Activities of Miapetra KUMPULA-NATRI related to 2021/0211(COD)
Shadow opinions (1)
OPINION on the proposal for a directive of the European Parliament and of the Council amending Directive 2003/87/EC establishing a system for greenhouse gas emission allowance trading within the Union, Decision (EU) 2015/1814 concerning the establishment and operation of a market stability reserve for the Union greenhouse gas emission trading scheme and Regulation (EU) 2015/757
Amendments (19)
Amendment 53 #
Proposal for a directive
Recital 17
Recital 17
(17) In the European Green Deal, the Commission stated its intention to take additional measures to address greenhouse gas emissions from the maritime transport sector through a basket of measures to enable the Union to reach its emissions reduction targets. In this context, Directive 2003/87/EC should be amended to include the maritime transport sector in the EU ETS in order to ensure this sector contributes to the increased climate objectives of the Union as well as to the objectives of the Paris Agreement, which requires developed countries to take the lead by undertaking economy-wide emission reduction targets, while developing countries are encouraged to move over time towards economy-wide emission reduction or limitation targets.49 Considering that emissions from international aviation outside Europe should be capped from January 2021 by global market-based action while there is no action in place that caps or prices maritime transport emissions, it is appropriate that the EU ETS covers a share of the emissions from voyages between a port under the jurisdiction of a Member State and port under the jurisdiction of a third country, with the third country being able to decide on appropriate action in respect of the other share of emissions. The extension of the EU ETS to the maritime transport sector should thus include half of the emissions from ships performing voyages arriving at a port under the jurisdiction of a Member State from a port outside the jurisdiction of a Member State, half of the emissions from ships performing voyages departing from a port under the jurisdiction of a Member State and arriving at a port outside the jurisdiction of a Member State, emissions from ships performing voyages arriving at a port under the jurisdiction of a Member State from a port under the jurisdiction of a Member State, and emissions at berth in a port under the jurisdiction of a Member State. This approach has been noted as a practical way to solve the issue of Common but Differentiated Responsibilities and Capabilities, which has been a longstanding challenge in the UNFCCC context. The coverage of a share of the emissions from both incoming and outgoing voyages between the Union and third countries ensures the effectiveness of the EU ETS, notably by increasing the environmental impact of the measure compared to a geographical scope limited to voyages within the EU, while limiting the risk of evasive port calls and the risk of delocalisation of transhipment activities outside the Union. To ensure a smooth inclusion of the sector in the EU ETS, the surrendering of allowances by shipping companies should be gradually increased with respect to verified emissions reported for the period 2023 to 2025. To protect the environmental integrity of the system, to the extent that fewer allowances are surrendered in respect of verified emissions for maritime transport during those years, once the difference between verified emissions and allowances surrendered has been established each year, a corresponding a number of allowances should be cancelled. As from 2026, shipping companies should surrender the number of allowances corresponding to all of their verified emissions reported in the preceding year. However, northern shipping routes are dependent in winter on ice-class vessels to avoid environmental risks as oil spills. The ice class vessel generates higher emissions due to higher fuel consumption. There is also a price effect on the whole logistic ecosystem of the countries dependent on maritime transport and the maritime cluster developed in the icy environment. _________________ 49 Paris Agreement, Article 4(4).
Amendment 55 #
Proposal for a directive
Recital 17 a (new)
Recital 17 a (new)
(17a) The Commission, the Council and the European Parliament should work with third countries in order to facilitate acceptance of the provisions of Directive 2003/87/EC as regards maritime transport activities and to strengthen international cooperation in this area. International cooperation should be strengthened through bilateral agreements on market- based measures to reduce greenhouse gas emissions from maritime transport to cover the share of emissions that are not included in the EU ETS, so that one hundred percent (100%) of the emissions from ships performing voyages between Union and third country ports are covered by such measures. At the same time, the Commission, the Council and the European Parliament should work to strengthen global measures through the IMO.
Amendment 67 #
Proposal for a directive
Recital 25 a (new)
Recital 25 a (new)
(25a) To ensure that there is a level playing field for ships that navigate in ice conditions and other ships a specific method should be applied to take into account additional emissions related to navigation in ice conditions and additional emissions of ice-classed ships when sailing in open water, while ensuring that emissions trading through the ETS continues to drive down emissions in the maritime sector. To that end, relevant provisions on the transfer, surrender and cancellation of allowances under Directive 2003/87/EC should be modified accordingly.
Amendment 82 #
Proposal for a directive
Recital 30
Recital 30
(30) The Carbon Border Adjustment Mechanism (CBAM), established under Regulation (EU) […./..] of the European Parliament and of the Council51 , is an alternative to free allocation to address the risk of carbon leakage. To the extent that sectors and subsectors are covered by that measure, they should not receive free allocation. However, a transitional phasing-out of free allowances is needed to allow producers, importers and traders to adjust to the new regime. The reduction of free allocation should be implemented by applying a factor to free allocation for CBAM sectors, while the CBAM is phased in. Sufficient safeguards should nevertheless be provided for the products intended for exports and their producers. This percentage (CBAM factor) should be equal to 100 % during the transitional period between the entry into force of [CBAM Regulation] and 2025, 90 % in 2026 and should be reduced by 10 percentage points each year to reach 0 % and thereby eliminate free allocation by the tenth year. The relevant delegated acts on free allocation should be adjusted accordingly for the sectors and subsectors covered by the CBAM, taking into account the need to maintain free allowances for the products that are exported to the third countries not having carbon-pricing mechanisms similar to the ETS or similar or equivalent to EU ETS . The free allocation no longer provided to the CBAM sectors based on this calculation (CBAM demand) must be auctioned and the revenues will accrue to the Innovation Fund, so as to support innovation in low and zero carbon technologies, carbon capture and utilisation (‘CCU’), carbon capture and geological storage (‘CCS’), renewable energy and energy storage, in a way that contributes to mitigating climate change and respecting the rules set in State Aid Guidelines. Special attention should be given to projects in CBAM sectors. To respect the proportion of the free allocation available for the non- CBAM sectors, the final amount to deduct from the free allocation and to be auctioned should be calculated based on the proportion that the CBAM demand represents in respect of the free allocation needs of all sectors receiving free allocation. _________________ 51 [please insert full OJ reference]
Amendment 101 #
Proposal for a directive
Recital 32
Recital 32
(32) A comprehensive approach to innovation is essential for achieving the European Green Deal objectives. At EU level, the necessary research and innovation efforts are supported, among others, through Horizon Europe, which include significant funding and new instruments for the sectors coming under the ETS. Member States should ensure that the national transposition provisions do not hamper innovations and are technologically neutral. Consequently, the ETS Innovation Fund should seek synergies with Horizon Europe and, where relevant, with other Union funding programmes. The ETS Innovation Fund should boost growth and competitiveness by empowering EU businesses, in particular SMEs to become global technology leaders. The Fund should also support cross-cutting projects on innovative zero- carbon solutions to take off and reach the market, with the aim of leading to climate neutrality in various sectors, for example through new industrial ecosystems, promoting business model profitable for innovation. Member States should ensure that the national transposition provisions do not hamper innovations and are technologically neutral. In order to maximise the benefits of the Fund, public and private sectors should contribute through increased investments and knowledge sharing.
Amendment 122 #
Proposal for a directive
Recital 38
Recital 38
(38) The scope of the Modernisation Fund should be aligned with the most recent climate objectives of the Union by requiring that investments are consistent with the objectives of the European Green Deal and Regulation (EU) 2021/1119, and eliminating the support to any investments related to fossil fuels. In addition, the percentage of the Modernisation Fund that needs to be devoted to priority investments should be increased to 80 95%; energy efficiency should be targeted as a priority area at the demand side; and support ofthe Fund should also support a fair and Just Transition of workforce, through re-skilling and up- skilling and households to address energy poverty, including in rural and remote areas, should be included within the scope of the priority investments.
Amendment 131 #
Proposal for a directive
Recital 42
Recital 42
(42) The exclusion of installations using exclusively biomass from the EU ETS has led to situations where installations combusting a high share of biomass have obtained windfall profits by receiving free allowances greatly exceeding actual emissions. Therefore, aA threshold value for zero-rated biomass combustion should be introduced above which installations may opt-out are excluded from the EU ETS. The threshold value of 95 % is in line with the uncertainty parameter set out in Article 2(16) of Commission Delegated Regulation (EU) 2019/33156 . _________________ 56 Commission Delegated Regulation (EU) 2019/331 of 19 December 2018 determining transitional Union-wide rules for harmonised free allocation of emission allowances pursuant to Article 10a of Directive 2003/87/EC of the European Parliament and of the Council (OJ L 59, 27.2.2019, p. 8).
Amendment 154 #
Proposal for a directive
Recital 54
Recital 54
(54) Innovation and development as well as pilot, demonstration and up- scaling of new low-carbon technologies in the sectors of buildings and road transport are crucial for ensuring the cost-efficient contribution of these sectors to the expected emission reductions. Therefore, 150 million allowances from emissions trading in the buildings and road transport sectors should also be made available to the Innovation Fund to stimulate the cost-efficient emission reductions.
Amendment 217 #
Proposal for a directive
Article 1 – paragraph 1 – point 11 – point a
Article 1 – paragraph 1 – point 11 – point a
Directive 2003/87/EC
Article 10 – paragraph 1 – subparagraph 3
Article 10 – paragraph 1 – subparagraph 3
2 % of the total quantity of allowances between 2021 and 2030 shall be auctioned to establish a fund to improve energy efficiency , reduce greenhouse gas emission sand modernise the energy systems of certain Member States (‘the beneficiary Member States’) as set out in Article 10d (‘the Modernisation Fund’). The beneficiary Member States for this amount of allowances shall be the Member States with a GDP per capita at market prices below 60 % of the Union average in 2013. The funds corresponding to this quantity of allowances shall be distributed in accordance with Part A of Annex IIb.
Amendment 257 #
Proposal for a directive
Article 1 – paragraph 1 – point 12 – point a – point ii
Article 1 – paragraph 1 – point 12 – point a – point ii
Directive 2003/87/EC
Article 10 – paragraph 1 – subparagraph 3
Article 10 – paragraph 1 – subparagraph 3
In order to provide further incentives for reducing greenhouse gas emissions and improving energy efficiency, the determined Union-wide ex-ante benchmarks shall be reviewed before the period from 2026 to 2030 in view of potentially modifying the definitions, scope and system boundaries of existing product benchmarks, ensuring that, depending on the benchmark, free allocation for the production of a product is independent of the feedstock or the type of production process, accounts for the circular use potential of materials, or avoids installations with partially or fully decarbonised processes being excluded from or prevented from participating in the benchmarks. They shall also reflect technological challenges, feasibility costs and business models.
Amendment 275 #
Proposal for a directive
Article 1 – paragraph 1 – point 12 – point b
Article 1 – paragraph 1 – point 12 – point b
Directive 2003/87/EC
Article 10 a – paragraph 1 a – subparagraph 2
Article 10 a – paragraph 1 a – subparagraph 2
By way of derogation from the previous subparagraph, for the first years of operation of Regulation [CBAM], the production of these products shall benefit from free allocation inof reduced amounts until the full effectiveness of the CBAM in tackling the carbon leakage risk both on the EU market and on export markets is assessed and positively verified. A factor reducing the free allocation for the production of these products shall be applied (CBAM factor). The CBAM factor shall be equal to 100 % for the period during the entry into force of [CBAM regulation] and the end of 2025, 90 % in 2026 and shall be reduced by 10 percentage points each year.The Commission shall submit to the European Parliament and to the Council, a detailed impact assessment on the effects of CBAM after two years CBAM entering into force and modify according findings the reduction rate to CBAM factor for years to follow and final year when to reach 0 % by the tenth yearimplementing act.
Amendment 282 #
Proposal for a directive
Article 1 – paragraph 1 – point 12 – point b
Article 1 – paragraph 1 – point 12 – point b
Directive 2003/87/EC
Article 10 a – paragraph 1 a – subparagraph 3
Article 10 a – paragraph 1 a – subparagraph 3
The reduction of free allocation shall be calculated annually as the average share of the demand for free allocation for the production of products listed in Annex I of Regulation [CBAM] compared to the calculated total free allocation demand for all installations, for the relevant period referred to in Article 11, paragraph 1. The CBAM factor shall be applied. In order to ensure a level playing field, the first subparagraph is not applied to part of the EU production destined to the export to third countries without ETS or similar regulation. After two years CBAM entering into force the Commission will provide a detailed impact assessment of effects to the EU exports of CBAM sectors and development of global emissions. The commission shall consider an export adjustment mechanism that equalize the costs of CO2 with different pricing schemes of the third countries. All measures taken shall comply the WTO rules.
Amendment 341 #
Proposal for a directive
Article 1 – paragraph 1 – point 12 – point g
Article 1 – paragraph 1 – point 12 – point g
Directive 2003/87/EC
Article 10 a – paragraph 1 a – subparagraph 7
Article 10 a – paragraph 1 a – subparagraph 7
The Commission is empowered to adopt delegated acts in accordance with Article 23 to supplement this Directive concerning rules on the operation of the Innovation Fund, including the selection procedure and criteria, including the participation of SMEs, and the eligible sectors and technological requirements for the different types of support. In order to ensure a fair and just transition, the selection criteria shall take into consideration environmental and social safeguards, as a tool for the progressive integration of sustainable development for reaching the 2050 climate objectives.
Amendment 352 #
Proposal for a directive
Article 1 – paragraph 1 – point 14 – point a
Article 1 – paragraph 1 – point 14 – point a
Directive 2003/87/EC
Article 10 d – paragraph 1 – subparagraph 1
Article 10 d – paragraph 1 – subparagraph 1
1. A fund to support investments proposed by the beneficiary Member States, including the financing of small- scale investment projects planned participating the social partners ensuring a just transition of workers, including in regions and municipalities and local communities, to modernise energy systems and improve energy efficiency and reduce greenhouse gas emissions shall be established for the period from 2021 to 2030 (the ‘Modernisation Fund’). The Modernisation Fund shall be financed through the auctioning of allowances as set out in Article 10, for the beneficiary Member States set out therein.
Amendment 362 #
Proposal for a directive
Article 1 – paragraph 1 – point 14 – point b
Article 1 – paragraph 1 – point 14 – point b
Directive 2003/87/EC
Article 10 d – paragraph 2 – introductory part
Article 10 d – paragraph 2 – introductory part
2. At least 8095 % of the financial resources from the Modernisation Fund shall be used to support investments in the following:
Amendment 372 #
Proposal for a directive
Article 1 – paragraph 1 – point 14 – point b
Article 1 – paragraph 1 – point 14 – point b
Directive 2003/87/EC
Article 10 d – paragraph 2 – point e
Article 10 d – paragraph 2 – point e
(e) the support of low-income households, including in rural and remote areas, to address energy poverty and, to modernise their heating systems and to make the construction ecosystem more sustainable; and
Amendment 440 #
Proposal for a directive
Article 3 – paragraph 1 – point 8 – point b a (new)
Article 3 – paragraph 1 – point 8 – point b a (new)
Regulation 2003/87/EC
Article 12 – paragraph 3 – point c
Article 12 – paragraph 3 – point c
(ba) Article 12, paragraph 3, point c: "(c) each shipping company surrenders a number of allowances equal to its total emissions during the preceding calendar year, as verified in accordance with Article 3gc. Shipping companies may surrender fewer allowances on the basis of a ship’s ice class or navigation in ice or both in line with Annex Va. Member States, administering Member States and administering authorities in respect of a shipping company shall ensure that allowances surrendered in accordance with the first subparagraph are subsequently cancelled. To the extent that fewer allowances are surrendered compared to the verified emissions from maritime transport, once the difference between verified emissions and allowances surrendered has been established in respect of each year, a corresponding quantity of allowances shall be cancelled rather than auctioned pursuant to Article 10."
Amendment 449 #
Proposal for a directive
Annex I – paragraph 1 – point a
Annex I – paragraph 1 – point a
Directive 2003/87/EC
Annex I – point 1
Annex I – point 1
1. Installations or parts of installations used for research, development and testing of new products and processes, and installations where emissions from the combustion of biomass that complies with the criteria set out pursuant to Article 14 contribute to more than 95 % of the total greenhouse gas emissions are not covered bymay opt-out from the scope of this Directive.
Amendment 454 #
Proposal for a directive
Annex point 4 a (new)
Annex point 4 a (new)
Directive 2003/87/EC
Annex V a (new)
Annex V a (new)