26 Amendments of András GYÜRK related to 2021/0214(COD)
Amendment 7 #
Proposal for a regulation
Recital 8
Recital 8
(8) As long as a significant number of the Union’s international partners have policy approaches that do not result inachieve the same level of climate ambition, there is a risk of carbon leakage, which would undermine the Union’s competitiveness. Carbon leakage occurs if, for reasons of costs related to climate policies, businesses in certain industry sectors or subsectors were to transfer production to other countries or imports from those countries would replace equivalent but less GHG emissions intensive products on the internal market, as well as export markets, or investment into such sectors and subsectors would predominantly flow to such countries and not the Union. That cwould lead to an increase in their total emissions globally, thus jeopardising the reduction of GHG emissions that is urgently needed if the world is to keep the global average temperature to well below 2 °C above pre- industrial levels.
Amendment 9 #
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 addresspreventing risks of carbon leakage resulting from the increased Union climate ambition. on the internal market, export markets as well as investment leakage.
Amendment 11 #
Proposal for a regulation
Recital 10
Recital 10
(10) Existing mechanisms to address the risk of carbon leakage in sectors or sub- sectors at risk of carbon leakage are the transitional free allocation of EU ETS allowances and financial measures to compensate for indirect emission costs incurred from GHG emission costs passed on in electricity prices respectively laid down in Articles 10a(6) and 10b of Directive 2003/87/EC. However, free allocation under the EU ETS weakens the price signal that the system provides for the installations receiving it compared to full auctioning and thus affects the incentives for investment into further abatement of emissions.
Amendment 12 #
Proposal for a regulation
Recital 11
Recital 11
(11) The CBAM seeks to progressively 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. The legislative framework should cumulatively ensure that a mechanism is included to provide effective carbon leakage protection, also addressing export markets, as well as a net positive impact on global GHG emissions rather than EU emissions only. 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, but this transition shall not start before 2030 and only after the EC has tested and verified the effectiveness of the CBAM regulation in terms of protection from the risk of carbon leakage. 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 15 #
Proposal for a regulation
Recital 12
Recital 12
(12) While the objective of the CBAM is to prevent the risk of carbon leakage, from the internal market, export markets, and investment leakage, this Regulation would alsot the same time encourage the use of more GHG emissions-efficient technologies by producers from third countries, so that less emissions per unit of output are generated. Encouraging emission reductions in third countries is the most effective way of avoiding the risk of carbon leakage.
Amendment 23 #
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 transitional period and upon further assessment, as well to indirect emissions, mirroring the scope of the EU ETS, once the impact on all aspects of carbon leakage for energy- intensive sectors of applying CBAM to indirect emissions with eventual withdrawal of indirect EU ETS compensation is fully analysed and measures to avoid such leakage are securely in place.
Amendment 26 #
Proposal for a regulation
Recital 33
Recital 33
(33) Similar technical constraints apply to refinery products, for which it is not possible to unambiguously assign GHG emissions to individual output products. At the same time, the relevant benchmark in the EU ETS does not directly relate to specific products, such as gasoline, diesel or kerosene, but to all refinery output. Due to these constraints, refinery products should be eligible to be included in the scope only if an unambiguous, verifiable and effective methodology is developed in close cooperation with all stakeholders concerned.
Amendment 27 #
Proposal for a regulation
Recital 38 a (new)
Recital 38 a (new)
(38 a) The Commission should prepare a report before the end of the transitional period on the impact of CBAM on downstream sectors, in particular regarding the potential increase in costs of production and increase of cost of input materials and the ability of such sectors to pass any such increases to their customers. The Commission should propose measures to address any negative impact of CBAM on the competitiveness of the Union downstream sectors.
Amendment 37 #
Proposal for a regulation
Article 1 – paragraph 3
Article 1 – paragraph 3
3. The mechanism will progressively become an alternative toCBAM can complement 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.
Amendment 42 #
Proposal for a regulation
Article 7 – paragraph 6
Article 7 – paragraph 6
6. The Commission is empowered toshall 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 tocountry-specific default values for individual goods in Annex I as well as laying down methods to ensure the reliability of data on the basis of which the actual emissions and default values shall be determined, including the level of detail and the verification of the data. Adoption of the implementing acts shall be preceded by public consultations with exporters, importers, third country governments, and other relevant stakeholders. Where necessary, those acts shall provide that the default values can be adapted to particular areas, regions or countries to take into account specific objective factors such as geography, natural resources, market conditions, prevailing energy sources, or industrial processes. The implementing acts shall build upon existing legislation for the verification of emissions and activity data for installations covered by Directive 2003/87/EC, in particular Implementing Regulation (EU) No 2018/2067.
Amendment 53 #
Proposal for a regulation
Article 29 a (new)
Article 29 a (new)
Article 29 a Article 29 a Measures in case of unforeseen damages The Commission shall in a timely manner establish an effective compensation mechanism, according to the procedures established in articles 28 and 29, for damages caused by unforeseen reactions of third countries as a result of the implementation of the CBAM regulation.
Amendment 55 #
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, an in-depthe assessment - developed in close cooperation with the stakeholders concerned, 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.
Amendment 56 #
Proposal for a regulation
Article 30 a (new)
Article 30 a (new)
Article 30 a 1. For the years from 2026 to 2030 the Commission shall set forth an adequate monitoring and reporting system to collect data allowing to test the effectiveness of the CBAM in ensuring an equivalent treatment for imports and domestic goods and protecting from the risk of carbon leakage. For the same years the Commission shall also assess, in cooperation with the industrial sectors exposed to carbon leakage, different possible mechanisms to address the export exposure of the EU products. 2. In 2029 the Commission shall present a report to the European Parliament and the Council regarding the effectiveness of the CBAM. The report shall also include the selected option to address the export exposure. 3. The report by the Commission shall, if appropriate, be accompanied by a legislative proposal to include the selected option for export.
Amendment 78 #
Proposal for a regulation
Recital 8
Recital 8
(8) As long as a significant number of the Union’s international partners have policy approaches that do not result inachieve the same level of climate ambition, there is a risk of carbon leakage, which would undermine the Union’s competitiveness. Carbon leakage occurs if, for reasons of costs related to climate policies, businesses in certain industry sectors or subsectors were to transfer production to other countries or imports from those countries would replace equivalent but less GHG emissions intensive products on the internal market, as well as export markets, or investment into such sectors and subsectors would predominantly flow to such countries and not the Union. That cwould lead to an increase in their total emissions globally, thus jeopardising the reduction of GHG emissions that is urgently needed if the world is to keep the global average temperature to well below 2 °C above pre- industrial levels.
Amendment 99 #
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 addresspreventing risks of carbon leakage resulting from the increased Union climate ambition on the internal market, export markets as well as investment leakage.
Amendment 106 #
Proposal for a regulation
Recital 10
Recital 10
(10) Existing mechanisms to address the risk of carbon leakage in sectors or sub- sectors at risk of carbon leakage are the transitional free allocation of EU ETS allowances and financial measures to compensate for indirect emission costs incurred from GHG emission costs passed on in electricity prices respectively laid down in Articles 10a(6) and 10b of Directive 2003/87/EC. However, free allocation under the EU ETS weakens the price signal that the system provides for the installations receiving it compared to full auctioning and thus affects the incentives for investment into further abatement of emissions.
Amendment 116 #
Proposal for a regulation
Recital 11
Recital 11
(11) The CBAM seeks to progressively 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. The legislative framework should cumulatively ensure that a mechanism is included to provide effective carbon leakage protection, also addressing export markets, as well as a net positive impact on global GHG emissions rather than EU emissions only. 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, but this transition shall not start before 2030 and only after the EC has tested and verified the effectiveness of the CBAM regulation in terms of protection from the risk of carbon leakage. 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 136 #
Proposal for a regulation
Recital 12
Recital 12
(12) While the objective of the CBAM is to prevent the risk of carbon leakage, from the internal market, export markets, and investment leakage, this Regulation would alsot the same time encourage the use of more GHG emissions-efficient technologies by producers from third countries, so that less emissions per unit of output are generated. Encouraging emission reductions in third countries is the most effective way of avoiding the risk of carbon leakage
Amendment 164 #
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 transitional period and upon further assessment, as well to indirect emissions, mirroring the scope of the EU ETS, once impact on all aspects of carbon leakage for energy-intensive sectors of applying CBAM to indirect emissions with eventual withdrawal of indirect EU ETS compensation is fully analysed and measures to avoid such leakage are securely in place.
Amendment 209 #
Proposal for a regulation
Recital 33
Recital 33
(33) Similar technical constraints apply to refinery products, for which it is not possible to unambiguously assign GHG emissions to individual output products. At the same time, the relevant benchmark in the EU ETS does not directly relate to specific products, such as gasoline, diesel or kerosene, but to all refinery output. Due to these constraints, refinery products should be eligible to be included in the scope only if an unambiguous, verifiable and effective methodology is developed in close cooperation with all stakeholders concerned.
Amendment 223 #
Proposal for a regulation
Recital 38 a (new)
Recital 38 a (new)
(38 a) The Commission should prepare a report at the latest before the end of the transitional period on the impact of CBAM on downstream sectors, in particular regarding the potential increase in costs of production and increase of cost of input materials and the ability of such sectors to pass any such increases to their customers. The Commission should propose measures to address any negative impact of CBAM on the competitiveness of the Union downstream sectors.
Amendment 314 #
Proposal for a regulation
Article 1 – paragraph 3
Article 1 – paragraph 3
Proposal for a regulation
Article 1 paragraph 3
Article 1 paragraph 3
3. The mechanism will progressively become an alternative toCBAM can complement 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.
Amendment 404 #
Proposal for a regulation
Article 7 – paragraph 6
Article 7 – paragraph 6
Proposal for a regulation
Article 7 paragraph 6
Article 7 paragraph 6
6. The Commission is empowered toshall 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 tocountry-specific default values for individual goods in Annex I as well as laying down methods to ensure the reliability of data on the basis of which the actual emissions and default values shall be determined, including the level of detail and the verification of the data. Adoption of the implementing acts shall be preceded by public consultations with exporters, importers, third country governments, and other relevant stakeholders. Where necessary, those acts shall provide that the default values can be adapted to particular areas, regions or countries to take into account specific objective factors such as geography, natural resources, market conditions, prevailing energy sources, or industrial processes. The implementing acts shall build upon existing legislation for the verification of emissions and activity data for installations covered by Directive 2003/87/EC, in particular Implementing Regulation (EU) No 2018/2067.
Amendment 642 #
Proposal for a regulation
Article 29 a (new)
Article 29 a (new)
Proposal for a regulation
Article 29
Article 29
Article 29 a Measures in case of unforeseen damages The Commission shall in a timely manner establish an effective compensation mechanism, according to the procedures established in articles 28 and 29, for damages caused by unforeseen reactions of third countries as a result of the implementation of the CBAM regulation.
Amendment 663 #
Proposal for a regulation
Article 30 – paragraph 2
Article 30 – paragraph 2
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, an in-depthe assessment - developed in close cooperation with the stakeholders concerned, 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.
Amendment 679 #
Proposal for a regulation
Article 30 a (new)
Article 30 a (new)
Proposal for a regulation
Article 30
Article 30
Article 30 a 1. For the years from 2026 to 2030 the EC shall set forth an adequate monitoring and reporting system to collect data allowing to test the effectiveness of the CBAM in ensuring an equivalent treatment for imports and domestic goods and protecting from the risk of carbon leakage. For the same years the EC shall also assess, in cooperation with the industrial sectors exposed to carbon leakage, different possible mechanisms to address the export exposure of the EU products. 2. In 2029 the Commission shall present a report to the European Parliament and the Council regarding the effectiveness of the CBAM. The report shall also include the selected option to address the export exposure. 3. The report by the Commission shall, if appropriate, be accompanied by a legislative proposal to include the selected option for export.