BETA

17 Amendments of Thomas ULMER related to 2008/0013(COD)

Proposal for a directive – amending act
Recital 13

(13) The additional effort to be made by the European economy requires inter alia that the revised Community scheme operate with the highest possible degree of economic efficiency and on the basis of fully harmonised conditions of allocation within the Community. ~~Auctioning should therefore be the basic principle for allocation, as it is the simplest and generally considered to be the most economically efficient system~~Free allocation based on benchmarks and actual production is the most economically efficient system that can provide for setting incentives for low carbon technologies and for the achievement of the reduction target. This should also eliminate windfall profits and put new entrants and higher than average growing economies on the same competitive footing as existing installations.

2008/07/08
Committee: ENVI

Proposal for a directive – amending act
Recital 16

(16) ~~Consequently, full auctioning should be the rule from 2013 onwards for the power sector, taking into account their ability to pass on the increased cost of CO2, and no free~~ Emissions trading is an instrument designed to help meet the CO2 reduction targets at minimal cost. Free allocation based on benchmarks and actual production sets the necessary incentives to efficiency improvements. Costs generated by the Community scheme both for participating installocation should be given for carbon capture and storage as the incentive for this arises from allowances not being required to be surrendered in respect of emissions which are stored. Electricity generators may receive free allowances for heat produced through high efficiency cogeneration as defined by Directive 2004/8/EC s as well as indirectly for consumers can thereby be limited to the financial needs for abating the CO2 emissions to be reduced in accordance with the target set. The CO2 emissions still allowed in line with the cap consequently do not cause costs for the community. They will only do so once they fall under a future, strengthened reduction target. Such a limitation in no way jeopardises the climate change policy goals. The achievement of the CO2 reduction target can be safeguarded by setting the ~~event that such heat produced by installations in o~~benchmarks correctly. The option of a downward adjustment of the benchmarks in subsequent years provides for ther sec~~tors were to be given free allocations, in order to avoid distortions of competition.~~ urity to really meet the overall reduction target. Consequently, free allocation based on benchmarks and actual production should be the rule from 2013 onwards for all sectors and the entire period.

2008/07/08
Committee: ENVI

Proposal for a directive – amending act
Recital 19

(19) The Community will continue to take the lead in the negotiation of an ambitious international agreement that will achieve the objective of limiting global temperature increase to 2°C and is encouraged by the progress made in Bali towards this objective. In the event that other developed countries and other major emitters of greenhouse gases do not participate in this international agreement, this could lead to an increase in greenhouse gas emissions in third countries where industry would not be subject to comparable carbon constraints (“carbon leakage”), and at the same time could put certain energy- intensive sectors and sub-sectors in the Community which are subject to international competition at an economic disadvantage. This could undermine the environmental integrity and benefit of actions by the Community. To address the risk of carbon leakage, the Community will ~~allocate allowances free of charge up to 100% to~~take over, for sectors or sub-sectors meeting the relevant criteria. The definition of these sectors and sub-sectors and the measures required will be subject to re-assessment to ensure that action is taken where necessary and to avoid overcompensation. For those specific sectors or sub-sectors where it can be duly substantiated that the r, the principle of free allocation on the basisk of carbon leakage cannot be prevented otherwise, where electricity constitutes a high proportion of production costs and is produced efficiently, the action taken may take into account the electricity consumption in the production process, without changing the total quantity of allowanceslegal provisions harmonised at Community level.

2008/07/08
Committee: ENVI

Proposal for a directive – amending act
Recital 20

The Commission should therefore review the situation by June 20110 at the latest, consult with all relevant social partners, and, in the light of the outcome of the international negotiations, submit a report accompanied by any appropriate proposals. In this context, the Commission should identify which energy intensive industry sectors or sub-sectors are likely to be subject to carbon leakage not later than 30 June 20109. It should base its analysis on the assessment of the inability to pass on the cost of required allowances in product prices without significant loss of market share to installations outside the Community not taking comparable action to reduce emissions. Energy-intensive industries which are determined to be exposed to a significant risk of carbon leakage could receive a higher amount of free allocation or an effective carbon equalisation system could be introduced with a view to putting installations from the Community which are at significant risk of carbon leakage and those from third countries on a comparable footing. Such a system could apply requirements to importers that would be no less favourable than those applicable to installations within the EU, for example by requiring the surrender of allowances. Any action taken would need to be in conformity with the principles of the UNFCCC, in particular the principle of common but differentiated responsibilities and respective capabilities, taking into account the particular situation of Least Developed Countries. It would also need to be in conformity with the international obligations of the Community including the WTO agreement.

2008/07/08
Committee: ENVI

Proposal for a directive – amending act
Recital 34

The measures necessary for the implementation of this Directive should be adopted in accordance with Council Decision 1999/468/EC of 28 June 1999 laying down the procedures for the exercise of implementing powers conferred on the Commission. In particular power should be conferred on the Commission to adopt measures for the auctioning of allowances, ~~for transitional Community- wide allocation of allowances~~on the basis of the benchmark model, for the monitoring, reporting and verification of emissions, for the accreditation of verifiers and for implementing harmonised rules for projects. Since those measures are of general scope and are designed to amend non-essential elements of this Directive and to supplement this Directive by the addition or modification of new non- essential elements, they should be adopted in accordance with the regulatory procedure with scrutiny provided for in Article 5a of Decision 1999/468/EC.

2008/07/08
Committee: ENVI

Proposal for a directive – amending act
Article 1 – point 6

Directive 2003/87/EC
Article 9a – paragraph 3 a (new)

3a. Should the quantity of allowances that were additionally allocated to the operators in a specific sector due to production increases in accordance with the second sentence of Article 10a(2) exceed the quantity of allowances returned by operators in that specific sector due to reduced reduction according to the ex-post adjustments, the benchmarks for this specific sector shall be reduced in the year following the year in which the imbalance occurred in accordance with the regulatory procedure with scrutiny referred to in Article [23(3)] in a way that ensures the achievement of overall reduction of emissions within the scope of Article 9. For this purpose, the competent authorities shall inform the Commission by 30 April of each year whether the quantity of emission allowances has been exceeded.

2008/07/10
Committee: ENVI

Proposal for a directive – amending act
Article 1 - Point 7

Directive 2003/87/EC
Article 10

(7) Article 10 is replaced by the following: 1. From 2013 onwards, Member States shall auction all allowances which are not allocated free of charge in accordance with Article 10a. 2. The total quantity of allowances to be auctioned by each Member State shall be composed as follows: (a) 90% of the total quantity of allowances to be auctioned being distributed amongst Member States in shares that are identical to the share of verified emissions under the Community scheme in 2005 of the Member State concerned; (b) 10% of the total quantity of allowances to be auctioned being distributed amongst certain Member States for the purpose of solidarity and growth within the Community, thereby increasing the amount of allowances that those Member States auction under point (a) by the percentages specified in Annex IIa. For the purposes of point (a), in respect of Member States which did not participate in the Community scheme in 2005, their share shall be calculated using their verified Community scheme emissions under the Community scheme in 2007. If necessary, the percentages referred to in point (b) of the first subparagraph shall be adapted in a proportional manner to ensure that the redistribution is 10%. 3. At least 20% of the revenues generated from the auctioning of allowances referred to in paragraph 2, including all revenues from the auctioning referred to in point (b) thereof, should be used for the following: (a) to reduce greenhouse gas emissions, including by contributing to the Global Energy Efficiency and Renewable Energy Fund, to adapt to the impacts of climate change and to fund research and development for reducing emissions and adapting, including participation in initiatives within the framework of European Strategic Energy Technology Plan; (b) to develop renewable energies to meet the commitment of the Community to using 20% renewable energies by 2020, and to meet the commitment of the Community to increase energy efficiency by 20% by 2020; (c) for the capture and geological storage of greenhouse gases, in particular from coal power stations; (d) for measures to avoid deforestation, in particular in Least Developed Countries; (e) to facilitate developing countries' adaptation to the impacts of climate change; (f) to address social aspects in lower and middle income households, for example by increasing their energy efficiency and insulation; and (g) to cover administrative expenses of the management of the Community scheme. 4. Member States shall include information on the use of revenues for each of these purposes in their reports submitted under Decision No 280/2004/EC. 5. By 31 December 2010, the Commission shall adopt a Regulation on timing, administration and other aspects of auctioning to ensure that it is conducted in an open, transparent and non- discriminatory manner. Auctions shall be designed to ensure that operators, and in particular any small and medium size enterprises covered by the Community scheme, have full access and any other participants do not undermine the operation of the auction. That measure, designed to amend non-essential elements of this Directive by supplementing it, shall be adopted in accordance with the regulatory procedure with scrutiny referred to in Article [23(3)]."deleted "Article 10 Auctioning of allowances

2008/07/14
Committee: ENVI

Proposal for a directive – amending act
Article 1 – point 8

Directive 2003/87/EC
Article 10a – paragraph 1

1. Starting from the year 2013, Member States shall allocate all allowances free of charge for the entire period. The Commission shall, by 30 June 201109, adopt Community wide and fully harmonised implementing measures for allocating the allowances referred to in paragraphs 2 ~~to 6~~ and 83 in a harmonised manner. Those measures, designed to amend non- essential elements of this Directive by supplementing it, shall be adopted in accordance with the regulatory procedure with scrutiny referred to in Article [23(3)]. The definition of sectors to which the Directive applies constitutes however an essential element and shall therefore be the subject of a proposal in accordance with Article 251 of the Treaty. The measures referred to in the first subparagraph shall, to the extent feasible, ensure that allocation takes place in a manner that gives incentives for greenhouse gas and energy efficient techniques and for reductions in emissions, by taking account of the most efficient techniques, substitutes, alternative production processes, use of biomass and greenhouse gas capture and storage, and shall not give incentives to increase emissions. No free allocation shall be made in respect of any electricity production. The Commission shall, upon the conclusion by the Community of an international agreement on climate change leading to mandatory reductions of greenhouse gas emissions comparable to those of the Community, review those measures to provide that free allocation only takes place where this is fully justified in the light of that agreementand shall not give incentives to increase emissions.

2008/07/15
Committee: ENVI

Proposal for a directive – amending act
Article 1 – point 8

Directive 2003/87/EC
Article 10a – paragraph 2

2. ~~Subject to paragraph 3, no free allocation shall be given to electricity generators, to installations for the capture, pipelines for the transport or to storage sites for greenhouse gas emissions.~~ Installations shall be allocated the number of allowances corresponding to the arithmetical product of the expected average annual production volume, the installation’s respective benchmark, as well as the number of calendar years within the allocation period since commissioning. Should the production volume in one calendar year deviate from the expected average annual production, the operator shall, in the event of a decrease in production, return to the relevant authority, by 30 April of the following year, the number of allowances that results from the multiplication of the production volume with the benchmark allocated to the plant. In the event of an increase in production, the relevant authority shall, following application and by 30 April of the following year, allocate additional allowances on the basis of the same calculation. The benchmarks shall be determined in accordance with the regulatory procedure with scrutiny referred to in Article [23(3)]. They shall take into consideration the technical reduction potential of the respective plants. Technically unavoidable process- related emissions shall not be reduced when determining the benchmark. The same shall apply for unavoidable waste gases. Where a waste gas is used as a fuel, allowances shall be allocated to the operator of the installation generating the waste gas according to the same allocation principles as applied for this Directive.

2008/07/15
Committee: ENVI

Proposal for a directive – amending act
Article 1 – point 8

Directive 2003/87/EC
Article 10a – paragraph 2 a (new)

2a. Where for certain products or processes no benchmarks have been determined in accordance with the regulatory procedure with scrutiny referred to in Article [23(3)], the relevant installation shall be allocated emission allowances corresponding to the annual average allocation for the second ETS- trading period, adjusted by the linear factor referred to in Article 9. The technical reduction potential of the respective plants is to be taken into consideration. If the products or processes were not covered by the second ETS-trading period, grandfathering shall apply.

2008/07/15
Committee: ENVI

Proposal for a directive – amending act
Article 1 – point 8

Directive 2003/87/EC
Article 10a – paragraph 3

3. Free allocation may be given to electricity generators in respect of the production of heat through high efficiency cogeneration as defined by Directive 2004/8/EC for economically justifiable demand to ensure equal treatment with regard to other producers of heat. In each year subsequent to 2013, the total allocation to such installations in respect of the producHighly efficient combined heat and power plants (CHP) within the meaning of Directive 2004/8/EC shall be granted, without time limitation, free allowances for their power and heat generation ofn th~~at heat shall be adjusted by the linear factor referred to in Article 9~~e basis of a benchmark.

2008/07/15
Committee: ENVI

Proposal for a directive – amending act
Article 1 – point 8

Directive 2003/87/EC
Article 10a – paragraph 6 – subparagraph 3

~~No free allocation shall be made in respect of any electricity production by new entrants.~~deleted

2008/07/15
Committee: ENVI

Proposal for a directive – amending act
Article 1 – point 8

Directive 2003/87/EC
Article 10a – paragraph 7

7. Subject to Article 10b, the amount of allowances allocated free of charge under paragraphs 3 to 6 of this Article [and paragraph 2 of Article 3c] in 2013 shall be 80% of the quantity determined in accordance with the measures referred to in paragraph 1 and thereafter the free allocation shall decrease each year by equal amounts resulting in no free allocation in 2020.deleted

2008/07/15
Committee: ENVI

Proposal for a directive – amending act
Article 1 – point 8

Directive 2003/87/EC
Article 10a – paragraph 8

8. In 2013 and in each subsequent year up to 2020, installations in sectors which are exposed to a significant risk of carbon leakage shall be allocated allowances free of charge up to 100 percent of the quantity determined in accordance with paragraphs 2 to 6.deleted

2008/07/15
Committee: ENVI

Proposal for a regulation – amending act
Article 1 - point 8

Directive 2003/87/EC
Article 10a - paragraph 9

9. At the latest by 30 June 2010 and every 3 years thereafter the Commission shall determine the sectors referred to in paragraph 8. That measure, designed to amend non- essential elements of this Directive by supplementing it, shall be adopted in accordance with the regulatory procedure with scrutiny referred to in Article [23(3)]. In the determination referred to in the first subparagraph the Commission shall take into account the extent to which it is possible for the sector or sub-sector concerned to pass on the cost of the required allowances in product prices without significant loss of market share to less carbon efficient installations outside the Community, taking into account the following: (a) the extent to which auctioning would lead to a substantial increase in production cost; (b) the extent to which it is possible for individual installations in the sector concerned to reduce emission levels for instance on the basis of the most efficient techniques; (c) market structure, relevant geographic and product market, the exposure of the sectors to international competition; (d) the effect of climate change and energy policies implemented, or expected to be implemented outside the EU in the sectors concerned. For the purposes of evaluating whether the cost increase resulting from the Community scheme can be passed on, estimates of lost sales resulting from the increased carbon price or the impact on the profitability of the installations concerned may inter alia be used.deleted

2008/07/15
Committee: ENVI

Proposal for a directive – amending act
Article 1 - point 8

Directive 2003/87/EC
Article 10b

Measures to support certain energy intensive industries in the event of carbon leakage Not later than June 2011, the Commission shall, in the light of the outcome of the international negotiations and the extent to which these lead to global greenhouse gas emission reductions, and after consulting with all relevant social partners, submit to the European Parliament and to the Council an analytical report assessing the situation with regard to energy-intensive sectors or sub-sectors that have been determined to be exposed to significant risks of carbon leakage. This shall be accompanied by any appropriate proposals, which may include: - adjusting the proportion of allowances received free of charge by those sectors or sub-sectors under Article 10a; - inclusion in the Community scheme of importers of products produced by the sectors or sub-sectors determined in accordance with Article 10a. Any binding sectoral agreements which lead to global emissions reductions of the magnitude required to effectively address climate change, and which are monitorable, verifiable and subject to mandatory enforcement arrangements shall also be taken into account when considering what measures are appropriate."Article 10b deleted

2008/07/15
Committee: ENVI

Proposal for a directive – amending act
Article 1 - point 9

Directive 2003/87/EC
Article 11 - paragraph 1

1. Each Member State shall publish and submit to the Commission, by 30 September 2011, the list of installations covered by this Directive in its territory and any free allocation to each installation in its territory calculated in accordance with the rules referred to in Article 10a(12).

2008/07/15
Committee: ENVI