[ParlTrack]

Emma WIESNER, Claudia GAMON, Frédérique RIES, Jan HUITEMA, Catherine CHABAUD

Proposal for a directive
Recital 15

(15) In 2013, the Commission adopted a strategy for progressively integrating maritime emissions into the Union's policy for reducing greenhouse gas emissions. As a first step in this approach, the Union established a system to monitor, report and verify emissions from maritime transport in Regulation (EU) 2015/757 of the European Parliament and of the Council47 , to be followed by the laying down of reduction targets for the maritime sector and the application of a market based measure. In line with the commitment of the co- legislators expressed in Directive (EU) 2018/410 of the European Parliament and of the Council48 , action by the International Maritime Organization (IMO) or the Union should start from 2023, including preparatory work on adoption and implementation of a measure ensuring that the sector duly contributes to the efforts needed to achieve the objectives agreed under the Paris Agreement and due consideration being given by all stakeholders. In order to increase the environmental effectiveness of EU measures and avoid unfair competition and incentives for circumvention, the scope of Regulation (EU) 2015/757 should be amended to cover ships with a gross tonnage above 400. The EU ETS should include such ships where they have annual emissions over 1 000 tonnes CO2 equivalents per year. The maritime emissions covered by the EU ETS should also include methane, which should therefore be part of the scope of Regulation (EU) 2015/757. _________________ 47Regulation (EU) 2015/757 of the European Parliament and of the Council of 29 April 2015 on the monitoring, reporting and verification of carbon dioxide emissions from maritime transport, and amending Directive 2009/16/EC (OJ L 123, 19.5.2015, p. 55). 48Directive (EU) 2018/410 of the European Parliament and of the Council of 14 March 2018 amending Directive 2003/87/EC to enhance cost-effective emission reductions and low-carbon investments, and Decision (EU) 2015/1814 (OJ L 76, 19.3.2018, p. 3).

2022/02/22
Committee: ENVI

Emma WIESNER, Claudia GAMON, Martin HOJSÍK, Frédérique RIES, Michal WIEZIK, Pascal CANFIN, Jan HUITEMA, Linea SØGAARD-LIDELL, Catherine CHABAUD

Proposal for a directive
Recital 24 a (new)

(24a) The EU ETS should as much as possible avoid undue exemptions and distortive measures. Municipal waste incineration is an important source of greenhouse gas emissions and should be included under the EU ETS. The inclusion would encourage waste prevention and recycling and contribute to the economy-wide decarbonisation. Since recycling and regeneration activities are already covered by the EU ETS, the inclusion would reinforce incentives for sustainable management of waste in line with the waste hierarchy. It would complement other elements of EU waste legislation. Moreover, integrating waste incineration into the EU ETS would create a level playing field between the regions that have included municipal waste incineration under the scope, reducing the risk of tax competition between regions.

2022/02/22
Committee: ENVI

Emma WIESNER, Claudia GAMON, Frédérique RIES, Pascal CANFIN, Nils TORVALDS, Catherine CHABAUD

(27a) The main method for allocating emission allowances in the EU ETS is auctioning. The EU ETS should therefore gradually move away from the transitional system of free allocations in order to ensure a market-based system respecting the polluter pays principle.

2022/02/22
Committee: ENVI

Emma WIESNER, Claudia GAMON, Frédérique RIES, Nils TORVALDS, Jan HUITEMA, Linea SØGAARD-LIDELL, Andreas GLÜCK

Proposal for a directive
Recital 28

(28) Achieving the increased climate ambition will require substantial public resources in the EU as well as national budgets to be dedicated to the climate transition. To complement and reinforce the substantial climate-related spending in the EU budget, all auction revenues that are not attributed to the Union budget should be used for climate-related purposes. This includes the use for financial support to address social aspects in lower- and middle-income households by reducing distortive taxes. Further, to ~~address distributional and social effects of the transition in low-income Member States~~support the transition to innovative decarbonised technologies and processes, and to the upscaling of relevant technologies across the Union in a way that contributes to mitigating climate change in line with the objectives set out in Regulation (EU) 2021/1119, an additional amount of 2,5 % of the Union- wide quantity of allowances from [year of entry into force of the Directive] to 2030 should be used to fund the energy transition of the Member States with a gross domestic product (GDP) per capita below 65 % of the Union average in 2016-2018, through the Modernisation Fund referred to in Article 10d of Directive 2003/87/ECfor the Innovation Fund, to be renamed the Net-Zero Fund.

2022/02/22
Committee: ENVI

Pascal CANFIN, Jan HUITEMA, Véronique TRILLET-LENOIR, Frédérique RIES, Martin HOJSÍK, Michal WIEZIK

Proposal for a directive
Recital 32 a (new)

(32a) In order to achieve climate neutrality by 2050 at the latest as laid down in Regulation (EU) 2021/1119, the EU needs to close a significant investment gap as provided in the Communication 'Strategy for Financing the Transition to a Sustainable Economy'1a. To reach our decarbonisation objective, breakthrough innovation, upscaling of already existing relevant technologies and certified natural carbon removals are needed. To support the in-depth and economy-wide decarbonation in the EU all these three pillars should be addressed by the Innovation Fund, which should be renamed as the Net-Zero fund. _________________ 1aCOM(2021)390 final, Communication 'Strategy for Financing the Transition to a Sustainable Economy'

2022/02/22
Committee: ENVI

Emma WIESNER, Claudia GAMON, Frédérique RIES, Pascal CANFIN, Jan HUITEMA, Nicolae ŞTEFĂNUȚĂ, Linea SØGAARD-LIDELL, Andreas GLÜCK, Catherine CHABAUD

Proposal for a directive
Recital 33

(33) The scope of the Innovation Fund referred to in Article 10a(8) of Directive 2003/87/EC should be extended to support both innovation projects and measures that implement and scale up innovative technologies that contribute significantly to decarbonisation in line with the Union´s climate targets. To reflect this, the Fund should be renamed "Net-Zero Fund". The Fund should support innovation in low-carbon technologies and processes that concern the consumption of fuels in the sectors of buildings and road transport. In addition, the Innovation Fund should serve to support investments to decarbonise the maritime transport sector, including investments in sustainable alternative fuels, such as hydrogen and ammonia that are produced from renewables, as well as zero-emission propulsion technologies like wind technologies. Considering that revenues generated from penalties raised in Regulation xxxx/xxxx [FuelEU Maritime]52 are allocated to the ~~Innovation~~Net-Zero Fund as external assigned revenue in accordance with Article 21(5) of the Financial Regulation, the Commission should ensure that due consideration is given to support for innovative projects aimed at accelerating the development and deployment of renewable and low carbon fuels in the maritime sector, as specified in Article 21(1) of Regulation xxxx/xxxx [FuelEU Maritime]. To ensure sufficient funding is available for innovation within this extended scope, the ~~Innovation~~Net-Zero Fund should be supplemented with 50 million allowances, stemming partly from the allowances that could otherwise be auctioned, and partly from the allowances that could otherwise be allocated for free, in accordance with the current proportion of funding provided from each source to the ~~Innovation~~Net-Zero Fund. _________________ 52[add ref to the FuelEU Maritime Regulation].

2022/02/22
Committee: ENVI

Emma WIESNER, Claudia GAMON, Frédérique RIES, Pascal CANFIN, Nils TORVALDS, Catherine CHABAUD

Proposal for a directive
Recital 37 a (new)

(37a) It is the nature of the EU ETS that auctioning of allowances is the default allocation method, with transitional free allocation in place as a protection against the risk of carbon leakage. Free allocation of emission allowances to prevent carbon leakage should be targeted on those sectors genuinely exposed to such risks while maintaining appropriate protection against carbon leakage also in sectors outside the CBAM. The carbon leakage list should therefore be revised to reflect the different levels of exposure to carbon leakage risks. Furthermore, to provide incentives for decarbonisation and recognise emissions reductions, installations whose emissions are below the relevant benchmark values should be exempted from the cross-sectoral correction factor, in case such factor is applied.

2022/02/22
Committee: ENVI

Emma WIESNER, Claudia GAMON, Frédérique RIES, Pascal CANFIN, Linea SØGAARD-LIDELL, Ulrike MÜLLER, Catherine CHABAUD

Proposal for a directive
Recital 67 c (new)

(67c) In addition to effective carbon pricing based on a well-function emission trading system, market transparency is of key importance for enabling swift and cost-efficient emissions reductions in all sectors of the economy. To allow consumers and all actors along the supply chain to make informed choices concerning the emission embedded in products, a European system for robust carbon footprint labelling of products should be developed.

2022/02/24
Committee: ENVI

Emma WIESNER, Frédérique RIES, Nils TORVALDS, Jan HUITEMA, Linea SØGAARD-LIDELL, Catherine CHABAUD

Proposal for a directive
Article 1 – paragraph 1 – point 1

Directive 2003/87/EC
Article 2 – paragraph 1

1. This Directive shall apply to the activities listed in Annexes I and III, and to the of greenhouse gases listed in Annex II. Where an installation that is included in the scope of the EU ETS due to the operation of combustion units with a total rated thermal input exceeding 20 MW changes its production processes to reduce its greenhouse gas emissions and no longer meets that threshold~~, it shall remain in the scope of the EU ETS until the end of the relevant five year period referred to in Article 11(1), second subparagraph, follow~~ or no longer emits greenhouse gases, it may decide to remain ing the ~~change to its production process~~scope of the EU ETS.

2022/02/24
Committee: ENVI

Emma WIESNER, Claudia GAMON, Frédérique RIES, Jan HUITEMA, Catherine CHABAUD

Proposal for a directive
Article 1 – paragraph 1 – point 4

Directive 2003/87/EC
Article 3a – paragraph 1

Articles 3b to 3f shall apply to the allocation and issue of allowances in respect of the aviation activities listed in Annex I. Articles 3g to 3ge shall apply in respect of the maritime transport activities listed in Annex I, in respect of CO2 and methane emissions from ships with greenhouse gas emissions above 1 000 tonnes CO2eq per year.

2022/02/24
Committee: ENVI

Emma WIESNER, Claudia GAMON, Frédérique RIES, Jan HUITEMA, Andreas GLÜCK

Proposal for a directive
Article 1 – paragraph 1 – point 6

Directive 2003/87/EC
Article 3ga a (new)

Article 3gaa Ocean Fund 1. 50 % of the revenues generated from the auctioning of allowances referred to in Article 3g shall be auctioned to establish a fund (‘the Ocean Fund’) under the Fund established under Article 10a(8), applying the rules for governance and support as laid down in that Article. Its objective shall be to support projects and investments referred to in paragraph 2. Furthermore, the external assigned revenues referred to in Article 21(2) of Regulation (EU) [FuelEU Maritime] shall be allocated to the Ocean Fund. 2. Funds provided under the Ocean Fund shall be used to support projects and investments in relation to the following: improvement of the energy efficiency of ships and ports; innovative technologies and infrastructure for decarbonising the maritime transport sector, including as regards short sea shipping and ports; deployment of sustainable alternative fuels, such as hydrogen and ammonia, that are produced from renewable energy; zero-emission propulsion technologies, including wind technologies; development of innovative technologies and fuels for ice-class ships and winter navigation in frozen areas. 20% of the revenues under the Fund shall be used to contribute to the protection, restoration and better management of marine ecosystems impacted by global warming, such as marine protected areas; and to promote a crosscutting sustainable blue economy such as renewable marine energy.

2022/02/24
Committee: ENVI

Emma WIESNER, Claudia GAMON, Martin HOJSÍK, Frédérique RIES, Pascal CANFIN, Jan HUITEMA, Linea SØGAARD-LIDELL, Andreas GLÜCK, Catherine CHABAUD

Proposal for a directive
Article 1 – paragraph 1 – point 7

Directive 2003/87/EC
Article 3h – paragraph 1 a (new)

From [the year of entry into force of this amendment], the provisions of this Chapter shall apply to greenhouse gas emissions permits in respect of municipal waste incineration installations. The obligation to surrender allowances in respect of emissions from these installations shall apply to emissions from the year 2025 onwards.

2022/02/24
Committee: ENVI

Emma WIESNER, Claudia GAMON, Frédérique RIES, Nils TORVALDS, Jan HUITEMA, Andreas GLÜCK, Catherine CHABAUD

Proposal for a directive
Article 1 – paragraph 1 – point 11 – point a

Directive 2003/87/EC
Article 10 – paragraph 1 – subparagraph 3a

In addition, 2,5 % of the total quantity of allowances between [year following the entry into force of the Directive] and 2030 shall be auctioned for the Modernisation Fund. The beneficiary Member States for this amount of allowances shall be the Member States with a GDP per capita at market prices below 65 % of the Union average during the period 2016 to 2018. The funds corresponding to this quantity of allowances shall be distributed in accordance with Part B of Annex IIbNet-Zero Fund established in accordance with Article 10a(8) to support to the transition to innovative decarbonised technologies and processes, and to the upscaling of relevant technologies across the Union, in a way that contributes to mitigating climate change in line with the objectives set out in Regulation (EU) 2021/1119.

2022/02/28
Committee: ENVI

Emma WIESNER, Frédérique RIES, Pascal CANFIN, Nils TORVALDS, Jan HUITEMA, Linea SØGAARD-LIDELL, Andreas GLÜCK, Ulrike MÜLLER, Catherine CHABAUD

Proposal for a directive
Article 1 – paragraph 1 – point 11 – point b a (new)

Directive 2003/87/EC
Article 10 – paragraph 3 – subparagraph 1 – point d

(ba) in paragraph 3, first subparagraph, point (d) is replaced by the following: "(d) forestry and soil sequestration in the Union; ~~(https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A02003L0087-20210101)~~" Or. en

2022/02/28
Committee: ENVI

Emma WIESNER, Martin HOJSÍK, Michal WIEZIK, Frédérique RIES, Pascal CANFIN, Nicolae ŞTEFĂNUȚĂ, Linea SØGAARD-LIDELL, Andreas GLÜCK, Ulrike MÜLLER, Catherine CHABAUD

Proposal for a directive
Article 1 – paragraph 1 – point 11 – point c

Directive 2003/87/EC
Article 10 – paragraph 3 - subparagraph 1– point h b (new)

(hb) nature restoration of forests and other marine or land based ecosystems, including financing for the creation of nature conservation areas;

2022/02/28
Committee: ENVI

Pascal CANFIN, Véronique TRILLET-LENOIR, Frédérique RIES

Proposal for a directive
Article 1 – paragraph 1 – point 12 – point a – point i

Directive 2003/87/EC
Article 10a – paragraph 1 – subparagraph 2a a (new)

By January 2025, all economic operators covered by this Directive shall establish industrial decarbonization plans. These plans shall be carried out at company level and detail measures and related investments for each installation owned by the company. The plans shall be consistent with the objective to achieve carbon neutrality by 2050 at the latest as laid down in Regulation (EU) 2021/1119. Economic operators shall provide evidence of the coherence between the plans and any sectoral roadmaps prepared in accordance with Article 10 of Regulation (EU) 2021/1119. The industrial decarbonization plan shall include: (a) targets and milestones set by the operator to reach, at company level, the necessary emissions reductions to achieve the objectives laid down in Regulation (EU) 2021/1119; (b) measures and related financial and investments plans for each installation owned by the company, in particular identifying installations that will be replaced by new low-carbon technologies, modernised, retrofitted or closed; (c) an explanation of how the measures and related investments referred to in point c will altogether reduce greenhouse gas emissions in order to reach the targets and milestones referred to in point (a); (d) a description of the progress made towards achieving these targets. The attainment of the targets and milestones referred to in point (a) of the previous subparagraph shall be verified by 31 December 2025 and by 31 December of each year thereafter, in accordance with the verification and accreditation procedures provided for in Article 15. If the targets and milestones set in accordance to point (a) are not achieved : (a) The installations that are amongst the 10 % least efficient installations in a sector or subsector in the Union shall no longer receive free allocation; (b) For installations that are more efficient than the 10 % least efficient installations but worse than the 60 % most efficient installations in a sector or subsector in the Union, free allowances shall be reduced by 50 %; (c) For installations falling outside of the two categories described above, free allocations shall be reduced by 25 %. Any allowances that are not allocated due to a reduction of free allocation in accordance with the rules laid down above shall be transferred in the Net Zero Fund.

2022/02/28
Committee: ENVI

Emma WIESNER, Frédérique RIES, Pascal CANFIN, Linea SØGAARD-LIDELL

Proposal for a directive
Article 1 – paragraph 1 – point 12 – point c – point iii a (new)

Directive 2003/87/EC
Article 10a – paragraph 2 – subparagraph 6

~~(https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A02003L0087-20210101)~~(iiia) the sixth subparagraph is deleted. Or. en

2022/03/04
Committee: ENVI

Emma WIESNER, Claudia GAMON, Frédérique RIES, Nils TORVALDS, Jan HUITEMA, Linea SØGAARD-LIDELL, Catherine CHABAUD