44 Amendments of Carles PUIGDEMONT I CASAMAJÓ related to 2021/0214(COD)
Amendment 70 #
Proposal for a regulation
Recital 1
Recital 1
(1) The Commission has, in its communication on the European Green Deal31 , set out a new growth strategy that aims to transform the Union into a fair and prosperous society, with a modern, , open, innovation-driven, resource-efficient 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 behind. 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. _________________ 31 Communication from the Commission of 11 December 2019 on the European Green Deal (COM(2019) 640 final). 32 Communication from the Commission of 12 May 2021 on Pathway to a Healthy Planet for All (COM(2021) 400).
Amendment 73 #
Proposal for a regulation
Recital 6
Recital 6
(6) The Special Report of the Intergovernmental Panel on Climate Change (IPCC) on the impacts of global temperature increases of 1.5°C above pre- industrial levels and related global GHG emission pathways36 provides a strong scientific basis for tackling climate change and illustrates the need to step up climate action. That report confirms that in order to reduce the likelihood of extreme weather events, GHG emissions need to be urgently reduced, and that climate change needs to be limited to a global temperature increase of 1.5°C. Moreover, estimated global warming is currently increasing at 0.2 ºC (likely between0.1 ºC and 0.3ºC) per decade due to past and ongoing emissions. These impacts show an uneven distribution, with most adverse effects on poorer countries and people. _________________ 36 IPCC, 2018: Global Warming of 1.5°C. An IPCC Special Report on the impacts of global warming of 1.5°C above pre- industrial levels and related global greenhouse gas emission pathways, in the context of strengthening the global response to the threat of climate change, sustainable development, and efforts to eradicate poverty [Masson-Delmotte, V., P. Zhai, H.-O. Pörtner, D. Roberts, J. Skea, P.R. Shukla, A. Pirani, W. Moufouma- Okia, C. Péan, R. Pidcock, S. Connors, J.B.R. Matthews, Y. Chen, X. Zhou, M.I. Gomis, E. Lonnoy, T. Maycock, M. Tignor, and T. Waterfield (eds.)].
Amendment 75 #
Proposal for a regulation
Recital 7 a (new)
Recital 7 a (new)
(7 a) The EU ETS, as the first major carbon market addressing emissions, has set leadership in the global carbon market in spite of showing shortcomings in key issues such carbon leakage prevention or allocation of free allowances, since it focuses on the Union’s emissions rather than on the carbon footprint of goods and products in and out the Union, thus unadressing the carbon footprint of imports and affecting the competitiveness and reshoring of the Union’s industry.
Amendment 76 #
Proposal for a regulation
Recital 7 b (new)
Recital 7 b (new)
(7 b) There are strong and increasing inequalities regarding both the effects and the causes of climate change, being the poorest countries the most deeply impacted and at the same time the ones with a lowest share of GHG emissions.
Amendment 77 #
Proposal for a regulation
Recital 7 c (new)
Recital 7 c (new)
(7 c) The fight against global warming, keeping it under 1.5ºC as established in the Paris Agreement, requires global answers. It is therefore necessary to work together with the World Trade Organisation and other global and multilateral stakeholders in order to reduce emissions. The Union and its Member States should collaborate with their global partners in order to create an open multilateral system that takes sustainable trade to promote the green transition.
Amendment 81 #
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, based upon the “polluter-pays principle”, 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. The carbon leakage would ultimately lead to increased global warming if it is not duly addressed.
Amendment 85 #
Proposal for a regulation
Recital 9 a (new)
Recital 9 a (new)
(9 a) The Union’s carbon border adjustment mechanism strengthens the Union’s principle for free trade. The initiative for a CBAM increases equal opportunities in order to achieve more competitive markets in a decarbonising scenario.
Amendment 86 #
Proposal for a regulation
Recital 9 b (new)
Recital 9 b (new)
(9 b) The “common-but-differentiated responsibilities”(CBDR), principle of international environmental law establishing that all countries are responsible for addressing global environmental destruction yet not equally responsible, is another principle to which the CBAM should build upon. This principle balances, on the one hand, the need for all states to take responsibility for global environmental problems and, on the other, the need to recognise the wide differences in levels of economic development between countries. These differences in turn are linked to the countries’ contributions to, as well as their abilities to address, these problems. CBDR was formalised in international law at the 1992 United Nations Conference on Environment and Development (UNCED) in Rio de Janeiro.
Amendment 92 #
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, as well as indirect emission costs’ compensation, weakens the price signal that the system provides for the installations receiving it compared to full auctioning and thus affects the incentives for investment into further abatement of emissions.
Amendment 107 #
Proposal for a regulation
Recital 11 a (new)
Recital 11 a (new)
(11 a) The Commission should guarantee the application of the “polluter-pays principle” by pricing equally the carbon emissions on goods consumed and used in the Union regardless of where the emissions have taken place.
Amendment 108 #
Proposal for a regulation
Recital 11 b (new)
Recital 11 b (new)
(11 b) The rapid phasing-out of free allowances in combination with the CBAM should ensure a fair system where no producer, either in the Union or in a third country, placing the goods covered by CBAM on the Union’s internal market would be allowed to compete by unfairly and irresponsibly lowering climate ambition. The general exception clause of Article XX of the General Agreement on Tariffs and Trade (GATT) should be the basis for any CBAM design and its only rationale should be an environmental one– reducing global CO2 emissions and preventing carbon leakage as means to improve human health and protect non- renewable energy sources. Even if Article XX of the GATT may suggest a WTO compatibility, the CBAM would still pose an issue to the principles of “most- favoured nation” (Article I of the GATT) and “pacta sunt servanda” (Article II of the GATT). Finally, Article XVI of the GATT on “Subsidies” is key for the introduction of a CBAM compatible with the WTO since there is the possibility that for each exported tone to third countries or non-EU members, producers may not have to pay for emission rights.
Amendment 113 #
Proposal for a regulation
Recital 12
Recital 12
(12) While the objective of the CBAM is to lower carbon emissions by preventing the risk of carbon leakage, this Regulation would also encourages the use of more GHG emissions-efficient technologies by producers from third countries, so that less emissions per unit of output are generated.
Amendment 125 #
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 as well as products containing large amounts of these energy- intensive commodities that may be particularly at risk of carbon leakage. The CBAM is a climate measure which should prevent the risk of carbon leakage, encourages sustainable trade and support the Union’s increased ambition on climate mitigation, while ensuring WTO compatibility.
Amendment 130 #
Proposal for a regulation
Recital 14 a (new)
Recital 14 a (new)
(14 a) The GHG emissions content of imports concerned should be accounted for on the basis of transparent and reliable product-specific benchmarks representing the global average GHG emissions content of individual products disaggregated by different production methods with varying emission intensities. Importers should have the option to prove, in accordance with Union standards for monitoring, reporting and verification (MRV), that the carbon content of their products is lower than the benchmark, and avail of a CBAM price adapted accordingly. The Commission should also assess the inclusion of transport emissions into the CBAM and not only product- based emissions.
Amendment 134 #
Proposal for a regulation
Recital 15
Recital 15
(15) In order to exclude from the CBAM third countries or territories fully integrated into, or linked, to the EU ETS in the event of future agreements, the power to adopt acts in accordance with Article 290 of TFEU should be delegated to the Commission in respect of amending the list of countries in Annex II. Conversely, the Commission should exclude and monitor those third countries or territories, should be excludedubject to CBAM, from the list in Annex II and be subject to CBAM whereby they do not effectively charge the ETS price on goods exported to the Union.
Amendment 137 #
Proposal for a regulation
Recital 17
Recital 17
(17) The GHG emissions to be regulated by the CBAM should correspond to those GHG emissions covered by Annex I to the EU ETS in Directive 2003/87/EC, namely carbon dioxide (‘CO2’) as well as, where relevant, nitrous oxide (‘N2O’) and perfluorocarbons (‘PFCs’). The CBAM should initially apply to direct emissions of those GHG from the production of goods up to the time of import into the customs territory of the Union, and after the end of a transition period and upon further assessment, as well to indirect emissions, mirroring the scope of the EU ETSccompanied with relevant calculation methodologies by the Commission, the CBAM should also apply to indirect emissions, mirroring the scope of the EU ETS, in order to ensure equal carbon costs for domestic production and imports from third countries.
Amendment 142 #
Proposal for a regulation
Recital 18
Recital 18
(18) The EU ETS and the CBAM have a common objective of pricing GHG emissions embedded in the same sectors and goods through the use of specific allowances or certificates. Both systems have a regulatory nature and are justified by the need to curb GHG emissions, in line with the environmental objective set out in Union's Regulation 2021/1119 of the European Parliament and of the Council of 30 June 2021 establishing the framework for achieving climate neutrality and amending Regulations (EC)No 401/2009 and (EU) 2018/1999 (‘European Climate Law’), which introduces the main objectives of the Paris Agreement into the Union’s legal framework.
Amendment 145 #
Proposal for a regulation
Recital 19 a (new)
Recital 19 a (new)
(19 a) The CBAM and the EU ETS should have no differences in their functioning benefitting domestic production over imports. The Commission should only accept such differences as justifiable if it determines that there is a need to ensure the effectiveness of both systems.
Amendment 155 #
Proposal for a regulation
Recital 23 a (new)
Recital 23 a (new)
(23 a) Passing on costs to consumers, while being an expected consequence of CBAM, will increase market prices of some necessity goods. It is therefore necessary to especially protect the most vulnerable populations while strengthening all measures against energy poverty.
Amendment 174 #
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 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 and assessment by the Commission, who should consider to include them in the CBAM after the transition period.
Amendment 197 #
Proposal for a regulation
Recital 51 a (new)
Recital 51 a (new)
(51 a) The Commission should set up and manage a single-point digital portal where authorised declarants may retreive allrelevant information regarding the CBAM as well as on how the CBAM and globalCO2-pricing would affect the price of imported goods covered by the Union’s CBAM. This single-point digital portal should also give the declarant the possibility to report any wrong-doing or suspicion of misuse of such information.
Amendment 199 #
Proposal for a regulation
Recital 51 b (new)
Recital 51 b (new)
(51 b) The Commission should assess, in the revision of the current Regulation, whether it would be useful to experiment a complementary distributed ledger technology in order for decentralised autonomous organisations aiming at green and sustainability projects to be part of the European carbon market.
Amendment 205 #
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, initiate collection of information necessary to possibly, by the end of the transition period, 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 . _________________ 47 Commission Recommendation 2013/179/EU of 9 April 2013 on the use of common methods to measure and communicate the life cycle environmental performance of products and organisations (OJ L 124, 4.5.2013, p. 1).
Amendment 214 #
Proposal for a regulation
Recital 53
Recital 53
(53) In light of the above, in order to strengthen the Union’s multilateral cooperation, a dialogue with third countries should continue and there should be space for cooperation and solutions that could inform the specific choices that will be made on the details of the design of the measure during the implementation, in particular during the transitional period.
Amendment 220 #
Proposal for a regulation
Recital 55
Recital 55
(55) As the CBAM aims to encourage cleaner production processes by lowering global carbon emissions and preventing carbon leackage, the EU stands ready to work with low and middle- income countries towards the de- carbonisation of their manufacturing industries. Moreover, the Union should support less developed countries with the necessary technical assistance in order to facilitate their adaptation to the new obligations established by this regulation.
Amendment 224 #
Proposal for a regulation
Recital 55 a (new)
Recital 55 a (new)
(55 a) The CBAM should also be a tool to mitigate and eventually reduce the effects of global warming and climate change in least developed countries (LDCs). Therefore, the Commission should also direct part of the revenues collected by the CBAM to its development aid towards LDCs, ensuring that these implement policies aimed at lowering emissions.
Amendment 225 #
Proposal for a regulation
Recital 57 a (new)
Recital 57 a (new)
(57 a) The Commission should monitor any changes in trade flows attributable to the CBAM in order to evaluate the efficiency of the measure and to identify circumventing practices. The Commission should ultimately increase and develop its carbon market alongside preventing subsidies to highly polluting industries.
Amendment 248 #
Proposal for a regulation
Article 2 – paragraph 10
Article 2 – paragraph 10
10. The Commission is empowered to adopt delegated acts in accordance with Article 28 to set out requirements and procedures for countries or territories that are deleted from the list in Annex II, Section B, to ensure the application of this Regulation to their territories with regard to electricity. If in such cases market coupling remains incompatible with the application of this Regulation, the Commission may decide to exclude the third countries or territories from Union market coupling and require explicit capacity allocation at the border between the Union and the third country, so that the CBAM can apply. The Commission shall monitor the fulfilment of the conditions set out in paragraphs 5, 7 and 8 of this Article for all third countries and territories listed in Annex II, Sections A and B.
Amendment 250 #
Proposal for a regulation
Article 2 – paragraph 11
Article 2 – paragraph 11
11. The Commission is empowered to adopt delegated acts in accordance with Article 28 to amend the lists in Annex II, Sections A or B, depending on whether the conditions in paragraphs 5, 7 or 9 are satisfied, after providing the third country or territory with a written warning laying down the reasons for removal..
Amendment 264 #
Proposal for a regulation
Article 2 – paragraph 12 a (new)
Article 2 – paragraph 12 a (new)
12 a. The agreements referred to in the first paragraph shall not lead to undue preferential treatment of imports from the third countries or territories as regards the CBAM certificates to be surrendered.
Amendment 266 #
Proposal for a regulation
Article 2 – paragraph 12 b (new)
Article 2 – paragraph 12 b (new)
12 b. The Commission shall inform European Parliament immediately of all stages of the procedure leading to the conclusion of these agreements.
Amendment 279 #
Proposal for a regulation
Article 3 – paragraph 1 – point 28 a (new)
Article 3 – paragraph 1 – point 28 a (new)
Amendment 280 #
Proposal for a regulation
Article 3 – paragraph 1 – point 28 b (new)
Article 3 – paragraph 1 – point 28 b (new)
(28 b) ‘micro, small and medium sized enterprises’ means the definition as set out in Commission Recommendation (2003/361/EC) of 6 May 2003 concerning the definition of micro, small and medium-sized enterprises
Amendment 364 #
Proposal for a regulation
Article 17 – paragraph 1 – point b
Article 17 – paragraph 1 – point b
(b) the declarant demonstrates its financial and operational capacity to fulfil its obligations under this Regulation. Competent authorities shall not impose excessive burdens on declarants that fall onto the definition of a small or medium- sized enterprise following the Commission Recommendation 2003/361.
Amendment 369 #
Proposal for a regulation
Article 17 – paragraph 6 – introductory part
Article 17 – paragraph 6 – introductory part
6. The competent authority shall require the provision of a guarantee in order to authorise a declarant in accordance with paragraph 1, if the declarant was not established throughout the two financial years that precede the year when the application in accordance with Article 5(1) was submitted. Declarants complying with the definition of a small or medium-sized enterprise following the Commission's Recommendation 2003/361 may be waived from the guarantee by the Commission.
Amendment 383 #
Proposal for a regulation
Article 19 – paragraph 1 a (new)
Article 19 – paragraph 1 a (new)
1 a. The competent authority shall review any indication of inaccuracies and shall conduct randomised reviews of CBAM declarations, to the extent necessary in order to deliver statistically significant reports to the Commission on incorrect CBAM declarations.
Amendment 394 #
Proposal for a regulation
Article 24 – paragraph 1
Article 24 – paragraph 1
By 30 June of each year, the competent authority of each Member State shall cancel any CBAM certificates that were purchased during the year before the previous calendar year and that remained in the accounts in the national registry of the declarants authorised in that Member State. Competent authorities may cancel the CBAM certificates held by declarants that comply with the definition of a small or medium-sized enterprise following the EC Recommendation 2003/361.
Amendment 431 #
Proposal for a regulation
Article 27 – paragraph 3
Article 27 – paragraph 3
3. A Member State non-governmental organisations, environmental organisations, or any party affected or benefitted by the situations described in paragraph 2, or finding concrete evidence of circumvention, may notify the Commission if it is confronted, over a two- month period compared with the same period in the preceding year with a significant decrease in the volume of imported goods included in the scope of this Regulation and an increase of volume of imports of slightly modified products, which are not included in the list of goods in Annex I. The Commission shall continually monitor any significant change of pattern of trade of goods and slightly modified products at Union level.
Amendment 439 #
Proposal for a regulation
Article 27 – paragraph 5
Article 27 – paragraph 5
5. Where the Commission, taking into account the relevant data, reports and statistics, including when provided by the customs authorities of Member States, has sufficient reasons to believe that the circumstances referred to in paragraph 3 are occurring in one or more Member States, it is empowered to adopt delegated acts in accordance with Article 28 to supplement the scope of this Regulation in order to include slightly modified products for anti-circumvention purposes. The Commission shall demand Member States to notify circumvention cases in a quarterly basis and inform the European Parliament yearly on the practices of CBAM circumvention.
Amendment 467 #
Proposal for a regulation
Article 30 – paragraph 1
Article 30 – paragraph 1
1. The Commission shall collect the information necessary with a view to extending the scope of this Regulation to indirect emissions and goods other than those listed in Annex I, and develop methods of calculating embedded emissions based on environmental footprint methods, six months after the entry into force of this Regulation.
Amendment 474 #
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 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 contain the assessment of the possibility to further extend the scope to embedded emissions of transportation services as well as to goods further down the value chain and services that may be subject to the risk of carbon leakage in the future. The report shall also consider the feasability of directing a significant share of the revenue raised by the CBAM to help developing countries to implement policies that shift the economy away from carbon-intensive industries. Notwithstanding the timeframe of the reports to be issued by the Commission to the European Parliament, the latter shall be able to make its own report whenever it deems it necessary after the entry into force of this Regulation.
Amendment 488 #
Proposal for a regulation
Article 30 – paragraph 3
Article 30 – paragraph 3
3. The report by the Commission shall, if appropriate, be accompanied by a legislative proposal. The Commission shall take into account the report issued by the European Parliament.
Amendment 504 #
Proposal for a regulation
Article 35 – paragraph 2 – point d
Article 35 – paragraph 2 – point d
(d) the carbon price due in a country of origin for the embedded emissions and the indirect emissions embedded in the imported goods, which is not subject to an export rebate or other form of compensation on exportation.
Amendment 507 #
Proposal for a regulation
Article 35 – paragraph 3
Article 35 – paragraph 3
3. The competent authority shall communicate the information referred to in paragraph 2 to the Commission at the latest two months after the end of the quarter covered by a report. Where appropriate, the competent authority shall be assisted by regional authorities with trade policy competences.