BETA

21 Amendments of Dan NICA related to 2021/0211(COD)

Tudor CIUHODARU, Dan NICA

Proposal for a directive
Recital 30

(30) The Carbon Border Adjustment Mechanism (CBAM), established under Regulation (EU) […./..] of the European Parliament and of the Council~~51 , is an alternative to~~ complements 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.~~ and once the CBAM has fully demonstrated its effectiveness in equalising CO2 costs between imported and domestic products and in protecting the competitiveness of European exports, the free allocation received by these sectors should be gradually phased out. Once the CBAM has fully demonstrated its effectiveness in equalising CO2 costs between imported and domestic products and in protecting the competitiveness of European exports, and not earlier than 2030, a gradual phasing-out of free allowances is needed to allow producers, importers and traders to adjust to the new regime. The procedure to define the date at which the gradual phase-out should start is defined in Article XXX of [CBAM Regulation].The reduction of free allocation should be implemented by applying a factor to free allocation for CBAM sectors, while the CBAM is phased in. 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~~[XXX– date at which the CBAM fully equalises CO2 costs], 90 % the following year and should be reduced by 10 percentage points each year to reach 0 % and there by 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. 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 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. 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]

2022/02/22
Committee: ENVI

Tudor CIUHODARU, Dan NICA

Proposal for a directive
Recital 31 a (new)

(31a) While the surrendering of CBAM certificates for EU imports addresses the risk of carbon leakage on the EU market, it is essential to also avoid the risk that EU exports on global markets are replaced by more carbon intensive goods or by goods that are not subject to equivalent carbon costs. For this purpose, a CBAM factor equal to 100 % should apply to exports outside the EU of the products covered by the CBAM Regulation, as long as no WTO- compatible export solution measure to equalise CO2 costs has been implemented based on proposal of the Commission. Existing carbon pricing mechanisms in third countries should lead to an adjustment of the CBAM factor.

2022/02/22
Committee: ENVI

Tudor CIUHODARU, Dan NICA

Proposal for a directive
Recital 40

(40) Renewable liquid and gaseous fuels of non-biological origin and recycled carbon fuels can be important to reduce greenhouse gas emissions in sectors that are hard to decarbonise. Where recycled carbon fuels and renewable liquid and gaseous fuels of non-biological origin are produced from captured carbon dioxide under an activity covered by this Directive, the emissions should be accounted ~~under that activity~~for at the point of release. To ensure that renewable fuels of non-biological origin and recycled carbon fuels contribute to greenhouse gas emission reductions and to avoid double counting for fuels that do so, it is appropriate to explicitly extend the empowerment in Article 14(1) to the adoption by the Commission of implementing acts laying down the necessary adjustments for how to account for the eventual release of carbon dioxide and how to avoid double counting to ensure appropriate incentives are in place, taking also into account the treatment of these fuels under Directive (EU) 2018/2001.

2022/02/22
Committee: ENVI

Tudor CIUHODARU, Dan NICA

Proposal for a directive
Recital 43

(43) The Communication of the Commission on Stepping up Europe’s 2030 climate ambition57 , underlined the particular challenge to reduce the emissions in the sectors of road transport and buildings. Therefore, the Commission announced that a further expansion of emissions trading could include emissions from road transport and buildings. Emissions trading for these two new sectors would be established through separate but adjacent emissions trading. This would avoid any disturbance of the well-functioning emissions trading in the sectors of stationary installations and aviation. The new system is accompanied by complementary policies and measures safeguarding against undue price impacts, shaping expectations of market participants and aiming for a carbon price signal for the whole economy. Previous experience has shown that the development of the new market requires setting up an efficient monitoring, reporting and verification system. In view of ensuring synergies and coherence with the existing Union infrastructure for the EU ETS covering the emissions from stationary installations and aviation, it is appropriate to set up emissions trading for the road transport and buildings sectors via an amendment to Directive 2003/87/ЕC. _________________ 57 COM(2020)562 final.deleted

2022/02/22
Committee: ENVI

Tudor CIUHODARU, Dan NICA

Proposal for a directive
Recital 44

(44) In order to establish the necessary implementation framework and to provide a reasonable timeframe for reaching the 2030 target, emissions trading in the two new sectors should start in 2025. During the first year, the regulated entities should be required to hold a greenhouse gas emissions permit and to report their emissions for the years 2024 and 2025. The issuance of allowances and compliance obligations for these entities should be applicable as from 2026. This sequencing will allow starting emissions trading in the sectors in an orderly and efficient manner. It would also allow the EU funding and Member State measures to be in place to ensure a socially fair introduction of the EU emissions trading into the two sectors so as to mitigate the impact of the carbon price on vulnerable households and transport users.deleted

2022/02/22
Committee: ENVI

Tudor CIUHODARU, Dan NICA

Proposal for a directive
Recital 45

(45) Due to the very large number of small emitters in the sectors of buildings and road transport, it is not possible to establish the point of regulation at the level of entities directly emitting greenhouse gases, as is the case for stationary installations and aviation. Therefore, for reasons of technical feasibility and administrative efficiency, it is more appropriate to establish the point of regulation further upstream in the supply chain. The act that triggers the compliance obligation under the new emissions trading should be the release for consumption of fuels which are used for combustion in the sectors of buildings and road transport, including for combustion in road transport of greenhouse gases for geological storage. To avoid double coverage, the release for consumption of fuels which are used in other activities under Annex I to Directive 2003/87/EC should not be covered.deleted

2022/02/22
Committee: ENVI

Tudor CIUHODARU, Dan NICA

Proposal for a directive
Recital 46

(46) The regulated entities in the two new sectors and the point of regulation should be defined in line with the system of excise duty established by Council Directive (EU) 2020/26258 , with the necessary adaptations, as that Directive already sets a robust control system for all quantities of fuels released for consumption for the purposes of paying excise duties. End-users of fuels in those sectors should not be subject to obligations under Directive 2003/87/EC. _________________ 58Council Directive (EU) 2020/262 of 19 December 2019 laying down the general arrangements for excise duty (OJ L 58 27.2.2020, p. 4).deleted

2022/02/22
Committee: ENVI

Tudor CIUHODARU, Dan NICA

Proposal for a directive
Recital 47

(47) The regulated entities falling within the scope of the emissions trading in the sectors of buildings and road transport should be subject to similar greenhouse gas emissions permit requirements as the operators of stationary installations. It is necessary to establish rules on permit applications, conditions for permit issuance, content, and review, and any changes related to the regulated entity. In order for the new system to start in an orderly manner, Member States should ensure that regulated entities falling within the scope of the new emissions trading have a valid permit as of the start of the system in 2025.deleted

2022/02/24
Committee: ENVI

Tudor CIUHODARU, Dan NICA

Proposal for a directive
Recital 48

(48) The total quantity of allowances for the new emissions trading should follow a linear trajectory to reach the 2030 emissions reduction target, taking into account the cost-efficient contribution of buildings and road transport of 43 % emission reductions by 2030 compared to 2005. The total quantity of allowances should be established for the first time in 2026, to follow a trajectory starting in 2024 from the value of the 2024 emissions limits (1 109 304 000 CO2t), calculated in accordance with Article 4(2) of Regulation (EU) 2018/842 of the European Parliament and of the Council59 on the basis of the reference emissions for these sectors for the period from 2016 to 2018. Accordingly, the linear reduction factor should be set at 5,15 %. From 2028, the total quantity of allowances should be set on the basis of the average reported emissions for the years 2024, 2025 and 2026, and should decrease by the same absolute annual reduction as set from 2024, which corresponds to a 5,43 % linear reduction factor compared to the comparable 2025 value of the above defined trajectory. If those emissions are significantly higher than this trajectory value and if this divergence is not due to small-scale differences in emission measurement methodologies, the linear reduction factor should be adjusted to reach the required emissions reduction in 2030. _________________ 59Regulation (EU) 2018/842 of the European Parliament and of the Council of 30 May 2018 on binding annual greenhouse gas emission reductions by Member States from 2021 to 2030 contributing to climate action to meet commitments under the Paris Agreement and amending Regulation (EU) No 525/2013 (OJ L 156, 19.6.2018, p. 26).deleted

2022/02/24
Committee: ENVI

Tudor CIUHODARU, Dan NICA

Proposal for a directive
Recital 49

(49) The auctioning of allowances is the simplest and the most economically efficient method for allocating emission allowances, which also avoids windfall profits. Both the buildings and road transport sectors are under relatively small or non-existent competitive pressure from outside the Union and are not exposed to a risk of carbon leakage. Therefore, allowances for buildings and road transport should only be allocated via auctioning without there being any free allocation.deleted

2022/02/24
Committee: ENVI

Tudor CIUHODARU, Dan NICA

Proposal for a directive
Recital 50

(50) In order to ensure a smooth start to emissions trading in the buildings and road transport sectors and taking into account the need of the regulated entities to hedge or buy ahead allowances to mitigate their price and liquidity risk, a higher amount of allowances should be auctioned early on. In 2026, the auction volumes should therefore be 30 % higher than the total quantity of allowances for 2026. This amount would be sufficient to provide liquidity, both if emissions decrease in line with reduction needs, and in the event emission reductions only materialise progressively. The detailed rules for this front-loading of auction volume are to be established in a delegated act related to auctioning, adopted pursuant to Article 10(4) of Directive 2003/87/EC.deleted

2022/02/24
Committee: ENVI

Tudor CIUHODARU, Dan NICA

Proposal for a directive
Recital 51

(51) The distribution rules on auction shares are highly relevant for any auction revenues that would accrue to the Member States, especially in view of the need to strengthen the ability of the Member States to address the social impacts of a carbon price signal in the buildings and road transport sectors. Notwithstanding the fact that the two sectors have very different characteristics, it is appropriate to set a common distribution rule similar to the one applicable to stationary installations. The main part of allowances should be distributed among all Member States on the basis of the average distribution of the emissions in the sectors covered during the period from 2016 to 2018.deleted

2022/02/24
Committee: ENVI

Tudor CIUHODARU, Dan NICA

Proposal for a directive
Recital 52

(52) The introduction of the carbon price in road transport and buildings should be accompanied by effective social compensation, especially in view of the already existing levels of energy poverty. About 34 million Europeans reported an inability to keep their homes adequately warm in 2018, and 6,9 % of the Union population have said that they cannot afford to heat their home sufficiently in a 2019 EU-wide survey60 . To achieve an effective social and distributional compensation, Member States should be required to spend the auction revenues on the climate and energy-related purposes already specified for the existing emissions trading, but also for measures added specifically to address related concerns for the new sectors of road transport and buildings, including related policy measures under Directive 2012/27/EU of the European Parliament and of the Council61 . Auction revenues should be used to address social aspects of the emission trading for the new sectors with a specific emphasis in vulnerable households, micro-enterprises and transport users. In this spirit, a new Social Climate Fund will provide dedicated funding to Member States to support the European citizens most affected or at risk of energy or mobility poverty. This Fund will promote fairness and solidarity between and within Member States while mitigating the risk of energy and mobility poverty during the transition. It will build on and complement existing solidarity mechanisms. The resources of the new Fund will in principle correspond to 25 % of the expected revenues from new emission trading in the period 2026-2032, and will be implemented on the basis of the Social Climate Plans that Member States should put forward under Regulation (EU) 20…/nn of the European Parliament and the Council62 . In addition, each Member State should use their auction revenues inter alia to finance a part of the costs of their Social Climate Plans. _________________ 60 Data from 2018. Eurostat, SILC [ilc_mdes01]. 61Directive 2012/27/EU of the European Parliament and of the Council of 25 October 2012 on energy efficiency, amending Directives 2009/125/EC and 2010/30/EU and repealing Directives 2004/8/EC and 2006/32/EC (OJ L 315, 14.11.2012, p. 1–56). 62[Add ref to the Regulation establishing the Social Climate Fund].deleted

2022/02/24
Committee: ENVI

Tudor CIUHODARU, Dan NICA

Proposal for a directive
Article 1 – paragraph 1 – point 2 – point a

Directive 2003/87/EC
Article 3 – paragraph 1 – point b

(b) ‘emissions’ means the release of greenhouse gases into the atmosphere from sources in an installation or the release from an aircraft performing an aviation activity listed in Annex I or from ships performing a maritime transport activity listed in Annex I of the gases specified in respect of that activity, or the release of greenhouse gases corresponding to the activity referred to in Annex III;;

2022/02/24
Committee: ENVI

Tudor CIUHODARU, Dan NICA

Proposal for a directive
Article 1 – paragraph 1 – point 12 – point a – point i

Directive 2003/87/EC
Article 10a – paragraph 1 – subparagraph 2b

~~No f~~Free allocation ~~shall be~~ given to installations in sectors or subsectors ~~to the extent they are~~ covered by other measures to address the risk of carbon leakage as established by Regulation (EU) …./.. [reference to CBAM](**) shall be gradually reduced, not earlier than 2030 and once CBAM has fully demonstrated its effectiveness in equalising CO2 costs between imported and domestic products. The measures referred to in the first subparagraph shall be adjusted accordingly.

2022/02/28
Committee: ENVI

Tudor CIUHODARU, Dan NICA

Proposal for a directive
Article 1 – paragraph 1 – point 12 – point b

Directive 2003/87/EC
Article 10a –paragraph 1a – subparagraph 1

~~No f~~Free allocation ~~shall be~~ given in relation to the production of products listed in Annex I of Regulation [CBAM] ~~as from the date of application of the Carb~~shall be gradually reduced, once CBAM has fully demonstrated its effectiveness in equalising CO2 costs between imported and domestic products, at which point a factor reducing the free allocation Bfor~~der Adjustment Mechanism~~ the production of these products shall be applied (CBAM factor).

2022/03/04
Committee: ENVI

Tudor CIUHODARU, Dan NICA

Proposal for a directive
Article 1 – paragraph 1 – point 12 – point b

Directive 2003/87/EC
Article 10a – paragraph 1a – 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 in reduced amounts. 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 percenThe CBAM factor shall be equal to 100 % for the period during the entry into force of [CBAM regulation]. Once CBAM has fully demonstrated its effectiveness in equalising CO2 costs between imported and domestic products and in protecting the competitiveness of European exports, and not earlier than 2030, the CBAM factor shall be equal to 90 % in [XXX – date at which the CBAM fully equalises CO2 costs] and shall be reduced by 10 percentage points each year to reach 0 % by the tenth year. The CBAM factor shall be equal to 100 % for exports outside of the EU, until a WTO-compatible export solution measure equalising CO2 costs has been implemented upon a proposal by the Commission. The CBAM factor shall be adjusted to tagke point~~s each year to reach 0 % by the tenth year~~o account existing carbon pricing schemes in third countries.

2022/03/04
Committee: ENVI

Tudor CIUHODARU, Dan NICA

Proposal for a directive
Article 1 – paragraph 1 – point 15 – point e

Directive 2003/87/EC
Article 12 – paragraph 3 b – subparagraph 1

An obligation to surrender allowances shall not arise in respect of emissions of greenhouse gases which are considered to have been captured ~~and utilised to become permanently chemically bound in a product~~or transferred for further use so that they doid not enter the atmosphere under normal use.

2022/03/01
Committee: ENVI

Tudor CIUHODARU, Dan NICA

Proposal for a directive
Article 1 – paragraph 1 – point 15 – point e

Directive 2003/87/EC
Article 12 – paragraph 3 b – subparagraph 2

The Commission shall adopt implementing acts concerning the requirements ~~to consider that greenhouse gases have become permanently chemically bound in a product so that they do not enter the atmosphere under normal use~~on how to account at the point of release into the atmosphere, for the greenhouse gases transferred from a capturing installation.

2022/03/01
Committee: ENVI

Tudor CIUHODARU, Dan NICA

Proposal for a directive
Article 1 – paragraph 1 – point 19 a (new)

Directive 2003/87/EC
Article 29

(19a) Article 29 is replaced by the following: Article 29 “Article 29 Report to ensure the better functioning of the carbon market the carbon market If, on the basis of the regular reports on the carbon market referred to in Article 10(5), the Commission has evidence that the carbon market is not functioning properly, for instance due to the role of noncompliance operators such as financial investors, it shall submit a report to the European Parliament and to the Council. The report may be accompanied, if appropriate, by proposals aiming at increasing transparency of the carbon market and addressing measures to improve its functioning. and to tackle the role and impact of financial speculation.”

2022/03/01
Committee: ENVI

Tudor CIUHODARU, Dan NICA

Proposal for a directive
Article 1 – paragraph 1 – point 21

Directive 2003/87/EC
Chapter IV a

~~(21) The following Chapter IVa is inserted after Article 30: [...]~~deleted

2022/03/01
Committee: ENVI