38 Amendments of Atidzhe ALIEVA-VELI related to 2021/0214(COD)
Amendment 1 #
Proposal for a regulation
Recital 1
Recital 1
(1) The Commission has, in its communication on the European Green Deal31 , set out a new sustainable growth strategy that aims to transform the Union into a fair and prosperous society, with a modern, resource-efficient, circular and competitive economy, where there are no net emissions (emissions after deduction of removals) of greenhouse gases (‘GHG emissions’) in 2050 and where economic growth is decoupled from resource use. The European Green Deal also aims to protect, conserve and enhance the EU’s natural capital, and protect the health and well- being of citizens from environment- related risks and impacts. At the same time, that transformation must be just and inclusive, leaving no one behindcreating sustainable growth and jobs and leaving no one behind. In addition, the European Green Deal aims to support the global efforts towards the achievement of the Sustainable Development Goals of the United Nations 2030 Agenda for Sustainable Development (UN SDGs) and the Paris Agreement. The Commission also announced in its EU Action Plan: Towards Zero Pollution for Air, Water and Soil32 the promotion of relevant instruments and incentives to better implement the polluter pays principle as set out in Article 191(2) of the Treaty on the Functioning of the European Union (‘TFEU’) and thus complete the phasing out of ‘pollution for free’ with a view to maximising synergies between decarbonisation and the zero pollution ambition. _________________ 31Communication from the Commission of 11 December 2019 on the European Green Deal (COM(2019) 640 final). 32Communication from the Commission of 12 May 2021 on Pathway to a Healthy Planet for All (COM(2021) 400).
Amendment 20 #
Proposal for a regulation
Recital 9
Recital 9
(9) The initiative for a carbon border adjustment mechanism (‘CBAM’) is a part of the ‘Fit for 55 Package’. That mechanism is to serve as an essential element of the EU toolbox to meet the objective of a climate-neutral Union by 2050 in line with the Paris Agreement by addressing risks of carbon leakage resulting from the increased Union climate ambition. That initiative should be combined with incentives for innovation, aimed to facilitate the decarbonisation process and policies aimed at promoting investments in low-carbon industrial processes.
Amendment 24 #
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 emissshould be gradually phased-out, in line with Union’s commitment and targets for decarbonisation and in order to comply with the WTO’s trade rules and avoid double compensations.
Amendment 26 #
(11) The CBAM seeks to replace these existing mechanisms by addressing the risk of carbon leakage in a different way, namely by ensuring equivalent carbon pricing for imports and domestic products. To ensure a gradual transition from the current system of free allowances to the CBAM, the CBAM should be progressively phased in while free allowances in sectors covered by the CBAM are phased out. CBAM should be transparent, proportionate and easy to administer and should avoid any undue financial and administrative burden on enterprises, especially small and medium- sized enterprises (SMEs). 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 nor should lead to any market distortion.
Amendment 29 #
Proposal for a regulation
Recital 12
Recital 12
(12) While the objective of the CBAM is to prevent the risk of carbon leakage, this Regulation would also encourage the use of more GHG emissions-efficient technologies by producers from third countries, so that less emissions per unit of output are generated, as well as encourage carbon pricing worldwide, thus enhancing a global level playing field.
Amendment 36 #
Proposal for a regulation
Recital 13
Recital 13
(13) As an instrument to prevent carbon leakage and reduce GHG emissions the CBAM should ensure that imported products are subject to a regulatory system that applies carbon costs equivalent to the ones that otherwise would have been borne under the EU ETS. The CBAM is a climate measure which should prevent the risk of carbon leakage, promote carbon pricing globally, enhance decarbonisation in a cost-effective and technology-neutral way and support the Union’s increased ambition on climate mitigation, while ensuring WTO compatibility.
Amendment 51 #
Proposal for a regulation
Recital 28
Recital 28
(28) Whilst the ultimate objective of the CBAM is a broad product coverage, it would be prudent to start with a selected number of sectors with relatively homogeneous products where there is a risk of carbon leakage. Union sectors deemed at risk of carbon leakage are listed in Commission Delegated Decision (EU) 2019/70842 . Any further extension of the sectors and products, covered by the CBAM, should take place after an exhaustive scientific analysis and risk assessment, based on the latest available scientific evidence. The potential contribution of such extension, and possible negative effects as well as the effects on the stability of the internal market should also be taken into consideration. _________________ 42Commission Delegated Decision (EU) 2019/708 of 15 February 2019 supplementing Directive 2003/87/EC of the European Parliament and of the Council concerning the determination of sectors and subsectors deemed at risk of carbon leakage for the period 2021 to 2030 (OJ L 120, 8.5.2019, p. 2).
Amendment 76 #
Proposal for a regulation
Recital 51 a (new)
Recital 51 a (new)
(51a) To facilitate and ensure a proper functioning of the CBAM and to avoid internal market distortions or excessive administrative burden for enterprises, in particular SMEs, the Commission should provide them with technical advice and technical assistance in order to facilitate their adaptation to the new obligations established by this Regulation and to avoid causing technical obstacles to trade.
Amendment 77 #
Proposal for a regulation
Recital 51 a (new)
Recital 51 a (new)
(51a) The Commission should establish clear and simplified rules and procedures, to avoid excessive administrative and financial burdens associated with the management and the implementation of the CBAM, especially for SMEs.
Amendment 78 #
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 , the actual imparct of that evaluation, initiate collection of information necessary to possibly extend the scope to indirect emissions, as well as to other goods and services at risk of carbon leakage, and to develop methods of calculating embedded emissions based on the environmental footprint methods47 . _________________ 47Commission Recommendation 2013/179/EU of 9 April 2013 on the use of common methods to measure and communicate the life cycle environmn climate and environmental protection and the impact on the competitiveness and viability of the Union’s economy. The report should also examine the effects on sustainable innovation and changes in trade flows and supply chains with regards to fertilisers, and the effects on the prices of fertilisers and agricultural production. The Commission should also assess the cumulative impact on the Union agricultural sector, what are the effects of this Regulation on Union enterprises, including a quantitative assessment of impacts, specifically on small and medium sized enterprises (SMEs), and actual compliance cost. The effects of the potential performance of products and organisations (OJ L 124, 4.5.2013, p. 1)extension of the scope of this Regulation to agricultural goods and its possible implications should also be evaluated.
Amendment 85 #
Proposal for a regulation
Recital 52 a (new)
Recital 52 a (new)
(52a) The Commission should, as part of that evaluation, initiate collection of information necessary to possibly extend the scope to indirect emissions, as well as to other goods and services at risk of carbon leakage, and to develop methods of calculating embedded emissions based on the environmental footprint methodsa47a . _________________ 47aCommission Recommendation 2013/179/EU of 9 April 2013 on the use of common methods to measure and communicate the life cycle environmental performance of products and organisations (OJ L 124, 4.5.2013, p. 1).
Amendment 87 #
Proposal for a regulation
Recital 53 a (new)
Recital 53 a (new)
(53a) To facilitate the achievement of the objectives of this Regulation, to incentivise global climate action, both within the Union and globally, and to support a market for low-carbon goods, continuous dialogue with all relevant stakeholders and Union’s trade partners should be carried.
Amendment 95 #
Proposal for a regulation
Recital 9
Recital 9
(9) The initiative for a carbon border adjustment mechanism (‘CBAM’) is a part of the ‘Fit for 55 Package’. That mechanism is to serve as an essential element of the EU toolbox to meet the objective of a climate-neutral Union by 2050 in line with the Paris Agreement by addressing risks of carbon leakage resulting from the increased Union climate ambition., whilst preserving and promoting the development of European industries and ensuring an equal level playing field with regard to their competitiveness on EU and global markets;
Amendment 96 #
Proposal for a regulation
Article 1 – paragraph 1
Article 1 – paragraph 1
1. This Regulation establishes a carbon border adjustment mechanism (the ‘CBAM’) for addressing greenhouse gas emissions embedded in the goods referred to in Annex I, upon their importation into the customs territory of the Union, in order to prevent the risk of carbon leakage and encourage carbon pricing worldwide.
Amendment 118 #
Proposal for a regulation
Recital 11
Recital 11
(11) The CBAM seeks to replacestrengthen carbon leakage protection in view of higher EU climate ambition by progressively replacing these existing mechanisms and thereby addressing the risk of carbon leakage in a different way, namely by ensuring equivalent carbon pricing and costs for imports and domestic products. To ensure a gradual transition from the current system of free allowances to the CBAM, the CBAM should be progressively phased in while free allowances in sectors covered by the CBAM are phased outshould be gradually phased out. The progressive phase-out of free allowances should only take place following an initial stage of data collection and analysis aimed at assessing the impact of the CBAM on the affected industries' competitiveness and in preventing carbon leakage both for imports and exports. The combined and transitional application of EU ETS allowances allocated free of charge and of the CBAM should in no case result in more favourable treatment for Union goods compared to goods imported into the customs territory of the Union.
Amendment 130 #
Proposal for a regulation
Article 12 – paragraph 1 a (new)
Article 12 – paragraph 1 a (new)
For this purpose, the Commission shall establish clear and simplified rules and procedures, to avoid excessive administrative and financial burdens associated with the management and the implementation of CBAM, especially for SMEs.
Amendment 131 #
Proposal for a regulation
Article 12 – paragraph 1 a (new)
Article 12 – paragraph 1 a (new)
Amendment 135 #
Proposal for a regulation
Recital 12
Recital 12
(12) While the objective of the CBAM is to prevent the risk of carbon leakage, this Regulation would also encourage the use of more GHG emissions-efficient technologies by producers from third countries, so that less emissions per unit of output are generated. The Commission should regularly assess and monitor whether the CBAM encourages the use of more GHG emission-efficient technologies in third countries, in coordination with the affected industrial sectors and broader stakeholders, and provide additional measures where necessary.
Amendment 153 #
Proposal for a regulation
Article 30 – paragraph 2
Article 30 – paragraph 2
2. Before the end of the transitional period, the Commission shall present a report to the European Parliament and the Council on the application of this Regulation. The report shall contain, in particular, the: (a) assessment of the possibilities to further extend the scope of embedded emissions to indirect emissions and to other goods at risk of carbon leakage than those already covered by this Regulation, as well as an; (b) assessment of the governance system. It shall also contain the; (c) assessment of the possibility to further extend the scope to embedded emissions of transportation services as well as to goods further down the value chain and services that may be subject to the risk of carbon leakage in the future. ; (d) assessment of the real impact on climate and environmental protection; (e) assessment of the impact on the competitiveness and viability of the Union’s economy; (f) identification of the effects on sustainable innovation and changes in trade flows and supply chains with regards to fertilisers; (g) assessment of the effects on the prices of fertilisers and agricultural production; (h) assessment of the cumulative impact on the Union agricultural sector; (i) identification of the effects on Union enterprises, including a quantitative assessment of impacts, specifically on small and medium sized enterprises (SMEs), and actual compliance cost; (j) assessment of the effects from the potential extension of the scope of this Regulation to agricultural goods and its potential implications.
Amendment 176 #
Proposal for a regulation
Recital 20
Recital 20
(20) The CBAM system has some specific features compared with the EU ETS, including on the calculation of the price of CBAM certificates, on the possibilities to trade certificates and on their validity over time. These are due to the need to preserve the effectiveness of the CBAM as a measure preventing carbon leakage over time and to ensure that the management of the system is not excessively burdensome, in particular for SMEs, in terms of obligations imposed on the operators and of resources for the administration, while at the same time preserving an equivalent level of flexibility available to operators under the EU ETS.
Amendment 188 #
Proposal for a regulation
Recital 24
Recital 24
(24) In terms of sanctions, Member States should apply penalties to infringements of this Regulation and competent national authorities should ensure that they are implemented. The amount of those penalties should be identical to penalties currently applied within the Union in case of infringement of EU ETS according to Article 16(3) and (4) of Directive 2003/87/EC. However, in case of circumvention practices or in case or repeated infringements of the provisions of this Regulation, stronger penalties should apply to avoid undermining the effectiveness of the CBAM regime.
Amendment 195 #
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, as well as between sectors covered by CBAM and those not covered by the mechanism, in terms of product substitution due to the lower price competitiveness of products subject to the CBAM regulation.
Amendment 207 #
Proposal for a regulation
Recital 32
Recital 32
(32) In particular, organic chemicals are not included in the scope of this Regulation due to technical limitations that do not allow to clearly define the embedded emissions of imported goods. For these goods the applicable and clearly defined benchmark under the EU ETS is a basic parameter, which does not allow for an unambiguous allocation of emissions embedded in individual imported goods. A more targeted allocation to organic chemicals will require more data and analysis., which should be carried out before the phase-in of the CBAM or during the transition period;
Amendment 215 #
Proposal for a regulation
Recital 34
Recital 34
(34) However, aluminium products should be included in the CBAM as they are highly exposed to carbon leakage. Moreover, in several industrial applications they are in direct competition with steel products because of characteristics closely resembling those of steel products. Inclusion of aluminium is also relevant as the scope of the CBAM, after thorough data collection and analysis of its impact on the industries concerned, may be extended to cover also indirect emissions in the future.
Amendment 248 #
Proposal for a regulation
Recital 50
Recital 50
(50) A transitional period should apply during the period 2023 until 2025 and shall be used for data collection and analysis of the impact of CBAM on the industries concerned, with particular focus of the potential impact of the phase- out of free allocations . A CBAM without financial adjustment should apply, with the objective to facilitate a smooth roll out of the mechanism hence reducing the risk of disruptive impacts on trade. Declarants should have to report on a quarterly basis the actual embedded emissions in goods imported during the transitional period, detailing direct and indirect emissions as well as any carbon price paid abroad.
Amendment 255 #
Proposal for a regulation
Recital 50 a (new)
Recital 50 a (new)
(50 a) The transitional period should serve to evaluate the overall efficiency of the CBAM in preventing carbon leakage and achieving emission reduction targets, as well as to evaluate its WTO compatibility and its effectiveness in encouraging external trade partners to adopt more ambitious climate policies.
Amendment 276 #
Proposal for a regulation
Recital 52 a (new)
Recital 52 a (new)
(52 a) If after the transitional period, the evidence collected by the Commission indicates that the potential costs of the CBAM outweigh its benefits and the CBAM cannot effectively protect European industries falling with its scope against carbon leakage, a further phase- in of the CBAM and phase-out of free allowances should be paused until an effective solution is found.
Amendment 291 #
Proposal for a regulation
Recital 55 a (new)
Recital 55 a (new)
(55 a) The Commission shall regularly inform the European Parliament on its progress in dialogue with third countries and on any possible negative impacts of the CBAM on the industries affected by this Regulation.
Amendment 300 #
Proposal for a regulation
Article 1 – paragraph 1
Article 1 – paragraph 1
1. This Regulation establishes a carbon border adjustment mechanism (the ‘CBAM’) for addressing greenhouse gas emissions embedded in the goods referred to in Annex I, upon their importation into the customs territory of the Union, in order to prevent the risk of carbon leakage and encourage external trade partners to pursue more ambitious climate goals on a global scale and not only in bilateral trade with the EU.
Amendment 328 #
Proposal for a regulation
Article 2 – paragraph 5 – point b a (new)
Article 2 – paragraph 5 – point b a (new)
(b a) c) the regulatory obligation and the net regulatory burden imposed in the country where the goods are originating in are equivalent to those imposed under the EU ETS.
Amendment 337 #
Proposal for a regulation
Article 2 – paragraph 7 – point d
Article 2 – paragraph 7 – point d
(d) the third country or territory has committed to climate neutrality by 2050 and has accordingly formally formulated and communicated, where applicable, to the United Nations Framework Convention on Climate Change a mid-century, long- term low greenhouse gas emissions development strategy aligned with that objective, and has credibly and effectively implemented that obligation in its domestic legislation;
Amendment 341 #
Proposal for a regulation
Article 2 – paragraph 9 – point a
Article 2 – paragraph 9 – point a
(a) if the Commission has reasons to consider that the country or territory has not shownproved sufficient progress to comply with one of the requirements listed in paragraph 7, points (a) to (f), or if the country or territory has taken any kind of action incompatible with the objectives set out in the Union climate and environmental legislation;
Amendment 408 #
Proposal for a regulation
Article 8 – paragraph 1
Article 8 – paragraph 1
1. The authorised declarant shall ensure that the total embedded emissions declared in the CBAM declaration submitted pursuant to Article 6 are verified by a verifier accredited pursuant to Article 18, based on the verification principles set out in Annex V. The competent authority is authorised to verify the accuracy of the information in the CBAM declaration.
Amendment 480 #
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 511 #
Proposal for a regulation
Article 17 – paragraph 1 – point b a (new)
Article 17 – paragraph 1 – point b a (new)
(b a) 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 566 #
Proposal for a regulation
Article 20 – paragraph 2 a (new)
Article 20 – paragraph 2 a (new)
2a. Part of the revenues generated by CBAM and collected as EU own resources shall be used to support research and innovation in carbon- reducing technologies such as renewable hydrogen uptake, storage, and other types of zero carbon industrial innovation, as well as to spur decarbonisation efforts in CBAM sectors through financing to companies operating in developing and least developed countries.
Amendment 653 #
Proposal for a regulation
Article 30 – paragraph 2
Article 30 – paragraph 2
2. Before the end of the transitional period, the Commission shall present a report to the European Parliament and the Council on the application of this Regulation. The report shall contain, in particular,highlight, in particular: a) whether the Regulation effectively achieves carbon cost equalisation between imported and domestic products. b) whether the CBAM effectively mitigates carbon leakage for both imports and exports. c) whether the CBAM effectively contributes to reducing carbon emissions in third countries. d) whether the CBAM operates effectively and does not lead to forms of circumvention. e) whether, based on the above, the gradual phase-out of free allocations given in relation to the production of products listed in Annex I of the Regulation shall be initiated. f) the assessment of the possibilities to further extend the scope of embedded emissions to indirect emissions and to other goods at risk of carbon leakage than those already covered by this Regulation, as well as an assessment of the governance system. It shall also containg) the assessment of the possibility to further extend the scope to embedded emissions of transportation services as well as to goods further down the value chain and services that may be subject to the risk of carbon leakage in the future.
Amendment 675 #
Proposal for a regulation
Article 30 – paragraph 3 a (new)
Article 30 – paragraph 3 a (new)
3a. Based on the report mentioned in Paragraph 2 and pending the development and adoption of the legislative proposal mentioned in Paragraph 3, the Commission shall either activate the phasing out of free allowances in relation to the products listed in Annex I of the regulation, or propose a revision of the Regulation.