21 Amendments of Seb DANCE related to 2014/0011(COD)
Amendment 26 #
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 21027 identified the need for measures in order to tackle structural supply- demand imbalances. The impact assessment on the 2030 climate and energy policy framework8 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 makeo ensure the market stability reserve has a quick and significant impact on the European Emissions 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 as of 1 July 2016. Without early introduction, projections show that the amount of surplus allowances would not fall below the current levels until 20215. 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 inas of 1 July 20216, allowances corresponding to 120% of the number of allowances in circulation in year x-21 should be put into the reserve. A corresponding number of allowances should be released from the reserve when the total number of allowances in circulation is lower than 4300 million. __________________ 7 COM(2012) 652 final. 8 Insert reference.
Amendment 40 #
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 auctioncancelling of part of any large increase ofin supply at the end of one trading period in the first two years of the next period.
Amendment 47 #
Proposal for a decision
Recital 3 a (new)
Recital 3 a (new)
(3a) Allowances that are backloaded in accordance with Decision No 1359/2013/EU of the European Parliament and of the Council 1a and Commission Regulation (EU) No 176/20141b should be cancelled in order to limit large fluctuations of the carbon price in the future and in order to prevent the flooding of an already oversupplied market in 2019 and 2020. __________________ 1a Decision No 1359/2013/EU of the European Parliament and of the Council of 17 December 2013 amending Directive 2003/87/EC clarifying provisions on the timing of auctions of greenhouse gas allowances (OJ L 343, 19.12.2013, p. 1.) 1b Commission Regulation (EU) No 176/2014 of 25 February 2014 amending Regulation (EU) No 1031/2010 in particular to determine the volumes of greenhouse gas emission allowances to be auctioned in 2013-20 (OJ L 56, 26.2.2014, p. 11).
Amendment 55 #
Proposal for a decision
Recital 3 a (new)
Recital 3 a (new)
(3a) Allowances that are backloaded in accordance with Decision No 1359/2013/EU of the European Parliament and of the Council1a and Commission Regulation (EU) No 176/20141b should be cancelled in order to limit large fluctuations of the carbon price in the future and in order to prevent the flooding of an already oversupplied market in 2019 and 2020. __________________ 1aDecision No 1359/2013/EU of the European Parliament and of the Council of 17 December 2013 amending Directive 2003/87/EC clarifying provisions on the timing of auctions of greenhouse gas allowances (OJ L 343, 19.12.2013, p. 1). 1b Commission Regulation (EU) No 176/2014 of 25 February 2014 amending Regulation (EU) No 1031/2010 in particular to determine the volumes of greenhouse gas emission allowances to be auctioned in 2013-20 (OJ L 56, 26.2.2014, p. 11).
Amendment 60 #
Proposal for a decision
Recital 3 b (new)
Recital 3 b (new)
(3b) The establishment of the market stability reserve does not affect the allocation of free allowances to industry at risk of carbon leakage and only tackles the volume of allowances that are auctioned. Any genuine risk of carbon leakage should fully be addressed as part the wider structural reform of the Emission Trading System in preparation for 2021. Until 2020, industry sectors which have been defined as being at risk of carbon leakage and which meet the relevant benchmarks, are protected by provisions in place which guarantee 100% free allowances. Guarantees to extend the existing carbon leakage measures have already been given in the Conclusions of the October 2014 European Council.
Amendment 64 #
Proposal for a decision
Recital 3 b (new)
Recital 3 b (new)
(3b) The European Council Conclusions of 23 and 24 October 2014 on the 2030 Climate and Energy Policy Framework give clear guidance on the continuation of free allocations and carbon leakage provisions after 2020. It is important that the competitiveness of European industries at genuine risk of carbon leakage is protected. Proportionate measures should, therefore, be put in place in order to shelter such industries from any negative impact on their competitiveness. Such measures should reflect the carbon price prevailing at the time of their introduction in order to ensure their effectiveness and to respect environmental integrity. It is, therefore, important that the Commission review the functioning of Directive 2003/87/EC in this respect.
Amendment 90 #
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 109 #
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 113 #
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 122 #
Proposal for a decision
Article 1 – paragraph 3
Article 1 – paragraph 3
3. InBy 1 January of each year beginning in 20217, a number of allowances equal to 120% of the total number of allowances in circulation in year x-2,1 as published in May year x-1, shall be placed in the reserve, unless this number of allowances to be placed in the reserve would be less than 100below 167 million.
Amendment 140 #
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, 100 million allowances shall be released from the reserve. In case less than 100 million allowances are in the reserve, all allowances in the reserve shall be released under this paragraph.
Amendment 143 #
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, 100 million allowances shall be released from the reserve. In case less than 100 million allowances are in the reserve, all allowances in the reserve shall be released under this paragraph.
Amendment 147 #
Proposal for a decision
Article 1 – paragraph 5
Article 1 – paragraph 5
5. In any year, if paragraph 4 is not applicable and measures are adopted under Article 29a of the Directivethe total number of allowances in circulation is lower than 300 million, 100 million allowances shall be released from the reserve. In case less than 100 million allowances are in the reserve, all allowances in the reserve shall be released under this paragraph.
Amendment 163 #
Proposal for a decision
Article 2 – paragraph 1 – point 1
Article 2 – paragraph 1 – point 1
Directive 2003/87/EC
Article 10 – paragraph 1
Article 10 – paragraph 1
2. “1. From 20211 July 2016 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 mMarket sStability rReserve established by Decision [OPEU please insert number of this Decision when known] of the European Parliament and of the Council(*).”
Amendment 172 #
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
Article 10 – paragraph 1 a
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 volumes 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 retired in equal instalments from auction volumes in the firlast two years of the following period.
Amendment 174 #
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
Article 10 – paragraph 1 a
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 volumes 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 retired in equal instalments from auction volumes in the firlast two years of the following period.
Amendment 176 #
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 1 b (new)
Article 10 – paragraph 1 b (new)
3a. In Article 10, the following paragraph shall be inserted: "1b. Allowances that are backloaded in accordance with Decision No 1359/2013/EU of the European Parliament and of the Council and Commission Regulation (EU) No 176/2014 shall be permanently deleted.
Amendment 178 #
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 1 b (new)
Article 10 – paragraph 1 b (new)
3a. In Article 10, the following paragraph shall be inserted: "1b. Allowances back-loaded in accordance with Commission Regulation (EU) No 176/2014 and Decision No 1359/2013/EU of the European Parliament and of the Council shall be permanently deleted."
Amendment 209 #
Proposal for a decision
Article 3 – paragraph 1
Article 3 – paragraph 1
By 31 December 20260, the Commission shall on the basis of an analysis of the orderly functioning of the European carbon market review the mMarket sStability rReserve and submit a proposal, where appropriate, to the European Parliament and to the Council. The review shall pay particular attention to the percentage figure for the determination of the number of allowances to be placed into the reserve according to Article 1(3) and the numerical value of the threshold for the total number of allowances in circulation set by Article 1(4).
Amendment 220 #
Proposal for a decision
Article 3 a (new)
Article 3 a (new)
Article 3a Emission Performance Standard A large surplus decreases the carbon price signal and does not provide the necessary certainty investors require to invest in the transition towards a low- carbon economy, including energy supply. A stronger carbon price signal is necessary to avoid locking the EU into high carbon capital and investment. Therefore, by 31 December 2015, the Commission shall also consider whether the establishment of an EU wide Emissions Performance Standard for the power sector is necessary to support an adequate price signal to incentivise low carbon investment and where appropriate the Commission shall make a proposal to the European Parliament and to the Council for the establishment of such an EU - wide Emissions Performance Standard.
Amendment 224 #
Proposal for a decision
Article 4 – paragraph 1
Article 4 – paragraph 1
Article 10(1) of Directive 2003/87/EC as amended by Directive 2009/29/EC shall continue to apply until 31 December0 June 202016.