Activities of Louis MICHEL related to 2014/0059(COD)
Plenary speeches (2)
Supply chain due diligence by importers of minerals and metals originating in conflict-affected and high-risk areas (debate) FR
Self-certification of importers of minerals and metals originating in conflict-affected and high-risk areas (debate) FR
Shadow opinions (1)
OPINION on the proposal for a regulation of the European Parliament and of the Council setting up a Union system for supply chain due diligence self-certification of responsible importers of tin, tantalum and tungsten, their ores, and gold originating in conflict-affected and high-risk areas
Amendments (59)
Amendment 15 #
Proposal for a regulation
Recital 1
Recital 1
(1) Natural mineral resources in conflict- affected or high risk areas − although holding great potential for development – can bare a cause of dispute whereand their revenues are fuelling the outbreak or continuation of violent conflict, undermining national endeavours towards development, good governance and the rule of law. In these areas, breaking the nexus between conflict and illegal exploitation of minerals is critical to peace and stability.
Amendment 24 #
Proposal for a regulation
Recital 2
Recital 2
(2) The issue concerns resource-rich regions where the challenge posed by the desire to minimiseshut off the financing of armed groups and security forces has been taken up by governments and international organisations together with business operators and civil society organisations.
Amendment 27 #
Proposal for a regulation
Recital 7
Recital 7
(7) On 7 October 2010In its resolutions of 7 October 20109a, of 8 March 20119b, of 5 July 20119c and of 26 February 20149d, the European Parliament passed a Resolution callinged for the Union to legislate along the lines of the US '‘conflict minerals’ law alias Section 1502 of the Dodd-Frank Wall Street Reform and Consumer Protection Act; and the Commission announced in its Communications of 20119 and 201210 its intention to explore ways of improving transparency throughout the supply chain, including aspects of due diligence. In the latter communication and in line with the commitment it had made at the May 2011 OECD Ministerial Council, the Commission also advocated greater support for and use of the OECD Guidelines for Multinational Enterprises, and of the OECD Due Diligence Guidance – even outside the OECD membership. _____________ 9aEuropean Parliament resolution of 7 October 2010 on failures in protection of human rights and justice in the Democratic Republic of Congo. 9bEuropean Parliament resolution of 8 March 2011 on Tax and Development – Cooperating with Developing Countries on Promoting Good Governance in Tax Matters. 9cEuropean Parliament resolution of 5 July 2011 on increasing the impact of EU development policy. 9dEuropean Parliament resolution of 26 February 2014 on promoting development through responsible business practices, including the role of extractive industries in developing countries. __________________ 10 Trade, growth and development, COM(2012) 22 final.
Amendment 33 #
Proposal for a regulation
Recital 9
Recital 9
(9) In the context of this Regulation, and in accordance with the OECD Guidance, supply chain due diligence is an on-going, proactive and reactive process through which business operators monitor and administer their purchases and sales with a view to ensuringupstream and downstream of the supply chain with a view to ensuring that they do not give rise to human rights abuses and that they do not contribute to conflict and adverse impacts thereof.
Amendment 40 #
Proposal for a regulation
Recital 13
Recital 13
(13) Smelters and refiners are an important point in global mineral supply chains as they are typically the last stage in which due diligence can effectively be assurbetter placed byto collecting, disclosinge and verifying information on the mineral’s origin and chain of custody. After this stage of transformation it is often considered unfeasible to trace back the origins of minerals. A Union list of responsible smelters and refiners could therefore provide transparency and certainty to downstream companies as regards, which themselves must comply, depending on their position in the supply chain, with due diligence practices as defined in this Regulation and the OECD Guidance.
Amendment 45 #
Proposal for a regulation
Recital 14
Recital 14
(14) The Member State competent authorities are responsible to ensure the uniform compliance of the self- certification of responsible importers by carrying out appropriate ex-post checks so as to verify whether the self-certified responsible importers of the minerals and/or metals within the scope of the Regulation comply with the supply chain due diligence obligations. Records of such checks should be kept for at least 5 years. Member States areThe Commission is responsible to lay down the rules applicable to infringements of the provisions of this Regulation and to notify those rules to the Member States.
Amendment 49 #
Proposal for a regulation
Recital 15
Recital 15
(15) In order to ensure the proper implementation of this Regulation, implementing powers should be conferred on the Commission. The implementing powers relating to the list of responsible smelters and refinimporters and the list of Member State competent authorities should be exercised in accordance with Regulation (EU) No 182/201111. __________________ 11 Regulation (EU) No 182/2011 of the European Parliament and of the Council of 16 February 2011 laying down the rules and general principles concerning mechanisms for control by Member States of the Commission’s exercise of implementing powers (OJ L 55, 28.2.2011, p. 13).
Amendment 52 #
Proposal for a regulation
Recital 16
Recital 16
(16) The Commission should report regularly to the Council and the European Parliament on the effects of the scheme. No later than three years after entering into force and every six years thereafter, the Commission should review the functioning and the effectiveness of this Regulation, including as regards the promotion of responsible sourcing of the minerals within its scope from conflict-affected and high- risk areas. The reports may be accompanied, if necessary, by appropriate legislative proposals, which may include mandatory measuresust make it possible periodically to bring this Regulation into line with the situation on the ground.
Amendment 53 #
Proposal for a regulation
Recital 16 a (new)
Recital 16 a (new)
(16a) The Commission and the Vice- President of the Commission/High Representative of the Union for Foreign Affairs and Security Policy should submit a legislative proposal setting out effective flanking measures. That legislative proposal will supplement the joint communication to the European Parliament and the Council annexed to this Regulation.
Amendment 54 #
Proposal for a regulation
Recital 16 b (new)
Recital 16 b (new)
(16b) Once this Regulation has been adopted, the flanking measures should be implemented so that this Regulation can achieve its aims in conflict-affected and high-risk areas. These flanking measures should strengthen the ongoing political dialogue with the mineral-rich countries, make for closer harmonisation between national, regional and international certification systems and enhance international coordination in the area of due diligence practices.
Amendment 56 #
Proposal for a regulation
Article 1 – paragraph 1
Article 1 – paragraph 1
1. This Regulation sets up a Union system for supply chain due diligence self-mandatory certification in order to curtail opportunities for armed groups and security forces12 to trade in tin, tantalum and tungsten, their ores, and golderadicate trading in minerals and metals by armed groups and security forces12. It is designed to provide transparency and certainty as regards the supply practices of importers, in particular smelters and refiners sourcing from conflict-affected and high-risk areas. __________________ 12‘Armed groups and security forces’ as defined in Annex II of the OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict- Affected and High-Risk Areas: Second Edition, OECD Publishing (OECD (2013). http://dx.doi.org/10.1787/978926418505011158- en.
Amendment 61 #
Proposal for a regulation
Recital 1
Recital 1
(1) Natural mineral resources in conflict- affected or high risk areas − although holding great potential for development – can bare a cause of dispute whereand their revenues are fuelling the outbreak or continuation of violent conflict, undermining national endeavours towards development, good governance and the rule of law. In these areas, breaking the nexus between conflict and illegal exploitation of minerals is critical to peace and stability.
Amendment 61 #
Proposal for a regulation
Article 1 – paragraph 2
Article 1 – paragraph 2
2. This Regulation lays down the supply chain due diligence obligations of all Union importers who choose to be self-certified as responsible importers of minerals or metals containsource minerals and metals falling within the scope of this Regulation, in accordance with the OECD Guidance. It is designed to guarantee transparency and traceability in respect of their sourcing practices in conflict- affected or high-risk areas, ing or consisting of tin, tantalum, tungsten and gold, as set out in Annex Ider to minimise or prevent violent conflicts and human rights abuses by curtailing the opportunities for armed groups and security forces, as defined in Annex II to the OECD Due Diligence Guidance, to trade in these minerals and metals.
Amendment 62 #
Proposal for a regulation
Article 1 – paragraph 2 a (new)
Article 1 – paragraph 2 a (new)
2a. This Regulation shall apply to undertakings at all points in the minerals and metals supply chain which may supply or use minerals or metals from conflict-affected or high-risk areas.
Amendment 63 #
Proposal for a regulation
Article 1 – paragraph 2 b (new)
Article 1 – paragraph 2 b (new)
2b. In order to prevent unintended distortions of the market, this Regulation shall draw a distinction between the roles of undertakings situated upstream of and those situated downstream from the supply chain. The exercise of due diligence must be tailored to the activities of the undertaking in question and its position in the supply chain.
Amendment 64 #
Proposal for a regulation
Article 1 – paragraph 2 c (new)
Article 1 – paragraph 2 c (new)
2c. It shall be for the Commission, working with certification bodies and in accordance with the OECD Guidance, to lay down the obligations to be met by importers, depending on their position in the supply chain, and to ensure that the certification system involves a flexible procedure which does not jeopardise the competitiveness of importers, in particular SMUs.
Amendment 73 #
Proposal for a regulation
Article 2 – point b a (new)
Article 2 – point b a (new)
(ba) ‘minerals and metals within the scope of the Regulation’ means all minerals and metals falling within the scope of this Regulation and of the OECD Guidance.
Amendment 76 #
Proposal for a regulation
Article 2 – point c a (new)
Article 2 – point c a (new)
(ca) ‘OECD Guidance’ means the OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict- Affected and High-Risk Areas, Second Edition, OECD Publishing (OECD (2013)), including all Council recommendations, annexes and supplements, which may be periodically modified or replaced.
Amendment 82 #
Proposal for a regulation
Article 2 – point e
Article 2 – point e
(e) '‘conflict-affected and high-risk areas' means areas in a state of armed conflict, fragile post-conflict as well as areas witnessing weak or non-existent governance and security, such as failed states, and widespread and systematic’ are identified by the presence of armed conflict, widespread violence or other risks of harm to people. There are several types of armed conflict: international (which may involve two or more states) or non-international, wars of liberation, insurgencies, etc.; High-risk areas are characterised by political instability or repression, institutional weakness, insecurity, collapse of civil infrastructure and widespread violence, and also widespread human rights abuses and violations of international law, including human rights abuses;or international law.
Amendment 85 #
Proposal for a regulation
Article 2 – point f a (new)
Article 2 – point f a (new)
(fa) ‘downstream undertakings’ means metal traders and exchanges, component manufacturers, product manufacturers, original equipment manufacturers and retailers.
Amendment 87 #
Proposal for a regulation
Article 2 – point g
Article 2 – point g
(g) 'importer' means any natural or legal person decplarcing on the market for the first time minerals or metals within the scope of this Regulation for release for free circulation within the meaning of Article 79 of Council Regulation (EEC) No 2913/199213; __________________ 13Council Regulation (EEC) No 2913/92 of 12 October 1992 establishing the Community Customs Code (OJ L 302, 19.10.1992, p. 1).
Amendment 89 #
Proposal for a regulation
Article 2 – point h
Article 2 – point h
(h) '‘responsible importer'’ means any importer who chooses to self-certify according toomplies with the rules set out in this Regulation;
Amendment 91 #
Proposal for a regulation
Article 2 – point i
Article 2 – point i
(i) 'self-‘European responsible importer certification'e’ means the act of declaring one's adherence to the obligations relating to management systems, risk management, third-party audits and disclosure adocument issued by the competent authorities to any importer who undertakes to observe the rules set out in this Regulation;
Amendment 100 #
Proposal for a regulation
Article 2 – point n a (new)
Article 2 – point n a (new)
(na) ‘upstream undertakings’ means miners (artisanal and small-scale or large-scale producers), local traders or exporters from the country of mineral origin, international concentrate traders, mineral reprocessors and smelters/refineries.
Amendment 101 #
Proposal for a regulation
Article 2 – point o
Article 2 – point o
(o) '‘supply chain due diligence'’ refers to the obligations of responsible importers of tmin, tantalum and tungsten, their ores, and golderals and metals falling within the scope of this Regulation and the OECD Guidance in relation to their management systems, risk management, third-party audits and disclosure of information with a view to identifying and addressing actual and potential risks linked to conflict- affected and high risk-areas to prevent or mitigate adverse impacts associated with their sourcing activities and ensuring that the latter do not contribute to the illegal trade in minerals and the funding of conflicts and do not give rise to human rights abuses;
Amendment 103 #
Proposal for a regulation
Article 2 – point q a (new)
Article 2 – point q a (new)
(qa) ‘armed groups and security forces’ means groups as defined in Annex II to the OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High Risk Areas.
Amendment 105 #
Proposal for a regulation
Article 3 – title
Article 3 – title
Amendment 106 #
Proposal for a regulation
Article 3 – paragraph 1
Article 3 – paragraph 1
Amendment 111 #
Proposal for a regulation
Article 3 – paragraph 2
Article 3 – paragraph 2
2. The Member State competent authorities shall carry out appropriate ex-post checks in order to ensure that self-certified responsible importers of the minerals or metals within the scope of this Regulation comply with their obligations pursuant to Articles 4, 5, 6, and 7 of this Regulation.
Amendment 114 #
Proposal for a regulation
Article 4 – introductory part
Article 4 – introductory part
Amendment 116 #
Proposal for a regulation
Article 4 – point a
Article 4 – point a
(a) adopt and clearly and systematically communicate to suppliers and the public its supply chain policy for the minerals and metals potentially originating from conflict- affected and high-risk areas,
Amendment 124 #
Proposal for a regulation
Article 4 – point g – point iii
Article 4 – point g – point iii
(iii) name and address of the smelters or refiners and/or any other intermediary in the importers' supply chain,;
Amendment 125 #
Proposal for a regulation
Article 4 – point g – point iv
Article 4 – point g – point iv
(iv) record of the smelters' or refiners' third-party audit reports, and/or those carried out in any other intermediary undertaking;
Amendment 126 #
Proposal for a regulation
Article 4 – point g a (new)
Article 4 – point g a (new)
(ga) Importers shall inform the authorities within one month of any changes regarding the description of the mineral and metals imported by them.
Amendment 155 #
Proposal for a regulation
Article 7 – paragraph 3 – point a
Article 7 – paragraph 3 – point a
(a) name and address of each of the responsible smelters or refiners and/or any other intermediary in its supply chain,
Amendment 157 #
Proposal for a regulation
Article 7 – paragraph 3 – point b
Article 7 – paragraph 3 – point b
(b) independent third-party audits regarding each of the responsible smelters or refiners and/or any other intermediary in its supply chain carried out in accordance with the scope, objective and principles set out in Article 6 of the Regulation,
Amendment 163 #
Proposal for a regulation
Article 8 – title
Article 8 – title
List of responsible smelters and refinimporters
Amendment 166 #
Proposal for a regulation
Article 8 – paragraph 1
Article 8 – paragraph 1
1. On the basis of the information provided by the Member States in their reports as referred to in Article 15, the Commission shall adopt and make publicly available a decision listing the names and addresses of responsible smelters and refinimporters of minerals within the scope of this Regulation.
Amendment 171 #
Proposal for a regulation
Article 8 – paragraph 4
Article 8 – paragraph 4
4. The Commission shall update the information included in the list in a timely manner. TEvery six months, the Commission shall remove from the list the names of the smelters and refinimporters that are no longer recognised as responsible importers by Member States in accordance with Article 14(3), or the names of the smelters and refiners in the supply chain of the no longer recognised responsible importers.
Amendment 186 #
Proposal for a regulation
Article 12 a (new)
Article 12 a (new)
Article 12 a Definition of 'conflict area' or 'high risk area': The Commission shall, in close cooperation with the European External Action Service, make available to the public and companies adequate information as to what is meant by 'conflict area' or 'high risk area' and how they are defined.
Amendment 195 #
Proposal for a regulation
Article 14 – title
Article 14 – title
Rules applicable to infringement and penalties
Amendment 196 #
Proposal for a regulation
Article 14 – paragraph 1
Article 14 – paragraph 1
1. The Member StatesCommission shall lay down the rulpenalties applicable to infringements of the provisions of this Regulation and communicate these to the Member States. The penalties provided for must be effective, proportionate and dissuasive. The Commission shall determine the measures necessary to ensure that they are implemented.
Amendment 198 #
Proposal for a regulation
Article 14 – paragraph 2
Article 14 – paragraph 2
2. In case of an infringement of the provisions of this Regulation, the competent authorities of Member States shall issue a notice ofnotify the responsible importer of the remedial action to be taken by the responsible importerhim.
Amendment 200 #
Proposal for a regulation
Article 14 – paragraph 4
Article 14 – paragraph 4
Amendment 204 #
Proposal for a regulation
Article 15 – paragraph 3
Article 15 – paragraph 3
3. Three years after the entry into force of this Regulation and every six years thereafter, the Commission shall review the functioning and effectiveness of this Regulation, including on the promotion and cost of responsible sourcing of the minerals within its scope from conflict- affected and high-risk areas including political guidelines and taking into account the effectiveness of the accompanying measures. The Commission shall examine the possibility of extending these arrangements to other minerals and metals under the provisions of this paragraph. The Commission shall submit a review report to the European Parliament and to the Council.
Amendment 207 #
Proposal for a regulation
Article 15 – paragraph 3 a (new)
Article 15 – paragraph 3 a (new)
3a. This Regulation provides for a transitional two-year period to allow importers of minerals and metals falling within its scope to comply with the obligations of due diligence.
Amendment 208 #
Proposal for a regulation
Article 15 – paragraph 3 b (new)
Article 15 – paragraph 3 b (new)
3b. Any changes to the OECD guidelines shall apply mutatis mutandis to this regulation.
Amendment 210 #
Proposal for a regulation
Article 15 a (new)
Article 15 a (new)
Amendment 372 #
Proposal for a regulation
Article 15 a (new)
Article 15 a (new)
Article 15a Accompanying measures 1. The European Union delegations in the countries that coincide with ‘conflict- affected and high-risk areas’ within the meaning of Article 2(e) of this Regulation are to: (a) draw up and update maps of mines that represent a risk, where illegal exploitation is fuelling conflict. They can make use of information gathered by local and international non-governmental organisations, international organisations such as the UN and the OECD, the Member States’ diplomatic networks, private sector due diligence initiatives and the country’s national and local authorities; (b) provide the most reliable possible information on the conflict and mining activities to EU operators in the country. This information is to be communicated on request to EU operators in the country via a natural resources contact point in each delegation concerned; 2. The EEAS in Brussels shall centralise information on conflict minerals gathered by delegations and make it available to companies;
Amendment 373 #
Proposal for a regulation
Article 15 b (new)
Article 15 b (new)
Article 15b The Commission and the EEAS shall engage in political dialogue with the governments of the countries that extract and produce minerals in order to raise awareness of the need for responsible mining operations and to help them put an end to the financing of conflicts by exploitation of minerals;
Amendment 374 #
Proposal for a regulation
Article 15 c (new)
Article 15 c (new)
Article 15c The Union shall establish a dialogue on the need to combat the financing of armed conflicts by means of expoitation of minerals, in the framework of its political and diplomatic relations with: (a) The countries that have legislation designed to combat the exploitation of conflict minerals or that have due diligence initiatives in place; (b) The countries that have significant mineral processing industries;
Amendment 375 #
Proposal for a regulation
Article 15 d (new)
Article 15 d (new)
Article 15d The European Union shall support the initiative of the States taking part in the International Conference on the Great Lakes Region (ICGLR) as adopted in the Declaration at the Lusaka Summit in December 2010 on the fight against the illegal exploitation of natural resources in the Great Lakes Region, and shall work in partnership with these countries to monitor and put an end to the exploitation of conflict minerals;
Amendment 376 #
Proposal for a regulation
Article 15 e (new)
Article 15 e (new)
Article 15e An exchange network of good practice on due dilegence shall be put in place on the initiative of the Commission and the EEAS. It shall bring together the various actors who have taken Responsible Supply Chain initiatives, and representatives of the OECD and the United Nations;
Amendment 377 #
Proposal for a regulation
Article 15 f (new)
Article 15 f (new)
Article 15f The High Representative of the Union for Foreign Affairs and Security Policy and national diplomats from the Member States shall put the issue of conflict minerals on the agenda of the United Nations General Assembly and Security Council;
Amendment 378 #
Proposal for a regulation
Article 15 g (new)
Article 15 g (new)
Article 15g The European Union Stability Instrument shall be used to finance projects to combat the illegal exploitation of minerals, particularly projects that are designed to raise awareness among the public authorities, private sector actors and civil society organisations, or that help to put an end to the financing of conflicts by exploitation of minerals, and must have adequate resources to achieve these objectives;
Amendment 379 #
Proposal for a regulation
Article 15 h (new)
Article 15 h (new)
Article 15h The Commission and the EEAS, together with the national and local authorities of partner countries, shall put in place projects that favour good governance, the fight against corruption and the fight against arms trading;
Amendment 380 #
Proposal for a regulation
Article 15 i (new)
Article 15 i (new)
Article 15i In its dialogue with third countries, the European Union shall encourage the establishment of social standards and minimum health and safety standards in order to improve miners’ working conditions. The European Union shall urge these countries to combat child labour in the mines;
Amendment 381 #
Proposal for a regulation
Article 15 j (new)
Article 15 j (new)
Article 15j The Commission and the Member States must be prepared to help partner countries of the European Union that are affected by the exploitation of conflict minerals when setting up projects to reform the safety system and reform the legal system;
Amendment 382 #
Proposal for a regulation
Article 15 k (new)
Article 15 k (new)
Article 15k The European Union and the United Nations shall increase their cooperation in UN peacekeeping operations with regard to the monitoring and combating of illegal mining operations in conflict countries;