64 Amendments of Gabriel MATO related to 2021/0214(COD)
Amendment 83 #
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 of carbon leakage resulting from the increased Union climate ambition. The CBAM is also consistent with the EU's objective of Open Strategic Autonomy.
Amendment 88 #
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 allocatExisting carbon leakage measures are based on strict benchmarks established by the best- performing installations. These measures also represents an incentive to reduce emissions under the EU ETS weakens the price signal that the system provideshile also providing a carbon price signal for emissions above the benchmark level; they have proven so foar the installations receiving it compared to full auctioning and thus affects the incentives for investment into further abatement of emissionso be effective in reducing the risk of carbon leakage, although in the context of lower carbon prices than those experienced recently and those forecasted by 2030.
Amendment 96 #
Proposal for a regulation
Recital 11
Recital 11
(11) The CBAM seeks to replacestrengthen carbon leakage protection in view of higher EU climate ambitions by 2030 and thereafter replace progressively 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 and by ensuring that EU products exported in the global market are not replaced by more carbon intensive products, which would undermine the objective of reducing global emissions. To ensure a gradual transition from the current system of free allowances to the CBAM, free allowances should only be phased out once the CBAM regulation has proven its effectiveness in terms of protection from the risk of carbon leakage both for imports and exports, not before 2030 and only following a three years test phase running from 2026 to 2028 during which the effectiveness of the mesure will be throughly assessed by the Commission. The combined and transitional application of EU ETS allowances allocated free of charge and of the CBAM should in no case result in more favourable treatment for Union goods compared to goods imported into the customs territory of the Union.
Amendment 114 #
Proposal for a regulation
Recital 12 a (new)
Recital 12 a (new)
(12 a) While the surrenderingof 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 leakageassociated with European exports to third countries that have not yet limited or priced GHG emissions at the same levels as the EU.
Amendment 116 #
Proposal for a regulation
Recital 12 b (new)
Recital 12 b (new)
(12 b) This Regulation does not apply to goods exported from the EU and therefore does not address carbon leakage associated with exports. Consequently, the Commission should monitor and evaluate the mechanism’s impact on export markets and, if the assessment of the effectiveness of the CBAM in tackling carbon leakage on the EU market is positive, after the three year test period, the Commission shall present a report to the European Parliament and Council accompanied with a legislative proposal to address the carbon leakage risk on export markets while starting the free allocation phase out as set out in the ETS directive.
Amendment 119 #
Proposal for a regulation
Recital 12 c (new)
Recital 12 c (new)
(12 c) If European industries producing goods subject to the CBAM face significant difficulties as a result of its implementation, the Commission develops an in-depth assessment in close collaboration with the industrial secotrs. This assessment should be completed as soon as possible to determine whether the mechanism is effective and practible.
Amendment 121 #
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. However, the CBAM should be combined with rules addressing the exports component, such as the implementation of full or partial export duty exemptions, in order to fully eliminate concerns of carbon leakage and protect the competitiveness of European exported goods. Such a mechanism would be in line with the rules provided by the WTO Agreement on Subsidies and Countervailing Measures (ASCM).
Amendment 132 #
Proposal for a regulation
Recital 15
Recital 15
(15) In order to exclude from the CBAM third countries or territories fully integrated into, or linked, to the EU ETS and where the carbon cost burden is equivalent to that under the EU ETS, in the event of future agreements, the power to adopt acts in accordance with Article 290 of TFEU should be delegated to the Commission in respect of amending the list of countries in Annex II. Conversely, those third countries or territories should be excluded from the list in Annex II and be subject to CBAM whereby they do not effectively charge the ETS price on goods exported to the Union.
Amendment 135 #
Proposal for a regulation
Recital 16 a (new)
Recital 16 a (new)
(16 a) The implementing act pursuant to Article 7(6) shall include all input materials that contribute significantly to GHG emissions. In the case of stainless steel (CN codes 7218-7223), ferro-alloys shall be included in the list of input materials as they fulfil this criterion.
Amendment 147 #
Proposal for a regulation
Recital 20
Recital 20
(20) The CBAM system has some specific features compared with the EU ETS, including on the calculation of the price of CBAM certificates, on the possibilities to trade certificates and on their validity over time. These are due to the need to preserve the effectiveness of the CBAM as a measure preventing carbon leakage over time and to ensure that the management of the system idoes not add excessively burdensome administrative burden to EU companies in terms of obligations imposed on the operators and of resources for the administration, while at the same time preserving an equivalent level of flexibility available to operators under the EU ETS.
Amendment 156 #
Proposal for a regulation
Recital 23 a (new)
Recital 23 a (new)
(23 a) Given the unique nature of the CBAM and the need forclose EU coordination, a CBAM authority at the EU level should be established to properly implement and monitor the provisions contained in this regulation.
Amendment 157 #
Proposal for a regulation
Recital 24
Recital 24
(24) In terms of sanctions, Member Statesthe EU Central Authority should apply penalties to infringements 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. However, in case of circumvention or absorption practices or in case of repeated infringements of the provisions of the present Regulation, stronger penalties should apply to avoid undermining the effectiveness of the CBAM regime.
Amendment 202 #
Proposal for a regulation
Recital 52
Recital 52
(52) The Commission should evaluate the application of this Regulation before the end of the 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 prevent distortion of competition in the EU and in global markets and possibly extend the scope to indirect emissions, as well as to other goods and services at risk of carbon leakage, and to develop methods of calculating embedded emissions based on the environmental footprint methods47 . With regard to indirect emissions, the evaluation shall take into account the exposure of EU producers to carbon costs passed on in electricity prices due to the functioning of the EU energy market. _________________ 47 Commission 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 216 #
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 232 #
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 235 #
Proposal for a regulation
Article 1 – paragraph 3
Article 1 – paragraph 3
3. The mechanism willshould progressively 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, if it has been proven to be effective in preventing carbon leakage both for imports into and exports from the Union’s custom territory, and without prejudice to maintaining EU ETS allowances free of charge at benchmark level until a test period with actual surrendering obligation by declarants running until 2030 has proven such effectiveness.
Amendment 262 #
Proposal for a regulation
Article 2 – paragraph 12
Article 2 – paragraph 12
12. The Union, may conclude agreements with third countries with a view to take account of carbon pricing mechanisms in these countries in the application of Article 9. These agreements shall not lead to undue preferential treatment of imports from third countries as regards the CBAM certificates to be surrendered and they must not take into account any carbon pricing mechanisms that are considered to be circumvention practices under Article 27.
Amendment 290 #
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 298 #
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 304 #
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. 18 and 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 313 #
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 installations in a central database referred to in Article 14(4).
Amendment 317 #
Proposal for a regulation
Article 10 – paragraph 6
Article 10 – paragraph 6
6. The records referred to in paragraph 5, point (c), shall be sufficiently detailed to enable the verification in accordance with paragraph 5, point (b), and to enable any competent authority to verify and to review, in accordance with Article 19(1), the CBAM declaration made by an authorised declarant to whom the relevant information was disclosed in accordance with paragraph 8.
Amendment 322 #
Proposal for a regulation
Article 10 – paragraph 8
Article 10 – paragraph 8
8. The operator may, at any timefter 5 years and with previous notification, ask to be deregistered from the database.
Amendment 325 #
Proposal for a regulation
Article 11 – title
Article 11 – title
11 Competent authoritiesy
Amendment 327 #
Proposal for a regulation
Article 11 – paragraph 1 – introductory part
Article 11 – paragraph 1 – introductory part
1. A central CBAM authority at the EU level is established for the purpose of implementing and managing this Regulation.Its composition and tasks shall be established by way of separate Regulation. Each Member State shall designate the national competent authority to carry out the obligations and cooperate with the EU CBAM authority under this Regulation and inform the CommissionEU CBAM authority thereof.
Amendment 331 #
Proposal for a regulation
Article 11 – paragraph 1 – subparagraph 1
Article 11 – paragraph 1 – subparagraph 1
The Commission shall make available to the Member States a list of all competent national authorities and publish this information in the Official Journal of the European Union.
Amendment 332 #
Proposal for a regulation
Article 11 – paragraph 2
Article 11 – paragraph 2
2. Member States shall require that national competent authorities exchange any information that is essential or relevant to the exercise of their functions and duties through a network established under the responsibility of the EU CBAM authority.
Amendment 337 #
Proposal for a regulation
Article 12 – title
Article 12 – title
Commissionpetent authorities
Amendment 339 #
Proposal for a regulation
Article 12 – paragraph 1
Article 12 – paragraph 1
The CommissionEU CBAM authority shall be assisted by the competent national authorities in carrying out their obligations under this Regulation and coordinate their activities.
Amendment 342 #
Proposal for a regulation
Article 13 – paragraph 1
Article 13 – paragraph 1
All information acquired by the central and national competent authorityies in the course of performing itstheir dutyies which is by its nature confidential or which is provided on a confidential basis shall be covered by an obligation of professional secrecy. Such information shall not be disclosed by the competent authority without the express permission of the person or authority that provided it. It may be shared with customs authorities, the Commission and the European Public Prosecutors Office and shall be treated in accordance with Council Regulation (EC) No 515/97.
Amendment 349 #
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. Non- confidential summaries must be included with confidential information. Information equivalent to the one made publicly available for EU producers under the EU ETS central database shall be made public.
Amendment 351 #
Proposal for a regulation
Article 14 – paragraph 4
Article 14 – paragraph 4
4. The CommissionEU CBAM authority 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.The central database should insofar as possible, mirror the ETS database
Amendment 352 #
Proposal for a regulation
Article 15 – paragraph 1
Article 15 – paragraph 1
1. The CommissionEU CBAM authority shall act as central administrator to maintain an independent transaction log recording the purchase of CBAM certificates, their holding, surrender, re-purchase and cancellation and ensure coordination of national registries.
Amendment 355 #
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 as soon as possible from their identification and, where appropriate, penalties pursuant to article 27 shall apply.
Amendment 358 #
Proposal for a regulation
Article 16 – paragraph 1
Article 16 – paragraph 1
1. The national competent authority shall assign to each authorised declarant a unique CBAM account number which will be registered with the EU CBAM Authority.
Amendment 359 #
Proposal for a regulation
Article 17 – paragraph 1 – introductory part
Article 17 – paragraph 1 – introductory part
1. The national competent authority shall authorise a declarant who submits an application for authorisation in accordance with Article 5(1), if the following conditions are fulfilled:
Amendment 366 #
Proposal for a regulation
Article 17 – paragraph 2
Article 17 – paragraph 2
2. Where the national competent authority finds that the conditions listed in paragraph 1 are not fulfilled, or where the applicant has failed to provide the information listed in Article 5(3), the authorisation of the declarant shall be refused.
Amendment 367 #
Proposal for a regulation
Article 17 – paragraph 3
Article 17 – paragraph 3
3. If the national competent authority refuses to authorise a declarant, the declarant requesting the authorisation may, prior to an appeal, object to the relevant authority under national law, who shall either instruct the national administrator to open the account or uphold the refusal in a reasoned decision, subject to requirements of national law that pursue a legitimate objective compatible with this Regulation and are proportionate.
Amendment 368 #
Proposal for a regulation
Article 17 – paragraph 4 – introductory part
Article 17 – paragraph 4 – introductory part
4. A decision of the competent national authority authorising a declarant shall contain the following information
Amendment 370 #
Proposal for a regulation
Article 17 – paragraph 6 – introductory part
Article 17 – paragraph 6 – introductory part
6. The competent national authority shall require the provision of a guarantee in order to authorise a declarant in accordance with paragraph 1, if the declarant was not established throughout the two financial years that precede the year when the application in accordance with Article 5(1) was submitted.
Amendment 371 #
Proposal for a regulation
Article 17 – paragraph 6 – subparagraph 1
Article 17 – paragraph 6 – subparagraph 1
The competent national authority shall fix the amount of such guarantee at the maximum amount, as estimated by the competent authority, of the value of the CBAM certificates that the authorised declarant have to surrender, in accordance with Article 22.
Amendment 372 #
Proposal for a regulation
Article 17 – paragraph 7
Article 17 – paragraph 7
7. The guarantee shall be provided as a bank guarantee, payable at first demand, by a financial institution operating in the Union or by another form of guarantee which provides equivalent assurance. Where the competent national authority establishes that the guarantee provided does not ensure, or is no longer certain or sufficient to ensure the amount of CBAM obligations, it shall require the authorised declarant either to provide an additional guarantee or to replace the initial guarantee with a new guarantee, according to its choice.
Amendment 373 #
Proposal for a regulation
Article 17 – paragraph 8
Article 17 – paragraph 8
8. The competent national authority shall release the guarantee immediately after 31 May of the second year in which the authorised declarant has surrendered CBAM certificates in accordance with Article 22.
Amendment 375 #
Proposal for a regulation
Article 17 – paragraph 9
Article 17 – paragraph 9
9. The competent national authority shall revoke the authorisation for a declarant who no longer meets the conditions laid down in paragraph 1, or who fails to cooperate with that authority.
Amendment 376 #
Proposal for a regulation
Article 18 – paragraph 2
Article 18 – paragraph 2
Amendment 378 #
Proposal for a regulation
Article 18 – paragraph 3
Article 18 – paragraph 3
Amendment 380 #
1. The competententral and national authorityies 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 382 #
Proposal for a regulation
Article 19 – paragraph 1 – point 1 (new)
Article 19 – paragraph 1 – point 1 (new)
(1) The national competent authority shall inform the EU CBAM authority of the quantity and installation source of the exports. The EU CBAM authority shall inform the Commission of the data received so as to allow the Commissionto to make adjustments to the allowances to be surrendered for the intallation source of the exports.
Amendment 387 #
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 408 #
Proposal for a regulation
Article 26 – paragraph 4 a (new)
Article 26 – paragraph 4 a (new)
4 a. In case of repeated failure to surrender a number of CBAM certificates corresponding to the emissions embedded in goods imported during the previous year, or in case of submission of false information in the CBAM declaration, an authorized declarant, and any of its related parties, maybe automatically excluded from the register for a given period from the date of exclusion. The respective verifier – and any of its related parties - who has certified the accuracy of the information in the CBAM declaration should have its certification withdrawn by the central CBAM authority.
Amendment 412 #
Proposal for a regulation
Article 26 – paragraph 5
Article 26 – paragraph 5
5. Member StatesThe central CBAM authority may apply administrative or criminal sanctions for failure to comply with the CBAM legislation in accordance with their national rules in addition to penalties referred to in paragraphs 2 and 4a. Such sanctions shall be effective, proportionate and dissuasive.
Amendment 417 #
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, 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.
Amendment 419 #
2 a. The practice, process or work referred to in the first subparagraph include, inter alia: (a) the slight modification of the product concerned to make it fall under customs codes which are normally not subject to the obligations of this Regulation, provided that the modification does not alter its essential characteristics; (b) false declarations as to the identity of the producer of the product concerned or of the nature of the product concerned or the production process involved in making it; (c) the consignement of the product concerned via third countries to which no or more favourable obligations apply; (d) the reorganisation by exporters or producers of their patterns and channels of sales in order to eventually avoid obligations as laid down in this Regulation,or undermine their effects, including on overall GHG emissions and on prices of the like products, for instance via practices of resource shuffling;For thepurpose of this point, resource shuffling shall be defined as any practice, process or work 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 GHGemissions; (e) any other measure to eventually avoid or evade obligations as laid down in this Regulation, or undermine their effects, including onoverall GHG;
Amendment 429 #
Proposal for a regulation
Article 27 – paragraph 3
Article 27 – paragraph 3
Amendment 434 #
Proposal for a regulation
Article 27 – paragraph 3 a (new)
Article 27 – paragraph 3 a (new)
3 a. Following a notification from a Member State, an interested party or on its own initiative, the Commission may decide, following an investigation, to extend obligations laid down in this regulation, in whatever way is necessary to prevent future circumvention of the mechanism, when circumvention of the measures in force is taking place.
Amendment 437 #
Proposal for a regulation
Article 27 – paragraph 5
Article 27 – paragraph 5
Amendment 445 #
Proposal for a regulation
Article 27 – paragraph 5 a (new)
Article 27 – paragraph 5 a (new)
5 a. Decisions referred to in the third paragraph shall be subject to theappeal procedure as set out in Article 30.
Amendment 446 #
Proposal for a regulation
Article 27 – paragraph 5 b (new)
Article 27 – paragraph 5 b (new)
5 b. The Commission shall always investigate possible circumvention when notified by a Member State or an interested party. Initiations shall be made by means of a Commission regulation which shall also instruct customs authorities of Member States to subject imports to registration. The Commission shall provide information to the Member States once a party or a Member State has submitted a request to initiate an investigation and the Commission has completed its analysis thereof, or where the Commission has itself determined that there is a need to initiate an investigation.
Amendment 449 #
Proposal for a regulation
Article 27 – paragraph 5 c (new)
Article 27 – paragraph 5 c (new)
5 c. Investigations shall be carried out by the Commission. The Commission may be assisted by customs authorities and the investigation shall be concluded in due time.
Amendment 451 #
Proposal for a regulation
Article 27 – paragraph 5 d (new)
Article 27 – paragraph 5 d (new)
5 d. The Commission Decision finding circumvention shall impose a penalty pursuant to article 26 on an Authorised Declarant involved in the circumvention and, if appropriate, the operator of the installation located in the third country that is linked to the Authorised Declarant. Where appropriate, the penalty shall also entail the withdrawal of import authorisation and be extended to the operator.
Amendment 473 #
Proposal for a regulation
Article 30 – paragraph 2
Article 30 – paragraph 2
2. Before the end of the transitional period, the Commission shall present a report to the European Parliament and the Council on the application of this Regulation. The report shall contain, in particular, an in-depthe assessment ofdeveloped in cooperation with the sectors at risk of carbon leakage covered by this regulation of the rules to be applied in the testing period established pursuant art. 30bis and the possibilities to further extend the scope of embedded emissions to indirect emissions and to other goods at risk of carbon leakage than those already covered by this Regulation, as well as an assessment of the governance system as well as an assessment of the impact on competitiveness of the EU downstream industry. It shall also contain the assessment of the possibility to further extend the scope to embedded emissions of transportation services as well as to goods further down the value chain and services that may be subject to the risk of carbon leakage in the future. Such an extension should be considered only if a clear calculation methodology has been established by the Commission and once the mechanism has proven fully effective in terms of achieving its objective of carbon leakage protection.
Amendment 494 #
Proposal for a regulation
Article 30 a (new)
Article 30 a (new)
Article 30 a Before phasing out free allocation to sectors at risk of carbon leakage covered by this rule, the Commission will monitor and assess the mechanism's efficacy in terms of the risk of carbon leakage. To this purpose, the Commission shall publish a report to the European Parliament and the Council, following consultation with the sectors subject by this Regulation,evaluating: a. the first three years (2026-2028) of thesurrendering obligation pursuant to article 22; b. the risk of carbon leakage on export markets. If the assessment is positive, the report shall be accompanied by a legislativeproposal to phase out free allocation to sectors subject to this regulation and to adopt a solution to mitigate the risk of carbon leakage on the export market.
Amendment 542 #
Proposal for a regulation
Annex III – point 3 – paragraph 2 – introductory part
Annex III – point 3 – paragraph 2 – introductory part
Where AttrEmg are the attributed emissions of goods g, and ALg the activity level of the goods, the latter being the amount of goods produced in the reporting period in that installation, and EEInpMat are the embedded emissions of the input materials (precursors) consumed in the production process. Only input materials listed as relevant to the system boundaries of the production process as specified in the implementing act adopted pursuant to Article 7(6) are to be considered. The implementing act pursuant to Article 7 (6) shall include all input materials that contribute significantly to GHG emissions. In the case of stainless steel (CN codes 7218-7223), ferro-alloys shall be included in the list of input materials as they fulfil this criterion. The relevant EEInpMat are calculated as follows:
Amendment 547 #
Proposal for a regulation
Annex III – point 6
Annex III – point 6