[ParlTrack]

Edouard MARTIN, Pervenche BERÈS, Zigmantas BALČYTIS, Constanze KREHL, Martina WERNER, Patrizia TOIA, Kathleen VAN BREMPT, Miroslav POCHE, Olle LUDVIGSSON, Eugen FREUND, Flavio ZANONATO, Theresa GRIFFIN, José BLANCO LÓPEZ, Soledad CABEZÓN RUIZ, Carlos ZORRINHO, Jude KIRTON-DARLING

Proposal for a directive
Recital 3

(3) The European Council confirmed that a well-functioning, reformed EU ETS with an instrument to stabilise the market will be the main European instrument to achieve this target, with an annual reduction factor of 2.2% from 2021 onwards, free allocation not expiring but existing measures continuing after 2020 to prevent the risk of carbon leakage due to climate policy, as long as no comparable efforts are undertaken in other major economies, without reducing the share of allowances to be auctioned. The auction share should be expressed as a percentage figure in the legislation, to enhance planning certainty as regards investment decisions, to increase transparency and to render the overall system simpler and more easily understandable. However, those orientations decided by the European Council may not be sufficient to fulfil the EU's commitments taken during the COP21, therefore an annual reduction factor of 2.4% is advisable.

2016/06/23
Committee: ITRE

Proposal for a directive
Recital 4

(4) It is a key Union priority to establish a resilient Energy Union to provide secure, sustainable, competitive and affordable energy to its citizens. Achieving this requires continuation of ambitious climate action with the EU ETS as the cornerstone of Europe’s climate policy, and progress on the other aspects of Energy Union17. Implementing the ambition decided in the 2030 framework contributes to delivering a meaningful carbon price and continuing to stimulate cost-efficient greenhouse gas emission reductions. Regrets that the carbon price signal is right now too weak to induce low carbon investment in EU for industries. Whereas the EU is facing a serious investment leakage to third countries, whereas on the other hand a number of undertakings have been pursuing strategies focusing on short-term financial returns at the detriment of innovation, investments in R&D, employment and skills 'renewal; whereas production innovation has a positive effect on employment growth in all phases of the business cycle of industries; whereas involving workers in innovation and strategy definition is the best way to guarantee economic and environmental success. __________________ 17 COM(2015)80, establishing a Framework Strategy for a Resilient Energy Union with a Forward-Looking Climate Change Policy

2016/06/23
Committee: ITRE

Edouard MARTIN, Pervenche BERÈS, Zigmantas BALČYTIS, Constanze KREHL, Martina WERNER, Kathleen VAN BREMPT, Olle LUDVIGSSON, Eugen FREUND, Jeppe KOFOD, Flavio ZANONATO, Theresa GRIFFIN, José BLANCO LÓPEZ, Soledad CABEZÓN RUIZ, Csaba MOLNÁR, Carlos ZORRINHO, Jude KIRTON-DARLING

Proposal for a directive
Recital 6

(6) The auctioning of allowances remains the general rule, with free allocation as ~~the~~a transitional exception. Consequently, and as confirmed by the European Council, the share of allowances to be auctioned, which was 57% over the period 2013-2020, should not be reduced. The Commission's Impact Assessment18 provides details on the auction share and specifies that this 57% share is made up of allowances auctioned on behalf of Member States, including allowances set aside for new entrants but not allocated, allowances for modernising electricity generation in some Member States and allowances which are to be auctioned at a later point in time because of their placement in the Market Stability Reserve established by Decision (EU) 2015/… of the European Parliament and of the Council19 . __________________ 18 SEC(2015)XX SEC(2015)XX 19 Decision (EU) 2015/… of the European Parliament and of the Council of … concerning the establishment and operation of a market stability reserve for the Union greenhouse gas emission trading scheme and amending Directive 2003/87/EC (OJ L […], […], p. […]).

2016/06/23
Committee: ITRE

Edouard MARTIN, Pervenche BERÈS, Zigmantas BALČYTIS, Patrizia TOIA, Kathleen VAN BREMPT, Olle LUDVIGSSON, Flavio ZANONATO, Theresa GRIFFIN, José BLANCO LÓPEZ, Soledad CABEZÓN RUIZ, Csaba MOLNÁR, Carlos ZORRINHO, Jude KIRTON-DARLING

Proposal for a directive
Recital 7

(7) To preserve the environmental benefit of emission reductions in the Union while actions by other countries do not provide comparable incentives to industry to reduce emissions, free allocation should continue to installations in sectors and sub- sectors at genuine risk of carbon leakage. Experience gathered during the operation of the EU ETS confirmed that sectors and sub-sectors are at risk of carbon leakage to varying degrees, and that free allocation has prevented carbon leakage. While some sectors and sub-sectors can be deemed at a higher risk of carbon leakage, others are able to pass on a considerable share of the costs of allowances to cover their emissions in product prices without losing market share and only bear the remaining part of the costs so that they are at a low risk of carbon leakageThe aim of the free allocation is not to give operational subsidies to the firm but to incentivize and finance investments in mitigation technologies against climate change in the industry. The Commission should determine ~~and differentiate~~ the relevant sectors ~~based on their trade intensity and their emissions intensity to better identify sectors at a genuine risk of carbon leakage. Where, based on these criteria, a threshold determined by~~ at a genuine risk of carbon leakage. Where a certakin~~g into account~~ the res~~pective possibility for sectors and sub-sectors concerned to pass on costs in product prices~~hold is exceeded, the sector or sub-sector should be deemed at risk of carbon leakage. Others should be considered at ~~a low risk or at~~ no risk of carbon leakage. ~~Taking into account the possibilities for sectors and sub-sectors outside of electricity generation to pass on costs in product prices should also reduce windfall profits.~~

2016/06/23
Committee: ITRE

Edouard MARTIN, Pervenche BERÈS, Zigmantas BALČYTIS, Patrizia TOIA, Olle LUDVIGSSON, Eugen FREUND, Flavio ZANONATO, Theresa GRIFFIN, José BLANCO LÓPEZ, Soledad CABEZÓN RUIZ, Csaba MOLNÁR, Carlos ZORRINHO, Simona BONAFÈ, Jude KIRTON-DARLING

Proposal for a directive
Recital 8 a (new)

(8a) Earmarking is a key element in order for ETS Phase IV to finally trigger a virtuous circle. The Member-States should spend at least 80% of the auction revenues on climate actions listed in this Directive, and undertakings which receive free allocations in excess should use this resource exclusively on low carbon investment in the installations.

2016/06/23
Committee: ITRE

Edouard MARTIN, Pervenche BERÈS, Zigmantas BALČYTIS, Patrizia TOIA, Kathleen VAN BREMPT, Olle LUDVIGSSON, Jeppe KOFOD, Flavio ZANONATO, José BLANCO LÓPEZ, Soledad CABEZÓN RUIZ, Csaba MOLNÁR, Carlos ZORRINHO, Simona BONAFÈ

Proposal for a directive
Recital 9

(9) Member States ~~should partia~~willy compensate, ~~in accordance with state aid rules~~through a centralized arrangement at European level, certain installations in sectors or sub- sectors which have been determined to be exposed to a significant risk of carbon leakage because of costs related to greenhouse gas emissions passed on in electricity prices. A harmonised system will therefore avoid competitive distortions in between Members States. The Protocol and accompanying decisions adopted by the Conference of the Parties in Paris need to provide for the dynamic mobilisation of climate finance, technology transfer and capacity building for eligible Parties, particularly those with least capabilities. Public sector climate finance will continue to play an important role in mobilising resources after 2020. Therefore, auction revenues should also be used for climate financing actions in vulnerable third countries, including adaptation to the impacts of climate. The amount of climate finance to be mobilised will also depend on the ambition and quality of the proposed Intended Nationally Determined Contributions (INDCs), subsequent investment plans and national adaptation planning processes. Member States should also use auction revenues to promote skill formation and reallocation of labour affected by the transition of jobs in a decarbonising economy.

2016/06/23
Committee: ITRE

Edouard MARTIN, Pervenche BERÈS, Zigmantas BALČYTIS, Dan NICA, Constanze KREHL, Martina WERNER, Patrizia TOIA, Miroslav POCHE, Olle LUDVIGSSON, Eugen FREUND, Jens GEIER, Flavio ZANONATO, Theresa GRIFFIN, José BLANCO LÓPEZ, Soledad CABEZÓN RUIZ, Csaba MOLNÁR, Carlos ZORRINHO, Simona BONAFÈ, Jude KIRTON-DARLING

Proposal for a directive
Recital 9 a (new)

(9a) Whereas the increase of the CO2 price would drive an investment shift to cleaner sources and processes, it has also potentially adverse effects on employment and purchasing power of the European citizens. The EU should monitor the social effects of CO2 price in order to avoid more inequalities and to incentivise job creation.

2016/06/23
Committee: ITRE

Edouard MARTIN, Pervenche BERÈS, Zigmantas BALČYTIS, Dan NICA, Constanze KREHL, Martina WERNER, Miroslav POCHE, Olle LUDVIGSSON, Jens GEIER, Flavio ZANONATO, Theresa GRIFFIN, José BLANCO LÓPEZ, Soledad CABEZÓN RUIZ, Csaba MOLNÁR, Carlos ZORRINHO, Jude KIRTON-DARLING

Proposal for a directive
Recital 10

(10) The main long-term incentive from this Directive for the capture and storage of CO2 (CCS), capture and re-use of CO2 (CCU), new renewable energy technologies and breakthrough innovation in low-carbon technologies and processes is the carbon price signal it creates and that allowances will not need to be surrendered for CO2 emissions which are permanently stored or avoided. In addition, to supplement the resources already being used to accelerate demonstration of commercial CCS/CCU facilities and innovative renewable energy technologies, EU ETS allowances should be used to provide guaranteed rewards for deployment of CCS/CCU facilities, new renewable energy technologies and industrial innovation in low-carbon technologies and processes in the Union for CO2 stored or avoided on a sufficient scale, provided an agreement on knowledge sharing is in place. The majority of this support should be dependent on verified avoidance of greenhouse gas emissions, while some support may be given when pre-determined milestones are reached taking into account the technology deployed. The maximum percentage of project costs to be supported may vary by category of project.

2016/06/23
Committee: ITRE

Edouard MARTIN, Pervenche BERÈS, Zigmantas BALČYTIS, Dan NICA, Patrizia TOIA, Jens GEIER, Flavio ZANONATO, Theresa GRIFFIN, Carlos ZORRINHO, Jude KIRTON-DARLING

Proposal for a directive
Recital 11

(11) A Modernisation Fund should be established from 2% of the total EU ETS allowances, and auctioned in accordance with the rules and modalities for auctions taking place on the Common Auction Platform set out in Regulation 1031/2010. Member States who in 2013 had a GDP per capita at market exchange rates of below 60% below the Union average should be eligible for funding from the Modernisation Fund and derogate up to 2030 from the principle of full auctioning for electricity generation by using the option of free allocation in order to transparently promote real investments modernising their energy sector in line with the Union's 2030 and 2050 climate&energy goals, while avoiding distortions of the internal energy market. The rules for governing the Modernisation Fund should provide a coherent, comprehensive and transparent framework to ensure the most efficient implementation possible, taking into account the need for easy access by all participants. The ~~function of the governance structure should be commensurate with the purpose of ensur~~rules and eligibility criteria of this Fund should be set ing the appropriate use of the funds. That governance structure should be composed of an investment board and a management committee and due account should be taken of the expertise of the EIB in the decision-making process unless support is provided to small projects through loans from a national promotional banks or through grants via a national programme sharing the objectives of the Modernisation Fund. Investments financed from the fund should be proposed by the Member Stateis Directive, but the governance and steering should be up to the beneficiary Member-States, assisted by an advisory board which composition combines local inputs, financial expertise, social partners’ dialogue and civil society views. To ensure that the investment needs in low income Member States are adequately addressed, the distribution of funds will take into account in equal shares verified emissions and GDP criteria. The financial assistance from the Modernisation Fund could be provided through different forms.

2016/06/23
Committee: ITRE

Edouard MARTIN, Pervenche BERÈS, Zigmantas BALČYTIS, Constanze KREHL, Martina WERNER, Patrizia TOIA, Kathleen VAN BREMPT, Olle LUDVIGSSON, Jens GEIER, Jeppe KOFOD, Flavio ZANONATO, Theresa GRIFFIN, José BLANCO LÓPEZ, Soledad CABEZÓN RUIZ, Carlos ZORRINHO, Jude KIRTON-DARLING

Proposal for a directive
Recital 12

(12) The European Council confirmed that the modalities, including transparency, of the optional free allocation to modernise the energy sector in certain Member States should be improved. Investments with a value of €10 million or more should be selected by the Member State concerned through a competitive bidding process on the basis of clear and transparent rules to ensure that free allocation is used to promote real investments modernising the energy sector in line with the Energy Union objectives. The list of projects, both selected and not, should be public. Investments with a value of less than €10 million should also be eligible for funding from the free allocation. The Member State concerned should select such investments based on clear and transparent criteria set in this Directive. The results of this selection process should be subject to public consultation. The public should be duly kept informed at the stage of the selection of investment projects as well as of their implementation.

2016/06/23
Committee: ITRE

Edouard MARTIN, Pervenche BERÈS, Zigmantas BALČYTIS, Dan NICA, Constanze KREHL, Martina WERNER, Patrizia TOIA, Kathleen VAN BREMPT, Olle LUDVIGSSON, Eugen FREUND, Jens GEIER, Flavio ZANONATO, Theresa GRIFFIN, José BLANCO LÓPEZ, Soledad CABEZÓN RUIZ, Csaba MOLNÁR, Carlos ZORRINHO, Jude KIRTON-DARLING

Proposal for a directive
Recital 12 a (new)

(12a) Whereas financial support for regions and sectors which depend on carbon-intensive activities will be essential to implementing a just transition in Europe. The impact of the energy transition on these regions and sectors has to be better assessed and taken into account especially considering the future of those workers who will be affected.

2016/06/23
Committee: ITRE

Edouard MARTIN, Pervenche BERÈS, Zigmantas BALČYTIS, Dan NICA, Constanze KREHL, Martina WERNER, Patrizia TOIA, Kathleen VAN BREMPT, Olle LUDVIGSSON, Jens GEIER, Jeppe KOFOD, Flavio ZANONATO, Theresa GRIFFIN, José BLANCO LÓPEZ, Soledad CABEZÓN RUIZ, Csaba MOLNÁR, Carlos ZORRINHO, Simona BONAFÈ, Jude KIRTON-DARLING

Proposal for a directive
Recital 13

(13) EU ETS funding should be coherent with other Union funding programmes, including European Structural and Investment Funds, Horizon 2020 and the European fund for Strategic investments so as to ensure the effectiveness of public spending.

2016/06/23
Committee: ITRE

Patrizia TOIA, Flavio ZANONATO

Proposal for a directive
Recital 16 b (new)

(16b) In order to considerably reduce the administrative burden faced by companies, the European Commission could consider measures such as for example automating the submission and verification of emissions reports, fully exploiting the potential of information and communication technologies;

2016/06/23
Committee: ITRE

Edouard MARTIN, Pervenche BERÈS, Zigmantas BALČYTIS, Dan NICA, Constanze KREHL, Martina WERNER, Patrizia TOIA, Olle LUDVIGSSON, Eugen FREUND, Jens GEIER, Flavio ZANONATO, Theresa GRIFFIN, José BLANCO LÓPEZ, Soledad CABEZÓN RUIZ, Csaba MOLNÁR, Carlos ZORRINHO, Jude KIRTON-DARLING

Proposal for a directive
Article 1 – paragraph 1 – point 2 a (new)

Article 6

Paragraph 2

(2a) In article 6 paragraph 2, two new subparagraphs are added: (f) all legal requirements on social responsibility and reporting in order to ensure equal and effective implementation of environmental regulations and ensure that competent authorities and stakeholders, including workers representatives and representatives of the civil society and local communities, have access to all relevant information ( as laid in the Aarhus Convention and implemented in EU and national legislation, including Directive 2003/87/EC); (g) an obligation to publish every year comprehensive information in respect of combating climate change and compliance with EU directives in the field of environment, safety and health at work; this information should be accessible to workers' representatives and to the representatives of civil society from local communities in the vicinity of the installation;

2016/06/23
Committee: ITRE

Edouard MARTIN, Pervenche BERÈS, Zigmantas BALČYTIS, Constanze KREHL, Martina WERNER, Patrizia TOIA, Olle LUDVIGSSON, Jens GEIER, Jeppe KOFOD, Flavio ZANONATO, Theresa GRIFFIN, José BLANCO LÓPEZ, Soledad CABEZÓN RUIZ, Csaba MOLNÁR, Carlos ZORRINHO, Simona BONAFÈ, Jude KIRTON-DARLING

Proposal for a directive
Article 1 – paragraph 1 – point 2 b (new)

Article 7

(2b) Article 7 is amended as follows: Without undue delay, the operator shall inform the competent authority of any planned changes to the nature or functioning of the installation, or any extension or significant reduction of its capacity, which may require updating the greenhouse gas emissions permit. Where appropriate, the competent authority shall update the permit. Where there is a change in the identity of the installation's operator, the competent authority shall update the permit to include the name and address of the new operator.

2016/06/23
Committee: ITRE

Edouard MARTIN, Pervenche BERÈS, Zigmantas BALČYTIS, Constanze KREHL, Martina WERNER, Patrizia TOIA, Kathleen VAN BREMPT, Miroslav POCHE, Olle LUDVIGSSON, Eugen FREUND, Flavio ZANONATO, Theresa GRIFFIN, José BLANCO LÓPEZ, Soledad CABEZÓN RUIZ, Carlos ZORRINHO, Jude KIRTON-DARLING

Proposal for a directive
Article 1 – paragraph 1 – point 3

Article 9 paragraph 2

Article 9 paragraph 3

Starting in 2021, the linear factor shall be 2.24%.

2016/06/23
Committee: ITRE

Edouard MARTIN, Pervenche BERÈS, Zigmantas BALČYTIS, Patrizia TOIA, Olle LUDVIGSSON, Eva KAILI, Flavio ZANONATO, José BLANCO LÓPEZ, Soledad CABEZÓN RUIZ, Csaba MOLNÁR, Carlos ZORRINHO, Simona BONAFÈ

Proposal for a directive
Article 1 – paragraph 1 – point 4 – point a – subparagraph 2a (new)

Article 10

Paragraph 1 – subparagraph 3a (new)

Up to 2% of the total quantity of allowances between 2021 and 2030 shall be auctioned to establish a harmonised compensation scheme as set out in article 10a, paragraph 6, of this Directive.

2016/06/23
Committee: ITRE

Edouard MARTIN, Pervenche BERÈS, Zigmantas BALČYTIS, Martina WERNER, Patrizia TOIA, Kathleen VAN BREMPT, Olle LUDVIGSSON, Eugen FREUND, Eva KAILI, Jeppe KOFOD, Flavio ZANONATO, Theresa GRIFFIN, José BLANCO LÓPEZ, Soledad CABEZÓN RUIZ, Csaba MOLNÁR, Carlos ZORRINHO, Simona BONAFÈ, Jude KIRTON-DARLING

Proposal for a directive
Article 1 – paragraph 1 – point 4 – point b a (new)

(ba) paragraph 3 is amended as follows: Member States shall determine the use of revenues generated from the auctioning of allowances, within the frame set hereafter. At least 80% 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, shall be used for one or more of the following:

2016/06/23
Committee: ITRE

Proposal for a directive
Article 1 – paragraph 1 – point 4 – point b b (new)

Article 10

Paragraph 3 (a)

(bb) In paragraph 3, the point (a) is modified as follows: to reduce greenhouse gas emissions, including by contributing to the Global Energy Efficiency and Renewable Energy Fund, to the Adaptation Fund as made operational by the Poznan Conference on Climate Change (COP 14 and COP/MOP 4) and to the Green Climate Fund; to adapt to the impacts of climate change and to fund research and development as well as demonstration projects for reducing emissions and for adaptation to climate change, including participation in initiatives within the framework of the European Strategic Energy Technology Plan and the European Technology Platforms;

2016/06/23
Committee: ITRE

Edouard MARTIN, Pervenche BERÈS, Zigmantas BALČYTIS, Martina WERNER, Patrizia TOIA, Kathleen VAN BREMPT, Olle LUDVIGSSON, Eugen FREUND, Jeppe KOFOD, Flavio ZANONATO, Theresa GRIFFIN, José BLANCO LÓPEZ, Soledad CABEZÓN RUIZ, Csaba MOLNÁR, Carlos ZORRINHO, Simona BONAFÈ, Jude KIRTON-DARLING

Proposal for a directive
Article 1 – paragraph 1 – point 4 – point b c (new)

Article 10

Paragraph 3 (b)

(bc) In paragraph 3, the point (b) is modified as follows: to develop renewable energies to meet the engagements of using 30 % renewable energies by 2030, as well as to develop other technologies contributing to the transition to a safe and sustainable low- carbon economy and to help meet the engagements to increase energy efficiency by 40 % by 2030;

2016/06/23
Committee: ITRE

Edouard MARTIN, Pervenche BERÈS, Zigmantas BALČYTIS, Patrizia TOIA, Kathleen VAN BREMPT, Olle LUDVIGSSON, Eva KAILI, Flavio ZANONATO, José BLANCO LÓPEZ, Soledad CABEZÓN RUIZ, Csaba MOLNÁR, Carlos ZORRINHO, Simona BONAFÈ

Proposal for a directive
Article 1 – paragraph 1 – point 4 – point c

Article 10

Paragraph 3 (j)

(j) to fund financial measures in favour of sectors or subsectors that are exposed to a genuine risk of carbon leakage due to significant indirect costs that are actually incurred from greenhouse gas emission costs passed on in electricity prices, provided that these measures meet the conditions set out in Article 10a(6);deleted

2016/06/23
Committee: ITRE

Edouard MARTIN, Pervenche BERÈS, Zigmantas BALČYTIS, Constanze KREHL, Martina WERNER, Patrizia TOIA, Kathleen VAN BREMPT, Olle LUDVIGSSON, Jens GEIER, Jeppe KOFOD, Flavio ZANONATO, Theresa GRIFFIN, José BLANCO LÓPEZ, Soledad CABEZÓN RUIZ, Csaba MOLNÁR, Carlos ZORRINHO, Simona BONAFÈ, Jude KIRTON-DARLING

Proposal for a directive
Article 1 – paragraph 1 – point 4 – point d a (new)

Article 10

Paragraph 5

(da) Paragraph 5 is complemented as follows: Refers in this regard to the obligation bore by Member States to inform the Commission as to the use of ETS revenues; underlines that increased transparency would help citizens see how ETS revenues are being used by national authorities.

2016/06/23
Committee: ITRE

Edouard MARTIN, Pervenche BERÈS, Zigmantas BALČYTIS, Constanze KREHL, Martina WERNER, Patrizia TOIA, Kathleen VAN BREMPT, Olle LUDVIGSSON, Jens GEIER, Flavio ZANONATO, Theresa GRIFFIN, José BLANCO LÓPEZ, Soledad CABEZÓN RUIZ, Csaba MOLNÁR, Carlos ZORRINHO, Jude KIRTON-DARLING

Proposal for a directive
Article 1 – paragraph 1 – point 4 – point d b (new)

Article 10

Paragraph 5a

(db) A new paragraph 5a is added: The Commission shall build a database providing information on the carbon content of products made by the industry covered by the ETS.

2016/06/23
Committee: ITRE

Edouard MARTIN, Pervenche BERÈS, Zigmantas BALČYTIS, Dan NICA, Patrizia TOIA, Miroslav POCHE, Eugen FREUND, Flavio ZANONATO, Theresa GRIFFIN, José BLANCO LÓPEZ, Soledad CABEZÓN RUIZ, Csaba MOLNÁR, Carlos ZORRINHO, Jude KIRTON-DARLING

Proposal for a directive
Article 1 – paragraph 1 – point 4 – point d c (new)

Article 10

Paragraph 5b

(dc) A new paragraph 5b is added: The Commission shall publish every two years on the basis of a harmonised information from Member-States the impact of the ETS carbon price on the purchasing power of the citizens. On this basis, the Member-States are invited to compensate the impact of the ETS carbon price on the purchasing power of households in situation of energy poverty.

2016/06/23
Committee: ITRE

Edouard MARTIN, Pervenche BERÈS, Zigmantas BALČYTIS, Patrizia TOIA, Kathleen VAN BREMPT, Olle LUDVIGSSON, Flavio ZANONATO, José BLANCO LÓPEZ, Soledad CABEZÓN RUIZ, Csaba MOLNÁR, Carlos ZORRINHO, Simona BONAFÈ

Proposal for a directive
Article 1 – paragraph 1 – point 4 – point d d (new)

Article 10

Paragraph 6 (new)

(dd) A new paragraph 6 is added: "Every two years Member States shall communicate to the Commission the closures of electricity generation capacity due to national measures. The Commission shall calculate the equivalent number of allowances that these closures represent. Member States may surrender a corresponding volume of allowances and place them into the MSR."

2016/06/23
Committee: ITRE

Edouard MARTIN, Pervenche BERÈS, Zigmantas BALČYTIS, Patrizia TOIA, Kathleen VAN BREMPT, Olle LUDVIGSSON, Flavio ZANONATO, Theresa GRIFFIN, José BLANCO LÓPEZ, Soledad CABEZÓN RUIZ, Csaba MOLNÁR, Carlos ZORRINHO, Simona BONAFÈ, Jude KIRTON-DARLING

Proposal for a directive
Article 1 – paragraph 1 – point 5 – point a

Article 10a

Paragraph 1 Subparagraph 2

The Commission shall be empowered to adopt a delegated act in accordance with Article 23. This act shall also provide for additional allocation from the new entrants reserve for significant production ~~increases by applying the same thresholds and allocation adjustments as apply in respect of partial cessations of operation~~changes. Any 10% increase or decrease in production expressed as a rolling average of verified production data for the two preceding years compared to the production activity reported in accordance with Article 11 should be adjusted with a corresponding amount of allowances by placing allowances into and releasing allowances from the reserve referred to in paragraph 7.

2016/06/23
Committee: ITRE

Edouard MARTIN, Pervenche BERÈS, Zigmantas BALČYTIS, Dan NICA, Constanze KREHL, Martina WERNER, Patrizia TOIA, Olle LUDVIGSSON, Eva KAILI, Jens GEIER, Flavio ZANONATO, Theresa GRIFFIN, José BLANCO LÓPEZ, Soledad CABEZÓN RUIZ, Csaba MOLNÁR, Carlos ZORRINHO, Jude KIRTON-DARLING

Proposal for a directive
Article 1 – paragraph 1 – point 5 – point a a (new)

Article 10a

Paragraph 1

(aa) The third paragraph of paragraph 1 is modified as follows: The measures referred to in the first subparagraph shall, to the extent feasible, determine Community-wide ex-ante benchmarks so as to ensure that allocation takes place in a manner that provides incentives for reductions in greenhouse gas emissions and energy efficient techniques, by taking account of the most efficient techniques, substitutes, alternative production processes, high efficiency cogeneration, efficient energy recovery of waste gases, use of biomass, capture and re-use of CO2 and capture and storage of CO2, where such facilities are available, and shall not provide incentives to increase emissions. No free allocation shall be made in respect of any electricity production, except for cases falling within Article 10c and electricity produced from waste gases.

2016/06/23
Committee: ITRE

Flavio ZANONATO, Patrizia TOIA

Proposal for a directive
Article 1 – paragraph 1 – point 5 – point b

Directive 2003/87/EC
Article 1 – paragraph 5 – point 5 – point b

The benchmark values for free allocation shall be adjusourned and calculated in order to avoid windfall profits and reflect technological progress inoccurred since the period between 2007-8 ~~and each later period for which free allocations are determin~~. This calculation shall review the benchmark values set by the act adopted pursuant to Article 10a based on verified data collected in accordance ~~with~~to Article 11(1)~~. This adjustment shall reduce the benchmark values set by the act adopted pursuant to Article 10a by 1% of~~ and increase the number of product benchmarks as much as possible, in order to reduce the application of fall back approaches to a minimum. Where the vcal~~ue that was set based on 2007-8 data in respect of each year between 2008 and the middle of the relevant period of free allocation, unless:~~culation of product benchmarks is not feasible and fall back approaches still represent the allocation method, rules to prevent from perverse incentives deriving from activity level reduction linked to energy efficiency improvement shall be developed.

2016/06/23
Committee: ITRE

Edouard MARTIN, Pervenche BERÈS, Zigmantas BALČYTIS, Patrizia TOIA, Eva KAILI, Flavio ZANONATO, Theresa GRIFFIN, José BLANCO LÓPEZ, Soledad CABEZÓN RUIZ, Csaba MOLNÁR, Carlos ZORRINHO, Jude KIRTON-DARLING

Proposal for a directive
Article 1 – paragraph 1 – point 5 – point b

Article 10 a

Paragraph 2

(i) On the basis of information submitted pursuant to Article 11, the Commission shall identify whether the values for each benchmark calculated using the principles in Article 10a differ from the annual reduction referred to above by more than 0.5% of the 2007-8 value higher or lower annually. If so, that benchmark value shall be adjusted either 0.5% or 1.5% in respect of each year between 2008 and the middle of the period for which free allocation is to be made;deleted

2016/06/23
Committee: ITRE

Edouard MARTIN, Pervenche BERÈS, Zigmantas BALČYTIS, Constanze KREHL, Eva KAILI, Jens GEIER, Flavio ZANONATO, Theresa GRIFFIN, José BLANCO LÓPEZ, Soledad CABEZÓN RUIZ, Csaba MOLNÁR, Carlos ZORRINHO, Jude KIRTON-DARLING

Proposal for a directive
Article 1 – paragraph 1 – point 5 – point b

Article 10 a

Paragraph 2

(ii) By way of derogation regarding the benchmark values for aromatics, hydrogen and syngas, these benchmark values shall be adjusted by the same percentage as the refineries benchmarks in order to preserve a level playing field for producers of these products.deleted

2016/06/23
Committee: ITRE

Edouard MARTIN, Pervenche BERÈS, Zigmantas BALČYTIS, Constanze KREHL, Martina WERNER, Patrizia TOIA, Olle LUDVIGSSON, Eugen FREUND, Jens GEIER, Jeppe KOFOD, Flavio ZANONATO, Theresa GRIFFIN, José BLANCO LÓPEZ, Soledad CABEZÓN RUIZ, Csaba MOLNÁR, Carlos ZORRINHO, Jude KIRTON-DARLING

Proposal for a directive
Article 1 – paragraph 1 – point 5 – point c

Article 10a

Paragraph 5

In order to respect the auctioning share set out in Article 10, the sum of free allocations in every year where the sum of free allocations does not reach the maximum level that respects the Member State auctioning share, the remaining allowances up to that level shall be used to prevent or limit reduction of free allocations to respect the Member State auctioning share in later years. Where, nonetheless, the maximum level is reached, free allocations shall be adjusted accordingly. Any such adjustment shall be ~~done in a uniform manner~~applied so that the 10% best performers of each sector or sub-sector are not impacted.

2016/06/23
Committee: ITRE

Edouard MARTIN, Pervenche BERÈS, Zigmantas BALČYTIS, Patrizia TOIA, Olle LUDVIGSSON, Eva KAILI, Flavio ZANONATO, José BLANCO LÓPEZ, Soledad CABEZÓN RUIZ, Csaba MOLNÁR, Carlos ZORRINHO, Simona BONAFÈ

Proposal for a directive
Article 1 – paragraph 1 – point 5 – point d

Article 10a

paragraph 6

~~Member States should adopt financial measures in favour of sectors or sub- sector~~A centralised arrangement at European level is adopted to compensate installations which are exposed to a genuine risk of carbon leakage due to significant ~~indirect cost~~greenhouse gas emission costs passed through to electricity prices. This tha~~t are actually incurred from~~rmonised compensation is financed as set out in Article 10 for such costs. Compensation shall be proportionate to greenhouse gas emissions costs passed on into electricity prices~~, taking into account any effects on the internal market. Such financial measures to compensate part of these costs shall b~~ and should be applied in a way to avoid both negative effects on the internal market and overcompensation. Where the amount of compensation as defined in Article 10 is not sufficient to compensate for all eligible costs, the amount of aid for all eligible installations is reduced uniformly. The Commission shall be empowered to adopt a delegated act for this purpose in accordance with ~~state aid rules.~~ Article 23.

2016/06/23
Committee: ITRE

Edouard MARTIN, Pervenche BERÈS, Zigmantas BALČYTIS, Patrizia TOIA, Olle LUDVIGSSON, Flavio ZANONATO, José BLANCO LÓPEZ, Soledad CABEZÓN RUIZ, Csaba MOLNÁR, Carlos ZORRINHO, Jude KIRTON-DARLING

Proposal for a directive
Article 1 – paragraph 1 – point 5 – point e a (new)

Article 10a

Paragraph 7a (new)

(ea) A new paragraph is added: The sectors and sub sectors concerned by paragraphs 1 and 2 of Article 10b will receive free allocations which annual excess, if any, are exclusively dedicated to low carbon investment in the installations belonging to the same sector or sub-sector during the whole fourth period, in conformity with paragraphs b, e, g, l and m(new) of article 10 paragraph 3, as well as with the rules for the public investments financed by free allocations in the article 10c paragraph 2 and 3; the assets coming from the free allocations monetisation during the fourth period have to be paid or engaged for low carbon investments at the latest 12/31/2030. A balance will be made two times during the fourth period, in 2025 and 2030 with a possibility of sanctions under Article 16.

2016/06/23
Committee: ITRE

Edouard MARTIN, Pervenche BERÈS, Zigmantas BALČYTIS, Constanze KREHL, Martina WERNER, Patrizia TOIA, Kathleen VAN BREMPT, Olle LUDVIGSSON, Jens GEIER, Jeppe KOFOD, Flavio ZANONATO, Theresa GRIFFIN, José BLANCO LÓPEZ, Soledad CABEZÓN RUIZ, Csaba MOLNÁR, Carlos ZORRINHO, Jude KIRTON-DARLING

Proposal for a directive
Article 1 – paragraph 1 – point 5 – point f

Article 10a

Paragraph 8

The Commission shall be empowered to adopt a delegated act in accordance with Article 23, taking due account of the following principles: - Projects should focus on research and innovation for the design and development of breakthrough solutions and implementation of demonstration programmes, including in real industrial environments; - Projects should deliver ambitious reduction in specific GHG emission intensity of at least 20%, with respect to the best available technologies; - The activities should run close-to-market in production plants to demonstrate the viability of breakthrough technologies in overcoming the technological as well as non-technological barriers; - Projects should address technological solutions that could have widespread applications and may combine different technologies; - Solutions and technologies should ideally have the potentials to be transferred within the sector and possibly to other sectors.

2016/06/23
Committee: ITRE

Edouard MARTIN, Pervenche BERÈS, Zigmantas BALČYTIS, Patrizia TOIA, Kathleen VAN BREMPT, Olle LUDVIGSSON, Eugen FREUND, Flavio ZANONATO, José BLANCO LÓPEZ, Soledad CABEZÓN RUIZ, Carlos ZORRINHO, Jude KIRTON-DARLING