30 Amendments of Christel SCHALDEMOSE related to 2021/0211(COD)
Amendment 427 #
Proposal for a directive
Recital 43
Recital 43
(43) The Communication of the Commission on Stepping up Europe’s 2030 climate ambition57 , underlined the particular challenge to reduce the emissions in the sectors of road transport and buildings. Therefore, the Commission announced that a further expansion of emissions trading could include emissions from road transport and buildings. Emissions trading for these two new sectors would be established through separate but adjacent emissions trading. This would avoid any disturbance of the well-functioning emissions trading in the sectors of stationary installations and aviation. The new system is accompanied by complementary policies and measures safeguarding against undue price impacts, shaping expectations of market participants and aiming for a carbon price signal for the whole economy. This is achieved by implementing a temporary price corridor between which the EU ETS 2 price can vary before corrective measures are automatically taken. Previous experience has shown that the development of the new market requires setting up an efficient monitoring, reporting and verification system. In view of ensuring synergies and coherence with the existing Union infrastructure for the EU ETS covering the emissions from stationary installations and aviation, it is appropriate to set up emissions trading for the road transport and buildings sectors via an amendment to Directive 2003/87/ЕC. _________________ 57 COM(2020)562 final.
Amendment 430 #
Proposal for a directive
Recital 43 a (new)
Recital 43 a (new)
(43a) To ensure a socially inclusive and just transition, the extended emissions trading system for the road transport and buildings sectors should be phased in. As households include the most vulnerable groups to energy and mobility poverty, end-use of fuels by households in both the buildings and road transport sector should be introduced first in 2028. This would allow the Social Climate Fund to help vulnerable households to make the transition to and prepare for the carbon pricing systems. To safeguard sufficient climate action for decarbonisation of those sectors and revenues to finance the Social Climate Fund, commercial actors should be included already in 2025. The Commission shall define how to distinguish between commercial and non- commercial end-use of fuels, with the aim of including as many commercial actors as possible without leading to a price impact on vulnerable households and in an administratively feasible way avoiding loopholes. For example, if no administratively sound solution can be found to include all commercial transport actors, heavy duty vehicles which fill their tank in separate stations could be included during the transition phase. Special attention should be given to facilities heated both for commercial and private purposes, where the degree of vulnerability should betaken into account.
Amendment 444 #
Proposal for a directive
Recital 44
Recital 44
(44) In order to establish the necessary implementation framework and to provide a reasonable timeframe for reaching the 2030 target, emissions trading in the two new sectors should start in 20254. During the first year, the regulated entities should be required to hold a greenhouse gas emissions permit and to report their emissions for the years 20243 and 2025. The issuance of allowances and compliance obligations for these entities should be applicable as from 20265 for use by commercial actors and 2028 for use by non-commercial households. This sequencing will allow starting emissions trading in the sectors in an orderly and efficient manner as well as ensuring a just transition. It would also allow the EU funding and Member State measures to be in place to ensure a socially fair introduction of the EU emissions trading into the two sectors so as to mitigate the impact of the carbon price on vulnerable households and transport users.
Amendment 474 #
Proposal for a directive
Recital 47
Recital 47
(47) The regulated entities falling within the scope of the emissions trading in the sectors of buildings and road transport should be subject to similar greenhouse gas emissions permit requirements as the operators of stationary installations. It is necessary to establish rules on permit applications, conditions for permit issuance, content, and review, and any changes related to the regulated entity. In order for the new system to start in an orderly manner, Member States should ensure that regulated entities falling within the scope of the new emissions trading have a valid permit as of the start of the system in 20254.
Amendment 484 #
Proposal for a directive
Recital 48
Recital 48
(48) The total quantity of allowances for the new emissions trading should follow a linear trajectory to reach the 2030 emissions reduction target, taking into account the cost-efficient contribution of buildings and road transport of 43 % emission reductions by 2030 compared to 2005. The total quantity of allowances should be established for the first time in 20264, to follow a trajectory starting in 2024 from the value of the 2024 emissions limits (1 109 304 000 CO2t), calculated in accordance with Article 4(2) of Regulation (EU) 2018/842 of the European Parliament and of the Council59 on the basis of the reference emissions for these sectors for the period from 2016 to 2018.The Commission should determine what share of that total quantity of allowances is to be used by commercial actors and base the cap from 2025 to 2027 only on emissions by commercial actors. Accordingly, the linear reduction factor should be set at 5,15 %. From 2028, the total quantity of allowances should be set on the basis of the average reported emissions for both commercial and non-commercial end use for the years 2024, 2025 and 2026, and should decrease by the same absolute annual reduction as set from 2024, which corresponds to a 5,43 % linear reduction factor compared to the comparable 2025 value of the above defined trajectory. If those emissions are significantly higher than this trajectory value and if this divergence is not due to small-scale differences in emission measurement methodologies, the linear reduction factor should be adjusted to reach the required emissions reduction in 2030. _________________ 59Regulation (EU) 2018/842 of the European Parliament and of the Council of 30 May 2018 on binding annual greenhouse gas emission reductions by Member States from 2021 to 2030 contributing to climate action to meet commitments under the Paris Agreement and amending Regulation (EU) No 525/2013 (OJ L 156, 19.6.2018, p. 26).
Amendment 506 #
Proposal for a directive
Recital 50
Recital 50
(50) In order to ensure a smooth start to emissions trading in the buildings and road transport sectors and taking into account the need of the regulated entities to hedge or buy ahead allowances to mitigate their price and liquidity risk, a higher amount of allowances should be auctioned early on. In 20265, the auction volumes should therefore be 30 % higher than the total quantity of allowances for 20265. This amount would be sufficient to provide liquidity, both if emissions decrease in line with reduction needs, and in the event emission reductions only materialise progressively. The detailed rules for this front-loading of auction volume are to be established in a delegated act related to auctioning, adopted pursuant to Article 10(4) of Directive 2003/87/EC.
Amendment 531 #
Proposal for a directive
Recital 52
Recital 52
(52) The introduction of the carbon price in road transport and buildings should be accompanied by effective social compensation, especially in view of the already existing levels of energy poverty. About 34 million Europeans reported an inability to keep their homes adequately warm in 2018, and 6,9 % of the Union population have said that they cannot afford to heat their home sufficiently in a 2019 EU-wide survey60 . To achieve an effective social and distributional compensation, Member States should be required to spend the auction revenues on the climate and energy-related purposes already specified for the existing emissions trading, but also for measures added specifically to address related concerns for the new sectors of road transport and buildings, including related policy measures under Directive 2012/27/EU of the European Parliament and of the Council61 . Auction revenues should be used to address social aspects of the emission trading for the new sectors with a specific emphasis in vulnerable households, micro-enterprises and transport users. In this spirit, a new Social Climate Fund will provide dedicated funding to Member States to support the European citizens most affected or at risk of energy or mobility poverty. This Fund will promote fairness and solidarity between and within Member States while mitigating the risk of energy and mobility poverty during the transition. It will build on and complement existing solidarity mechanisms. The resources of the new Fund will in principle correspond to at least 25 % of the expected revenues from new emission trading in the period 2026-5- 20321, and will be implemented on the basis of the Social Climate Plans that Member States should put forward under Regulation (EU) 20…/nn of the European Parliament and the Council62 . In addition, each Member State should use their auction revenues inter alia to finance a part of the costs of their Social Climate Plans. _________________ 60 Data from 2018. Eurostat, SILC [ilc_mdes01]. 61Directive 2012/27/EU of the European Parliament and of the Council of 25 October 2012 on energy efficiency, amending Directives 2009/125/EC and 2010/30/EU and repealing Directives 2004/8/EC and 2006/32/EC (OJ L 315, 14.11.2012, p. 1–56). 62[Add ref to the Regulation establishing the Social Climate Fund].
Amendment 549 #
Proposal for a directive
Recital 54
Recital 54
(54) Innovation and development of new low-carbon technologies in the sectors of buildings and road transport are crucial for ensuring the cost-efficient contribution of these sectors to the expected emission reductions as well as to reduce the carbon price impact on vulnerable households. Therefore, 150 million allowances from emissions trading in the buildings and road transport sectors should also be made available to the Innovation Fund to stimulate the cost-efficient emission reductionsUnion budget specifically to support the Social Climate Fund.
Amendment 559 #
Proposal for a directive
Recital 55
Recital 55
(55) Regulated entities covered by the buildings and road transport emissions trading should surrender allowances for their verified emissions corresponding to the quantities of fuels they have released for consumption. They should surrender allowances for the first time for their verified emissions in 20265. In order to minimise the administrative burden, a number of rules applicable to the existing emissions trading system for stationary installations and aviation should be made applicable to emissions trading for buildings and road transport, with the necessary adaptations. This includes, in particular, rules on transfer, surrender and cancellation of allowances, as well as the rules on the validity of allowances, penalties, competent authorities and reporting obligations of Member States.
Amendment 568 #
Proposal for a directive
Recital 56 a (new)
Recital 56 a (new)
(56a) Consumers and vulnerable households should not bear the burden for the green transition. To ensure a just distribution of costs, the regulated entity should not pass on more than 50 % of the costs of the price in the EU ETS 2 system. The Commission should ensure compliance with this principle and any breach should be compensated by a penalty contribution to the Social Climate Fund.
Amendment 576 #
Proposal for a directive
Recital 57
Recital 57
(57) It is appropriate to introduce measures to address the potential risk of excessive price increases, which, if particularly high at the start of the buildings and road transport emissions trading, may undermine the readiness of households and individuals to invest in reducing their greenhouse gas emissions. These measures should complement the safeguards provided by the Market Stability Reserve established by Decision (EU) 2015/1814 of the European Parliament and of the Council64 and that became operational in 2019. While the market will continue to determine the carbon price, safeguard measures will be triggered by rules-based automatism, whereby allowances will be released from the Market Stability Reserve only if concrete triggering conditions based on the increase in the average allowance price are met. This additional mechanism should also be highly reactive, in order to address excessive volatility due to factors other than changed market fundamentals. TSince the measures should be adapted to different levels of excessive price increase, which will result in different degrees of the interventionguarantee that the price does not initially reach levels that the Social Climate Fund cannot compensate vulnerable households for, a temporary price corridor is needed. The triggering conditions should be closely monitored by the Commission and the measures should be adopted by the Commission as a matter of urgency when the conditions are met. This is without prejudice to any accompanying measures that Member States may adopt to address adverse social impacts. After 2030, an updated mechanism, based on market pricing and which avoids price volatility and threshold effects, should, where appropriate, be proposed by the Commission by means of a legislative proposal. _________________ 64 Decision (EU) 2015/1814 of the European Parliament and of the Council of 6 October 2015 concerning the establishment and operation of a market stability reserve for the Union greenhouse gas emission trading scheme and amending Directive 2003/87/EC (OJ L 264, 9.10.2015, p. 1).
Amendment 587 #
Proposal for a directive
Recital 58
Recital 58
(58) The application of emissions trading in the buildings and road transport sectors should be monitored by the Commission, including the degree of price convergence with the existing ETS, and, if necessary, a review should be proposed to the European Parliament and the Council to improve the effectiveness, administration and practical application of emissions trading for those sectors on the basis of acquired knowledge as well as increased price convergence. The Commission should be required to submit the first report on those matters by 1 January 2028. However, the systems are and should remain separate.
Amendment 1427 #
Proposal for a directive
Article 1 – paragraph 1 – point 21
Article 1 – paragraph 1 – point 21
Directive2003/87/EC
Article 30 a – paragraph 1 a (new)
Article 30 a – paragraph 1 a (new)
By way of derogation from the first paragraph of this Article, fuels released for consumption by non-commercial end- users shall be exempted from the requirement to surrender allowances until 1 January 2028. The Commission shall adopt delegated acts to supplement this Directive by specifying how to administratively separate between commercial and non-commercial end use of the fuel and recalculate the Union-wide quantity of allowances based on this scope. The Commission should determine what share of that total quantity of allowances is to be used by commercial actors and base the cap from 2025 to 2027 only on emissions by commercial actors. When defining the scope, the Commission shall attempt to cover as much as possible of the commercial use of the fuel while minimising administrative costs and protecting vulnerable households from direct price increases arising from the introduction of Chapter IV a of this Directive. (This amendment applies throughout the text.)
Amendment 1429 #
Proposal for a directive
Article 1 – paragraph 1 – point 21
Article 1 – paragraph 1 – point 21
Directive 2003/87/EC
Article 30 b – paragraph 1
Article 30 b – paragraph 1
1. Member States shall ensure that, from 1 January 20254, no regulated entity carries out the activity referred to in Annex III unless that regulated entity holds a permit issued by a competent authority in accordance with paragraphs 2 and 3.
Amendment 1435 #
Proposal for a directive
Article 1 – paragraph 1 – point 21
Article 1 – paragraph 1 – point 21
Directive 2003/87/EC
Article 30 b – paragraph 2 – point c
Article 30 b – paragraph 2 – point c
(c) the end use(s) of the fuels, including if used by commercial actors or households, released for consumption for the activity referred to in Annex III;
Amendment 1442 #
Proposal for a directive
Article 1 – paragraph 1 – point 21
Article 1 – paragraph 1 – point 21
Directive 2003/87/EC
Article 30 c – paragraph 1
Article 30 c – paragraph 1
1. The Union-wide quantity of allowances issued under this Chapter each year from 20265 shall decrease in a linear manner beginning in 2024. The 2024 value shall be defined as the 2024 emissions limits, calculated on the basis of the reference emissions under Article 4(2) of Regulation (EU) 2018/842 of the European Parliament and of the Council(*) for the sectors covered by this Chapter and applying the linear reduction trajectory for all emissions within the scope of that Regulation. The quantity shall decrease each year after 2024 by a linear reduction factor of 5,15 %. By 1 January 2024, the Commission shall publish the Union-wide quantity of allowances for the year 20265.
Amendment 1447 #
Proposal for a directive
Article 1 – paragraph 1 – point 21
Article 1 – paragraph 1 – point 21
Directive 2003/87/EC
Article 30 c – paragraph 2
Article 30 c – paragraph 2
2. The Union-wide quantity of allowances issued under this Chapter each year from 2028 shall decrease in a linear manner beginning from 2025 on the basis of the average emissions reported under this Chapter for the years 2024 to 2026 including both commercial and non- commercial use of the fuels. The quantity of allowances shall decrease by a linear reduction factor of 5,43 %, except if the conditions of point 1 of Annex IIIa apply, in which case, the quantity shall decrease with a linear reduction factor adjusted in accordance with the rules set out in point 2 of Annex IIIa. By 30 June 2027, the Commission shall publish the Union-wide quantity of allowances for the year 2028, including both commercial and non- commercial use of the fuels and, if required, the adjusted linear reduction factor.
Amendment 1451 #
Proposal for a directive
Article 1 – paragraph 1 – point 21
Article 1 – paragraph 1 – point 21
Directive 2003/87/EC
Article 30 d – paragraph 1
Article 30 d – paragraph 1
1. From 20265, allowances covered by this Chapter shall be auctioned, unless they are placed in the Market Stability Reserve established by Decision (EU) 2015/1814. The allowances covered by this Chapter shall be auctioned separately from the allowances covered by Chapters II, IIa and III.
Amendment 1454 #
Proposal for a directive
Article 1 – paragraph 1 – point 21
Article 1 – paragraph 1 – point 21
Directive 2003/87/EC
Article 30 d – paragraph 2 – subparagraph 1
Article 30 d – paragraph 2 – subparagraph 1
The auctioning of the allowances under this Chapter shall start in 20265 with a volume corresponding to 130 % of the auction volumes for 20265 established on the basis of the Union-wide quantity of allowances for commercial use for that year and the respective auction shares and volumes pursuant to paragraph 3, 5 and 6. The additional volumes to be auctioned shall only be used for surrendering allowances pursuant to Article 30e(2) and be deducted from the auction volumes for the period from 2028 to 2030. The conditions for these early auctions shall be set in accordance with paragraph 7 and Article 10(4).
Amendment 1457 #
Proposal for a directive
Article 1 – paragraph 1 – point 21
Article 1 – paragraph 1 – point 21
Directive 2003/87/EC
Article 30 d – paragraph 2 – subparagraph 2
Article 30 d – paragraph 2 – subparagraph 2
In 20265, 600 million allowances covered by this Chapter are created as holdings in the Market Stability Reserve pursuant to Article 1a(3) of Decision (EU) 2015/1814.
Amendment 1459 #
Proposal for a directive
Article 1 – paragraph 1 – point 21
Article 1 – paragraph 1 – point 21
Directive 2003/87/EC
Article 30 d – paragraph 3
Article 30 d – paragraph 3
3. 150 million allowances issued under this Chapter shall be auctioned and all revenues from these auctions made available for the Innovation Fund established under Article 10a(8). Article 10a(8) shall apply to the allowances referred to in this paragraphUnion budget in order to support the Social Climate Fund under Regulation (EU) …/… [Social Climate Fund Regulation].
Amendment 1472 #
Proposal for a directive
Article 1 – paragraph 1 – point 21
Article 1 – paragraph 1 – point 21
Directive 2003/87/EC
Article 30 d – paragraph 5 – subparagraph 2
Article 30 d – paragraph 5 – subparagraph 2
Member States shall use a part of their auction revenues generated in accordance with this Article to address social aspects of the emission trading under this Chapter with a specific emphasis on vulnerable households, vulnerable micro-enterprises and vulnerable transport users as defined under Regulation (EU) 20…/nn [Social Climate Fund Regulation](*). ](*). Any use of revenues without the primary objective being to address social aspects of emissions trading but instead support decarbonisation should also be spent in a way that contributes to addressing social aspects by ensuring that the measures taken are primarily for the benefit of lower-income households. Where a Member State submits to the Commission a [Social Climate Plan] pursuant to that Regulation, the Member State shall use those revenues inter alia to finance that plan.
Amendment 1474 #
Proposal for a directive
Article 1 – paragraph 1 – point 21
Article 1 – paragraph 1 – point 21
Directive 2003/87/EC
Article 30 d – paragraph 5 – subparagraph 3
Article 30 d – paragraph 5 – subparagraph 3
Member States shall be deemed to have fulfilled the provisions of this paragraph if they have in place and implement fiscal or financial support policies or regulatory policies, which leverage financial support, established for the purposes set out in the first subparagraph and which have a value equivalent to the revenues generated from the auctioning of allowances referred to in this Chapter and over time can demonstrate concrete progress towards reducing energy and mobility poverty, in line with targets and indicators defined in Article 4(1), point (e), of Regulation (EU) .../... [Social Climate Fund Regulation.
Amendment 1484 #
Proposal for a directive
Article 1 – paragraph 1 – point 21
Article 1 – paragraph 1 – point 21
Directive 2003/87/EC
Article 30 f – paragraph 2
Article 30 f – paragraph 2
2. Member States shall ensure that each regulated entity monitors for each calendar year as from 20254 the emissions corresponding to the quantities of fuels released for consumption pursuant to Annex III, , including the reporting of the separation for commercial and non- commercial use. They shall also ensure that each regulated entity reports these emissions to the competent authority in the following year, starting in 20265, in accordance with the acts referred to in Article 14(1).
Amendment 1488 #
Proposal for a directive
Article 1 – paragraph 1 – point 21
Article 1 – paragraph 1 – point 21
Directive 2003/87/EC
Article 30 f – paragraph 2 a (new)
Article 30 f – paragraph 2 a (new)
2a. Member States shall ensure that each regulated entity monitors for each calendar year from 2025 the share of costs that are related to the surrender of allowances and passed on to the final consumer for the quantities of fuels released for consumption pursuant to Annex III. The regulated entities shall pass on no more than 50% of the costs related to the surrender of allowances. Member States shall also ensure that each regulated entity reports those costs to the competent authority in the following year, starting in 2026, in accordance with the acts referred to in Article 14(1). The Commission shall report annually on the share of costs that are related to the surrender of allowances and passed on in excess to the final consumer for each regulated entity. If a regulated entity has passed on more than 50 % of the costs related to the surrender of allowances, they shall pay the cost of the surrender of allowances in accordance with the excess amount as a penalty into the Social Climate Fund.
Amendment 1494 #
Proposal for a directive
Article 1 – paragraph 1 – point 21
Article 1 – paragraph 1 – point 21
Directive 2003/87/EC
Article 30 f – paragraph 3
Article 30 f – paragraph 3
3. Member States shall ensure that each regulated entity holding a permit in accordance with Article 30b on 1 January 20254 report their historical emissions for year 20243 by 30 March 20254.
Amendment 1500 #
Proposal for a directive
Article 1 – paragraph 1 – point 21
Article 1 – paragraph 1 – point 21
Directive 2003/87/EC
Article 30 h – paragraph 1
Article 30 h – paragraph 1
1. Where, for more than three consecutive months, the average price of allowance in the auctions carried out in accordance with the act adopted under Article 10(4) is more than twice the average price of allowance during the six preceding consecutive months in the auctions for the allowances covered by this Chapter55 euro per tonne of CO2, the Commission shall, as a matter of urgency, adopt a decision to release 50 million allowances covered by this Chapter from the Market Stability Reserve in accordance with Article 1a(7) of Decision (EU) 2015/1814, unless if before 2028 when only 20 million allowances should be released. If the price stays above 55 euro per tonne of CO2 for another three consecutive months, the Commission shall adopt a decision to release another 50 million allowances, unless if before 2028 where only 20 million allowances should be released.
Amendment 1508 #
Proposal for a directive
Article 1 – paragraph 1 – point 21
Article 1 – paragraph 1 – point 21
Directive 2003/87/EC
Article 30 h – paragraph 2
Article 30 h – paragraph 2
2. Where, for more than three consecutive months, the average price of allowance in the auctions carried out in accordance with the act adopted under Article 10(4) is moreless than three times the average price of allowance during the six preceding consecutive months in the auctions for the allowances covered by this Chapter35 euro per tonne of CO2, the Commission shall, as a matter of urgency, adopt a decision to release 1cancel 50 million allowances covered by this Chapter fromto the Market Stability Reserve in accordance with Article 1a(7) of Decision (EU) 2015/1814, unless if before 2028 where only 20 million allowances should be cancelled. If the price stays below 35 euro per tonne of CO2 for another three consecutive months, the Commission shall adopt a decision to cancel another 50 million allowances, unless if before 2028 where only 20 million allowances should be cancelled.
Amendment 1526 #
Proposal for a directive
Article 1 – paragraph 1 – point 21
Article 1 – paragraph 1 – point 21
Directive 2003/87/EC
Article 30 i – paragraph 1
Article 30 i – paragraph 1
By 1 January 2028, the Commission shall report to the European Parliament and to the Council on the implementation of the provisions of this Chapter with regard to their effectiveness, administration and practical application, including on the application of the rules under Decision (EU) 2015/1814 and use of allowances of this Chapter to meet compliance obligations of the compliance entities covered by Chapters II, IIa and III. Where appropriate, the Commission shall accompany this report with a proposal to the European Parliament and to the Council to amend this Chapter. By 31 October 2031 the Commission should assess the feasibility of integrating the sectors covered by Annex III in the Emissions Trading System covering the sectors listed in annex 1 of Directive 2003/87/EC.’’In particular, the Commission shall, where appropriate, amend Article 30h to harmonise the methodology set out in that Article with Decision (EU) 2015/1814 and present appropriate thresholds to safeguard against both threshold effects and price volatility of both the EU ETS 2 price and variations in commodity prices, in due time for it to enter into force on 1 January 2030.;
Amendment 1667 #
Proposal for a directive
Annex I – paragraph 1 – point c – point vii a (new)
Annex I – paragraph 1 – point c – point vii a (new)
Directive 2003/87/EU
Annex I – table – last row a (new)
Annex I – table – last row a (new)