50 Amendments of Radan KANEV related to 2021/0214(COD)
Amendment 187 #
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 emissonly covers the risk of relocation outside the Union and not the import of carbon intensive products into the Unions.
Amendment 208 #
Proposal for a regulation
Recital 11
Recital 11
(11) The CBAM seeks to replacecomplement these existing mechanisms by addressing the risk of carbon leakage in a different way, namely by ensuring equivalent carbon pricing for imports and domestic products. To ensure a gradual transition from the current system of free allowances to the CBAM, the CBAM should be progressively phased in whileOnce the CBAM has fully demonstrated its effectiveness in equalising CO2 costs between imported and domestic products, free allowances in sectors covered by the CBAM areshould be progressively phased out. The combined and transitional application of EU ETS allowances allocated free of charge and of the CBAM should in no case result in more favourable treatment for Union goods compared to goods imported into the customs territory of the Union.
Amendment 218 #
Proposal for a regulation
Recital 11 a (new)
Recital 11 a (new)
(11a) To prevent carbon leakage both in the Union and in third country markets, goods of Union origin that are subject to the CBAM and that are exported to third countries and territories should benefit from an export adjustment. That export adjustment should continue to incentivise Union producers to reduce their emissions and should apply until third countries adopt carbon prices and equivalent measures that are comparable to those in the Union, with special attention to interrelated carbon leakage protection measures, taking into account the principle of common but differentiated responsibilities and respective capabilities, in the light of different national circumstances.
Amendment 219 #
Proposal for a regulation
Recital 11 a (new)
Recital 11 a (new)
(11a) To prevent carbon leakage both in the Union and in third country markets, goods of Union origin that are subject to the CBAM and that are exported to third countries and territories should benefit from an export adjustment. That export adjustment should continue to incentivise Union producers to reduce their emissions and should apply until third countries adopt carbon prices and equivalent measures that are comparable to those in the Union, with special attention to interrelated carbon leakage protection measures, taking into account the principle of common but differentiated responsibilities and respective capabilities, in the light of different national circumstances.
Amendment 265 #
Proposal for a regulation
Recital 13
Recital 13
(13) As an instrument to prevent carbon leakage and reduce GHG emissions the CBAM should ensure that imported products are subject to a regulatory system that applies carbon costs equivalent to the ones that otherwise would have been borne under the EU ETS, resulting in an equalisation of carbon costs between imported domestic products. The CBAM is a climate measure which should prevent the risk of carbon leakage and support the Union’s increased ambition on climate mitigation, while ensuring WTO compatibility.
Amendment 308 #
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 developmendt of a transition period and upon further assessmentthe relevant methodologies by the Commission, as well to indirect emissions, mirroring the scope of the EU ETS.
Amendment 368 #
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. Specific attention should also be paid to the risk of market distortions between the different sectors covered by the CBAM.
Amendment 474 #
Proposal for a regulation
Recital 52
Recital 52
(52) The Commission should evaluate the application of this Regulation before the end of the transitional period and report to the European Parliament and the Council. The report of the Commission should in particular focus on possibilities to enhance climate actions towards the objective of a climate neutral Union by 2050. The Commission should, as part of that evaluation, develop the relevant methodologies to apply the CBAM indirect emissions, and 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, and to develop methods of calculating embedded emissions based on the environmental footprint methods47 . __________________ 47Commission Recommendation 2013/179/EU of 9 April 2013 on the use of common methods to measureto ensure an equalisation of CO2 costs between imported and cdommunicate the life cycle environmental performance of products and organisations (OJ L 124, 4.5.2013, p. 1)estic products.
Amendment 531 #
Proposal for a regulation
Article 1 – paragraph 1
Article 1 – paragraph 1
Amendment 560 #
Proposal for a regulation
Article 1 – paragraph 3
Article 1 – paragraph 3
3. The mechanism will 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, once the Commission has fully demonstrated its effectiveness in equalising CO2 costs between imported and domestic products as part of the evaluation as referred to in Article 30, paragraph 4.
Amendment 655 #
Proposal for a regulation
Article 3 – paragraph 1 – point 17 a (new)
Article 3 – paragraph 1 – point 17 a (new)
(17a) ‘Transport emissions’ means emissions from transportation services consumed during the production processes of goods and their transport to their destination point.
Amendment 703 #
Proposal for a regulation
Article 7 – paragraph 2 a (new)
Article 7 – paragraph 2 a (new)
2a. The Commission is empowered to adopt delegated acts in accordance with Article 28 to amend Annex III to set out a method for calculating embedded emissions for determining the actual indirect embedded emissions for simple goods and complex goods and the default values. By 1t January 2025, The Commission shall adopt this method to include indirect emissions in goods, and update Annex III accordingly.
Amendment 714 #
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 uponThe implementing acts shall be equivalent to the 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 739 #
Proposal for a regulation
Article 8 – paragraph 3 – subparagraph 1
Article 8 – paragraph 3 – subparagraph 1
The Commission is empowered to adopt implementing acts concerning the principles of verification referred to in paragraph 1 as regards the possibility to waive the obligation for the verifier to visit the installation where relevant goods are produced and the obligation to set thresholds for deciding whether misstatements or non-conformities are material and concerning the supporting documentation needed for the verification report. Such implementing acts shall be equivalent to the provisions set in Implementing Regulation (EU) 2018/2067.
Amendment 753 #
Proposal for a regulation
Article 9 – paragraph 2
Article 9 – paragraph 2
2. The authorised declarant shall keep records of the documentation, certified by an independent person, verifier accredited pursuant to Article 18 of this Regulation. The accredited verifier shall be required to demonstrate that the declared embedded emissions were subject to a carbon price in the country of origin of the goods and keep evidence of the proof of the actual payment for that carbon price which should not have been subject to an export rebate or any other direct or indirect form of compensation on exportation.
Amendment 767 #
Proposal for a regulation
Article 9 – paragraph 4
Article 9 – paragraph 4
4. The Commission is empowered to adopt implementing acts establishing the methodology for calculating the reduction in the number of CBAM certificates to be surrendered, regarding the conversion of the carbon price paid in foreign currency into euro at yearly average exchange rate in accordance with paragraph 1, and regarding the qualifications of the independent person certifying the information as well as elements of proof of the carbon price paid and the absence of export rebates or other forms of compensation on exportation being applied as referred to in paragraph 2. Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 29(2).
Amendment 776 #
Proposal for a regulation
Article 10 – paragraph 1
Article 10 – paragraph 1
1. The Commission shall, upon request by an operator of an installation located in a third country, register the information on that operator and on its installation in a central databaseCBAM registry referred to in Article 14(4).
Amendment 786 #
Proposal for a regulation
Article 10 – paragraph 7
Article 10 – paragraph 7
7. An operator may disclose tThe information on the verification ofed embedded emissions referred to in paragraph 5 to an authorised declarantshall be publicly accessible via the CBAM registry. The authorised declarant shall be entitled to avail itself of that disclosed information to fulfil the obligation referred to in Article 8.
Amendment 794 #
Proposal for a regulation
Article 10 a (new)
Article 10 a (new)
Amendment 836 #
Proposal for a regulation
Article 14 – paragraph 3
Article 14 – paragraph 3
3. The information in the database referred to in paragraph 2 shall be confidentialmade available to the public, unless it is deemed as business confidential. Information equivalent to the one made publicly available for EU producers under the EU ETS central database shall be made public.
Amendment 874 #
Proposal for a regulation
Article 17 – paragraph 1 – point b a (new)
Article 17 – paragraph 1 – point b a (new)
(ba) the declarant has not repeatedly failed to comply with CBAM obligations in accordance to Article 26 and has not been involved in practices of circumvention in accordance to Article 27.
Amendment 994 #
Proposal for a regulation
Article 27 – paragraph 2
Article 27 – paragraph 2
2. Practices of circumvention include situations where a change in the pattern of trade in relation to goods included in the scope of this Regulation has insufficient due cause or economic justification other than avoiding obligations as laid down in this Regulation and consist in replacing those goods with slightly modified products, which are not included in the list of goods in Annex I but belong to a sector included in the scope of this Regulation.may consist in:
Amendment 1003 #
Proposal for a regulation
Article 27 – paragraph 2 – point a (new)
Article 27 – paragraph 2 – point a (new)
(a) replacing those goods with slightly modified products, which are not included in the list of goods in Annex I but belong to a sector included in the scope of this Regulation.
Amendment 1005 #
Proposal for a regulation
Article 27 – paragraph 2 – point b (new)
Article 27 – paragraph 2 – point b (new)
Amendment 1010 #
Proposal for a regulation
Article 27 – paragraph 2 – point c (new)
Article 27 – paragraph 2 – point c (new)
(c) shipping goods to an intermediary country before being exported to the internal market in order to avoid the obligations laid down in this Regulation.
Amendment 1027 #
Proposal for a regulation
Article 27 – paragraph 3
Article 27 – paragraph 3
Amendment 1038 #
Proposal for a regulation
Article 27 – paragraph 3 a (new)
Article 27 – paragraph 3 a (new)
3a. Following a complaint from an interested party 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 CBAM, when circumvention of the measures in force is taking place.
Amendment 1039 #
Proposal for a regulation
Article 27 – paragraph 4
Article 27 – paragraph 4
Amendment 1046 #
Proposal for a regulation
Article 27 – paragraph 4 a (new)
Article 27 – paragraph 4 a (new)
4a. Decisions referred to in the third paragraph shall be subject to the appeal procedure as set out in Article 30.
Amendment 1047 #
Proposal for a regulation
Article 27 – paragraph 5
Article 27 – paragraph 5
Amendment 1057 #
Proposal for a regulation
Article 27 – paragraph 5 a (new)
Article 27 – paragraph 5 a (new)
5a. 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 the factors set out in the second paragraph. Initiations shall be made by means of a Commission Regulation which shall also instruct customs authorities of Member States to subject imports to registration. The Commission shall provide information to the Member States once an interested party or a Member State has submitted a request justifying the initiation of an investigation and the Commission has completed its analysis thereof, or where the Commission has itself determined that there is a need to initiate an investigation.
Amendment 1071 #
Proposal for a regulation
Article 27 – paragraph 5 b (new)
Article 27 – paragraph 5 b (new)
5b. Investigations shall be carried out by the Commission. The Commission may be assisted by customs authorities and the investigation shall be concluded within nine months.
Amendment 1072 #
Proposal for a regulation
Article 27 – paragraph 5 c (new)
Article 27 – paragraph 5 c (new)
5c. The Commission Decision finding circumvention shall impose a penalty on an Authorised Declarant involved in the circumvention. Where appropriate, the penalty shall also entail the withdrawal of import authorisation.
Amendment 1073 #
Proposal for a regulation
Article 27 – paragraph 5 d (new)
Article 27 – paragraph 5 d (new)
5d. The Commission shall publish all cases of circumvention investigations, their results and potential penalties in an annual report. This report shall also include information on the status of ongoing appeal procedures against penalties. The report shall also contain aggregated information on the emission intensity per country of origin for the different products listed in Annex I.
Amendment 1092 #
Proposal for a regulation
Article 28 – paragraph 2
Article 28 – paragraph 2
2. 2. The power to adopt delegated acts referred to in Articles 2(10), 2(11), 7(3 -2a new), 18(3) and 27(5) shall be conferred on the Commission for an indeterminate period of time.
Amendment 1095 #
Proposal for a regulation
Article 28 – paragraph 3
Article 28 – paragraph 3
3. The delegation of power referred to in Articles 2(10), 2(11), 7(3-2a new), 18(3) and 27(5) may be revoked at any time by the European Parliament or by the Council. […]
Amendment 1100 #
Proposal for a regulation
Article 28 – paragraph 7
Article 28 – paragraph 7
7. 7. A delegated act adopted pursuant to Articles 2(10), 2(11), 7(3-2a new), 18(3) and 27(5) shall enter into force only if no objection has been expressed either by the European Parliament or by the Council within a period of two months of notification of that act to the European Parliament and to the Council or if, before the expiry of that period, the European Parliament and the Council have both informed the Commission that they will not object. That period shall be extended by two months at the initiative of the European Parliament or of the Council. into force only if no objection has been expressed either by the European Parliament or by the Council within a period of two months of notification of that act to the European Parliament and to the Council or if, before the expiry of that period, the European Parliament and the Council have both informed the Commission that they will not object. That period shall be extended by two months at the initiative of the European Parliament or of the Council.
Amendment 1166 #
Proposal for a regulation
Article 30 – paragraph 3 a (new)
Article 30 – paragraph 3 a (new)
3a. 4. No later than 1st January 2028, the European Commission shall present a report to the European Parliament and the Council on the application of this Regulation, based on the first years of effective application from the Regulation. The report should highlight, in particular: - whether the Regulation effectively achieves CO2 cost equalisation between imported and domestic products; - whether CBAM effectively mitigates carbon leakage for both imports and exports;- whether the CBAM operates effectively and does not lead to forms of circumventions; - whether, based on the above, the gradual phase-out of the free allocation given in relation to the production of products listed in Annex I of Regulation shall be initiated as of 2030.
Amendment 1172 #
Proposal for a regulation
Article 30 – paragraph 3 a (new)
Article 30 – paragraph 3 a (new)
3a. The export adjustment shall be reduced to reflect the extent to which EU ETS allowances continue to be allocated free of charge in accordance with Article 10a of Directive 2003/87 to operators of installations producing the goods listed in Annex I in the Union.
Amendment 1173 #
Proposal for a regulation
Article 30 – paragraph 3 b (new)
Article 30 – paragraph 3 b (new)
Amendment 1176 #
Proposal for a regulation
Article 30 – paragraph 3 b (new)
Article 30 – paragraph 3 b (new)
3b. Based on the report and no later than 2030, the Commission should either activate the phasing out of the free allowances as of 2030 in accordance with the procedure of Article 10a of Directive 2003/87/EC (ETS) in relation to the products listed in Annex I of the Regulation, or propose a revision of this Regulation.
Amendment 1178 #
Proposal for a regulation
Article 30 – paragraph 3 b (new)
Article 30 – paragraph 3 b (new)
3b. The Commission is empowered to adopt implementing acts, in accordance with the examination procedure referred to in Article 29(2), establishing methodologies to define the amount of the export adjustment in accordance with paragraph 2 and 3.
Amendment 1180 #
Proposal for a regulation
Article 30 – paragraph 3 c (new)
Article 30 – paragraph 3 c (new)
3c. When drafting the implementing and delegated acts of paragraphs 5 and 6 above, the Commission shall give all interested parties and third countries an opportunity to comment.
Amendment 1181 #
Proposal for a regulation
Article 30 a (new)
Article 30 a (new)
Amendment 1261 #
Proposal for a regulation
Annex III – point 2 – introductory part
Annex III – point 2 – introductory part
2. Determination of actual direct embedded emissions for simple goods
Amendment 1264 #
Proposal for a regulation
Annex III – point 2 – paragraph 1 – introductory part
Annex III – point 2 – paragraph 1 – introductory part
For determining the specific actual embedded emissions of simple goods produced in a given installation, only direct emissions shall be accounted for. For this purpose, the following equation is to be applied:
Amendment 1267 #
Proposal for a regulation
Annex III – point 2 – paragraph 4 a (new)
Annex III – point 2 – paragraph 4 a (new)
No later than 1st January 2025, The Commission shall develop a calculation methodology to include indirect emissions in goods, and update Annex III accordingly.
Amendment 1271 #
Proposal for a regulation
Annex III – point 3 – introductory part
Annex III – point 3 – introductory part
3. Determination of actual direct embedded emissions for complex goods
Amendment 1293 #
Proposal for a regulation
Annex III – point 4 – point 4.1 – paragraph 1
Annex III – point 4 – point 4.1 – paragraph 1
When actual emissions cannot be adequately determined by the authorised declarant, default values shall be used. These values shall be set atbased on the average emission intensity of each exporting country and for each of the goods listed in Annex I other than electricitythe 10 per cent worst performing EU installations for that type of goods, increased by a mark-up, the latter to be determined in the implementing acts of this Regulation. WThen reliable data for the exporting country cannot be applied for a type of goods, the default values shall be based on the average emission intensity of the 10 per cent worst performing EU installations for that type of goods mark-up to be applied pursuant this article shall ensure that the default values reflect the highest known carbon intensity of the relevant good in order to avoid any free riding behaviour.
Amendment 1304 #
Proposal for a regulation
Annex III – point 6
Annex III – point 6