66 Amendments of Cristian-Silviu BUŞOI related to 2021/0214(COD)
Amendment 79 #
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 indo not achieve the same level of climate ambition, there is a risk of carbon leakage, which would undermine the Union’s competitiveness on global markets. 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-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 100 #
Proposal for a regulation
Recital 9
Recital 9
(9) The initiative for a carbon border adjustment mechanism (‘CBAM’) is a part of the ‘Fit for 55 Package’. That mechanism is to serve as an essential element of the EU toolbox to meet the objective of a climate-neutral Union by 2050 in line with the Paris Agreement by addressing risks ofpreventing carbon leakage resulting from the increased Union climate ambition.
Amendment 108 #
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 109 #
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. Free allocation at the level of best performers has been an adequate policy instrument for certain industrial sectors to address the risk of carbon leakage in the absence of a fair level playing field.
Amendment 117 #
Proposal for a regulation
Recital 11
Recital 11
(11) The CBAM seeks tointends to complement and 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. 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. The combined and transitional application of EU ETS allowances allocated free of charge and of the CBAMshould be phased out only after a comprehensive transitional period between 2026 and 2030 and once the CBAM has proven to be efficient, fit for purpose, operational and tested to mitigate the risk of carbon leakage. The combined application of EU ETS allowances allocated free of charge and of the CBAM is needed to allow producers, importers and traders to adjust to the new regime and to assess the effective implementation of the CBAM but should in no case result in more favourable treatment for Union goods compared to goods imported into the customs territory of the Union as continuous trade with third countries are essential for the Union and its diversified supply chains.
Amendment 129 #
Proposal for a regulation
Recital 11 a (new)
Recital 11 a (new)
(11 a) To prevent carbon leakage both in the Union and in third country markets, goods of Union origin that are subject to the Carbon Border Adjustment Mechanism of this Regulation and that are exported to third countries and territories should benefit from an export adjustment. This export adjustment must continue to incentivize Union producers to reduce their emissions and should apply until third countries adopt carbon prices and equivalent measures that are comparable to those in the Union, with special attention to interrelated carbon leakage protection measures, taking into account the principle of common but differentiated responsibilities and respective capabilities, in the light of different national circumstances.
Amendment 134 #
Proposal for a regulation
Recital 12
Recital 12
(12) While the objective of the CBAM is to prevent the risk of carbon leakage, this Regulation would also encourage the use of more GHG emissions-efficient technologies by producers from third countries, so that less emissions per unit of output are generated. The CBAM hence might be an effective measure to lower emissions in third countries while ensuring European industry competitiveness. Reducing emissions in the Union as well as in third countries is an effective way to reduce the risk of carbon leakage. The CBAM should be seen as a step towards global pricing on carbon emissions which would further reduce the risk of carbon leakage globally.
Amendment 142 #
Proposal for a regulation
Recital 12 a (new)
Recital 12 a (new)
(12 a) While the surrendering of CBAM certificates for EU importers addresses the risk of carbon leakage on the EU market, it is essential that the CBAM would also seek to reduce the possibility of European low-carbon exports being replaced by carbon-intensive items on third country markets or by goods that are not subject to equivalent climate policy and carbon costs, undermining the goal of lowering global emissions. It is therefore necessary to continue addressing the risk of carbon leakage associated with European exports to third countries that have not yet limited or priced GHG emissions at the same levels as the EU.
Amendment 149 #
Proposal for a regulation
Recital 13
Recital 13
(13) As an instrument to prevent carbon leakage and reduce GHG emissions the CBAM should ensure that imported products are subject to a regulatory system that applies carbon costs equivalent to the ones that otherwise would have been borne under the EU ETS. The CBAM is a climate measure which should prevent the risk of carbon leakage and support the Union’s increased ambition on climate mitigation, while ensuring WTO compatibility and industrial competitiveness.
Amendment 151 #
Proposal for a regulation
Recital 13 a (new)
Recital 13 a (new)
(13 a) As CBAM is a mechanism that addresses the risk of carbon leakage on the EU market for EU imports, it is essential to avoid the risk that EU exports are replaced by more carbon intensive goods on the global market. Hence, the Commission shall analyse its implementation and effectiveness throughout the administrative transitional period and shall by the end of this period submit a report to the European Parliament and Council that specifies the carbon leakage risk on export markets accompanied with a proposal preventing the carbon leakage risk on export markets with safeguards of products intended for exports, such as export rebates.
Amendment 166 #
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 athe administrative transitional period and upon further assessment on the impact on carbon leakage for energy-intensive sectors with a withdrawal of EU ETS compensation, as well to indirect emissions, mirroring the scope of the EU ETS.
Amendment 173 #
Proposal for a regulation
Recital 19
Recital 19
(19) However, while the EU ETS sets an absolute cap on the GHG emissions from the activities under its scope and allows tradability of allowances (so called ‘cap and trade system’), the CBAM shouldmust not establish quantitative limits to import, so as to ensure that trade flows are not restricted or disrupted. Moreover, while the EU ETS applies to installations based in the Union, the CBAM should be applied to certain goods imported into the customs territory of the Union to ensure a level playing field and prevent the risk of carbon leakage while ensuring compatibility with WTO.
Amendment 189 #
Proposal for a regulation
Recital 24
Recital 24
(24) In terms of sanctions, Member States should apply penalties to infringements or circumvention practises of this Regulation and ensure that they are implemented. The amount of those penalties should be identical to penalties currently applied within the Union in case of infringement of EU ETS according to Article 16(3) and (4) of Directive 2003/87/EC.
Amendment 193 #
Proposal for a regulation
Recital 28
Recital 28
(28) Whilst the ultimate objective of the CBAM is a broader product coverage, it would beis prudent to start with a selected number of sectors with relatively homogeneous products where there is a risk of carbon leakage. The Commission should consider to further extend the scope of included goods, when CBAM is proven efficient to reduce carbon leakage for the sectors included in Annex I of this Regulation. A proposal of the inclusion of finished goods shall be presented by the Commission before the comprehensive transitional period. Union sectors deemed at risk of carbon leakage are listed in Commission Delegated Decision 2019/70842 . __________________ 42Commission Delegated Decision (EU) 2019/708 of 15 February 2019 supplementing Directive 2003/87/EC of the European Parliament and of the Council concerning the determination of sectors and subsectors deemed at risk of carbon leakage for the period 2021 to 2030 (OJ L 120, 8.5.2019, p. 2).
Amendment 200 #
Proposal for a regulation
Recital 29
Recital 29
(29) The goods under this Regulation should be selected after a careful analysis of their relevance in terms of cumulated GHG emissions and risk of carbon leakage in the corresponding EU ETS sectors while limiting complexity and administrative burden for European industry, affected authorities, companies and SMEs. In particular, the actual selection should take into account basic materials and basic products covered by the EU ETS with the objective of ensuring that imports of energy intensive products into the Union are on equal footing with EU products in terms of EU ETS carbon pricing, and to mitigate risks of carbon leakage. Other relevant criteria to narrow the selection should be: firstly, relevance of sectors in terms of emissions, namely whether the sector is one of the largest aggregate emitters of GHG emissions; secondly, sector’s exposure to significant risk of carbon leakage, as defined pursuant to Directive 2003/87/EC; thirdly, the need to balance broad coverage in terms of GHG emissions while limiting complexity and administrative effort.
Amendment 212 #
Proposal for a regulation
Recital 34
Recital 34
(34) However, aluminium products should be included in the CBAM as they are highly exposed to carbon leakage. Moreover, in several industrial applications they are in direct competition with steel products because of characteristics closely resembling those of steel products. Inclusion of aluminium is also relevant as the scope of the CBAM may be extended to cover also indirect emissions in the future. Including indirect emissions and pricing them in the CBAM could be considered only once the mismatch between indirect carbon costs and indirect carbon emissions has been reduced to a minimum, as the European electricity grid decarbonises, and the downstream impacts in terms of carbon leakage across the full aluminium value chain have been assessed. Indirect carbon costs will still be relevant in the period from 2021 to 2030,also considering the increased climate ambitions and the revised ETS Directive2003/87/EC. If after the initial transitional period, the data collected by the Commission shows that the CBAM cannot effectively protect against carbon leakage and incentivise the reduction global emissions, further phase-in of CBAM and phase-out of free allocation of emission allowances should be paused until an effective solution can be found.
Amendment 219 #
Proposal for a regulation
Recital 11 a (new)
Recital 11 a (new)
(11a) To prevent carbon leakage both in the Union and in third country markets, goods of Union origin that are subject to the CBAM and that are exported to third countries and territories should benefit from an export adjustment. That export adjustment should continue to incentivise Union producers to reduce their emissions and should apply until third countries adopt carbon prices and equivalent measures that are comparable to those in the Union, with special attention to interrelated carbon leakage protection measures, taking into account the principle of common but differentiated responsibilities and respective capabilities, in the light of different national circumstances.
Amendment 236 #
Proposal for a regulation
Recital 46
Recital 46
(46) To avoid risks of circumvention and improve the traceability of actual CO2 emissions from import of electricity and its use in goods, the calculation of actual emissions should only be permitted through a number of strict conditions. In particular, it should be necessary to demonstrate a firm nomination of the allocated interconnection capacity and that there is a direct contractual relation between the purchaser and the producer of the renewable and low carbon electricity, or between the purchaser and the producer of electricity having lower than default value emissions. .
Amendment 238 #
Proposal for a regulation
Recital 46 a (new)
Recital 46 a (new)
(46 a) To reduce the risk of carbon leakage as well as to ensure a level playing field for European industry, all practices of circumvention shall be prohibited. The Commission shall evaluate the risk of circumvention practices, especially the likelihood of modified trade patterns towards downstream products, as well as resource shuffling, cost absorption, manipulation of emissions data, wrongful labelling of goods and slight modifications of the product so as to import a product under a different customs code of all sectors included in Annex I of this Regulation. The Commission shall be empowered to adopt delegated acts to strengthen anti- circumvention measures when appropriate.
Amendment 243 #
Proposal for a regulation
Recital 48
Recital 48
(48) Integration of third countries into the Union electricity market is an important drive for those countries to accelerate their transition to energy systems with high shares of renewable energies. Market coupling for electricity, as set out in Commission Regulation (EU) 2015/122246 , enables third countries to better integrate electricity from renewable and low carbon energies into the electricity market, to exchange such electricity in an efficient manner within a wider area, balancing supply and demand with the larger Union market, and reduce the carbon intensity of their electricity generation. Integration of third countries into the Union electricity market also contributes to the security of electricity supplies in those countries and in the neighbouring Member States. __________________ 46Commission Regulation (EU) 2015/1222 of 24 July 2015 establishing a guideline on capacity allocation and congestion management (OJ L 197, 25.7.2015, p. 24).
Amendment 247 #
Proposal for a regulation
Recital 49 a (new)
Recital 49 a (new)
(49 a) This Regulation shall progressively enter into force in two steps. Between 2023 and 2025 an administrative transitional period where Articles set out in Article 36 (a) and (c) of this Regulation shall apply. Between 2026 and 2030 a comprehensive transitional period where all Articles set out in Article 36 of this Regulation shall apply. During this period free allocation should remain in place.
Amendment 250 #
Proposal for a regulation
Recital 50
Recital 50
(50) An administrative transitional period without financial adjustment should apply during the period 2023 until 2025. A CBAM without financial adjustment should applyto 2025, with the objective to facilitate a smooth roll out of the mechanism hence reducing the risk of disruptive impacts on trade and European industry. Declarants should have to report on a quarterly basis the actual embedded emissions in goods imported during the administrative transitional period, detailing direct and indirect emissions as well as any carbon price paid abroad.
Amendment 257 #
Proposal for a regulation
Recital 50 a (new)
Recital 50 a (new)
(50 a) A comprehensive transitional period with financial adjustment should apply during the period 2026 to 2030, with the objective to facilitate a smooth roll out of the mechanism hence reducing the risk of disproportionate impacts on European industry.
Amendment 258 #
Proposal for a regulation
Recital 50 b (new)
Recital 50 b (new)
(50 b) A temporary Carbon Leakage Protection Reserve should be established between 2031 to 2035, linked to the reduction of free allocation. Each year, the free allocation no longer provided to the CBAM sectors, based on the free allocation phase-out calculation, should be placed into the temporary Carbon Leakage Reserve. To this purpose the Commission shall every year, from 2031 to 2035, present to the parliament and Council a report on the effectiveness of this Regulation in lowering carbon leakage. By 28 February, the following year the Commission shall report to the Parliament and the Council on the entry into force of CBAM and its effectiveness during the preceding year. If the assessment is positive, the allowances placed in the reserve should automatically be auctioned. If the assessment proves negative impact on lowering carbon leakage, the allowances placed in the reserve should automatically be returned to industry, to mitigate the risk of carbon leakage.
Amendment 265 #
Proposal for a regulation
Recital 52
Recital 52
(52) The Commission should evaluate the application of this Regulation before the end of the administrative 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 extend the scope of Annex I to indirect emissions, as well as to other goods and services at risk of carbon leakage, such as finished goods, and to develop methods of calculating embedded emissions based on the environmental footprint methods47 .. The Commission should in particular focus on: (a) the impact on competitiveness of European industry and downstream industry, impact on SMEs, possible disproportionate administrative burden, possible circumvention practices, distortion in trade patterns and possibilities to enhance climate actions towards a climate neutral Union by 2050. Accompanied by proposals to avoid negative impact on such sectors; (b) a proposal to avoid possible carbon leakage in export markets; (c) a proposal to extend the scope of this Regulation to finished goods containing goods listed in Annex I; to ensure competitiveness of European manufacturing industry and prevent carbon leakage; __________________ 47Commission 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 275 #
Proposal for a regulation
Recital 52 a (new)
Recital 52 a (new)
Amendment 279 #
Proposal for a regulation
Recital 52 b (new)
Recital 52 b (new)
(52 b) In case the CBAM is proven not to be efficient in lowering carbon leakage, creates disproportionate disadvantages for European industry or severe shortcomings appear in the implementation of this Regulation during the comprehensive transitional period, the Commission shall present a new or revised legislative proposal aiming at lowering carbon leakage in order for the Union to reach its goal of climate neutrality 2050.
Amendment 280 #
Proposal for a regulation
Recital 52 c (new)
Recital 52 c (new)
(52 c) If the CBAM is challenged by WTO and as an effect not implemented, the Commission shall present a revised legislative proposal aiming at lowering carbon leakage.
Amendment 282 #
Proposal for a regulation
Recital 53
Recital 53
(53) In light of the above, 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 periods.
Amendment 286 #
Proposal for a regulation
Recital 54
Recital 54
(54) The Commission should strive to engage in an even handed manner and in line with the international obligations of the EU, with the third countries whose trade to the EU is affected by this Regulation, to explore possibilities for dialogue and cooperation with regard to the implementation of specific elements of the Mechanism set out this Regulation and related implementing acts. It should also explore possibilities for concluding agreements to take into account their carbon pricing mechanism, provided that they deliver equivalent GHG emissions reductions and carbon costs constraints.
Amendment 293 #
Proposal for a regulation
Recital 58
Recital 58
(58) In order for CBAM to be efficient in lowering carbon leakage, all possible circumvention practices should be addressed by this Regulation. In order to remedy circumvention of the provisions of this Regulation, the power to adopt acts in accordance with Article 290 of TFEU should be delegated to the Commission in respect of supplementing the list of goods in Annex I.
Amendment 299 #
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 athe administrative transitional period and upon further assessment on the impact on carbon leakage for energy-intensive sectors, as well to indirect emissions, mirroring the scope of the EU ETS. Including indirect emissions and pricing them in the CBAM should only be considered if and when the mismatch between indirect carbon costs and indirect carbon emissions has been reduced to a minimum, as the European electricity grid decarbonises, and the downstream impacts across the sectors concerned have been assessed. The 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 should coexist with the CBAM and be phased out only when a robust system pricing indirect emissions of imports fully mirrors and is equal to the indirect emission costs borne by European producers.
Amendment 302 #
Proposal for a regulation
Article 1 – paragraph 1
Article 1 – paragraph 1
1. This Regulation establishes a carbon border adjustment mechanism (the ‘CBAM’) for addressing greenhouse gas emissions embedded in the goods referred to in Annex I, upon their importation into the customs territory of the Union, in order to prevent the risk of carbon leakage from the EU and contribute to the reduction of global carbon emissions.
Amendment 318 #
Proposal for a regulation
Article 1 – paragraph 3
Article 1 – paragraph 3
3. The mechanism will progressiveintends to complement and gradually become an alternative to 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 321 #
Proposal for a regulation
Article 1 – paragraph 3 a (new)
Article 1 – paragraph 3 a (new)
3a. The CBAM shall be compatible with WTO rules.
Amendment 411 #
Proposal for a regulation
Article 8 – paragraph 3 – introductory part
Article 8 – paragraph 3 – introductory part
3. The Commission is empowered to adopt implementing acts concerning the principles of verification referred to in paragraph 1 as regards the possibility to waive the obligation for the verifier to visit the installation where relevant goods are produced and the obligation to set thresholds for deciding whether misstatements or non-conformities are material and concerning the supporting documentation needed for the verification report. Provisions laid down in such implementing acts shall be equivalent to the provisions set in Regulation 2018/2067.
Amendment 418 #
Proposal for a regulation
Article 9 – paragraph 2
Article 9 – paragraph 2
2. The authorised declarant shall keep records of the documentation, certified by an independent person, verifier accredited pursuant to art. 18and in line with the competences established in art.8(1) concerning the verification of embedded emissions. The accredited verifier is required to demonstrate that the declared embedded emissions were subject to a carbon price in the country of origin of the goods and keep evidence of the proof of the actual payment for that carbon price which should not have been subject to an export rebate or any other form of compensation on exportation.
Amendment 425 #
Proposal for a regulation
Article 10 – paragraph 1
Article 10 – paragraph 1
1. The Commission shall, upon request by a register the information on operators of an installations located in a third country, register the information on that operator and on itsies and on those installation in a central database referred to in Article 14(4).
Amendment 432 #
Proposal for a regulation
Article 10 – paragraph 8
Article 10 – paragraph 8
8. The operator may, at any timefter 10 years, ask to be deregistered from the database.
Amendment 434 #
Proposal for a regulation
Article 10 a (new)
Article 10 a (new)
Amendment 479 #
Proposal for a regulation
Article 14 – paragraph 3
Article 14 – paragraph 3
3. The information in the database referred to in paragraph 2 shall be confidentialmade available to the public, unless it is proven that it is business confidential according to the relevant EU legislation. Confidential information shall include meaningful non-confidential summaries. Information equivalent to the one made publicly available for EU producers under the EU ETS central data base shall be made public.
Amendment 486 #
Proposal for a regulation
Article 14 – paragraph 4
Article 14 – paragraph 4
4. The Commission shall establish a central database accessible to the public containing the names, addresses and contact details of the operators and the location of installations in third countries in accordance with Article 10(2). An operator may choose not to have its name, address and contact details accessible to the public.
Amendment 494 #
Proposal for a regulation
Article 15 – paragraph 3
Article 15 – paragraph 3
3. If irregularities are identified as a result of the controls carried out under paragraph 2, the Commission shall inform the Member State or Member States concerned for further investigation in order to correct the identified irregularities. Identified irregularities shall be corrected at the latest within one month from the day where they were identified, and, where appropriate, penalties pursuant to article 27 shall apply.
Amendment 510 #
Proposal for a regulation
Article 17 – paragraph 1 – point a
Article 17 – paragraph 1 – point a
(a) the declarant hasand the operators of installations located in third countries from whom the declarants sources goods have respectively not been involved in a serious infringement or repeated infringements of customs legislation, circumvention of antidumping or antisubsidy duties taxation rules and market abuse rules and has no record of serious criminal offences relating to its economic activity during the five years preceding the application;
Amendment 540 #
Proposal for a regulation
Article 18 – paragraph 2
Article 18 – paragraph 2
Amendment 543 #
Proposal for a regulation
Article 18 – paragraph 3
Article 18 – paragraph 3
Amendment 547 #
Proposal for a regulation
Article 19 – paragraph 1
Article 19 – paragraph 1
1. The competent authority may review the CBAM declaration within the period ending with the fourth year after the year in which the declaration should have been submitted. The review may consist in verifying the information provided in the CBAM declaration on the basis of the information communicated by the customs authorities in accordance with Article 25(2) and any other relevant evidence, and on the basis of any audit deemed necessary, including at the premises of the authorised declarant.
Amendment 554 #
Proposal for a regulation
Article 19 – paragraph 2
Article 19 – paragraph 2
2. Where a CBAM declaration in accordance with Article 6 has not been submitted, the competent authority of the Member State of establishment of the authorised declarant shall assess the CBAM obligations of that declarant on the basis of the information at its disposal and calculate the total number of CBAM certificates due at the latest by the 31 December of the fourth year following that when the CBAM declaration should have been submitted.
Amendment 616 #
Proposal for a regulation
Article 27 – paragraph 2
Article 27 – paragraph 2
2. Practices of circumvention include situations where a change in the pattern of trade in relation to goods included in the scope of this Regulation, whether slightly modified or not, stems from a practice, process or work that have has insufficient due cause or economic justification other than avoiding obligations as laid down in this Regulation and consist in replacing those goods with slightly modified products, which are not included in the list of goods in Annex I but belong to a sector included in the scope of this Regulation, or undermining their effects, including on overall GHG emissions and on prices of the like products.
Amendment 618 #
Proposal for a regulation
Article 27 – paragraph 2 – point 1 (new)
Article 27 – paragraph 2 – point 1 (new)
(1) The practice, processor work referred to in the first subparagraph include, inter alia:
Amendment 619 #
Proposal for a regulation
Article 27 – paragraph 2 – subparagraph 1 (new)
Article 27 – paragraph 2 – subparagraph 1 (new)
(a) the slight modification of a product to make it fall under another customs code which are not subject to the obligations of this Regulation; b) false declarations regarding identity of the producer, the product concerned, the nature of the product concerned or the production process; (c) the consignment of the product concerned via third countries where no or more favourable obligations apply; (d) the reorganisation by exporters or producers of their patterns and channels of sales in order to avoid obligations of this Regulation, or undermine their effects, for instance via practices of resource shuffling. Resource shuffling shall be defined as any practice, process or work that that have insufficient due cause or economic justification other than avoiding obligations as laid down in this Regulation, or undermining their effects, without delivering environmental benefits on global GHG emissions; (e) in the circumstances indicated in paragraph 2, the assembly of parts by an assembly operation in the Union or a third country.
Amendment 652 #
Proposal for a regulation
Article 30 – paragraph 2
Article 30 – paragraph 2
Amendment 667 #
Proposal for a regulation
Article 30 – paragraph 2 a (new)
Article 30 – paragraph 2 a (new)
2a. During the comprehensive transitional period, biannual between 2025-2030 and every year thereafter until 2035 the Commission shall evaluate the application of this Regulation and report to the European parliament and the Council. The Commission should in particular focus on: (a) the impact on European industry and downstream industry of sectors listed in Annex I, as well as on SMEs and possible additional administrative burden for SMEs; (b) the effectiveness of this Regulation in reducing carbon leakage and possible circumvention practices; and (c) the impact of CBAM on Union trade of goods listed in Annex I and possible distortion in trade patterns;
Amendment 674 #
Proposal for a regulation
Article 30 – paragraph 3 a (new)
Article 30 – paragraph 3 a (new)
3a. In case the CBAM is proven not to be efficient in lowering carbon leakage, the Commission shall present a new or revised legislative proposal aiming at lowering carbon leakage. Once the CBAM has fully demonstrated its WTO- compatibility, its effectiveness in equalising CO2 costs between imported and domestic products and in protecting the competitiveness of European exports, the free allocation received by these sectors should be gradually phased out, however not prior to 2030. This phase-out of free allocation should be kept under review in light of the entry into force and effective implementation of the Carbon Border Adjustment Mechanism.
Amendment 676 #
Proposal for a regulation
Article 30 – paragraph 3 b (new)
Article 30 – paragraph 3 b (new)
3b. In the event that the Commission in its annual report between 2031-2035 concludes that, the CBAM has been effectively implemented in a way that leads to a level of carbon leakage protection at least equivalent to that of the free allocation system which it replaces under this Article, the allowances placed in the Carbon Border Adjustment Reserve for the preceding calendar year shall be made available to support innovation in accordance with Article 10a(8) of Directive 2003/87/EC.
Amendment 677 #
Proposal for a regulation
Article 30 – paragraph 3 c (new)
Article 30 – paragraph 3 c (new)
3c. In the event that the Commission in its report concludes that the CBAM has not been effectively implemented in a way that leads to a level of carbon leakage protection at least equivalent to that of the free allocation system which it replaces, the allowances placed in the Carbon Border Adjustment Reserve for the preceding calendar year shall be reallocated to installations in accordance with Article10a(1) of Directive 2003/87/EC.
Amendment 695 #
Proposal for a regulation
Article 31 – paragraph 2 a (new)
Article 31 – paragraph 2 a (new)
2a. For the first years of operation of this Regulation, the production of products listed in Annex I shall benefit from free allocation in reduced amounts. A factor reducing the free allocation for the production of those products shall be applied (CBAM factor). The CBAM factor shall be equal to 100 % for the period between 2026 and the end of 2030, 80 % in 2031 and shall be reduced by 20 percentage points each year to reach 0 % by the fifth year.
Amendment 700 #
Proposal for a regulation
Article 32 – paragraph 1
Article 32 – paragraph 1
During the administrative transitional period of this Regulation, the CBAM mechanism shall apply as a reporting obligation as set out in Articles 33 to 35.
Amendment 710 #
Proposal for a regulation
Article 7 – paragraph 6
Article 7 – paragraph 6
6. The Commission is empowered to 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 to individual goods as well as laying down methods to ensure the reliability of data on the basis of which the default values shall be determined, including the level of detail and the verification of the data. 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 776 #
Proposal for a regulation
Article 10 – paragraph 1
Article 10 – paragraph 1
1. The Commission shall, upon request by an operator of an installation located in a third country, register the information on that operator and on its installation in a central databaseCBAM registry referred to in Article 14(4).
Amendment 786 #
Proposal for a regulation
Article 10 – paragraph 7
Article 10 – paragraph 7
7. An operator may disclose tThe information on the verification ofed embedded emissions referred to in paragraph 5 to an authorised declarantshall be publicly accessible via the CBAM registry. The authorised declarant shall be entitled to avail itself of that disclosed information to fulfil the obligation referred to in Article 8.
Amendment 794 #
Proposal for a regulation
Article 10 a (new)
Article 10 a (new)
Amendment 1079 #
Proposal for a regulation
Article 27 a (new)
Article 27 a (new)
Article 27 a Absorption 1. Where any party submits sufficient information showing that, after the entry into force of this Regulation, an Authorised Declarant has been absorbing the cost of the CBAM Certificates, such that there has been no movement, or insufficient movement, in the resale prices or subsequent selling prices of the imported product in the Union, and that such situation has insufficient due cause or economic justification other than undermining the effects of the obligations under this Regulation, the Commission shall open an investigation. The Commission shall provide information to the Member States once a party has submitted sufficient information justifying the opening of the investigation and the Commission has completed its analysis thereof. The Commission may also open, at its own request or at the request of a Member State, an investigation , under the conditions specified in the first subparagraph. 2. The Commission shall provide all interested parties with an opportunity to clarify the situation with regard to resale prices and subsequent selling prices. 3. While carrying out an investigation the Commission may be assisted by customs authorities. The Commission shall conclude an investigation in due time. 4. If the Commission concludes that the obligations under this Regulation would have led to movements in such prices, the Commission shall take appropriate measures to re-establish the effectiveness of those obligations, including the application of the mark up calculated pursuing to Article 5. Any measures imposed by the Commission pursuant to this Article shall not exceed the amount of the penalties set out in Article 26.
Amendment 1279 #
Proposal for a regulation
Annex III – point 4 – paragraph 2
Annex III – point 4 – paragraph 2
For the purpose of determining default values, only actual values shall be used for the determination of embedded emissions. In the absence of actual data, or when the use of actual data would lead to low default values favouring freeriding behaviour, literature values may be used. The Commission shall publish guidance for the approach taken to correct for waste gases or greenhouse gases used as process input, before collecting the data required to determine the relevant default values for each type of goods listed in Annex I. Default values shall be determined based on the best available data. They shall be revised periodically through implementing acts based on the most up-to-date and reliable information, including on the basis of information provided by a third country or group of third countries.
Amendment 1284 #
Proposal for a regulation
Annex III – point 4 – point 4.1 – paragraph 1
Annex III – point 4 – point 4.1 – paragraph 1
When actual emissions cannot be adequately determined by the authorised declarant, default values shall be used. Default values shall represent the highest known carbon intensity of the relevant good in order to avoid carbon leakage and any freeriding behaviour. These values shall be set at the average emission intensity of each exporting country and for each of the goods listed in Annex I other than electricity, increased by a mark-up, the latter to be determined in the implementing acts of this Regulation. When reliable data for the exporting country cannot be applied for a type of goods, the default values shall be based on the average emission intensity of the 10 per cent worst performing EU installations for that type of goodsAverage country data shall be consistent with rules on calculations of embedded emissions pursuant to article 7 and Annex III and be verified by verifiers accredited pursuant to article 18. When reliable and verified data for the exporting country cannot be applied for a type of goods, the default values shall be based on the average emission intensity of the 10 per cent worst performing EU installations for that type of goods, increased by a mark- up, the latter to be determined in the implementing acts of this Regulation. The mark-up to be applied pursuant this point shall ensure that the default values reflect the highest known carbon intensity of the relevant good in order to avoid carbon leakage from any free riding behaviour.
Amendment 1308 #
Proposal for a regulation
Annex III – point 6
Annex III – point 6