76 Amendments of Joachim SCHUSTER related to 2021/0214(COD)
Amendment 74 #
Proposal for a regulation
Recital 6 a (new)
Recital 6 a (new)
(6 a) Global warming already reached 1.18°C in December 2020, leading to world wide draughts, floods, storms and heatwaves. If we continue at the current trend, global warming will reach 1.5°C in 2034. The outcome of the COP 26 in Glasgow, lacks the needed ambition and stronger commitments to turn the tide. The new announcements and updates of the NDCs after Glasgow will reduce temperature rises only by 0.1%, still leading to a disastrous estimated temperature rise between 1.8°C and 2.9°C by 2100;
Amendment 80 #
Proposal for a regulation
Recital 9
Recital 9
(9) The initiative for a carbon border adjustment mechanism (‘CBAM’) is a part of the ‘Fit for 55 Package’. That mechanism is to serve as an essential element of the EU toolbox to meet the objective of a climate-neutral Union by 2050 in line with the Paris Agreement by addressing risks of carbon leakage resulting from the increased Union climate ambition. The CBAM should serve as one element in the EU’s comprehensive strategy towards global sustainable trade and the ambition to reduce global carbon emissions;
Amendment 84 #
Proposal for a regulation
Recital 9 a (new)
Recital 9 a (new)
(9 a) It is necessary to come forward with a holistic and comprehensive impact assessment of the entire fit for 55 package. Stakeholders, both within and outside of the EU borders, will not only feel the consequences of the separate proposals, but will also experience combined effects of the various proposals together, as they are all interlinked. Therefore, aside from the 13 separate impact assessments already carried out, an impact assessment of the entire package as a whole should be performed.
Amendment 85 #
Proposal for a regulation
Recital 1
Recital 1
(1) The Commission has, in its communication on the European Green Deal31 , set out a new growth strategy that aims to transform the Union into a fair and prosperous society, with a modern, resource-efficient and competitive economy, where there are no net emissions (emissions after deduction of removals) of greenhouse gases (‘GHG emissions’) in 2050 and where economic growth is decoupled from resource use. The European Green Deal also aims to protect, conserve and enhance the EU’s natural capital, and protect the health and well- being of citizens and future generations from environment-related risks and impacts. At the same time, that transformation must be just and inclusive, leaving no one behind. The Commission also announced in its EU Action Plan: Towards Zero Pollution for Air, Water and Soil32 the promotion of relevant instruments and incentives to better implement the polluter pays principle as set out in Article 191(2) of the Treaty on the Functioning of the European Union (‘TFEU’) and thus complete the phasing out of ‘pollution for free’ with a view to maximising synergies between decarbonisation and the zero pollution ambition. _________________ 31 Communication from the Commission of 11 December 2019 on the European Green Deal (COM(2019) 640 final). 32 Communication from the Commission of 12 May 2021 on Pathway to a Healthy Planet for All (COM(2021) 400).
Amendment 97 #
Proposal for a regulation
Recital 8
Recital 8
(8) As long as a significant number of the Union’s international partners have policy approaches that do not result in the same level of climate ambition and action in mitigating climate change, there is a risk of carbon leakage. Carbon leakage occurs if, for reasons of costs related to climate policies, businesses in certain industry sectors or subsectors were to transfer production to other countries that do not tax GHG emissions or tax at a lower rate or imports from those countries would replace equivalent but less GHG emissions intensive products. That could lead to an increase in their total emissions globally, thus jeopardising the reduction of GHG emissions that is urgently needed if the world is to keep the global average temperature to well below 2 °C above pre- industrial levels. The risk of carbon leakage is particularly prevalent in trade- exposed and carbon-intensive industrial sectors.
Amendment 107 #
Proposal for a regulation
Recital 9
Recital 9
(9) The initiative for a carbon border adjustment mechanism (‘CBAM’) is a part of the ‘Fit for 55 Package’. That mechanism is to serve as an essential element of the EU toolbox to meet the objective of a climate-neutral Union by 2050 in line with the Paris Agreement by addressing risks of carbon leakage resulting from the increased Union climate ambition whilst ensuring a sustainable level playing field and by incentivising more ambitious climate action internationally.
Amendment 109 #
Proposal for a regulation
Recital 12
Recital 12
(12) While the objective of the CBAM is to lower global carbon emissions by preventing the risk of carbon leakage, this Regulation would also encourage the use of more GHG emissions-efficient technologies by producers from third countries, so that less emissions per unit of output are generated. Special attention, intensive dialogue, administrative, technical and financial support is needed regarding LDCs, empowering them to reach the green transition in a sustainable and fair way and enabling them to be full- fledged participators in global sustainable trade;
Amendment 115 #
Proposal for a regulation
Recital 12 a (new)
Recital 12 a (new)
(12 a) To meet the Union objectives and international commitments, such as those under WTO agreements and the Paris agreement and in line with the principle of CBDR, the Commission should come forward with a proposal and sufficient funding to support LDCs in complying with the various CBAM requirements. This should entail, amongst others, the necessary administrative and technical assistance and financial support to facilitate LDC’s adaptation to the new obligations established by this regulation as well as support the help them cut emissions and accomplish the green transition.
Amendment 117 #
Proposal for a regulation
Recital 12 b (new)
Recital 12 b (new)
(12 b) In the transitional phase, producers of LDCs in the sectors covered by the CBAM should be supported in complying with the administrative requirements of the CBAM and assisted in mapping the real emissions of their production processes. At the same time, possible environmental and energy improvements in the production process (such as regarding raw material use, circular economy aspects, energy efficiency and use of renewable energy) should be proposed, technical and knowledge transfers should take place and best practices should be shared.
Amendment 118 #
Proposal for a regulation
Recital 12 c (new)
Recital 12 c (new)
(12 c) During the implementation phase, when revenues will be generated from the sale of CBAM certificates and the financial consequences of the CBAM will be sensed in third countries, sufficient support and funding should be attributed to helping LDCs in implementing the environment, climate, energy and resource related improvements to help them lower emissions, cut CBAM costs and accomplish the green transition.
Amendment 120 #
Proposal for a regulation
Recital 12 d (new)
Recital 12 d (new)
(12 d) As the sole aim of the CBAM is to reduce global carbon emissions, the revenues generated from the sale of CBAM certificates, or the equivalent in financial value of these revenues, should be channeled towards global climate funding. Sufficient funding should be made available to realize the support for LDCs as stipulated above;
Amendment 128 #
Proposal for a regulation
Recital 11
Recital 11
(11) The CBAM seeks to replace these existing mechanisms by addressing the risk of carbon leakage in a different way, namely by ensuring equivalent carbon pricing for imports and domestic products. To ensure a gradual transition from the current system of free allowances to the CBAM, the CBAM should be progressively phased in while free allowances in sectors covered by the CBAM are phased out. The combined and transitional application of EU ETS allowances allocated free of charge and of the CBAM should in no case result in more favourable treatment for Union goods compared to goods imported into the customs territory of the Union. This gradual transition shall be supported by a review mechanism in which the Commission assesses the gradual implementation of the instrument, including the need for its scope extension.
Amendment 141 #
Proposal for a regulation
Recital 17
Recital 17
(17) The GHG emissions to be regulated by the CBAM should correspond to those GHG emissions covered by Annex I to the EU ETS in Directive 2003/87/EC, namely carbon dioxide (‘CO2’) as well as, where relevant, nitrous oxide (‘N2O’) and perfluorocarbons (‘PFCs’). The CBAM should initiaapply to direct emissions as welly applys to indirect emissions of those GHG from the production of goods up to the time of import into the customs territory of the Union, and after the end of a transition period and upon further assessment, as well to indirect emissions, mirroring the scope of the EU ETS.mirroring the scope of the EU ETS and leading to as equal carbon costs as possible for domestic production and imports;
Amendment 141 #
Proposal for a regulation
Recital 12
Recital 12
(12) While the objective of the CBAM is to prevent the risk of carbon leakage, this Regulation would also encourage the deployment and use of more GHG emissions-efficient technologies by producers from third countries, so that less emissions per unit of output are generated.
Amendment 162 #
Proposal for a regulation
Recital 15
Recital 15
(15) In order to exclude from the CBAM third countries or territories fully integrated into, or linked, to the EU ETS and where the carbon costs are equivalent to the ones under the EU ETS, in the event of future agreements, the power to adopt acts in accordance with Article 290 of TFEU should be delegated to the Commission in respect of amending the list of countries in Annex II. Conversely, those third countries or territories should be excluded from the list in Annex II and be subject to CBAM whereby they do not effectively charge the ETS price on goods exported to the Union.
Amendment 185 #
Proposal for a regulation
Recital 24
Recital 24
(24) In terms of sanctions, Member States should apply penalties to infringements of this Regulation and ensure that they are implemented. The amount of those penalties should be identical to penalties currently applied within the Union in case of infringement of EU ETS according to Article 16(3) and (4) of Directive 2003/87/EC. Penalties to infringements of this Regulation, including for attempts at circumvention, should be dissuasive.
Amendment 191 #
Proposal for a regulation
Recital 28
Recital 28
(28) Whilst the ultimate objective of the CBAM is a broad product coverage, it would be prudent to start with a selected number of sectors with relatively homogeneous products where there is a risk of carbon leakage. Union sectors deemed at risk of carbon leakage are listed in Commission Delegated Decision 2019/70842 . The Commission should set up a review mechanism in order to better assess the broadening of the broad product coverage, including downstream products covered by this Regulation. _________________ 42 Commission Delegated Decision (EU) 2019/708 of 15 February 2019 supplementing Directive 2003/87/EC of the European Parliament and of the Council concerning the determination of sectors and subsectors deemed at risk of carbon leakage for the period 2021 to 2030 (OJ L 120, 8.5.2019, p. 2).
Amendment 202 #
Proposal for a regulation
Recital 39 b (new)
Recital 39 b (new)
(39b) While competent authorities are responsible to handle requests for authorisations and to manage national registries and CBAM certificates, all the necessary information and data should be transmitted to the Commission through a central registry database. The Commission has the responsibility to ensure the coordination of national registries inclusive of accounts of authorised declarants and accredited verifiers, it should act as a central administration and it has the power to request to competent authorities whenever it considers relevant information to tackle practices of circumvention, to avoid risks of mismanagement of declarations and CBAM certificates as well as fraud.
Amendment 203 #
(42) The system should allow operators of production installations in third countries to register in a central database and to make their verified embedded GHG emissions from production of goods available to authorised declarants. An operator should be able to choose not to have its name, address and contact details in the central database made accessible to the public.
Amendment 216 #
Proposal for a regulation
Recital 52
Recital 52
(52) The Commission should evaluate the application of this Regulation before the end of the transitional period and report to the European Parliament and the Council. The report of the Commission should in particular focus on possibilities to enhance climate actions towards the objective of a climate neutral Union by 2050 whilst preventing distortion of competition in the EU and global markets. The Commission should, as part of that evaluation, initiate collection of information necessary to possibly extend the scope to indirect emissions, as well as to other goods and services at risk of carbon leakage, such as downstream products using goods initially covered by this Regulation, and to develop methods of calculating embedded emissions based on the environmental footprint methods47 . The report should be based upon a review mechanism that assesses, in particular, the implementation of the Regulation vis- à-vis its objectives and the governance system. If appropriate, the report should be accompanied by legislative proposals whose entry into force should be consistent with the start of the implementation of CBAM. _________________ 47 Commission Recommendation 2013/179/EU of 9 April 2013 on the use of common methods to measure and communicate the life cycle environmental performance of products and organisations (OJ L 124, 4.5.2013, p. 1).
Amendment 219 #
Proposal for a regulation
Recital 55
Recital 55
(55) As the CBAM aims to encourage cleaner production processes, and in line with the CBDR principle, the EU stands ready to work with low and middle- income countries towards the de- carbonisation of their manufacturing industries. Moreover, the UnCommission should support less developed countriecome forward with a proposal and sufficient funding to support LDCs with the necessary technical and financial assistance in order to facilitate their adaptation to the new obligations established by this regulation. In the transitional phase, producers of LDCs in the sectors covered by the CBAM should be supported in complying with the administrative requirements of the CBAM, assisted in mapping the real emissions of their production processes and supported to determine production process improvements. During the implementation phase, when the CBAM has financial consequences, LDCs should be supported to cut emissions and thus CBAM costs and accomplish the green transition.
Amendment 228 #
Proposal for a regulation
Recital 54
Recital 54
(54) The Commission should strive to engage in an even handed manner and in line with the international obligations of the EU, with the third countries whose trade to the EU is affected by this Regulation, to explore possibilities for dialogue and cooperation with regard to the implementation of specific elements of the Mechanism set out this Regulation and related implementing acts. It should also explore possibilities for concluding agreements to take into account their carbon pricing mechanism and their decarbonisation policies.
Amendment 232 #
Proposal for a regulation
Recital 55
Recital 55
(55) As the CBAM aims to encourage cleaner production processes, the EU stands ready to work with low and middle- income countries towards the de- carbonisation of their manufacturing industries. Moreover, the Union should support less developed countries with the necessary technical assistance in order to facilitate their adaptation to the new obligations established by this regulation. The Union should make use of the Union policies and the Union budget to support those action, if appropriate.
Amendment 233 #
Proposal for a regulation
Article 1 – paragraph 1
Article 1 – paragraph 1
1. This Regulation establishes a carbon border adjustment mechanism (the ‘CBAM’) for addressing greenhouse gas emissions embedded in the goods referred to in Annex I, upon their importation into the customs territory of the Union, in order to reduce global carbon emissions by preventing the risk of carbon leakage.
Amendment 233 #
Proposal for a regulation
Recital 55 a (new)
Recital 55 a (new)
(55a) The European Green Deal and the new emission reductions targets will necessitate massive investments for a sustainable and fair transition. In this regard, keeping competitiveness of the EU industry in the decarbonisation efforts is essential not only for the sake of keeping jobs and a prosperous European economy. The Union and Member States should make use of its policies and budgets to provide the incentives to boost the competitiveness of low-carbon exports through namely the support to innovation.
Amendment 238 #
Proposal for a regulation
Recital 55 b (new)
Recital 55 b (new)
(55b) On 16 December 2020, the European Parliament, the Council and the Commission concluded the Interinstitutional agreement on budgetary discipline, cooperation on budgetary matters and sound financial management as well as on new own resources, including a roadmap towards the introduction of new own resources (IIA). The repayment of the principal of borrowed funds, by the Commission on behalf of the Union, to be used for expenditure under the European Union Recovery Instrument and the related interest due will have to be financed by the general budget of the Union, including by sufficient proceeds from new own resources introduced after 2021. Therefore, on 22 December 2021, the Commission proposed to amend the Own Resources Decision so that 75% of the revenues generated by a carbon border adjustment mechanism become an own resource for the EU budget. It is the responsibility of Member States to collect revenues from the sale of carbon border adjustment mechanism certificates.
Amendment 244 #
Proposal for a regulation
Article 1 – paragraph 1
Article 1 – paragraph 1
1. This Regulation establishes a carbon border adjustment mechanism (the ‘CBAM’) for addressing greenhouse gas emissions embedded in the goods referred to in Annex I, upon their importation into the customs territory of the Union, in order to prevent the risk of carbon leakage and safeguard fair and undistorted competition, ensuring a sustainable level playing field for all.
Amendment 259 #
Proposal for a regulation
Article 2 – paragraph 1
Article 2 – paragraph 1
1. This Regulation applies to goods as listed in Annex I, originating in a third country, when those goods, or processed products from those goods as resulting from the inward processing procedure referred to in Article 256 of Regulation (EU) No 952/2013 of the European Parliament and of the Council53 , are imported into the customs territory of the Union. Annex I shall be regularly assessed and potentially revised to take into account the establishment of a fair level playing field as referred in Article 30. _________________ 53 Regulation (EU) No 952/2013 of the European Parliament and of the Council of 9 October 2013 laying down the Union Customs Code (OJ L 269, 10.10.2013, p. 1).
Amendment 271 #
Proposal for a regulation
Article 3 – paragraph 1 – point 15 a (new)
Article 3 – paragraph 1 – point 15 a (new)
(15 a) ‘indirect emissions’ mean emissions from the production of electricity, heating and cooling, which is consumed during the production processes of goods.
Amendment 273 #
Proposal for a regulation
Article 3 – paragraph 1 – point 18
Article 3 – paragraph 1 – point 18
(18) ‘CBAM certificate’ means a certificate, common to all Members States, in electronic format corresponding to one tonne of embedded emissions in goods;
Amendment 274 #
Proposal for a regulation
Article 3 – paragraph 1 – point 16
Article 3 – paragraph 1 – point 16
(16) ‘embedded emissions’ mean direct emissions released during the production of goods and inputs of CBAM products into those goods, as well as indirect emissions from the production of electricity, heating and cooling consumed during the production of goods, calculated pursuant to the methods set out in Annex III;
Amendment 278 #
Proposal for a regulation
Article 3 – paragraph 1 – point 28
Article 3 – paragraph 1 – point 28
Amendment 281 #
Proposal for a regulation
Article 5 – paragraph 3 – point h a (new)
Article 5 – paragraph 3 – point h a (new)
(ha) the name and contact details of the third country competent authority in charge of collecting the carbon price paid by the operator in that third country, when relevant;
Amendment 286 #
Proposal for a regulation
Article 5 – paragraph 6
Article 5 – paragraph 6
6. The Commission is empowered to adopt implementing acts, concerning the single standard format of the application and the delays and procedure to be followed by the competent authority when processing applications for authorisation in accordance with paragraph 1 and the rules for identification by the competent authority of the declarants for the importation of electricity. The format of the application shall allow for machine readability in order to ease the exchange of information across Member States. Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 29(2).
Amendment 287 #
Proposal for a regulation
Article 7 – paragraph 2
Article 7 – paragraph 2
2. Embedded emissions in goods other than electricity shall be determined based on the actual emissions in accordance with the methods set out in Annex III, points 2 and 3. When actual emissions cannot be adequately determined, the embedded emissions shall be determined by reference to default values in accordance with the methods set out in Annex III, point 4.1. In determining indirect emissions from the consumption of electricity, heating and cooling embedded in goods other than electricity, the annual average emissions intensity of the marginal or other price- setting generator in the relevant electricity market shall be used. Where such data are not available, the average emissions intensity of fossil fuel-based generation plants in the relevant power market supplying the producing installation shall be used instead;
Amendment 287 #
Proposal for a regulation
Article 5 – paragraph 6 a (new)
Article 5 – paragraph 6 a (new)
6a. Competent authorities shall submit the standardised declaration form to a national registry and they should set up individual accounts of authorised declarants. Once the information is transmitted to a central registry, the Commission may request to remaining competent authorities any proof regarding the information established in paragraph 3(d).
Amendment 291 #
Proposal for a regulation
Article 7 – paragraph 6
Article 7 – paragraph 6
6. The Commission is empowered to adopt implementdelegated acts, ing actscordance with Article 28, concerning detailed rules regarding the elements of the calculation methods set out in Annex III, including determining system boundaries of production processes, emission factors, installation-specific indirect emissions related to electricity, heating and cooling consumption, installation-specific values of actual emissions and default values and their respective application to individual goods as well as laying down methods to ensure the reliability of data on the basis of which the default values shall be determined, including the level of detail and the verification of the data. Where necessary, those acts shall provide that the default values can be adapted to particular areas, regions or countries to take into account specific objective factors such as geography, natural resources, market conditions, prevailing energy sources, or industrial processes. The implementing acts shall build upon existing legislation for the verification of emissions and activity data for installations covered by Directive 2003/87/EC, in particular Implementing Regulation (EU) No 2018/2067.
Amendment 292 #
Proposal for a regulation
Article 7 – paragraph 7
Article 7 – paragraph 7
Amendment 299 #
Proposal for a regulation
Article 8 – paragraph 3 – introductory part
Article 8 – paragraph 3 – introductory part
3. The Commission is empowered to adopt implementing acts concerning the principles of verification referred to in paragraph 1 as regards the possibility to waiveaccuracy of the information in the CBAM declaration, the obligation for the verifier to visit the installation where relevant goods are produced and the obligation to set thresholds for deciding whether misstatements or non-conformities are material and concerning the supporting documentation needed for the verification report.
Amendment 301 #
Proposal for a regulation
Article 9 – paragraph 2
Article 9 – paragraph 2
2. The authorised declarant shall keep records of the documentation, certified by an independent personaccredited verifier, required to demonstrate that the declared embedded emissions were subject to a carbon price in the country of origin of the goods and keep evidence of the proof of the actual payment for that carbon price which should not have been subject to an export rebate or any other form of compensation on exportation.
Amendment 310 #
Proposal for a regulation
Article 10 – paragraph 1
Article 10 – paragraph 1
1. The Commission shall, upon request by an operator of an installation located in a third country, register the information on that operator and on its installation in a central registry database referred to in Article 14(4) accessible by national competent authorities.
Amendment 311 #
Proposal for a regulation
Article 10 – paragraph 2 – point c a (new)
Article 10 – paragraph 2 – point c a (new)
(ca) the name and contact details of the third country competent authority in charge of collecting the carbon price paid by the operator in that third country, when relevant;
Amendment 316 #
Proposal for a regulation
Article 10 – paragraph 6
Article 10 – paragraph 6
6. The records referred to in paragraph 5, point (c), shall be sufficiently detailed to enable the verification in accordance with paragraph 5, point (b), and to enable any competent authority to verify and review, in accordance with Article 19(1), the CBAM declaration made by an authorised declarant to whom the relevant information was disclosed in accordance with paragraph 8.
Amendment 326 #
Proposal for a regulation
Article 11 – paragraph 1 a (new)
Article 11 – paragraph 1 a (new)
1a. Competent authorities shall set up national registries with accounts of authorised declarants. These accounts shall be connected and interchangeable with all competent authorities and automatically integrated in a central registry system managed by the Commission.
Amendment 328 #
Proposal for a regulation
Article 11 – paragraph 2
Article 11 – paragraph 2
2. Member States shall require that competent authorities exchange any information that is essential or relevant to the exercise of their functions and duties, either automatically via the central registry database, or upon request and within a delay of 3 months, when another competent authority or the Commission issues such request for specific information related to the calculation of the CBAM certificates.
Amendment 343 #
Proposal for a regulation
Article 14 – title
Article 14 – title
National registries and EU central registry database
Amendment 346 #
Proposal for a regulation
Article 14 – paragraph 1
Article 14 – paragraph 1
1. The competent authority of each Member State shall establish a national registry of declarants authorised in that Member State in the form of a standardised electronic database containing the data regarding the CBAM certificates of those declarants, and to provide for confidentiality in accordance with the conditions set out in Article 13. Such a standardised electronic database shall be built to be compatible with the EU central database built by the Commission, meaning the data can be automatically uploaded into the central database.
Amendment 351 #
Proposal for a regulation
Article 14 – paragraph 2 – point d b (new)
Article 14 – paragraph 2 – point d b (new)
(db) the report of the accredited verifier;
Amendment 352 #
Proposal for a regulation
Article 14 – paragraph 2 – point d c (new)
Article 14 – paragraph 2 – point d c (new)
(dc) the procedures regarding the surrender of CBAM certificates.
Amendment 353 #
Proposal for a regulation
Article 14 – paragraph 3
Article 14 – paragraph 3
3. The Commission shall establish a central database that would automatically collect the information referred to in paragraph 2 which shall be automatically accessible to competent authorities of each Member States. The information in the database referred to in paragraph 2 shall be confidential unless specified otherwise in paragraph 4.
Amendment 354 #
Proposal for a regulation
Article 14 – paragraph 3 a (new)
Article 14 – paragraph 3 a (new)
3a. The central registry database aims to ensure an efficient and transparent management of the information provided by the authorised declarant and it shall be managed by the Commission. The Commission may ask further information to competent authorities to ensure the consistency of the information provided by the declarant and for purposes of its reports.
Amendment 355 #
Proposal for a regulation
Article 14 – paragraph 4
Article 14 – paragraph 4
4. The Commission shall establish a central database accessible to the public containmake the information of the central database regarding the names, addresses and contact details of the operators and the location of installations in third countries in accordance with Article 10(2). An operator may choose not to have its name, address and contact details accessible to the public.
Amendment 362 #
Proposal for a regulation
Article 15 – paragraph 3
Article 15 – paragraph 3
3. If irregularities are identified as a result of the controls carried out under paragraph 2, the Commission shall inform the Member State or Member States concerned for further investigation in order to correct the identified irregularities within 3 months.
Amendment 373 #
Proposal for a regulation
Article 16 – paragraph 4
Article 16 – paragraph 4
4. If the authorised declarant has ceased its economic activity or its authorisation was revoked, the competent authority shall close the account of that declarant after 2 years.
Amendment 377 #
Proposal for a regulation
Article 17 – paragraph 1 – point a
Article 17 – paragraph 1 – point a
(a) the declarant has not been involved in a serious infringement or repeated infringements of customs legislation, taxation rules and market abuse rules and has no record of serious criminal offences relating to its economic activity during the five years preceding the application; the declarant is not resident for tax purposes in, or incorporated under the laws of, jurisdictions that feature on the EU list of non-cooperative jurisdictions;
Amendment 397 #
Proposal for a regulation
Article 24 a (new)
Article 24 a (new)
Article 24 a Revenues from the sale of CBAM certificates In line with the Union objectives and international commitments, such as those under WTO agreements, the Paris agreement and the CBDR principle, the Commission should come forward with a proposal and sufficient funding to support LDCs. This should entail, amongst others, the necessary administrative and technical assistance and financial support to facilitate LDC’s adaptation to the new obligations established by this regulation and the accomplishment of a sustainable transition. In the transitional phase, producers of LDCs in the sectors covered by the CBAM should be supported in complying with the administrative requirements of the CBAM and assisted in mapping the real emissions of their production processes. At the same time, possible environmental and energy improvements in the production process (such as regarding raw material use, circular economy aspects, energy efficiency and use of renewable energy) should be proposed, technical and knowledge transfers should take place and best practices should be shared. During the implementation phase, when revenues will be generated from the sale of CBAM certificates and the financial consequences of the CBAM will be sensed in third countries, sufficient support and funding should be attributed to helping LDCs in implementing the environment, climate, energy and resource related improvements to lower emissions, cut CBAM costs and accomplish the green transition.
Amendment 406 #
Proposal for a regulation
Article 17 – paragraph 9 a (new)
Article 17 – paragraph 9 a (new)
9a. The competent authority informs the competent authorities of other Member States and the Commission on any refusal or revocation by introducing the necessary information in the national registry that shall be immediately transferred to the central database.
Amendment 407 #
Proposal for a regulation
Article 18 – paragraph 3
Article 18 – paragraph 3
3. The Commission is empowered to adopt delegated acts in accordance with Article 28 for the accreditation referred to in paragraph 2, specifying conditions for the control and oversight of accredited verifiers, for the withdrawal of accreditation and for mutual recognition and peer evaluation of the accreditation bodies. The Commission is empowered to adopt delegated acts specifying conditions for verifiers to be able to comply with Article 21, 32 and 34 of the Implementing Regulation (EU) No 2018/2067 related to on site visits when the site is located in a third country.
Amendment 415 #
Proposal for a regulation
Article 27 – paragraph 2
Article 27 – paragraph 2
2. Practices of circumvention include situations where a change in the pattern of trade in relation to goods included in the scope of this Regulation has insufficient due cause or economic justification other than avoiding obligations as laid down in this Regulation and consist in replacing those goods with slightly modified products, which are not included in the list of goods in Annex I but belong to a sector included in the scope of this Regulation. Circumvention practices are any measures that have the objective of avoiding the obligations laid down in this Regulation in order to pretend lower total amount of the CO2 emissions. This concerns in particular deliberate changes in the trade flows of goods or importation via third countries, slightly modified products, misleading information about the manufacturer or the manufacturing process, restructuring of distribution structures or merely final assembly of the goods in the EU or a third country. The Commission is to use existing European legal order when defining the circumvention offences. In particular the Union Customs Code, Article 60(2) and Article 59, and the 2015 Implementing Act, Article 33;
Amendment 437 #
Proposal for a regulation
Article 23 – paragraph 1
Article 23 – paragraph 1
1. The competent authority of each Member State shall, on request by a declarant authorised in that Member State, re-purchase the excess of CBAM certificates remaining on the account of the declarant in the national registry after the certificates have been surrendered in accordance with Article 22. The request to re-purchase shall be submitted by 30 June of each year when CBAM certificates were surrendered. The competent authority shall immediately inform the Commission of the request through the central registry database.
Amendment 440 #
Proposal for a regulation
Article 27 – paragraph 5
Article 27 – paragraph 5
5. Where the Commission, taking into account the relevant data, reports and statistics, including when provided by the customs authorities of Member States, has sufficient reasons to believe that the circumstances referred to in paragraph 3 are occurring in one or more Member States, it is empowered to adopt delegated acts in accordance with Article 28 to supplement the scope of this Regulation in order to include slightly modified productsall the facts listed in paragraph 2 for anti-circumvention purposes.
Amendment 458 #
Proposal for a regulation
Article 28 – paragraph 5 a (new)
Article 28 – paragraph 5 a (new)
5 a. This committee of experts shall be inclusive and consist of people who, together, are knowledgeable of all the various effects of the CBAM, representing the interests of all affected stakeholders and society as a whole.
Amendment 464 #
Proposal for a regulation
Article 27 – paragraph 2
Article 27 – paragraph 2
2. Practices of circumvention include situations where a change in the pattern of trade in relation to goods included in the scope of this Regulation has insufficient due cause or economic justification other than avoiding obligations as laid down in this Regulation and consist in replacing those goods with slightly modified products, which are not included in the list of goods in Annex I but belong to a sector included in the scope of this RegulationCircumvention practices are any measures that have the objective of avoiding the obligations laid down in this Regulation in order to pretend lower total amount of the CO2 emissions. This concerns in particular deliberate changes in the trade flows of goods or importation via third countries, slightly modified products, misleading information about the manufacturer or the manufacturing process, restructuring of distribution structures or merely final assembly of the goods in the EU or a third country. The Commission is to use existing European legal order when defining the circumvention offences. In particular the Union Customs Code, Article 60(2) and Article 59, and the 2015 Implementing Act, Article 33.
Amendment 485 #
Proposal for a regulation
Article 27 – paragraph 5
Article 27 – paragraph 5
5. Where the Commission, taking into account the relevant data, reports and statistics, including when provided by the customs authorities of Member States, has sufficient reasons to believe that the circumstances referred to in paragraph 3 are occurring in one or more Member States, it is empowered to adopt delegated acts in accordance with Article 28 to supplement the scope of this Regulation in order to include slightly modified productsall the facts listed in paragraph 2 for anti-circumvention purposes.
Amendment 486 #
Proposal for a regulation
Article 30 – paragraph 3
Article 30 – paragraph 3
3. The report by the Commission shall, if appropriate, be accompanied by a legislative proposalIn accordance with the Article 36 paragraph 3(d) there shall be no automatic entry into force of the relevant parts of this Regulation after the transitional period. The Commission therefore attaches to its report a legislative proposal on the final entry into force of these parts. The Council and the European Parliament decide.
Amendment 520 #
Proposal for a regulation
Article 30 – paragraph 3
Article 30 – paragraph 3
3. The report by the Commission shall, if appropriate, be accompanied by a legislative proposalIn accordance with the Article 36 paragraph 3(d) there shall be no automatic entry into force of the relevant parts of this Regulation after the transitional period. The Commission therefore attaches to its report a legislative proposal on the final entry into force of these parts. The Council and the European Parliament decide.
Amendment 523 #
Proposal for a regulation
Article 36 – paragraph 3 – point d
Article 36 – paragraph 3 – point d
(d) Articles 4, 6, 7, 8, 9, 14, 15, 16, 19, 20, 21, 22, 23, 24, 25, 26, 27 and 31 shall apply from 1 January 2026, in accordance with Article 30 paragraph 3, only after a decision of the European Parliament and of the Council following a separate legislative proposal from the Commission.
Amendment 533 #
Proposal for a regulation
Article 31 – paragraph 2
Article 31 – paragraph 2
2. The Commission is empowered to adopt implementingdelegated acts laying down a calculation methodology for the reduction referred to in paragraph 1. Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 29(2).
Amendment 536 #
Proposal for a regulation
Annex III – point 2 – introductory part
Annex III – point 2 – introductory part
2. Determination of actual direct embedded emissions for simple goods
Amendment 537 #
Proposal for a regulation
Annex III – point 2 – paragraph 1 – introductory part
Annex III – point 2 – paragraph 1 – introductory part
For determining the specific actual embedded emissions of simple goods produced in a given installation, only direct emissions shall be accounted for. For this purpose, the following equation is to be applied:
Amendment 538 #
Proposal for a regulation
Annex III – point 2 – paragraph 3 – introductory part
Annex III – point 2 – paragraph 3 – introductory part
‘Attributed emissions’ mean the part of the installation’s direct emissions during the reporting period that are caused by the production process resulting in goods g when applying the system boundaries of the process defined by the implementing acts adopted pursuant to Article 7(6). The attributed emissions shall be calculated using the following equation:
Amendment 539 #
Proposal for a regulation
Annex III – point 2 – paragraph 3 – subparagraph 1
Annex III – point 2 – paragraph 3 – subparagraph 1
Amendment 540 #
Proposal for a regulation
Annex III – point 2 – paragraph 3 – subparagraph 1 a (new)
Annex III – point 2 – paragraph 3 – subparagraph 1 a (new)
Attrg = DirEm + EmH,imp –EmH,exp + Gcorr,imp – Gcorr,exp + Emel –Emel,exp
Amendment 540 #
Proposal for a regulation
Article 35 – paragraph 3
Article 35 – paragraph 3
3. The competent authority shall communicate the information referred to in paragraph 2 to the Commission at the latest two months after the end of the quarter covered by a report and the information shall be available in the central registry database.
Amendment 541 #
Proposal for a regulation
Annex III – point 2 – paragraph 4
Annex III – point 2 – paragraph 4
Where DirEm are the direct emissions, resulting from the production process, expressed in tonnes of CO2e, within the system boundaries referred to in the implementing act pursuant to Article 7(6). ; EmH,imp are the indirect emissions accounted for heat imported to the installation and consumed within the system boundaries of the process; EmH,exp are emission equivalents of heat exported from the process system boundaries; Gcorr,imp is a correction factor taking into account imports of waste gases or greenhouse gases used as process input; Gcorr,exp is a similar correction factor for exports of such gases from the system boundaries of the process; Emel are the indirect emissions accounted for electricity consumed within the system boundaries of the process, including any electricity consumed from the relevant power grid from which the installation is supplied; Emel,exp are emission equivalents of electricity exported from the process system boundaries; EmH is to be calculated using the emission factor for heat given in the implementing act pursuant to Article 7, Emel is to be calculated using the emission factor for electricity given in that act. Where offsite power is consumed, the annual average emissions intensity of the marginal or other price-setting generator in the relevant electricity market shall be used.Where such data are not available, the average emissions intensity of fossil- fuel based generation plants in the relevant power market supplying the producing installation shall be used instead. For Gcorr the implementing act shall specify the types of gases and of their use eligible for corrections, and relevant calculation factors.
Amendment 547 #
Proposal for a regulation
Article 36 – paragraph 3 – point d
Article 36 – paragraph 3 – point d
(d) Articles 4, 6, 7, 8, 9, 14, 15, 16, 19, 20, 21, 22, 23, 24, 25, 26, 27 and 31 shall apply from 1 January 2026, in accordance with Article 30 paragraph 3,only after a decision of the European Parliament and of the Council following a separate legislative proposal from the Commission.