25 Amendments of Nils TORVALDS related to 2021/0214(COD)
Amendment 135 #
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 Commission should regularly assess and monitor whether the CBAM encourages the use of more GHG emission-efficient technologies in third countries, in coordination with the affected industrial sectors and broader stakeholders, and provide additional measures where necessary.
Amendment 187 #
Proposal for a regulation
Recital 23 b (new)
Recital 23 b (new)
(23 b) All circumvention practices must be prohibited, including 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, thereby avoiding the obligations set out in this Regulation.
Amendment 195 #
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. 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. Specific attention should also be paid to the risk of market distortions between the different sectors covered by the CBAM, as well as between sectors covered by CBAM and those not covered by the mechanism, in terms of product substitution due to the lower price competitiveness of products subject to the CBAM regulation.
Amendment 207 #
Proposal for a regulation
Recital 32
Recital 32
(32) In particular, organic chemicals are not included in the scope of this Regulation due to technical limitations that do not allow to clearly define the embedded emissions of imported goods. For these goods the applicable and clearly defined benchmark under the EU ETS is a basic parameter, which does not allow for an unambiguous allocation of emissions embedded in individual imported goods. A more targeted allocation to organic chemicals will require more data and analysis., which should be carried out before the phase-in of the CBAM or during the transition period;
Amendment 215 #
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, after thorough data collection and analysis of its impact on the industries concerned, may be extended to cover also indirect emissions in the future.
Amendment 224 #
Proposal for a regulation
Recital 40
Recital 40
(40) An authorised declarant should be allowed to claim a reduction in the number of CBAM certificates to be surrendered corresponding to the carbon price already paid for those emissions in other jurisdictions., upon proving that no circumvention methods were used in the production of the declared goods;
Amendment 228 #
Proposal for a regulation
Recital 42 a (new)
Recital 42 a (new)
(42 a) If a registered producer declares false GHG emissions or is involved in any practice of circumvention of CBAM rules, it shall be deleted from the central database of authorised declarants and be subject to penalties. Where deemed appropriate, the penalty shall also entail the withdrawal of import authorization in the EU market until true and verifiable emissions are declared;
Amendment 248 #
Proposal for a regulation
Recital 50
Recital 50
(50) A transitional period should apply during the period 2023 until 2025 and shall be used for data collection and analysis of the impact of CBAM on the industries concerned, with particular focus of the potential impact of the phase- out of free allocations . A CBAM without financial adjustment should apply, with the objective to facilitate a smooth roll out of the mechanism hence reducing the risk of disruptive impacts on trade. Declarants should have to report on a quarterly basis the actual embedded emissions in goods imported during the transitional period, detailing direct and indirect emissions as well as any carbon price paid abroad.
Amendment 255 #
Proposal for a regulation
Recital 50 a (new)
Recital 50 a (new)
(50 a) The transitional period should serve to evaluate the overall efficiency of the CBAM in preventing carbon leakage and achieving emission reduction targets, as well as to evaluate its WTO compatibility and its effectiveness in encouraging external trade partners to adopt more ambitious climate policies.
Amendment 276 #
Proposal for a regulation
Recital 52 a (new)
Recital 52 a (new)
(52 a) If after the transitional period, the evidence collected by the Commission indicates that the potential costs of the CBAM outweigh its benefits and the CBAM cannot effectively protect European industries falling with its scope against carbon leakage, a further phase- in of the CBAM and phase-out of free allowances should be paused until an effective solution is found.
Amendment 291 #
Proposal for a regulation
Recital 55 a (new)
Recital 55 a (new)
(55 a) The Commission shall regularly inform the European Parliament on its progress in dialogue with third countries and on any possible negative impacts of the CBAM on the industries affected by this Regulation.
Amendment 300 #
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 and encourage external trade partners to pursue more ambitious climate goals on a global scale and not only in bilateral trade with the EU.
Amendment 309 #
Proposal for a regulation
Article 1 – paragraph 3
Article 1 – paragraph 3
3. The mechanism willshall, after a thorough analysis and simulation of its impact on carbon intensive industries and on their entire supply chains, 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. The gradual replacement shall be accompanied by a close monitoring of the effects on the competitiveness of the affected European industries, on the resulting carbon leakage and on emission reduction.
Amendment 328 #
Proposal for a regulation
Article 2 – paragraph 5 – point b a (new)
Article 2 – paragraph 5 – point b a (new)
(b a) c) the regulatory obligation and the net regulatory burden imposed in the country where the goods are originating in are equivalent to those imposed under the EU ETS.
Amendment 336 #
Proposal for a regulation
Article 2 – paragraph 7 – point c
Article 2 – paragraph 7 – point c
(c) the third country or territory has submitted a public and verifiable roadmap to the Commission, containing a timetable for the adoption of measures to implement the conditions set out in points (d) and (e);
Amendment 341 #
Proposal for a regulation
Article 2 – paragraph 9 – point a
Article 2 – paragraph 9 – point a
(a) if the Commission has reasons to consider that the country or territory has not shownproved sufficient progress to comply with one of the requirements listed in paragraph 7, points (a) to (f), or if the country or territory has taken any kind of action incompatible with the objectives set out in the Union climate and environmental legislation;
Amendment 357 #
Proposal for a regulation
Article 2 – paragraph 12
Article 2 – paragraph 12
12. The Union, may shall make it a priority to conclude agreements with third countries with a view to take account of carbon pricing mechanisms in these countries in the application of Article 9.
Amendment 511 #
Proposal for a regulation
Article 17 – paragraph 1 – point b a (new)
Article 17 – paragraph 1 – point b a (new)
(b a) the declarant has not repeatedly failed to comply with CBAM obligations in accordance to Article 26 and has not been involved in practices of circumvention in accordance to Article 27;
Amendment 592 #
Proposal for a regulation
Article 2 – paragraph 5 – point b a (new)
Article 2 – paragraph 5 – point b a (new)
(ba) the regulatory obligation and the net regulatory burden imposed in the country where the goods are originating in are equivalent to those imposed under the EU ETS.
Amendment 630 #
Proposal for a regulation
Article 27 – paragraph 5 a (new)
Article 27 – paragraph 5 a (new)
5a. Investigations shall be initiated by the Commission or at the request of a Member State or of any interested party on the basis of sufficient evidence regarding the factors set out in Paragraph 2. The Commission shall carry out investigations and impose a penalty on an authorised declarant involved in circumvention practices. Where deemed appropriate, the penalty shall also entail the withdrawal of import authorisation.
Amendment 653 #
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,highlight, in particular: a) whether the Regulation effectively achieves carbon cost equalisation between imported and domestic products. b) whether the CBAM effectively mitigates carbon leakage for both imports and exports. c) whether the CBAM effectively contributes to reducing carbon emissions in third countries. d) whether the CBAM operates effectively and does not lead to forms of circumvention. e) whether, based on the above, the gradual phase-out of free allocations given in relation to the production of products listed in Annex I of the Regulation shall be initiated. f) the assessment of 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. It shall also containg) 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.
Amendment 670 #
Proposal for a regulation
Article 30 – paragraph 3
Article 30 – paragraph 3
3. The report by the Commission shall, if appropriate, be accompanied by a legislative proposal to address in particular the risk of carbon leakage on export markets. This proposal shall consider WTO-compatible solutions such as export adjustment mechanisms that would equalise carbon costs, taking into account the carbon pricing schemes developed by third countries. Such export mechanisms shall be emission performance-based in order to preserve an incentive for GHG emission reduction.
Amendment 675 #
Proposal for a regulation
Article 30 – paragraph 3 a (new)
Article 30 – paragraph 3 a (new)
3a. Based on the report mentioned in Paragraph 2 and pending the development and adoption of the legislative proposal mentioned in Paragraph 3, the Commission shall either activate the phasing out of free allowances in relation to the products listed in Annex I of the regulation, or propose a revision of the Regulation.
Amendment 878 #
Proposal for a regulation
Article 17 – paragraph 1 – point b a (new)
Article 17 – paragraph 1 – point b a (new)
(ba) the declarant has not been involved in practices of circumvention in accordance with Article 27.
Amendment 1125 #
Proposal for a regulation
Article 30 – paragraph 2
Article 30 – paragraph 2
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,highlight, in particular: a) whether the Regulation effectively achieves carbon cost equalisation between imported and domestic products. b) whether the CBAM effectively mitigates carbon leakage for both imports and exports. c) whether the CBAM effectively contributes to reducing carbon emissions in third countries. d) whether the CBAM operates effectively and does not lead to forms of circumvention. e) whether, based on the above, the gradual phase-out of free allocations given in relation to the production of products listed in Annex I of the Regulation shall be initiated. f) the assessment of 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. It shall also containg) 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.