20 Amendments of David BORRELLI related to 2014/0011(COD)
Amendment 31 #
Proposal for a decision
Recital 2
Recital 2
(2) The report from the Commission to the European Parliament and the Council on the state of the European carbon market in 21021 identified the need for measures in order to tackle structural supply-demand imbalances. The impact assessment on the 2030 climate and energy policy framework2 indicates that this imbalance is expected to continue, and would not be sufficiently addressed by adapting the linear trajectory to a more stringent target within this framework. A change in the linear factor only changes gradually the cap. Accordingly, the surplus would also only gradually decline, such that the market would have to continue to operate for more than a decade with a surplus of around 2 billion allowances or more. In order to address this problem and to make the European Emission trading System more resilient to imbalances, a market stability reserve should be established. To ensure regulatory certainty as regards auction supply in phase 3 and allow for some lead-time adjusting to the introduction of the design change, the market stability reserve should be established as of phase 4 starting in 2021soon as possible. In order to preserve a maximum degree of predictability, clear rules should be set for placing allowances into the reserve and releasing them from the reserve. Where the conditions are met, beginning in 2021,16. allowances corresponding to 125% of the number of allowances in circulation in year x-21 should be put into the reserve. A corresponding number of50 million allowances should be released from the reserve when the total number of allowances in circulation is lower than 4300 million. __________________ 8 Insert reference.
Amendment 42 #
Proposal for a decision
Recital 3
Recital 3
(3) Furthermore, in addition to the establishment of the market stability reserve, a few consequential amendments should be made to Directive 2003/87/EC to ensure consistency and smooth operation of the ETS. In particular, the operation of Directive 2003/87/EC may lead to large volumes of allowances to be auctioned at the end of each trading period which can undermine market stability. Accordingly, in order to avoid an imbalanced market situation of supply of allowances at the end of one trading period and the beginning of the next with possibly disruptive effects for the market, provision should be made for the auctioning ofcancellation of at least part of any large increase of supply at the end of one trading period in the first two years of the next period.
Amendment 56 #
Proposal for a decision
Article 1 – paragraph 1
Article 1 – paragraph 1
1. A market stability reserve is established, and shall operate from 1 Januaruly 20216.
Amendment 66 #
Proposal for a decision
Article 1 – paragraph 2
Article 1 – paragraph 2
2. The Commission shall publish the total number of allowances in circulation each year, by 15 May of the subsequent year. The total number of allowances in circulation for year x shall be the cumulative number of allowances issued in the period since 1 January 2008, including the number issued pursuant to Article 13(2) of Directive 2003/87/EC in that period and entitlements to use international credits exercised by installations under the EU emission trading system in respect of emissions up to 31 December of year x, minus the cumulative tonnes of verified emissions from installations under the EU emission trading system between 1 January 2008 and 31 December of year x, any allowances cancelled in accordance with Article 12(4) of Directive 2003/87/EC and the number of allowances in the reserve. No account shall be taken of emissions during the three-year period starting in 2005 and ending in 2007 and allowances issued in respect of those emissions. The first publication shall take place by 15 May 20176.
Amendment 70 #
Proposal for a decision
Article 1 – paragraph 3
Article 1 – paragraph 3
3. In each year beginning in 2021July 2016, a number of allowances equal to 125% of the total number of allowances in circulation in year x-21, as published in May year x-1, shall be placed in the reserve, unless thise total number of allowances to be placed in the reserve would be less than 100 millionin circulation would be less than 600 million. For the purposes of this paragraph, if there are more than 1 billion allowances available in the reserve, no other allowance shall be added to the reserve. Instead, the surplus in question shall be cancelled.
Amendment 72 #
Proposal for a decision
Recital 4
Recital 4
(4) The Commission should review the functioning of the market stability reserve in relation to its operation in the light of experience of its application. The review of the functioning of the market stability reserve shouldbegin as soon as possible to review the operation of Directive 87/2003 in the light of experience and taking into account the operational anomalies deemed necessary to avoid carbon leakage and to act artificially on the allowance exchange market. That review should consider in particular consider whether the rules on placing allowances in the reserve are appropriate with regard to the aim pursued to tackle structural supply-demand imbalances. ‘cap & trade’ system responds to the measures necessary to achieve the reduction of greenhouse gas emissions in the industrial sectors concerned, the feasibility of introducing price adjustment mechanisms for imports and exports to and from countries with no greenhouse gas emission regulations and of establishing establish a CO2 price at Union level, given that greenhouse gases cannot be considered tangible property.
Amendment 87 #
Proposal for a decision
Article 1 – paragraph 4
Article 1 – paragraph 4
4. In any year, if the total number of allowances in circulation is lower than 4300 million, 10 and measures have been adopted under Article 29a of Directive 2003/87/EC, 50 million allowances shall be released from the reserve. In case less than 1050 million allowances are in the reserve, all allowances in the reserve shall be released under this paragraph.
Amendment 92 #
Proposal for a decision
Article 1 – paragraph 5
Article 1 – paragraph 5
Amendment 106 #
Proposal for a decision
Article 2 – paragraph 1 – point 3
Article 2 – paragraph 1 – point 3
Directive 2003/87/EC
Article 10 – paragraph 1 a (new)
Article 10 – paragraph 1 a (new)
1a. Where the volume of allowances to be auctioned by Member States in the last two years of each period referred to in Article 13(1) exceeds by more than 30% the expected average auction volume for the first two years of the following period before application of Article 1(3) of Decision [OPEU please insert number of this Decision when known], two-thirds of the difference between the volumes shall be deducted from auction volumes in the last year of the period and added in equal instalments to the volumes to be auctioned by Member Statand eliminated, in equal instalments, from auction volumes in the firlast two years of the following period.
Amendment 107 #
Proposal for a decision
Article 2 – paragraph 1 – point 3 a (new)
Article 2 – paragraph 1 – point 3 a (new)
Directive 2003/87/EC
Article 10 – paragraph 3
Article 10 – paragraph 3
(3a) Article 10(3) is replaced by the following: “3. Member States shall determine the use of revenues generated from the auctioning of allowances. At least in accordance with the arrangements provided for in paragraphs 3a and 3b. 50 % of the revenues generated from the auctioning of allowances referred to in paragraph 2, including all revenues from the auctioning referred to in paragraph 2, points (b) and (c), or the equivalent in financial value of these revenues, shouldmust be used for one or more of the following: (a) to reduce greenhouse gas emissions, including by contributing to the Global Energy Efficiency and Renewable Energy Fund and to the Adaptation Fund as made operational by the Poznan Conference on Climate Change (COP 14 and COP/MOP 4), to adapt to the impacts of climate change and to fund research and development as well as demonstration projectsprojects that have proven to be effective for reducing emissions and for adaptation and building community resilience to climate change, including participation in initiatives within the framework of the European Strategic Energy Technology Plan and the European Technology Platforms; (b) to develop renewable energies to meet the commitment of the Community to using 20 % renewable energies by 2020, as well as to develop other technologies contributing to the transition to a safe and sustainable low-carbon economy and to help meet the commitment of the Community to increase energy efficiency by 20 % by 2020; (c) measures to avoid deforestation and increase afforestation and reforestation in developing countries that have ratified the international agreement on climate change, to transfer technologies and to facilitate adaptation to the adverse effects of climate change in these countries; (d) forestry sequestration in the Community and the use of biochar where this is permitted under national legislation; (e) the environmentally safe capture and geological storage of CO2, in particular from solid fossil fuel power stations and a range of industrial sectors and subsectors, including in third countries; (f) to encourage a shift tothe development of an integrated transport system which should include low-emission and public/collective and private forms of transport; (g) to finance research and development in energy efficiency and clean technologies in the sectors covered by this Directive, in particular in the sectors and subsectors referred to in Article 10a(15), provided that they are removed from the list referred to in Article 10a(13); (h) measures intended to increase energy efficiency and insulation or to provide financial support in order to address social aspects in lower and middle income households; (i) to cover administrative expenses of the management of the Community scheme. Member States shall be deemed to have fulfilled the provisions of this paragraph if they have in place and implement fiscal or financial support policies, including in particular in developing countries, or domestic regulatory policies, which leverage financial support, established for the purposes set out in the first subparagraph and which have a value equivalent to at leastThe remaining 50 % of the revenues generated from the auctioning of allowances referred to in paragraph 2, including all revenues from the auctioning referred to in paragraph 2, points (b) and (c). Member States shall inform the Commission as to the use of revenues and the actions taken pursuant to this paragraph in their reports submitted under Decision No 280/2004/EC.” , or the equivalent in financial value of these revenues, shall be used for one or more of the following: (a) to support the local authorities, companies and communities in repairing the material and health-related damage caused by issues relating to climate change, including damage to crops; (b) to finance measures to rehabilitate hydrogeological systems and make the land safe." Or. it (http://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:32009L0029)
Amendment 111 #
Proposal for a decision
Article 1 – paragraph 2
Article 1 – paragraph 2
2. The Commission shall publish the total number of allowances in circulation each year, by 15 May of the subsequent year. The total number of allowances in circulation for year x shall be the cumulative number of allowances issued in the period since 1 January 2008, including the number issued pursuant to Article 13(2) of Directive 2003/87/EC in that period and entitlements to use international credits exercised by installations under the EU emission trading system in respect of emissions up to 31 December of year x, minus the cumulative tonnes of verified emissions from installations under the EU emission trading system between 1 January 2008 and 31 December of year x, any allowances cancelled in accordance with Article 12(4) of Directive 2003/87/EC and the number of allowances in the reserve. No account shall be taken of emissions during the three-year period starting in 2005 and ending in 2007 and allowances issued in respect of those emissions. The first publication shall take place by 15 May 20176.
Amendment 119 #
Proposal for a decision
Article 3 – paragraph 1
Article 3 – paragraph 1
Amendment 130 #
Proposal for a decision
Article 1 – paragraph 3
Article 1 – paragraph 3
3. In each year beginning in 2021July 2016, a number of allowances equal to 125% of the total number of allowances in circulation in year x-21, as published in May year x-1, shall be placed in the reserve, unless thise total number of allowances to be placed in the reserve would be less than 100 million. in circulation is less than 600 million. For the purposes of this paragraph, if reserve allowances exceed 1 billion, no further allowances should be added to the reserve but the excess removed.
Amendment 142 #
Proposal for a decision
Article 1 – paragraph 4
Article 1 – paragraph 4
4. In any year, if the total number of allowances in circulation is lower than 4300 million, 10 and measures have been adopted under Article 29a of Directive 2003/87/EC, 50 million allowances shall be released from the reserve. In case less than 1050 million allowances are in the reserve, all allowances in the reserve shall be released under this paragraph.
Amendment 148 #
Proposal for a decision
Article 1 – paragraph 5
Article 1 – paragraph 5
Amendment 153 #
Proposal for a decision
Article 1 – paragraph 6
Article 1 – paragraph 6
6. Where action is taken pursuant to paragraphs 3 or 5, the auction calendars shall take into account the allowances placed in the reserve or to be released from the reserve.
Amendment 166 #
Proposal for a decision
Article 2 – paragraph 1 – point 1
Article 2 – paragraph 1 – point 1
Directive 2003/87/CE
Article 10 – paragraph 1
Article 10 – paragraph 1
2. “1. From 20216 onwards, Member States shall auction all allowances that are not allocated free of charge in accordance with Article 10a and 10c and are not placed in the market stability reserve established by Decision [OPEUJ: please insert number of this Decision when known] of the European Parliament and of the Council(*).”
Amendment 175 #
Proposal for a decision
Article 2 – paragraph 1 – point 3
Article 2 – paragraph 1 – point 3
Directive 2003/87/CE
Article 10 – paragraph 1a
Article 10 – paragraph 1a
“1a. Where the volume of allowances to be auctioned by Member States in the last two years of each period referred to in Article 13(1) exceeds by more than 30% the expected average auction volume for the first two years of the following period before application of Article 1(3) of Decision [OPEUJ: please insert number of this Decision when known], two-thirds of], the difference between the volumes shall be deducted from auction volumes in the last year of the period and added in equal instalments to the volumes to be auctioned by Member Statand eliminated, in equal instalments, from auction volumes in the firlast two years of the following period.”
Amendment 181 #
Proposal for a decision
Article 2 – paragraph 1 – point 3 c (new)
Article 2 – paragraph 1 – point 3 c (new)
Directive 2003/87/EC
Article 10 – paragraph 3
Article 10 – paragraph 3
(3b) in Article 10, paragraph 3 is replaced by the following: "3. Member States shall determine the use of revenues generated from the auctioning of allowances. At least in accordance with the arrangements provided for in paragraphs 3a and 3b. 3a. 50 % of the revenues generated from the auctioning of allowances referred to in paragraph 2, including all revenues from the auctioning referred to in paragraph 2, points (b) and (c), or the equivalent in financial value of these revenues, shouldall be used for one or more of the following: (a) to reduce greenhouse gas emissions, including by contributing to the Global Energy Efficiency and Renewable Energy Fund and to the Adaptation Fund as made operational by the Poznan Conference on Climate Change (COP 14 and COP/MOP 4), to adapt to the impacts of climate change and to fund research and development as well as demonstration projectsprojects that have proven to be effective for reducing emissions and for adaptation and building community resilience to climate change, including participation in initiatives within the framework of the European Strategic Energy Technology Plan and the European Technology Platforms; (b) to develop renewable energies to meet the commitment of the Community to using 20 % renewable energies by 2020, as well as to develop other technologies contributing to the transition to a safe and sustainable low-carbon economy and to help meet the commitment of the Community to increase energy efficiency by 20 % by 2020; (c) measures to avoid deforestation and increase afforestation and reforestation in developing countries that have ratified the international agreement on climate change, to transfer technologies and to facilitate adaptation to the adverse effects of climate change in these countries; (d) forestry sequestration in the Community; (e) the environmentally safe capture and geological storage of CO2, and the use of biochar where this ins particular from solid fossil fuel power stations and a ermitted under national legislation; (f) to encourange of industrial sectors and subsectors, including in third countries; (f) to encourage a shift to low-emission and publicthe development of an integrated transport system which should include low-emission and public/collective and private forms of transport; (g) to finance research and development in energy efficiency and clean technologies in the sectors covered by this Directive, in particular in the sectors and subsectors referred to in Article 10a(15), provided that they are removed from the list referred to in Article 10a(13); (h) measures intended to increase energy efficiency and insulation or to provide financial support in order to address social aspects in lower and middle income households; (i) to cover administrative expenses of the management of the Community scheme. Member States shall be deemed to have fulfilled the provisions of this paragraph if they have in place and implement fiscal or financial support policies, including in particular in developing countries, or domestic regulatory policies, which leverage financial support, established for the purposes set out in the first subparagraph and which have a value equivalent to at least3b. The remaining 50 % of the revenues generated from the auctioning of allowances referred to in paragraph 2, including all revenues from the auctioning referred to in paragraph 2, points (b) and (c). Member States shall inform the Commission as to the use of revenues and the actions taken pursuant to this paragraph in their reports submitted under Decision No 280/2004/EC., or the equivalent in financial value of these revenues, shall be used for one or both of the following: (a) to support the local authorities, companies and communities in repairing the material and health-related damage caused by issues relating to climate change, including damage to crops; (b) to finance measures to rehabilitate hydrogeological systems and make the land safe."
Amendment 215 #
Proposal for a decision
Article 3 – paragraph 1
Article 3 – paragraph 1