6
Article 1 – paragraph 1 – point 6
Directive 2003/87/EC
Article 3ga – paragraph 1 – point c
Article 3ga – paragraph 1 – point c
(c) 70 % of verified emissions reported for 20258;
Amendment 735 #
Proposal for a directive
Article 1 – paragraph 1 – point 6
Article 1 – paragraph 1 – point 6
Directive 2003/87/EC
Article 3ga – paragraph 1 – point d
Article 3ga – paragraph 1 – point d
(d) 100 % of verified emissions reported for 20269 and each year thereafter.
Amendment 741 #
Proposal for a directive
Article 1 – paragraph 1 – point 6
Article 1 – paragraph 1 – point 6
Directive 2003/87/EC
Article 3ga – paragraph 2
Article 3ga – paragraph 2
To the extent that fewer allowances are surrendered compared to the verified emissions from maritime transport for the years 20236, 20247 and 20258, once the difference between verified emissions and allowances surrendered has been established in respect of each year, a corresponding quantity of allowances shall be cancelled rather than auctioned pursuant to Article 10. The phasing in of the EU ETS for the maritime sector shall be conditional on a full assessment to be conducted before 2025 that ascertain the availability of alternative fuels and technologies and an adequate infrastructural network in each Member State. Based on the above assessment, the phasing-in shall be further postponed and/or differentiated geographically based on the effective availability of alternative fuels and technologies at national level. By way of derogation, regular passenger and ferry services engaged in cabotage and island cabotage operations in the Mediterranean Sea shall be temporarily exempted until a full assessment demonstrates the availability of alternative fuels and technologies in the areas concerned.
Amendment 756 #
Proposal for a directive
Article 1 – paragraph 1 – point 6
Article 1 – paragraph 1 – point 6
Directive 2003/87/EC
Article 3gd a (new)
Article 3gd a (new)
Article 3gda Maritime Transition Fund The Commission shall establish a dedicated Maritime Transport Fund to support and accelerate projects, investments and innovations in the EU maritime sector. At least 75 % of the revenues generated from the auctioning of allowances referred to in Article 3g shall be allocated to this Fund. The dedicated Fund shall support and facilitate the transition to energy efficient and climate resilient EU maritime sector, providing funding to companies for technological, fleet renewal and retrofitting investments as well as to support improvement of the energy efficiency of ships and ports and the deployment of the necessary infrastructure for decarbonising the maritime transport sector. The remained 25 % of revenues generated from the auctioning of allowances shall be allocated to the Innovation Fund, in order to support the deployment and realization of intermodal projects, shift to rail and combined transport within the ports included in the TEN-T core network.
Amendment 774 #
Proposal for a directive
Article 1 – paragraph 1 – point 6
Article 1 – paragraph 1 – point 6
Directive 2003/87/EC
Article 3ge – paragraph 2
Article 3ge – paragraph 2
2. The Commission shall monitor the implementation of this Chapter and possible trends as regards companies seeking to avoid being bound by the requiremennd adverse impacts as regards, inter alia, possible transport cost increases, port evasion and shift of transhipment hubs, the competitiveness of the maritime sector in the Member States, taking account of the specificities of each fleet segment companies seeking. Particular attention shall be paid to the adverse impacts ofn this Directive. If appropriate, the Commission shall propose measures to prevent such avoidance.;ose shipping services that provide essential services of “territorial continuity”. All potential impacts shall be assessed considering the aggregated effects of the different policy measures under the Fit for 55 package as well as the specific impacts in each Member State. The Commission shall propose measures to prevent such adverse impacts and develop adequate support mechanisms.
Amendment 781 #
Proposal for a directive
Article 1 – paragraph 1 – point 6
Article 1 – paragraph 1 – point 6
Directive 2003/87/CE
Article 3ge – paragraph 2 a (new)
Article 3ge – paragraph 2 a (new)
2a. Every year over a period of five years as from the entry into force of the EU ETS, the Commission shall evaluate the impact of ETS on EU ports exposed to competition from non-EU ports. A list of carbon leakage. Should the cargo diversion be caused by the introduction of EU ETS, the Commission shall compensate the loss of competitiveness through additional funding for port infrastructure and for superstructure such as new clean mobile service equipment.
Amendment 810 #
Proposal for a directive
Article 1 – paragraph 1 – point 10
Article 1 – paragraph 1 – point 10
In [the year following entry into force of this amendment], the Union-wide quantity of allowances shall be decreased by [-- million allowances (to be determined depending on year of entry into force)]. In the same year, the Union-wide quantity of allowances shall be increased by 79 million[number corresponding to scope of application to maritime transport activities as set out in Article 3g of Directive 2003/87/EC] allowances for maritime transport. Starting in [the year following entry into force of this amendment], the linear factor shall be 4,2 %. The Commission shall publish the Union-wide quantity of allowances within 3 months of [date of entry into force of the amendment to be inserted].;
Amendment 831 #
Proposal for a directive
Article 1 – paragraph 1 – point 11 – point a
Article 1 – paragraph 1 – point 11 – point a
Directive 2003/87/EC
Article 10 – paragraph 1 – subparagraph 3a
Article 10 – paragraph 1 – subparagraph 3a
In addition, 2,5 % of the total quantity of allowances between [year following the entry into force of the Directive] and 2030 shall be auctioned for the Modernisation Fund, with a possibility to increase the share if justified by thorough analysis in order to meet modernisation needs of the beneficiary Member States. The beneficiary Member States for this amount of allowances shall be the Member States with a GDP per capita at market prices below 65 % of the Union average during the period 2016 to 2018. The funds corresponding to this quantity of allowances shall be distributed in accordance with Part B of Annex IIb.
Amendment 874 #
Proposal for a directive
Article 1 – paragraph 1 – point 11 – point c
Article 1 – paragraph 1 – point 11 – point c
Directive 2003/87/EC
Article 10 – paragraph 3 – subparagraph 1 – point h
Article 10 – paragraph 3 – subparagraph 1 – point h
Amendment 910 #
Proposal for a directive
Article 1 – paragraph 1 – point 11 – point d a (new)
Article 1 – paragraph 1 – point 11 – point d a (new)
Directive 2003/87/EC
Article 10 – paragraph 4 a (new)
Article 10 – paragraph 4 a (new)
(da) the following paragraph is inserted: “4a. In order to respect the auctioning share set out in Article 10, for every year in which the sum of free allocations does not reach the maximum amount that respects the auctioning share, the remaining allowances up to that amount shall be used to prevent or limit reduction of free allocations to respect the auctioning share in later years. Where, nonetheless, the maximum amount is reached, free allocations shall be adjusted accordingly. Any such adjustment shall be done in a uniform manner. By way of derogation from previous subparagraph, an additional amount of up to 5 % of the total quantity of allowances shall, to the extent necessary, be used to increase the maximum amount available under paragraph 5. Where less than 5 % of the total quantity of allowances is needed to increase the maximum amount available under the first subparagraph: a maximum of 50 million allowances shall be used to increase the amount of allowances available to support innovation in accordance with Article 10a(8); and a maximum of 0,5 % of the total quantity of allowances shall be used to increase the amount of allowances available to modernise the energy systems of certain Member States in accordance with Article 10d.”
Amendment 930 #
Proposal for a directive
Article 1 – paragraph 1 – point 12 – point a – point i
Article 1 – paragraph 1 – point 12 – point a – point i
Directive 2003/87/EC
Article 10a – paragraph 1 – subparagraph 2a
Article 10a – paragraph 1 – subparagraph 2a
Amendment 943 #
Proposal for a directive
Article 1 – paragraph 1 – point 12 – point a – point i
Article 1 – paragraph 1 – point 12 – point a – point i
Directive 2003/87/EC
Article 10a – paragraph 1 – subparagraph 2a
Article 10a – paragraph 1 – subparagraph 2a
“In the case of installations covered by the obligation to conduct an energy audit under Article 8(4) of Directive 2012/27/EU of the European Parliament and of the Council(*) [Article reference to be updated with the revised Directive], free allocation shall only be granted fully if, following an appeal procedure, the recommendations of the audit report are implemented within a period of 3 years, to the extent that the pay- back time for the relevant investments does not exceed fivthree years and that the costs of those investments are proportionate. Otherwise, the amount of free allocation shall be reduced byproportionately to the amount of emissions corresponding to the recommendations of the report, and in any event by not more than 25 %. The amount of free allocation shall not be reduced if an operator demonstrates that it has implemented or is implementing other measures which lead to greenhouse gas emission reductions equivalent to those recommended by the audit report. The measures referred to in the first subparagraph shall be adjusted accordingly.
Amendment 945 #
Proposal for a directive
Article 1 – paragraph 1 – point 12 – point a – point i
Article 1 – paragraph 1 – point 12 – point a – point i
Directive 2003/87/EC
Article 10a – paragraph 1 – subparagraph 2a
Article 10a – paragraph 1 – subparagraph 2a
1. In the case of installations covered by the obligation to conduct an energy audit under Article 8(4) of Directive 2012/27/EU of the European Parliament and of the Council(*) [Article reference to be updated with the revised Directive], free allocation shall onlymay not be granted fully if the recommendations of the audit report are not fully implemented within a period of five years or at the earliest reasonable opportunity in case the project requires a scheduled downtime of the installation, to the extent that the pay- back time for the relevant investments does not exceed five years and that the costs of those investments areis proportionate. Otherwise, the amount of free allocation shallmay be reduced by 25 %up to 25 % proportionally to the direct emissions related to the not implemented investments. The amount of free allocation shall not be reduced if an operator demonstrates that it has implemented other measures which lead to greenhouse gas emission reductions equivalent to those recommended by the audit report. The measures referred to in the first subparagraph shall be adjusted accordingly.
Amendment 961 #
Proposal for a directive
Article 1 – paragraph 1 – point 12 – point a – point i
Article 1 – paragraph 1 – point 12 – point a – point i
Directive 2003/87/EC
Article 10a – paragraph 1 – subparagraph 2b
Article 10a – paragraph 1 – subparagraph 2b
Amendment 972 #
Proposal for a directive
Article 1 – paragraph 1 – point 12 – point a – point ii
Article 1 – paragraph 1 – point 12 – point a – point ii
Directive 2003/87/EC
Article 10a – paragraph 1 – subparagraph 3
Article 10a – paragraph 1 – subparagraph 3
Amendment 983 #
Proposal for a directive
Article 1 – paragraph 1 – point 12 – point a – point ii
Article 1 – paragraph 1 – point 12 – point a – point ii
Directive 2003/87/EC
Article 10a – paragraph 1 – subparagraph 3
Article 10a – paragraph 1 – subparagraph 3
In order to provide further incentives for reducing greenhouse gas emissions and improving energy efficiency, the determined Union- wide ex-ante benchmarks shall be reviewedsubjected to an extensive and comprehensive assessment by the Commission to evaluate the need to review them before the period from 2026 to 2030 in view of potentially modifying the definitions and system boundaries of existing product benchmarks.;
Amendment 993 #
(iia) the following subparagraph is inserted after the third subparagraph: “To ensure a gradual transition from the current system of free allowances to the Regulation (EU) …./.. [reference to CBAM], the CBAM should be progressively phased in while free allowances in sectors covered by the CBAM are progressively phased out as of 2030, only provided that the CBAM has proved to be effective to prevent the risk of carbon leakage both for imports and exports.”
Amendment 1002 #
Proposal for a directive
Article 1 – paragraph 1 – point 12 – point b
Article 1 – paragraph 1 – point 12 – point b
Directive 2003/87/EC
Article 10a – paragraph 1a – subparagraph 1
Article 10a – paragraph 1a – subparagraph 1
Amendment 1017 #
Proposal for a directive
Article 1 – paragraph 1 – point 12 – point b
Article 1 – paragraph 1 – point 12 – point b
Amendment 1029 #
Proposal for a directive
Article 1 – paragraph 1 – point 12 – point b
Article 1 – paragraph 1 – point 12 – point b
Directive 2003/87/EC
Article 10a –paragraph 1a – subparagraph 2
Article 10a –paragraph 1a – subparagraph 2
Amendment 1038 #
Proposal for a directive
Article 1 – paragraph 1 – point 12 – point b
Article 1 – paragraph 1 – point 12 – point b
Directive 2003/87/EC
Article 10a - paragraph 1a - subparagraph 2
Article 10a - paragraph 1a - subparagraph 2
By way of derogation from the previous subparagraph, for the first years of operation of Regulation [CBAM] and until 2030, the production of these products shall benefit from free allocation. As of 2030, the production of these products shall benefit from free allocation in reduced amounts. A factor reducing the free allocation for the production of these products shall be applied (CBAM factor). The CBAM factor shall be equal to 100 % for the period during the entry into force of [CBAM regulation] and the end of 20259, 90 % in 202630 and shall be reduced by 10 percentage points each year to reach 0 % by the tenth year.
Amendment 1041 #
Proposal for a directive
Article 1 – paragraph 1 – point 12 – point b
Article 1 – paragraph 1 – point 12 – point b
Directive 2003/87/EC
Article 10a - paragraph 1a - subparagraph 2
Article 10a - paragraph 1a - subparagraph 2
Amendment 1055 #
Proposal for a directive
Article 1 – paragraph 1 – point 12 – point b
Article 1 – paragraph 1 – point 12 – point b
Directive 2003/87/EC
Article 10a – paragraph 1a – subparagraph 3
Article 10a – paragraph 1a – subparagraph 3
The reduction of free allocation shall be calculated annually as the average share of the demand for free allocation for the production of products listed in Annex I of Regulation [CBAM] compared to the calculated total free allocation demand for all installations, for the relevant period referred to in Article 11, paragraph 1. The CBAM factor shall be appliedport by the Commission shall be accompanied by a legislative proposal to amend this article in view of gradually phasing out free allocation after 2030proportionally to the proven level of effectiveness of the CBAM.
Amendment 1071 #
Proposal for a directive
Article 1 – paragraph 1 – point 12 – point b
Article 1 – paragraph 1 – point 12 – point b
Directive 2003/87/EC
Article 10 – paragraph 1a – subparagraph 4
Article 10 – paragraph 1a – subparagraph 4
Allowances resulting from the reduction of free allocation shall be made available to support innovation in relation to the production of products listed in Annex I of Regulation [CBAM] in accordance with Article 10a(8).;
Amendment 1075 #
Proposal for a directive
Article 1 – paragraph 1 – point 12 – point b a (new)
Article 1 – paragraph 1 – point 12 – point b a (new)
(ba) the following paragraph is inserted: “1aa. As of the start of the progressive phasing the export of products subject to Regulation (EU) …/… [CBAM] shall be entitled to benefit from adjustment allowances for the emissions embedded in the goods exported, the number of which will calibrate the regulatory obligation and the net regulatory burden imposed under the EU ETS. These adjustment allowances shall be deducted from the annual amount of allowances above the benchmark to be surrendered to the competent authority.”
Amendment 1099 #
Proposal for a directive
Article 1 – paragraph 1 – point 12 – point c – point ii
Article 1 – paragraph 1 – point 12 – point c – point ii
Directive 2003/87/EC
Article 10a – paragraph 2 - subparagraph 3 - point d
Article 10a – paragraph 2 - subparagraph 3 - point d
(d) Where the annual reduction rate exceeds 2,5 % or is below 0,2 %, the benchmark values for the period from 2026 to 2030 shall be the benchmark values applicable in the period from 2013 to 2020 reduced by whichever of those two percentage rates is relevant, in respect of each year between 2008 and 2028. By way of derogation from the previous point, the maximum annual reduction rate of the fuel and heat fall back benchmarks shall remain at 1,6 % .;
Amendment 1103 #
Proposal for a directive
Article 1 – paragraph 1 – point 12 – point c – point ii
Article 1 – paragraph 1 – point 12 – point c – point ii
Directive 2003/87/EC
Article 10a – paragraph 2 - subparagraph 3 - point d
Article 10a – paragraph 2 - subparagraph 3 - point d
(d) Where the annual reduction rate exceeds 2,51,6 % or is below 0,2 %, the benchmark values for the period from 2026 to 2030 shall be the benchmark values applicable in the period from 2013 to 2020 reduced by whichever of those two percentage rates is relevant, in respect of each year between 2008 and 2028.;
Amendment 1116 #
Proposal for a directive
Article 1 – paragraph 1 – point 12 – point c – point iii
Article 1 – paragraph 1 – point 12 – point c – point iii
Directive 2003/87/EC
Article 10a – paragraph 2 – subparagraph 4
Article 10a – paragraph 2 – subparagraph 4
By way of derogation regarding the benchmark values for aromatics, hydrogen and syngas, those benchmark values shall be adjusted by the same percentage as the refineries benchmarks in order to preserve a level playing field for producers of those products.;
Amendment 1124 #
Proposal for a directive
Article 1 – paragraph 1 – point 12 – point d a (new)Directive 2003/87/EC
Article 1 – paragraph 1 – point 12 – point d a (new)Directive 2003/87/EC
Article 10a – paragraphs 5a and 5b
(da) paragraphs 5a and 5b are replaced by the following: “5a. By way of derogation from paragraph 5, an additional amount of up to 35% of the total quantity of allowances shall, to the extent necessary, be used to increase the maximum amount available under paragraph 5. Where the maximum amount available under paragraph 5, further increased as per the previous subparagraph, is not sufficient to avoid the adjustment referred to therein, unallocated allowances from the market stability reserve shall be used to the extent necessary. Alternative 3 % remains as in the current text and the Market Stability Reserve related amendment addresses the issue on its own. 5b. Where less than 3%5 % [optional] of the total quantity of allowances is needed to increase the maximum amount available under paragraph 5: - a maximum of 5100 million allowances shall be used to increase the amount of allowances available to support innovation in accordance with Article 10a(8); and - a maximum of 0,5 % of the total quantity of allowances shall be used to increase the amount of allowances available to modernise the energy systems of certain Member States in accordance with Article 10d.”
Amendment 1152 #
Proposal for a directive
Article 1 – paragraph 1 – point 12 – point e
Article 1 – paragraph 1 – point 12 – point e
Directive 2003/87/EC
Article 10a – paragraph 6 – subparagraph 1 a (new)
Article 10a – paragraph 6 – subparagraph 1 a (new)
The list of sectors or subsectors considered as exposed to a genuine risk of carbon leakage due to significant indirect costs shall be determined following the methodology foreseen under Article 10(b)1.Accordingly, sectors and subsectors in relation to which the product resulting from multiplying their intensity of trade by their indirect emission intensity, divided by their gross value added, exceeds 0,2, shall be deemed to be at risk of indirect carbon leakage. Furthermore the determination of eligibility shall include qualitative assessments, taking into account the criteria mentioned in Articles 10b(2), points (a), (b) and (c), and assessments at a 6-digit or an 8-digit level(Prodcom) for sectors for which the above mentioned product does not exceed 0,2but exceeds 0,15 and for sectors that have previously been assessed at Prodcom level in the context of Article 10b.;
Amendment 1175 #
Proposal for a directive
Article 1 – paragraph 1 – point 12 – point g
Article 1 – paragraph 1 – point 12 – point g
Directive 2003/87/EC
Article 10a – paragraph 8 – subparagraph 1
Article 10a – paragraph 8 – subparagraph 1
Amendment 1177 #
Proposal for a directive
Article 1 – paragraph 1 – point 12 – point g
Article 1 – paragraph 1 – point 12 – point g
Directive 2003/87/EC
.Article 10a – paragraph 8 – subparagraph 2
.Article 10a – paragraph 8 – subparagraph 2
In addition, 50 milliona comprehensive assessment shall be carried out to examine the need for additional resources to strengthen the Innovation Fund in order to meet the objectives of the European Green Deal and Regulation (EU) 2021/1119, which shall stem from the unallocated allowances from the market stability reserve. These shall supplement any remaining revenues from the 300 million allowances available in the period from 2013 to 2020 under Commission Decision 2010/670/EU(*), and shall be used in a timely manner for innovation support as referred to in the first subparagraph. Furthermore, the external assigned revenues referred to in Article 21(2) of Regulation (EU) [FuelEU Maritime] shall be allocated to the Innovation Fund and implemented in line with this paragraph.
Amendment 1188 #
Proposal for a directive
Article 1 – paragraph 1 – point 12 – point g
Article 1 – paragraph 1 – point 12 – point g
Directive 2003/87/EC
Article 10a – paragraph 8 – subparagraph 3
Article 10a – paragraph 8 – subparagraph 3
The Innovation Fund shall cover the sectors listed in Annex I and Annex III, including environmentally safe carbon capture and utilisation (“CCU”) that contributes substantially to mitigating climate change, alternative fuels such as LNG or zero-emission fuels such as ammonia or hydrogen, as well as products substituting carbon intensive ones produced in sectors listed in Annex I, and to help stimulate the construction and operation of projects aimed at the environmentally safe capture and geological storage (“CCS”) of CO2, as well as of innovative renewable energy and energy storage technologies; in geographically balanced locations. The Innovation Fund may also support break- through innovative technologies and infrastructure to decarbonise the maritime sector and for the production of low- and zero-carbon fuels in aviation, rail and road transport. Special attention shall be given to projects in sectors covered by the [CBAM regulation] to support innovation in low carbon technologies, CCU, CCS, renewable energy and energy storage, in a way that contributes to mitigating climate change.
Amendment 1247 #
Proposal for a directive
Article 1 – paragraph 1 – point 14 – point a
Article 1 – paragraph 1 – point 14 – point a
Directive 2003/87/EC
Article 10d – paragraph 1 – subparagraph 2
Article 10d – paragraph 1 – subparagraph 2
The investments supported shall be consistent with the aims of this Directive, as well as the objectives of the Communication from the Commission of 11 December 2019 on The European Green Deal (*) and Regulation (EU) 2021/1119 of the European Parliament and of the Council (**) and the long-term objectives as expressed in the Paris Agreement. No support from the Modernisation Fund shall be provided to energy generation facilities that use fossil fuelA technology neutral approach shall be applied in order to achieve the most cost- effective emissions reductions.;
Amendment 1250 #
Proposal for a directive
Article 1 – paragraph 1 – point 14 – point a Directive 2003/87/EC
Article 1 – paragraph 1 – point 14 – point a Directive 2003/87/EC
A list of installations covered by this Directive for the five years beginning on 1 January 2021 shall be submitted by 30 September 2019, and lists for each subsequent period of five years shall be submitted every five years thereafter. Each list shall include information on production activity, transfers of heat and gases, electricity production and emissions at sub-installation level over the five calendar years preceding its submission. For each five years allocation period starting from the 1January 2026, the calculation of free allocations shall be based on the median of the activity level of the five calendar years referred to in the previous sentence. Free allocations shall only be given to installations where such information is provided.
Amendment 1262 #
Proposal for a directive
Article 1 – paragraph 1 – point 14 – point b
Article 1 – paragraph 1 – point 14 – point b
Directive 2003/87/EC
Article 10d – paragraph 2 – point a
Article 10d – paragraph 2 – point a
(a) the generation and use of electricity from renewable and low-carbon sources;
Amendment 1316 #
Proposal for a directive
Article 1 – paragraph 1 – point 15 – point c
Article 1 – paragraph 1 – point 15 – point c
Directive 2003/87/EC
Article 12 – paragraph 3 – subparagraph 1 – point c
Article 12 – paragraph 3 – subparagraph 1 – point c
(c) each shipping company surrenders a number of allowances equal to its total emissions during the preceding calendar year, as verified in accordance with Article 3gc. Without prejudice to Article 3gc, the following classes of vessels shall be subject to a method for surrendering and an adjusted number of allowances: (i) Ice-breakers; (ii) Ro/Ro and Ro/Pax; (iii) ships included in the scope of this Directive that are propelled, entirely or partially, by LNG and built after 2020.
Amendment 1337 #
Proposal for a directive
Article 1 – paragraph 1 – point 15 – point e Directive 2003/87/EC
Article 1 – paragraph 1 – point 15 – point e Directive 2003/87/EC
An obligation to surrender allowances shall not arise in respect of emissions of greenhouse gases which are considered to have been captured and utilised to become permanently chemically bound in a product so that they do not enter the atmosphere under normal use and in respect of greenhouse gases that are captured and used to produce recycled carbon fuels and renewable liquid and gaseous fuels of non-biological origin.
Amendment 1379 #
Proposal for a directive
Article 1 – paragraph 1 – point 19 a (new)
Article 1 – paragraph 1 – point 19 a (new)
Directive 2003/87/EC
Article 27 – paragraph 1
Article 27 – paragraph 1
(19a) In Article 27, paragraph 1 is replaced by the following: “1. Following consultation with the operator, Member States may exclude from the EU ETS installations which have reported to the competent authority emissions of less than 250 000 tonnes of carbon dioxide equivalent and, where they carry out combustion activities, have a rated thermal input below 35 MW, excluding emissions from biomass, in each of the three years preceding the notification under point (a), and which are subject to measures that will achieve an equivalent contribution to emission reductions, if the Member State concerned complies with the following conditions: (a) it notifies the Commission of each such installation, specifying the equivalent measures applying to that installation that will achieve an equivalent contribution to emission reductions that are in place, before the list of installations pursuant to Article 11(1) has to be submitted and at the latest when this list is submitted to the Commission; (b) it confirms that monitoring arrangements are in place to assess whether any installation emits 250 000 tonnes or more of carbon dioxide equivalent, excluding emissions from biomass, in any one calendar year. Member States may allow simplified monitoring, reporting and verification measures for installations with average annual verified emissions between 2008 and 2010 which are below 5 000 tonnes a year, in accordance with Article 14; (c) it confirms that if any installation emits 250 000 tonnes or more of carbon dioxide equivalent, excluding emissions from biomass, in any one calendar year or the measures applying to that installation that will achieve an equivalent contribution to emission reductions are no longer in place, the installation will be reintroduced into the EU ETS ; (d) it publishes the information referred to in points (a), (b) and (c) for public comment. Hospitals may also be excluded if they undertake equivalent measures. ” Or. en (https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A02003L0087- 20210101&qid=1641400487702)
Amendment 1409 #
Proposal for a directive
Article 1 – paragraph 1 – point 21
Article 1 – paragraph 1 – point 21
Directive 2003/87/EC
Chapter IV a
Chapter IV a
Amendment 1438 #
Proposal for a directive
Article 1 – paragraph 1 – point 21
Article 1 – paragraph 1 – point 21
Directive 2003/87/EC
Article 30 c – paragraph 1
Article 30 c – paragraph 1
1. The Union-wide quantity of allowances issued under this Chapter each year from 2026 shall decrease in a linear manner beginning in 2024. The 2024 value shall be defined as the 2024 emissions limits, calculated on the basis of the reference emissions under Article 4(2) of Regulation (EU) 2018/842 of the European Parliament and of the Council(*) for the sectors covered by this Chapter and applying the linear reduction trajectory for all emissions within the scope of that Regulation. The quantity shall decrease each year after 2024 by a linear reduction factor of 5,15 %. For road transport, the speed of the linear reduction trajectory and the price of the emission allowances shall be determined by a number of conditions, including the availability of alternative fuel technology, the speed in deploying sufficient numbers of alternative fuel light- and heavy-duty vehicles, as well as an alternative fuel infrastructure for the road transport sector and its various niches. By 1 January 2024, the Commission shall publish the Union-wide quantity of allowances for the year 2026.
Amendment 1446 #
Proposal for a directive
Article 1 – paragraph 1 – point 21
Article 1 – paragraph 1 – point 21
Directive 2003/87/EC
Article 30 c – paragraph 2
Article 30 c – paragraph 2
2. The Union-wide quantity of allowances issued under this Chapter each year from 2028 shall decrease in a linear manner beginning from 2025 on the basis of the average emissions reported under this Chapter for the years 2024 to 2026. The quantity of allowances shall decrease by a linear reduction factor of 5,43 %, except if the conditions of point 1 of Annex IIIa apply, in which case, the quantity shall decrease with a linear reduction factor adjusted in accordance with the rules set out in point 2 of Annex IIIa. For road transport, the speed of the linear reduction trajectory and the price of the emission allowances shall be determined by a number of conditions, including the availability of alternative fuel technology, the speed in deploying sufficient numbers of alternative fuel light- and heavy-duty vehicles, as well as an alternative fuel infrastructure for the road transport sector and its various niches By 30 June 2027, the Commission shall publish the Union-wide quantity of allowances for the year 2028 and, if required, the adjusted linear reduction factor.
Amendment 1479 #
Proposal for a directive
Article 1 – paragraph 1 – point 21
Article 1 – paragraph 1 – point 21
Directive 2003/87/EC
Article 30 e – paragraph 2
Article 30 e – paragraph 2
Amendment 1527 #
Proposal for a directive
Article 1 – paragraph 1 – point 21
Article 1 – paragraph 1 – point 21
Directive 2003/87/EC
Article 30 i – paragraph 1
Article 30 i – paragraph 1
By 1 January 2028, the Commission shall report to the European Parliament and to the Council on the implementation of the provisions of this Chapter with regard to their effectiveness, administration and practical application, including on the application of the rules under Decision (EU) 2015/1814 and use of allowances of this Chapter to meet compliance obligations of the compliance entities covered by Chapters II, IIa and III. Where appropriate, the Commission shall accompany this report with a proposal to the European Parliament and to the Council to amend this Chapter. By 31 October 2031 the Commission should assess the impact of the regulation on the new emissions trading for road transport and buildings, as well as adequacy of the proposed mitigation measures, and feasibility of integrating the sectors covered by Annex III in the Emissions Trading System covering the sectors listed in annex 1 of Directive 2003/87/EC.’’;
Amendment 1592 #
Proposal for a directive
Article 3 – paragraph 1 – point -1 a (new)
Article 3 – paragraph 1 – point -1 a (new)
Regulation (EU) 2015/757
Article 2 – paragraph 1
Article 2 – paragraph 1