28 Amendments of Ondřej KOVAŘÍK related to 2021/0214(COD)
Amendment 118 #
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 allocation under the EU ETS weakens the price signal that the system provides for the installations receiving it compared to full auctioning and thus affects the incentives for investment into further abatement of emissions.
Amendment 123 #
Proposal for a regulation
Recital 11
Recital 11
(11) The CBAM seeks to gradually replace 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 and by ensuring that EU export products are not replaced by more carbon-intensive products, which would undermine the objective of free allowances to the CBAM,ducing global emissions. the CBAM should be progressively phased in while free allowances in sectors covered by the CBAM are phased outgradually phased out after an assessment by the Commission has proven that the regulation is effective in protection from the risk of carbon leakage for both imports and exports. The gradual phase-out of free allowance is essential to ensure a just transition for energy- intensive sectors. 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 126 #
Proposal for a regulation
Recital 11
Recital 11
(11) The CBAM seeks to replace 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 until they are completely eliminated. 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 and should remain WTO-compliant. The transition period should provide regulatory certainty to resource- and energy-intensive industries and a predictable timeline for all stakeholders. The Commission should also review the financial measures to compensate for indirect emission costs with a view to phasing them out as CBAM indirect emissions are phased in. The Commission should ensure this phase out design guarantees a level playing field for the EU industry and takes into account EU electricity market specificities.
Amendment 130 #
Proposal for a regulation
Recital 11 a (new)
Recital 11 a (new)
(11a) While the surrendering of CBAM certificates for EU imports addresses the risk of carbon leakage on the EU market, it is essential to avoid also the risk that EU exports on global markets are replaced by more carbon intensive goods or by goods that are not subject to equivalent climate policy and carbon costs. To this purpose if the assessment of the effectiveness of the CBAM in tackling carbon leakage both on EU and global markets is positive, after the test period2026-2028, in 2029 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 .If the report concludes that the surrendering of CBAM certificates by importers is effective in addressing the carbon leakage risk on the EU market and that the free allocation rules related to EU domestic sales should be amended, the legislative proposal shall ensure the maintenance of free allocation related to EU exports and provide the calculation methodology for determining this allocation.
Amendment 133 #
Proposal for a regulation
Recital 11 a (new)
Recital 11 a (new)
(11a) The phasing-out of free allowances should be accompanied by the introduction of support measures for exports that would remain WTO- compliant and consistent with the EU’s environmental objectives. These measures should include partial export rebates based on the existing benchmark logic of most-carbon-efficient producers, not refunding more than the current level of free allowances, in order to maintain strong decarbonisation incentives while ensuring a level playing field for EU exports.
Amendment 169 #
Proposal for a regulation
Recital 19 a (new)
Recital 19 a (new)
(19a) In order not to disproportionately hinder existing trade flows by CBAM obligations, we must do the utmost to reduce unnecessary administrative burden, for instance by recognition of third countries’ emission monitoring systems.
Amendment 197 #
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 may be extended talso cover alsos indirect emissions in the future.
Amendment 215 #
Proposal for a regulation
Recital 52
Recital 52
(52) The Commission should evaluate the application of this Regulation before the endstart of the transitional periodremoval of free allowances in ETS 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 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 should 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 225 #
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 242 #
Proposal for a regulation
Recital 61 a (new)
Recital 61 a (new)
(61a) It is crucial that a level playing field in internationally operating sectors such as aviation and the maritime industry is ensured. For aviation, this concerns routes with a high share of connecting passengers to destinations outside the EEA. For the maritime sector, ships hulls and other shipbuilding equipment built outside the Union is sensitive to a potential competitive disadvantage. Both sector’s specificities will need to be considered. Therefore, the Commission should explore mechanisms to mitigate potential competitive distortion between feeder flights from EU and non- EU hubs as well as between EU and third country shipbuilding players.
Amendment 253 #
Proposal for a regulation
Article 1 – paragraph 3
Article 1 – paragraph 3
3. The mechanism will 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 mechanism shall first prove to be effective to prevent the risk of carbon leakage both for imports into or exports from the customs territory of the Union, 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.
Amendment 255 #
Proposal for a regulation
Article 1 – paragraph 3
Article 1 – paragraph 3
3. The mechanism will 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 and the financial measures to compensate for indirect emission costs in accordance with Article 10a and 10b of that Directive.
Amendment 272 #
Proposal for a regulation
Article 3 – paragraph 1 – point 16
Article 3 – paragraph 1 – point 16
(16) ‘embedded emissions’ mean direct emissions released during the production of goods, calculated pursuant to the methods set out in Annex III, and indirect emissions pursuant to the methods to be defined by the Commission in accordance with Article 7(6);
Amendment 302 #
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 Article 18 and in line with the competences established in Article 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 308 #
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 installation in a central database referred to in Article 14(4).
Amendment 317 #
Proposal for a regulation
Article 10 – paragraph 8
Article 10 – paragraph 8
8. The operator may, at any timefter 10 years, ask to be deregistered from the database.
Amendment 467 #
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. , or undermining their effects, including on overall GHG emissions and on prices of the like products.
Amendment 472 #
Proposal for a regulation
Article 27 – paragraph 2 a (new)
Article 27 – paragraph 2 a (new)
2a. 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 consignment 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 the purposes of this sub-point, resource shuffling shall be defined as any practice, process or work that 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 GHG emissions; (e) in the circumstances indicated in paragraph 2, the assembly of parts by an assembly operation in the Union or a third country; (f) Any other measure to eventually avoid 6 or evade obligations as laid down in this Regulation, or undermine their effects, including on overall GHG.
Amendment 476 #
Proposal for a regulation
Article 27 – paragraph 3
Article 27 – paragraph 3
3. A Member State or any party affected or benefitted by the situations described in paragraph 2 may notify the Commission if it is confronted, over a two- month period compared with the same period in the preceding year with a significant decrease in the volume of imporFollowing a complaint from an interested party or on its own initiative, the Commission may decide, following an investigation, to extend goods included in the scope ofobligations laid down in this Rregulation and an increase of volume of imports of slightly modified products, which are not included in the list of goods in Annex I. The Commission shall continually monitor any significant change of pattern of trade of goods and slightly modified products at Union level, in whatever way is necessary to prevent future circumvention of the Mechanism, when circumvention of the measures in force is taking place.
Amendment 480 #
Proposal for a regulation
Article 27 – paragraph 4
Article 27 – paragraph 4
4. The notificatDecisions referred to in the third paragraph 3 shall state the reasons on which it is based and shall include relevant data and statistics regarding the goods and products referred to in paragraph 2be subject to the appeal procedure as set out in Article 30.
Amendment 483 #
Proposal for a regulation
Article 27 – paragraph 5
Article 27 – paragraph 5
5. Where the Commission, taking into account the relevant data, reports and statistics, incluInvestigations shall be initiated pursuant to this Article on the initiative of the Commission or at the request of a Member State or of any interested party on the basis of sufficient evidence regarding wthen provided by the customs authorities of Member States, has sufficient reasons to believe that the circumstances referred to in paragraph 3 are occurring in one or more Member States, it is empowered to adopt delegated acts in accordance with Article 28 to supplement the scope of this Regulation in ord factors set out in the second paragraph. 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 an interested party or a Member State has submitted a request justifying the initiation of an investigation and the Commission has completed its analysis thereof, or where to include slightly modified products for anti-circumvention purposes. he Commission has itself determined that there is a need to initiate an investigation.
Amendment 490 #
Proposal for a regulation
Article 27 – paragraph 5 a (new)
Article 27 – paragraph 5 a (new)
5a. 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 492 #
Proposal for a regulation
Article 27 – paragraph 5 b (new)
Article 27 – paragraph 5 b (new)
5b. 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 504 #
Proposal for a regulation
Article 30 – paragraph 1
Article 30 – paragraph 1
1. The Commission shall collect the information necessary with a view to extending the scope of this Regulation to indirect emissions and goods other, transportation services such as air transport, manufacturing of transport equipment such as ship hulls and floating structures, and other goods than those listed in Annex I, and develop methods of calculating embedded emissions based on environmental footprint methods.
Amendment 508 #
Proposal for a regulation
Article 30 – paragraph 1
Article 30 – paragraph 1
1. The Commission shall collect the, in consultation with the relevant stakeholders, the information necessary information necessary with a view to extending the scope of this Regulation to indirect emissions and goods other than those listed in Annex I, and develop methods of calculating embedded emissions based on environmental footprint methods.
Amendment 511 #
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, based on the information collected under paragraph 1, to the European Parliament and the Council on the application of this Regulation. The report shall contain, in particular, 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 contain the assessment of the possibility to further extend the scope to embedded emissions of transportation services as well asf the assessment shows that other sectors need to be included in the scope of this Regulation to goods further down the value chain and transportation services that may be subject to the risk of carbon leakage in the future, the report by the Commission shall be accompanied by a legislative proposal to extend the scope to these sectors.
Amendment 513 #
Proposal for a regulation
Article 30 – paragraph 2
Article 30 – paragraph 2
2. Before the endstart of the transitional periodremoval of free allowances under ETS, 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, and assess if the conditions are in place for the effective implementation of a CBAM before phasing our free allocations. The report shall contain, in addition, in-depth assessment, developed in close cooperation with the industrial sectors, of the rules to be applied in the testing period established pursuing to article 30bis and 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 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.
Amendment 519 #
Proposal for a regulation
Article 30 – paragraph 2 a (new)
Article 30 – paragraph 2 a (new)