Activities of Jens GEIER related to 2020/2043(INI)
Opinions (1)
OPINION towards a WTO-compatible EU carbon border adjustment mechanism
Amendments (20)
Amendment 5 #
Draft opinion
Paragraph 1
Paragraph 1
1. Welcomes the Paris Agreement, as an international commitment to fight climate change and underlines the necessity to conduct a thorough evaluation of all international rulebooks regarding their compatibility with the climate goals; welcomes the European efforts in this regard like the Green Deal and the goal tof achieve a cost-efficient, just, socially balanced and fair transition leading to climate neutrality by 2050; notes the lack of international climate efforts at the latest; notes with concern the lack of sufficient ambitious international climate efforts and measures, especially with regard to implementing the decisions made under the Paris Agreement, as well as the withdrawal of the USA from the Agreement; believes that an EU carbon border adjustment mechanism (‘“the mechanism’”) could incentivian incentivize low-emission imports to the EU, market creation of low- emission technologies and products in the EU, increased international efforts to combat climate change and be a first step towards international carbon pricing as decentralised climate protection measures are not sufficient to combat climate- change;
Amendment 13 #
Draft opinion
Paragraph 1 a (new)
Paragraph 1 a (new)
1a. Notes that the EU is the world’s largest carbon importer and that the carbon content of exported goods from Europe lies well below the carbon content of imported goods; deduces that European efforts to combat climate change are higher than the average international efforts; highlights that in order to measure overall climate impact of the Union the reporting method should not only take into consideration the territorial emissions, but also emissions from the imports to the EU;
Amendment 22 #
Draft opinion
Paragraph 2
Paragraph 2
2. Underlines that international carbon pricing and fully competitive low-emission solutions would render the mechanism obsolete; stresses, therefore, that the EU needs to step up efforts in this respect;the mechanism cannot help against indirect carbon- leakage; further underlines that sufficient international climate efforts, such as through an international carbon pricing and fully competitive low-emission technologies, products and production processes will render the mechanism obsolete; encourages the Commission to design the mechanism as a transitional measure and to step up efforts in this respect by establishing a thorough framework to support industry and society in the low-carbon transition and by engaging in climate diplomacy.
Amendment 32 #
Draft opinion
Paragraph 2 a (new)
Paragraph 2 a (new)
2a. Stresses that the mechanism should ensure predictability for the European industry, as well as for trading partners;
Amendment 36 #
Draft opinion
Paragraph 3
Paragraph 3
3. Emphasises that decentralised climate actions can lead to carbon -leakage leading to an increase of global emissions and a competitive disadvantage on international markets for the EU industry; urges the Commission, therefore, to ensure full and that they hence put at risk European jobs and value chains; stresses that the EU industry suffers increased economic pressure due to cheap imports from trading partners and the COVID-19 crisis; thus urges the Commission to ensure full and effective climate and carbon-leakage protection and to consider the inclusion of export rebates in the design of the mechanism;
Amendment 63 #
Draft opinion
Paragraph 4
Paragraph 4
4. Suggests a progressive mechanism that, firstly includesing sectors with the highest risk of carbon -leakage beforeand being enlarged over time; stressesbelieves that such a design could reduce international retaliation and serve as a test phase for EU industry; stresses however that this should not lead to internal market distortions;
Amendment 68 #
Draft opinion
Paragraph 5
Paragraph 5
5. Stresses the need to limit international retaliation measures against the EU caused by the mechanism; in order to minimise negative effects on the European trade balance and the EU industry; encourages the Commission to make the mechanism World Trade Organization-compatibleensure a level-playing field in international trade paying due respect to the principles of a free and fair global market; thus urges the Commission make the mechanism WTO-compatible, preferably by using articles XX(b)and (g) that allow WTO members to justify GATT-inconsistent measures if these are either necessary to protect human, animal or plant life or health and to takhave a multilateral approach to its design by involving international trading partners by making it part of the negotiations for multilateral environmental agreements while taking into consideration the European Union's position as the world's largest trading block; underlines that the mechanism shall not be a prerogative for the EU to foster protectionism vis-a-vis third countries;
Amendment 71 #
Draft opinion
Paragraph 5 a (new)
Paragraph 5 a (new)
5a. Underlines that a well-working mechanism, under which a distinctive definition of the carbon leakage that shall be prevented is included and that puts Europe in the position to fight carbon- leakage, requires a complex design and calculation method to determine carbon contents of products; recognizes that the more complex the mechanism and the calculation of the adjustment needed to be paid by importers, the more effective climate and carbon-leakage protection can be; calls nonetheless on the Commission to consider technical feasibility and the availability of reliable data for and from importers and exporters in case of export rebates; stresses that the European calculation system should not result in disadvantages for European industries;
Amendment 75 #
Draft opinion
Paragraph 5 b (new)
Paragraph 5 b (new)
5b. Calls on the Commission to come up with a design and method of calculation that takes account as much as possible of the actual carbon content of the concerned good ; at the same time the calculation method should not refer to the EU average when establishing the carbon contents of products since that would strongly reduce the effectiveness of the instrument; further notes that the design and calculation method must aim to ensure the most effective climate and carbon-leakage protection, while respecting WTO-rules;
Amendment 80 #
Draft opinion
Paragraph 5 c (new)
Paragraph 5 c (new)
5c. Notes that the determination of the carbon content of an end- or intermediate product is difficult due to international value chains; further notes with concern that a mechanism only based on basic materials could lead to a shift in imports towards intermediate and end products not covered by the mechanism and harm the EU industry; points out that the mechanism needs to be designed in way that prevents circumventing behaviour such as resource shuffling or importing semi-finished or end products not covered under the mechanism;
Amendment 82 #
Draft opinion
Paragraph 5 d (new)
Paragraph 5 d (new)
5d. Further notes that, in order to prevent unfair competition on the European market, no competitive disadvantages should be created by the mechanism amongst competing materials;
Amendment 83 #
Draft opinion
Paragraph 5 e (new)
Paragraph 5 e (new)
5e. Calls on the Commission to provide technical advice and support to industries at home and abroad, especially for SMEs, in setting up reliable greenhouse gas emissions accounting systems for imports and potential export rebates in order to maintain a strong European industry while continuing good relations with trading partners; further calls on the Commission to ensure that importers are allowed to demonstrate low carbon content of their products, giving them the opportunity to lower the carbon payment for these products; call on the Commission to guarantee the feasibility with the ETS;
Amendment 84 #
Draft opinion
Paragraph 5 f (new)
Paragraph 5 f (new)
5f. Notes that there is difficulties in collecting verified and reliable data concerning the carbon content of the imported products; stresses the importance of establishing a thorough monitoring, reporting and verification system in order to evaluate the efficiency of the mechanism regarding climate and carbon leakage protection; considers that independent third party verification could be considered as a tool to ensure the reliability of the data;
Amendment 85 #
Draft opinion
Paragraph 5 g (new)
Paragraph 5 g (new)
5g. Underlines that the inclusion of importers in the EU ETS by obliging to buy CO2 allowances according to the carbon content of their imports could lead to a significant and unpredictable increase in carbon prices in addition to the increase foreseen by the ETS itself by lower free allocation, the market stability reserve and the linear reduction factor that could facilitate achieving our climate goals in the EU, leading to an unbearable burden for European industry that is unproportioned to the EU industry’s decarbonisation efforts and exacerbating carbon-leakage risks;
Amendment 86 #
Draft opinion
Paragraph 5 h (new)
Paragraph 5 h (new)
5h. Believes that the mechanism should take account of the specific situations of least developed countries that have not emitted much historically; stresses that it should not hamper their sustainable development;
Amendment 88 #
Draft opinion
Paragraph 6
Paragraph 6
6. Underlines that according to the European Parliament resolution of 14 November 2018 on the Multiannual Financial Framework 2021-2027,the resources incurred by the mechanism are toshall be considered EUuropean own resources; is convinced that these resources must be used for climate measuresshall be solely used for measures to achieve climate-neutrality, for example carbon- neutral and sustainable industrial production processes, recycling and material efficiency or to finance administrative costs incurred by the mechanism;
Amendment 98 #
Draft opinion
Paragraph 6 a (new)
Paragraph 6 a (new)
6a. Notes that the mechanism could lead to higher product prices for consumers; underlines that consumers, especially those with low incomes, should not suffer from a higher burden on their purchasing power; calls on the Commission and Member States to assess the potential impacts on living standards, especially those of vulnerable groups of our society, and to establish effective transfer mechanisms;
Amendment 99 #
Draft opinion
Paragraph 6 b (new)
Paragraph 6 b (new)
6b. Stresses the need to consider the complementary role of improved product standards in line with the EU Circular Economy Action Plan; emphasises that product standards can ensure low-carbon, resource-efficient manufacturing as well as help to guarantee minimal negative environmental impacts from product use;
Amendment 101 #
Draft opinion
Paragraph 7
Paragraph 7
7. Calls on the Commission to conduct an thorough impact assessment ofn different mechanisms and designs to incentivis, including a carbon tax on consumption and carbon footprint requirements in public procurement, before presenting a legislative proposal in order to evaluate in how far they incentivize international climate action and prevent carbon- leakage before prese; the assessment should also analyse the possibility to transitionally maintaing a legislative proposal. free allowances under the ETS and/or electricity price compensation while slowly phasing in the mechanism;
Amendment 110 #
Draft opinion
Paragraph 7 a (new)
Paragraph 7 a (new)
7a. Emphasises the importance of the European Parliament to ensure the representation of European citizens and interests, as well as for the achievement of EU priorities such as climate protection and international competitiveness; therefore calls on the Commission and the Council to fully involve the European Parliament as co-legislator in the legislative process to establish the mechanism.