32 Amendments of Jonás FERNÁNDEZ related to 2021/0214(COD)
Amendment 115 #
Proposal for a regulation
Recital 10
Recital 10
(10) Existing mechanisms to address the risk of carbon leakage in sectors or sub- sectors at risk of carbon leakage are the transitional free allocation of EU ETS allowances and financial measures to compensate for indirect emission costs incurred from GHG emission costs passed on in electricity prices respectively laid down in Articles 10a(6) and 10b of Directive 2003/87/EC. However, free allocatSuch measures are based on strict benchmarks set by the best performing installations so that they preserve an incentive to reduce emissions under the EU ETS weakens the price signal that the system providesand provide a carbon price signal for emissions above the benchmark level; they have proven so foar the installations receiving it compared to full auctioning o be effective in mitigating the risk of carbon leakage, although in the context of lower carbon prices thand thus affects the incentives for investment into further abatement of emissionsose experienced recently and those forecasted by 2030.
Amendment 125 #
Proposal for a regulation
Recital 11
Recital 11
(11) The CBAM seeks to replacestrengthen carbon leakage protection in view of higher EU climate ambition by 2030 and thereafter to replace progressively 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 and by ensuring that EU products exported in the global market are not replaced by more carbon intensive products, which would undermine the objective of reducing global emissions. As indicated in the Impact Assessment accompanying the Commission proposal, “changes in employment are largely driven by the presence (or not) of free allocation”, since retaining free allocation results in better impact on employment. 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 as of 2030 after a test phase and an assessment by the Commission has proven the effectiveness of the CBAM regulation in terms of protection from the risk of carbon leakage both for imports and exports. 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.
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 132 #
Proposal for a regulation
Recital 11 a (new)
Recital 11 a (new)
(11a) While the surrendering of CBAM certificates for EU imports addresses the risk of carbon leakage on the EU market, it is essential to avoid also the risk that EU exports on global markets are replaced by more carbon intensive goods or by goods that are not subject to equivalent climate policy and carbon costs. To this purpose, after the test period 2026-2028, the Commission shall present an in-depth report to the European Parliament and the Council accompanied with a legislative proposal to address the carbon leakage risk on export markets. If the report concludes that the surrendering of CBAM certificates by importers is effective in addressing the carbon leakage risk on the EU market and that the free allocation rules related to EU domestic sales should be amended, the legislative proposal shall ensure the maintenance of free allocation related to EU exports and provide the calculation methodology for determining this allocation.
Amendment 201 #
Proposal for a regulation
Recital 39 a (new)
Recital 39 a (new)
(39a) The declaration should be harmonised with a common template and based on standardised carbon accounting methodologies and reporting requirements for embedded emissions in order to ensure a more effective and less contentious implementation of the CBAM.
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 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 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. 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, and to develop methods of calculating embedded emissions based on the environmental footprint methods47 . With regard to indirect emissions, the evaluation should take into account the exposure of EU producers to carbon costs passed on in electricity prices due to the functioning of the EU energy market. _________________ 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 226 #
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, provided that they deliver equivalent GHG emissions reductions and carbon costs constraints.
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 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 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 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 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 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 465 #
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, whether slightly modified or not, stems from a practice, process or work that 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, or undermining their effects, including on overall GHG emissions and on prices of the like products.
Amendment 473 #
Proposal for a regulation
Article 27 – paragraph 2 a (new)
Article 27 – paragraph 2 a (new)
Amendment 477 #
Proposal for a regulation
Article 27 – paragraph 3
Article 27 – paragraph 3
3. A Member State or any party affected or benefitted by the situations described in paragraph 2 may notify the Commission if it is confronted, over a two- month period compared with the same period in the preceding year with a significant decrease in the volume of imporFollowing a complaint from an interested party or on its own initiative, the Commission may decide, following an investigation, to extend goods included in the scope of this Regulation and an increase of volume of imports of slightly modified products, which are not included in the list of goods in Annex I. The Commission shall continually monitor any significant change of pattern of trade of goods and slightly modified products at Union levelobligations laid down in this Regulation, in whatever way is necessary to prevent future circumvention of the Mechanism, when circumvention of the measures in force is taking place.
Amendment 481 #
Proposal for a regulation
Article 27 – paragraph 4
Article 27 – paragraph 4
4. The notificatDecisions referred to in paragraph 3 shall state the reasons on which it is based and shall include relevant data and statistics regarding the goods and products referred to in paragraph 2be subject to the appeal procedure as set out in Article 30.
Amendment 484 #
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, incluInvestigations shall be initiated pursuant to this Article on the initiative of the Commission or at the request of a Member State or of any interested party on the basis of sufficient evidence regarding wthen 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 products for anti-circumvention purposes factors set out in paragraph 2. Initiations shall be made by means of a Commission regulation which shall also instruct customs authorities of Member States to subject imports to registration. The Commission shall provide information to the Member States once an interested party or a Member State has submitted a request justifying the initiation of an investigation and the Commission has completed its analysis thereof, or when the Commission has itself determined that there is a need to initiate an investigation.
Amendment 489 #
Proposal for a regulation
Article 27 – paragraph 5 a (new)
Article 27 – paragraph 5 a (new)
5a. Investigations shall be carried out by the Commission. The Commission may be assisted by customs authorities and the investigation shall be concluded in due time.
Amendment 491 #
Proposal for a regulation
Article 27 – paragraph 5 b (new)
Article 27 – paragraph 5 b (new)
Amendment 506 #
Proposal for a regulation
Article 30 – paragraph 1
Article 30 – paragraph 1
1. The Commission shall collect the information necessary with a view to extending the scope of this Regulation to indirect emissions and goods other than those listed in Annex I, and develop methods of calculating embedded emissions based on environmental footprint methodsuch as downstream products using goods covered by this Regulation, notably taking into consideration both environmental risks and the necessity to maintain a sustainable level playing field, and develop methods of calculating embedded emissions based on environmental footprint methods. Particular attention should be given to goods such as organic basic chemicals, hydrogen and polymers.
Amendment 516 #
Proposal for a regulation
Article 30 – paragraph 2
Article 30 – paragraph 2
2. Before the end of the transitional period, the Commission shall present a report to the European Parliament and the Council on the application of this Regulation. The report shall contain, in particular, an in-depthe assessment of- developed in close cooperation with the industrial sectors, of the rules to be applied in the testing period established pursuant to article 30 a, and the possibilities to further extend the scope of embedded emissions to indirect emissions and to other goods at risk of carbon leakage than those already covered by this Regulation, as well as an assessment of the governance system. It shall also contain the assessment of the possibility to further extend the scope to embedded emissions of transportation services as well as to goods further down the value chain and services that may be subject to the risk of carbon leakage in the future.
Amendment 522 #
Proposal for a regulation
Article 30 – paragraph 3
Article 30 – paragraph 3
3. The report by the Commission shall, if appropriate, be accompanied by afurther legislative proposals.
Amendment 526 #
Article 30 a The Commission shall monitor and evaluate the mechanism’s effectiveness with regard to the risk of carbon leakage before phasing out free allocation to sectors at risk of carbon leakage covered by this Regulation. To this end, the Commission shall, after consultation of the sectors subject to this Regulation, present a report to the European Parliament and the Council evaluating the first three years (2026-2028) of the surrendering obligation pursuant to article 22, and the risk of carbon leakage on export markets. If the evaluation is positive, the report shall be accompanied by a legislative proposal phasing out free allocation to sectors subject to this Regulation, as set out in Article 10.a.1 of the ETS Directive, and implementing a solution to address the risk of carbon leakage on export market.
Amendment 551 #
Proposal for a regulation
Annex I – subheading 4 a (new)
Annex I – subheading 4 a (new)
850231 Electric generating sets; wind- powered, (excluding those with spark- ignition or compression-ignition internal combustion piston engines). In particular, steel wind towers.
Amendment 552 #
Proposal for a regulation
Annex III – point 4 – paragraph 2
Annex III – point 4 – paragraph 2
For the purpose of determining default values, only actual values shall be used for the determination of embedded emissions. In the absence of actual data or when the use of actual data would lead to low default values favouring free riding behaviour, literature values may be used. The Commission shall publish guidance for the approach taken to correct for waste gases or greenhouse gases used as process input, before collecting the data required to determine the relevant default values for each type of goods listed in Annex I. Default values shall be determined based on the best available data. They shall be revised periodically through implementing acts based on the most up-to-date and reliable information, including on the basis of information provided by a third country or group of third countries.