Activities of Manuel BOMPARD related to 2021/0214(COD)
Shadow opinions (1)
OPINION on the proposal for a regulation of the European Parliament and of the Council establishing a carbon border adjustment mechanism
Amendments (223)
Amendment 2 #
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 toas a first step in the transformation of the Union into a fair and prosperous society, with a modern, resource-efficient and competitiven environmentally sustainable, carbon- neutral, toxic-free and fully circular 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 theithin the limits of the planet by 2050 at the latest. The European Green Deal also aims to strengthen global efforts to implement the One Health approach, which recognises the intrinsic link between human health, animal health and a healthy and well-being of citizens from environment- related risks and impacts. At the same time, that transformation must be just and inclusive, leaving no one behindresilient nature, and to contribute to the achievement of the objectives of the Paris Agreement and the Convention on Biological Diversity, as well as the United Nations Sustainable Development Goals. At the same time, that transformation must effectively guarantee the right of all to dignified and recognised work in a society of solidarity. The Commission also announced in its EU Action Plan: Towards Zero Pollution for Air, Water and Soil32the 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. _________________ 31Communication from the Commission of 11 December 2019 on the European Green Deal (COM(2019) 640 final). 32Communication from the Commission of 12 May 2021 on Pathway to a Healthy Planet for All (COM(2021) 400).
Amendment 5 #
Proposal for a regulation
Recital 3
Recital 3
(3) Tackling climate and other environmental-related challenges and, reaching the objectives of the Paris Agreement and cre at the core of the European Green Deal. The value of the European Green Dealing a safe and equitable space for humanity in which a society that assures sustainable human development can thrive are the objectives to which the European Green Deal must contribute. The urgent need to meet these objectives has only grown in light of the very severe effects of the COVID-19 pandemic on the health and economic well-being of the Union’s citizens.
Amendment 7 #
Proposal for a regulation
Recital 6 a (new)
Recital 6 a (new)
(6a) The new emissions gap report published by the United Nations Environment Programme (UNEP) shows that the updated Nationally Determined Contributions (NDCs) could lead to a global temperature increase of around 2.7 °C by the end of the century. The various international commitments to climate neutrality, if fully implemented, would still lead to a global temperature increase of 2.2 °C. The Union and its main trading partners must step up efforts to contain global warming and limit the global temperature increase to 1.5 °C.
Amendment 8 #
Proposal for a regulation
Recital 6 b (new)
Recital 6 b (new)
(6b) The 2021 WHO health and climate change global survey report notes that more than three quarters of the countries surveyed have developed or are in the process of developing national health and climate change plans or strategies. Insufficient funding remains the main stumbling block for the full implementation of national health and climate change plans for 70 % of the countries surveyed. According to the United Nations Environment Programme (UNEP), the cost of adaptation is expected to be in the upper part of the estimated range of USD 140-300 billion per year by 2030, and USD 280-500 billion per year by 2050. In addition, UNEP estimates that the cost in developing countries is five to ten times higher than current public financing flows for adaptation. Developing countries therefore need financial, technological and capacity- building support to increase their level of ambition, in terms both of reducing emissions and of enhancing adaptation to the effects of climate change.
Amendment 9 #
Proposal for a regulation
Recital 6 c (new)
Recital 6 c (new)
6c. According to a study carried out by the Food and Agriculture Organisation of the United Nations (FAO) and a team of researchers from the Commission’s Joint Research Centre, food systems worldwide account for more than a third of overall greenhouse gas emissions from human activities. The production stages upstream of the farm, in particular the application of inputs such as fertilisers, are the first emission points, accounting for 39 % of their total. Land use and related emission factors account for 38 % of emissions, while 29 % is attributable to distribution, a share that is increasing and is expected to continue to increase. The world’s food systems, driven by a growing shift in retail, product packaging, transport and processing, are increasingly energy- intensive.
Amendment 10 #
Proposal for a regulation
Recital 6 d (new)
Recital 6 d (new)
6d. Global subsidies to agricultural producers amount to USD 540 billion per year, representing 15 % of the total value of agricultural production. According to a UN report, 87 % of this support, or around USD 470 billion, distorts food prices, harms people’s health, damages the environment and is often unfair, favouring large agri-food businesses at the expense of smallholders, many of whom are women. By 2030, this amount is expected to increase by more than three to USD 1.759 billion. Continuing traditional subsidies will exacerbate the triple global crisis of climate change, biodiversity loss and pollution, and ultimately harm human well-being. It is imperative to redirect these subsidies in order to drastically reduce support for dairy and meat industries, toxic pesticides and fertilisers or the growth of monocultures, and to support the agroecological transformation of agri-food systems.
Amendment 11 #
Proposal for a regulation
Recital 7
Recital 7
(7) The Union has been pursuing an ambitious policy on climate action and has put in place aEU's climate action policy has so far been insufficient to limit the global temperature increase to below 1.5 °C. The current regulatory framework tofor achieveing its 2030 GHG emissions reduction target. The legislation implementing that target, which consists, inter alia, of Directive 2003/87/EC of the European Parliament and of the Council37, which establishes a system for GHG emission allowance trading within the Union (‘EU ETS’) and delivers harmonised pricing of GHG emissions at Union level for energy- intensive sectors and subsectors, Regulation (EU) 2018/842 of the European Parliament and of the Council38, which introduces national targets for reduction of GHG emissions by 2030, and Regulation (EU) 2018/841 of the European Parliament and of the Council39, which requires Member States to compensate GHG emissions from land use with removals of emissions from the atmosphere, must be fundamentally revised. _________________ 37 Directive 2003/87/EC of the European Parliament and of the Council of 13 October 2003 establishing a system for greenhouse gas emission allowance trading within the Union and amending Council Directive 96/61/EC (OJ L 275, 25.10.2003, p. 32). 38Regulation (EU) 2018/842 of the European Parliament and of the Council of 30 May 2018 on binding annual greenhouse gas emission reductions by Member States from 2021 to 2030 contributing to climate action to meet commitments under the Paris Agreement and amending Regulation (EU) No 525/2013 (OJ L 156, 19.6.2018, p. 26). 39 Regulation (EU) 2018/841 of the European Parliament and of the Council of 30 May 2018 on the inclusion of greenhouse gas emissions and removals from land use, land use change and forestry in the 2030 climate and energy framework, and amending Regulation (EU) No 525/2013 and Decision No 529/2013/EU (OJ L 156, 19.6.2018, p. 1).
Amendment 14 #
Proposal for a regulation
Recital 8
Recital 8
(8) As long as a significant number of the UnThe Union’s contribution to greenhouse gas emission’s international partners have policy approaches that do not result in the same level of climate ambition, theres not limited to emissions generated within its territory, but also includes emissions associated with its 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 or imports from those countinternational trade. The latter consist of emissions from international transport, exported emissions and imported emissions. Emissions exported from the Union are accounted for in the Nationally Determined Contribution of the European Union and its Member States under the Paries would replace equivalent but less GHG emissions intensive products. That could lead toAgreement. By contrast, emissions from international transport and increase in their total emissions globally, thus jeopardising the rmported emissions are not yet subject to a reduction strategy. Reductions 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 levelsin the Union as part of its contribution under the Paris Agreement must not lead to an increase in global emissions through the relocation of emissions associated with the Union’s final demand.
Amendment 15 #
Proposal for a regulation
Recital 8 a (new)
Recital 8 a (new)
(8a) The majority of global deforestation and associated emissions are due to the expansion of agricultural production. As a result of its imports of agricultural products, the Union caused the deforestation of 3.5 million hectares or 1 807 million tonnes of CO2 between 2005 and 2017, equivalent to 40 % of the Union’s overall annual emissions. According to data collected from a recent scientific study evaluated by researchers across Europe, the EU reportedly has the highest carbon footprint in the world due to its imports of soy beans from Brazil.
Amendment 16 #
Proposal for a regulation
Recital 8 b (new)
Recital 8 b (new)
(8b) Imported emissions and emissions from international transport must have a specific strategy, which must also include a legal framework to minimise the EU's contribution to deforestation and forest degradation worldwide. The Union's imported emissions must follow a trajectory consistent with the Paris Agreement target of a 65 % reduction in imported emissions by 2050 compared to 2005. Ultimately, in order to ensure that the objective of climate neutrality also applies to the Union's imported emissions, the Union should strive to achieve a balance between its imported and exported emissions by 2060.
Amendment 17 #
Proposal for a regulation
Recital 8 c (new)
Recital 8 c (new)
(8c) The reduction in the Union's imported emissions is currently based solely on the reduction commitments of its trading partners, which are currently insufficient to meet the objectives of the Paris Agreement. It is therefore imperative that the Union focus on the means at its disposal to reduce its imported emissions.
Amendment 18 #
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 withIn order to ensure that the Union's imported emissions contribute as little as possible to global warming and that the EU cannot be suspected of reducing its territorial emissions through increased use of imports — thus placing the burden of mitigation on its trading partners — imported emissions need to decrease. Through the creation of a legal framework that contributes to this objective, the Pcaris Agreement by addressing risks of carbon leakage resulting from the increased Union climate ambitionbon border adjustment mechanism (‘CBAM’) is to serve as an essential element of the toolbox available to the Union to ensure its compliance with the Paris Agreement.
Amendment 21 #
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 allocation under the EU ETS weakens the price signal that the system provides for the installations receiving it compared to full auctioning and thus affects the incentives for investment into further abatement of emissions. between 2008 and 2019, industrial sectors received more free allowances (37 million tonnes of CO2 equivalent) than needed to cover their emissions, allowing them to sell their excess free allowances and make additional profits totalling around EUR 1.6 billion. Moreover, between 2008 and 2019, these sectors generated additional benefits worth EUR 3 billion from international offsets, and between EUR 26 and EUR 46 billion through the partial passing on of the opportunity costs of free allowances in product prices. In addition, in its 2020 audit report, the European Court of Auditors found that the transitional free allocation of allowances under the EU ETS between 2013 and 2018 was not well enough targeted to encourage the reduction of greenhouse gas emissions. Free allocation under the EU ETS has therefore been clearly contrary to the polluter pays principle enshrined in Article 191 TFEU.
Amendment 25 #
Proposal for a regulation
Recital 11
Recital 11
(11) The CBAM seeks to replace these existing mechanisms by addressing the potential 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 as rapidly as possible.
Amendment 31 #
Proposal for a regulation
Recital 12
Recital 12
(12) While the objective of the CBAM is to preventomote the risk of carbon leakageeduction of the Union's imported emissions, 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.
Amendment 37 #
Proposal for a regulation
Recital 13
Recital 13
(13) As an instrument to prevent carbon leakage and reduce GHG emissions the CBAM should ensure that imported products are subject to a regulatory system that applies carbon costs at least equivalent to the ones that otherwise would have been borne under the EU ETS. The CBAM is a climate measure which should prevent the risk of carband environmental protection lmeakage ansure which should support the Union’s increased ambition on climate mitigation, while ensuring WTO compatibility.
Amendment 39 #
Proposal for a regulation
Recital 13 a (new)
Recital 13 a (new)
(13a) While not its main objective, the CBAM could also indirectly contribute to improving the Union's strategic resilience and autonomy, to shortening, making more sustainable and diversifying European industries' supply chains in order to reduce overdependence on a few markets, to relocating industrial production in sectors of strategic importance to the Union, and to creating quality jobs at local level.
Amendment 40 #
Proposal for a regulation
Recital 14
Recital 14
(14) This Regulation should apply to goods imported into the customs territory of the Union from third countries, except where their production has already been subject to the EU ETS, whereby it applies to third countries or territories, or to a carbon pricing system fully linked with the EU ETS.
Amendment 41 #
Proposal for a regulation
Recital 15
Recital 15
Amendment 42 #
Proposal for a regulation
Recital 17
Recital 17
(17) The GHG emissions to be regulated by the CBAM should correspond initially 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 initially apply to direct 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 ETSso as to best reflect the carbon footprint of different productions.
Amendment 44 #
Proposal for a regulation
Recital 18
Recital 18
(18) The EU ETS and the CBAM have a common objective of pricing GHG emissions embedded in the same sectors and goods According to a report of the United Nations Conference on Trade and Development (UNCTAD), a CBAM which would merely be a competitiveness policy compensating for a difference in production costs between the EU and regions withrough the use of specific allowances or certificates. Both systems have a regulatory nature and are justified by the need to curb GHG emisst a binding climate policy would have a limited contribution to climate change mitigations, in line with the environmental objective set out in Unas it would reduce only 0.1 % of global CO2 emissions.
Amendment 45 #
Proposal for a regulation
Recital 19
Recital 19
(19) However, while the EU ETSThe CBAM should therefore sets an absolute cap on the GHG emissions from the activities under its scope and allows tradability of allowances (so called ‘cap and trade system’), the CBAM should not establish quantitative limits to import, so as to ensure that trade flows are not restricted. Moreover, while the EU ETS applies to installations based in the Union, the CBAM should be applied to certain goods imported into the customs territory of the Unionassociated with goods imported into the customs territory of the Union along the lines of the absolute cap set by the EU ETS for GHG emissions from activities falling within its scope.
Amendment 47 #
Proposal for a regulation
Recital 20
Recital 20
(20) The CBAM system has some specific features compared with the EU ETS, including on its own target for reducing imported emissions, on the calculation of the price of CBAM certificates, on the possibilities to trade certificates and on their validity over time. These are due to the need to preserve the effectiveness of the CBAM as a measure preventing carbon leakage over timeframework for organising the reduction of the Union's imported emissions and to ensure that the management of the system is not excessively burdensome in terms of obligations imposed on the operators and of resources for the administration, while at the same time preserving an equivalent level of flexibility available to operators under the EU ETS.
Amendment 48 #
Proposal for a regulation
Recital 21
Recital 21
(21) In order to preserve its effectiveness as a carbon leakage measure, the CBAM needs to reflect closely the EU ETS price. While on the EU ETS market the price of allowances is determined through auctions, the price of CBAM certificates should reasonably reflect the price of such auctions through averages calculated on a weekly basis. Such weekly average prices reflect closely the price fluctuations of the EU ETS and allowensure that the CBAM does not unduly disadvantage developing and vulnerable countries, it is important that goods imported into the Union and goods produced within the Union a reasonable margin for importers to take advantage of the price changes of the EU ETS while at the same ensuring that the system remains manageable for the administrative authorities subject to equivalent carbon pricing consistent with the Paris Agreement.
Amendment 49 #
Proposal for a regulation
Recital 22
Recital 22
(22) Under the EU ETS, the total number of allowances issued (the ‘cap’) determines the supply of emission allowances and provides certainty about the maximum emissions of GHG. The carbon price is determined by the balance of this supply against the demand of the market. Scarcity is necessary for there to be a price incentive. As it is not possible to impose a cap on the number of CBAM certificates available to importers, if importers had the possibility to carry forward and trade CBAM certificates, this could result in situations where the price for CBAM certificates would no longer reflect the evolution of the price in the EU ETS. That would weaken the incentive for decarbonisation between domestic and imported goods, favouring carbon leakage and impairing the overarching climate objective of the CBAM. It could also result in different prices for operators of different countries. Therefore, the limits to the possibilities to trade CBAM certificates and to carry them forward is justiIn order to address the risk that the carbon price may fluctuate too much, making it too uncertain for importers to plan the reduction of imported emissions, or that the carbon price may be too low to encourage the reduction of imported emissions, a new independent agency should be set up with a mandate to ensure the irreversible and gradual reduction of the Union's imported emissions through a monopoly on the issuance of CBAM certificates with a fixed by the need to avoid undermining the effectiveness and climate objective of the CBAM and to ensure even handed treatment to operators from different countries. However, in order to preserve the possibility for importers to optimise their costs, this Regulation should foresee a system where authorities can re- purchase a certain amount of excess certificates from the importers. Such amount is set at a level which allows a reasonable margin for importers to leveraprice, the number of which decreases over time: the European Central Carbon Authority. Competent national authorities should sell CBAM certificates to a limited number of importers. Toge their costs over the period of validity of the certificates whilst preserving the overall price transmission effect, ensuring that the environmental objective of the measure is preservedwith the European Central Carbon Authority, they should form a European System of Carbon Authorities.
Amendment 50 #
Proposal for a regulation
Recital 26
Recital 26
(26) TInitially, the product coverage of the CBAM should reflect the activities covered by the EU ETS as that scheme is based on quantitative and qualitative criteria linked to the environmental objective of Directive 2003/87/EC and is the most comprehensive GHG emissions regulatory system in the Union.
Amendment 52 #
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 potential risk of carbon leakage. Union sectors deemed at risk of carbon leakage are listed in Commission Delegated Decision 2019/70842. _________________ 42Commission 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 66 #
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 toas a first step in the transformation of 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 growenvironmentally sustainable, carbon-neutral, toxic-free and fully circular economy by 2050 at the latest. The European Green Deal also aims to strengthen global efforts to implement the One Health approach which recognizes the is decoupled from resource use. The European Green Deal alsontrinsic link between human health, anims to protect, conserve and enhance the EU’s natural capital, and protect the health and well-being of citizens from environment- related risks and impactal health and healthy and resilient ecosystems, and to contribute to the achievement of the objectives Paris Agreement and the Convention on Biological Diversity, as well as the United Nations Sustainable Development Goals. 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. __________________ 31Communication from the Commission of 11 December 2019 on the European Green Deal (COM(2019) 640 final). 32Communication from the Commission of 12 May 2021 on Pathway to a Healthy Planet for All (COM(2021) 400).
Amendment 67 #
Proposal for a regulation
Recital 37 a (new)
Recital 37 a (new)
(37a) The extension of the scope of the CBAM to imported agricultural products could usefully complement the legal framework aimed at minimising the Union’s contribution to deforestation and forest degradation worldwide, to significantly reduce the total carbon footprint of the Union, and to encourage the agroecological transformation of the Union’s agri-food systems and those of its trading partners, including through the reallocation of agricultural aid. Such an agroecological transformation would reduce GHG emissions, protect and restore ecosystems, reduce the use of agrochemicals and associated pollution, promote sustainable consumption and production and food sovereignty. The Commission should assess the possibilities for such an extension of CBAM to imported agricultural products by 2030 at the latest.
Amendment 68 #
Proposal for a regulation
Recital 2
Recital 2
(2) The Paris Agreement33 , adopted in December 2015 under the United Nations Framework Convention on Climate Change (‘UNFCCC’) entered into force in November 2016. The Parties to the Paris Agreement, in its Article 2, have agreed to hold the increase in the global average temperature well below 2°C above pre- industrial levels and to pursue effortsIn its 2021 Report on the Physical Science Basis, the Intergovernmental Panel on Climate Change (IPCC) has underlined that most of widespread and rapid changes to Earth's oceans, ice and land surface caused by global warming are irreversible on human timescales and that exceeding 2°C of global warming will cause heat extremes to reach critical tolerance thresholds for agriculture and human health. Stabilizing the climate will require strong, rapid, and sustained reductions in greenhouse gas emissions and reaching net zero CO2 emissions. By adopting the Glasgow Climate Pact, its Parties have recognized the urgency to act to limit the temperature increase to 1.5°C above pre- industrial levels. __________________ 33 OJ L 282, 19.10.2016, p.4.
Amendment 70 #
Proposal for a regulation
Recital 43
Recital 43
(43) CBAM certificates differ from EU ETS allowances for which daily auctioning is an essential feature. The need to set a clear price for CBAM certificates makes a daily publication excessively burdensome and confusing for operators, as daily prices risk becoming obsolete upon publication. Thus, the publication of CBAM prices on a weekly basis would accurately reflect the pricing trend of EU ETS allowances and pursue the same climate objective. The calculation of the price of CBAM certificates should therefore be set on the basis of a longer timeframe (on a weekly basis) than in the timeframe established by the EU ETS (on a daily basis). The Commissionis the most reasonable option. The European central carbon authority should be tasked to calculate, set and publish that average price.
Amendment 70 #
Proposal for a regulation
Recital 3
Recital 3
(3) Tackling climate and other environmental-related challenges and reaching the objectives of the Paris Agreement are at the core of the European Green Deal. The value of the European Green Deal, the Convention on Biological Diversity and creating a safe and equitable space for humankind in which a society that ensures sustainable human development are the objectives to which the European Green Deal must contribute. The urgent need to meet these objectives has only grown in light of the very severe effects of the COVID-19 pandemic on the health and economicgeneral well-being of the Union’s citizens.
Amendment 71 #
Proposal for a regulation
Recital 44
Recital 44
(44) In order to give the authorised declarants flexibility in complying with their CBAM obligations and allow them to benefit from fluctuations in the price of EU ETS allowances, the CBAM certificates should be valid for a period of two years from the date of purchase. The authorised declarant should be allowed to re-sell to the national authority a portion of the certificates bought in excess. The authorised declarant should build up during the year the amount of certificates required at the time of surrendering, with thresholds set at the end of each quarter.
Amendment 71 #
Proposal for a regulation
Recital 6 a (new)
Recital 6 a (new)
(6 a) The new emissions gap report published by the United Nations Environment Programme(UNEP) shows that the updated Nationally Determined Contributions (NDCs) could lead to a global temperature increase of around 2.7 °C by the end of the century. The various international commitments to climate neutrality, if fully implemented, would still lead to a global temperature increase of 2.2 °C. The Union and its main trading partners must step up efforts to contain global warming and limit the global temperature increase to 1.5 °C.
Amendment 72 #
Proposal for a regulation
Recital 6 b (new)
Recital 6 b (new)
(6 b) Reducing methane emissions is critical in meeting the Paris Agreement's goal of limiting global temperature rise to 1.5°C by the end of the century. A 2021 report from the United Nations Environment Programme (UNEP) estimates that rapid action on methane emissions could take 0.3°C off global temperature by 2045. There is therefore an urgent for the Union to adopt measures to rapidly reduce methane emissions embedded in its importation, especially in the energy sector.
Amendment 73 #
Proposal for a regulation
Recital 49
Recital 49
(49) Once third countries will be closely integrated into the Union electricity market via market coupling, technical solutions should be found to ensure the application of the CBAM to electricity exported from such countries into the customs territory of the Union. If technical solutions cannot be found, third countries that are market coupled should benefit from a time limited exemption from the CBAM until at the latest 2030 with regard solely to the export of electricity, provided that certain conditions are satisfied. However, those third countries should develop a roadmap and commit to implement a carbon pricing mechanism providing for an equivalent price as the EU ETSto the price paid by the EU's domestic producers, and should commit to achieving carbon neutrality by 2050 [as well as?] to align with Union legislation in the areas of environment, climate, competition and energy. That exemption should be withdrawn at any time if there are reasons to believe that the country in question does not fulfil its commitments or it has not adopted by 2030 an ETS equivalent to the EU ETS.
Amendment 73 #
Proposal for a regulation
Recital 6 c (new)
Recital 6 c (new)
(6 c) The 2021 WHO health and climate change global survey report notes that more than three quarters of the countries surveyed have developed or are in the process of developing national health and climate change plans or strategies. Insufficient funding remains the main stumbling block for the full implementation of national health and climate change plans for 70 % of the countries surveyed. According to the United Nations Environment Programme (UNEP), the costs of adaption are likely to be at the higher ended of an estimated $140 billion to $300 billion a year by the end of this decade, and $280 billion to $500 billion annually by 2050. Furthermore, the cost in developing countries is estimated to be between five to ten times greater than current public adaptation finance flows. Future government spending could also be hampered by the heightened cost of debt servicing, combined with decreased public revenues, particularly in developing countries. Developing countries therefore need debt cancellation, financial, technological and capacity-building support to increase their level of ambition, in terms both of reducing emissions and of enhancing adaptation to the effects of climate change.
Amendment 74 #
Proposal for a regulation
Recital 7
Recital 7
(7) The Union has been pursuing an ambi's climate actiousn policy on climate action and has put in place ahas so far been insufficient to limit the global temperature increase to below 1.5 °C. The current regulatory framework tofor achieveing its 2030 GHG emissions reduction target. The legislation implementing that target, which consists, inter alia, of Directive 2003/87/EC of the European Parliament and of the Council37 , which establishes a system for GHG emission allowance trading within the Union (‘EU ETS’) and delivers harmonised pricing of GHG emissions at Union level for energy- intensive sectors and subsectors, Regulation (EU) 2018/842 of the European Parliament and of the Council38 , which introduces national targets for reduction of GHG emissions by 2030, and Regulation (EU) 2018/841 of the European Parliament and of the Council39 , which requires Member States to compensate GHG emissions from land use with removals of emissions from the atmosphere, must be fundamentally revised. __________________ 37 Directive 2003/87/EC of the European Parliament and of the Council of 13 October 2003 establishing a system for greenhouse gas emission allowance trading within the Union and amending Council Directive 96/61/EC (OJ L 275, 25.10.2003, p. 32). 38Regulation (EU) 2018/842 of the European Parliament and of the Council of 30 May 2018 on binding annual greenhouse gas emission reductions by Member States from 2021 to 2030 contributing to climate action to meet commitments under the Paris Agreement and amending Regulation (EU) No 525/2013 (OJ L 156, 19.6.2018, p. 26). 39Regulation (EU) 2018/841 of the European Parliament and of the Council of 30 May 2018 on the inclusion of greenhouse gas emissions and removals from land use, land use change and forestry in the 2030 climate and energy framework, and amending Regulation (EU) No 525/2013 and Decision No 529/2013/EU (OJ L 156, 19.6.2018, p. 1).
Amendment 76 #
Proposal for a regulation
Recital 7 a (new)
Recital 7 a (new)
(7 a) Combating climate change and keeping global warming to under 1.5°C will require global action. The Union must not only lead by example, by eliminating its own emissions, including embedded in the products it imports, but also cooperate with its partners to create an open, multilateral, cooperative global system acting as a key enabler of the green transition.
Amendment 79 #
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 that risk of carbon leakageare imported into the EU, including agricultural products, to introduce carbon content requirements for imported products for distribution, consumption or use on the EU market, and to develop methods of calculating embedded emissions based on the environmental footprint methods47. _________________ 47Commission 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 81 #
Proposal for a regulation
Recital 8
Recital 8
(8) As long as a significant number of the UnThe Union’s contribution to greenhouse gas emission’s international partners have policy approaches that do not result in the same level of climate ambition, theres not limited to emissions generated within its territory, but also includes emissions associated with its 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 or imports from those countinternational trade. The latter consist of emissions from international transport, exported emissions and imported emissions. Emissions exported from the Union are accounted for in the Nationally Determined Contribution of the European Union and its Member States under the Paries would replace equivalent but less GHG emissions intensive products. That could lead toAgreement. By contrast, emissions from international transport and increase in their total emissions globally, thus jeopardising the rmported emissions are not yet subject to a reduction strategy. Reductions 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. in the Union as part of its contribution under the Paris Agreement must not lead to an increase in global emissions through the relocation of emissions associated with the Union’s final demand.
Amendment 84 #
Proposal for a regulation
Recital 8 a (new)
Recital 8 a (new)
(8 a) Imported emissions and emissions from international transport must have a specific emissions reduction strategy, which must also include a legal framework to minimise the Union's contribution to deforestation and forest degradation worldwide. The Union's imported emissions must follow a trajectory consistent with the Paris Agreement of a 65 % reduction in imported emissions by 2050 compared to 2005. In order to achieve this objective, the Commission shall set out sub-targets and prepared roadmaps for each sector covered by this Regulation.
Amendment 86 #
Proposal for a regulation
Recital 53
Recital 53
(53) In light of the above, a dialogue with third countries should continue and there should be space for cooperation and solutions that could inform the specific choices that will be made on the details of the design of the measure during the implementatiwith a view to establishing a new international economic order based on the principles of equity, sovereign equality, interdependence, common, in particular during the transitional periodterest, cooperation and solidarity among all states.
Amendment 87 #
Proposal for a regulation
Recital 8 b (new)
Recital 8 b (new)
(8 b) The reduction in the Union's imported emissions is currently based solely on the reduction commitments of its trading partners, which are currently insufficient to meet the objectives of the Paris Agreement. It is therefore imperative that the Union focus on the means at its disposal to reduce its imported emissions.
Amendment 88 #
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.
Amendment 89 #
Proposal for a regulation
Recital 55
Recital 55
(55) As the CBAM aims to encourage cleaneGiven the different roles played in global environmental degradation, and in line with the principle of common but differentiated responsibility for produtection processes, the EU stands ready to work with low and middle- income countries towards the de- carbonisation of their manufacturing industrng the environment and promoting sustainable development, the EU has a duty to cooperate with low and middle- income countries to help them to implement green industrial policies. Moreover, the Union should supporthelp to improve less developed countries with the necessary technical assistanc' access to the best techniques available in order to facilitate their adaptation to the new obligations established by this regulation.
Amendment 90 #
Proposal for a regulation
Recital 55 a (new)
Recital 55 a (new)
(55a) To support low and middle-income countries' decarbonisation, the Commission will need to implement policies to accompany the CBAM that can reduce, and eventually eliminate, the gaps between developed and developing countries, including by using part of the revenues generated by the CBAM to speed up the dissemination and adoption of cleaner production technologies and to tighten up climate change adaptation policies and planning.
Amendment 94 #
Proposal for a regulation
Recital 9
Recital 9
(9) The initiative for a carbon border adjustment mechanism (‘CBAM’)In order to ensure that the Union's imported emissions contribute as little as possible to global warming and that the EU cannot be suspected of reducing its territorial emissions through increased use of imports — thus placing the burden of mitigation on its a part of the ‘Fit for 55 Package’. Thatrading partners — imported emissions need to decrease. Through the creation of a legal framework that contributes to this objective, the carbon border adjustment mechanism (‘CBAM’) 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 ambitionavailable to the Union to ensure its compliance with the Paris Agreement.
Amendment 95 #
Proposal for a regulation
Article premier – paragraph 1
Article premier – 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 help to progressively reduce the EU's imported emissions, reduce its overall carbon footprint and prevent the risk of any carbon leakage.
Amendment 98 #
Proposal for a regulation
Article premier – paragraph 2
Article premier – paragraph 2
2. The CBAM complements the systemEU's regulatory framework for achieving its goal of reducing greenhouse gases by 2030 and its goal of climate neutrality in every economic sector by 2050 at the latest by applying, initially, a set of rules equivalent to those established for greenhouse gas emission allowance trading within the Union by Directive 2003/87/EC by applying an equivalent set of rules to imports into the customs territory of the Union of goods referred to in Article 2.
Amendment 100 #
Proposal for a regulation
Article premier – paragraph 3
Article premier – paragraph 3
3. The mechanism will progressively, and by 2030 at the latest, become an alternative to the mechanisms established under Directive 2003/87/EC to prevent the risk of carbon leakage, notably the allocation of allowances free of charge in accordance with Article 10a of that Directive.
Amendment 103 #
Proposal for a regulation
Article premier a (new)
Article premier a (new)
Article 1a Goal of balancing the EU's imported and exported emissions 1. A balance between the EU's imported and exported emissions shall be achieved by 2060 at the latest, bringing net exported emissions to zero as part of the Union's climate neutrality objective under Regulation 2021/1119. 2. The Commission and the Member States shall take the requisite measures, at EU and national level respectively, to make it possible to collectively achieve the goal set out in paragraph 1 of balancing the EU's imported and exported emissions, taking into account the importance of promoting fairness and solidarity among Member States in achieving this objective.
Amendment 103 #
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 allocation under the EU ETS weakens the price signal that the system provides for the installations receiving it compared to full auctioning and thus affects the incentives for investment into further abatement of emissions. between 2008 and 2019, industrial sectors received more free allowances (37 million tonnes of CO2 equivalent) than needed to cover their emissions, allowing them to sell their excess free allowances and make additional profits totalling around EUR 1.6 billion. Moreover, between 2008 and 2019, these sectors generated additional benefits worth EUR 3billion from international offsets, and between EUR 26 and EUR 46 billion through the partial passing on of the opportunity costs of free allowances in product prices. In addition, in its 2020 audit report, the European Court of Auditors found that the transitional free allocation of allowances under the EU ETS between 2013 and 2018 was not well enough targeted to encourage the reduction of greenhouse gas emissions. Free allocation under the EU ETS has therefore been clearly contrary to the polluter pays principle enshrined in Article 191 TFEU.
Amendment 104 #
Proposal for a regulation
Article premier b (new)
Article premier b (new)
Article 1b Intermediate EU imported emissions reduction target With a view to achieving the balance set out in Article 1a between the EU's imported and exported emissions, the EU has set a target of reducing imported emissions by 65% by 2030 in comparison with 2005 levels.
Amendment 106 #
Proposal for a regulation
Article 2 – paragraph 5 – point a
Article 2 – paragraph 5 – point a
(a) the EU ETS established pursuant to Directive 2003/87/EC applies to that country or territory or an agreement has been concluded between that third country or territory and the Union fully linking the EU ETS and the third country or territthat provides a carbon pricing mechanism similar ory emission trading systemquivalent to the EU ETS;
Amendment 110 #
Proposal for a regulation
Article 3 – paragraph 1 – point 10 a (new)
Article 3 – paragraph 1 – point 10 a (new)
(10a) 'European central carbon authority': the authority established in accordance with Article 11 of this Regulation;
Amendment 118 #
Proposal for a regulation
Article 11 – paragraph 1 – introductory part
Article 11 – paragraph 1 – introductory part
1. Each Member State shall designate the competent authority to carry out the obligations under this Regulation and inform the Commission thereofThe European central carbon authority and competent national authorities shall form the European System of Carbon Authorities ('ESCA').
Amendment 120 #
Proposal for a regulation
Article 11 – paragraph 1 – subparagraph 1
Article 11 – paragraph 1 – subparagraph 1
Each Member State shall designate the competent authority to carry out the obligations under this regulation and inform the Commission thereof. The Commission shall make available to the Member States a list of all competent authorities and publish this information in the Official Journal of the European Union.
Amendment 122 #
Proposal for a regulation
Recital 11
Recital 11
(11) The CBAM seeks to replace these existing mechanisms by addressing thepotential risks of carbon leakage in a different way, namely by ensuring equivalent carbon pricing for imports and domestic products. To ensure a gradual transition. To ensure a swift change 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 as rapidly as possible.
Amendment 123 #
Proposal for a regulation
Article 11 – paragraph 2 a (new)
Article 11 – paragraph 2 a (new)
2a. The main objective of the ESCA shall be to ensure that the EU's imported emissions are irreversibly and progressively reduced and that the goals set out in Article 1 and Articles 1a and 1b of this Regulation are achieved. The ESCA shall provide support for the EU's climate and environmental policies with a view to achieving the EU's climate neutrality objective as defined in Article 1 of Regulation (EU) 2021/1119. The ESCA shall operate in line with the principles of a fair and socially equitable transition for everyone, common but differentiated responsibilities, taking into account the best and most recent scientific data available, social, economic and environmental factors, including costs linked to inaction, and with a view to the proper application of the polluter pays principle, as defined in Article 191 TFEU.
Amendment 124 #
Proposal for a regulation
Article 11 – paragraph 2 b (new)
Article 11 – paragraph 2 b (new)
2b. The ESCA shall have legal personality. It alone shall authorise the issue of CBAM certificates. It shall be independent in the exercise of its powers. EU institutions, bodies, offices and agencies and the governments of the Member States shall respect that independence.
Amendment 125 #
Proposal for a regulation
Article 11 – paragraph 2 c (new)
Article 11 – paragraph 2 c (new)
2c. The basic tasks to be carried out by the ECSA shall be: - the setting of the price of CBAM certificates - the setting of the annual quantity of CBAM certificates to be issued for the EU as a whole; - CBAM certificates' linear reduction factor.
Amendment 126 #
Proposal for a regulation
Article 11 – paragraph 2 d (new)
Article 11 – paragraph 2 d (new)
2d. The European Parliament and the Council, acting in accordance with the ordinary legislative procedure, shall adopt detailed arrangements concerning the composition and running of the European central carbon authority.
Amendment 135 #
Proposal for a regulation
Article 15 – paragraph 1
Article 15 – paragraph 1
1. The CommissionEuropean central carbon authority shall act as central administrator to maintain an independent transaction log recording the purchase of CBAM certificates, their holding, surrender, re- purchase and cancellation and ensure coordination of national registries.
Amendment 137 #
Proposal for a regulation
Article 20 a (new)
Article 20 a (new)
Article 20a Quantity of CBAM certificates for the EU as a whole 1. For the period starting on 1 January 2026, the European central carbon authority shall decide on the total quantity of CBAM certificates it will allocate for the EU as a whole. It shall take that decision at least three months before the beginning of that period on the basis of its European CBAM allocation plan, drawn up in accordance with this article, drawing on the CBAM reports received during the period 2023-2026 and taking due account of comments from the public. 2. For the five-year period beginning on 1 January 2026, the quantity of CBAM certificates issued each year for the EU as a whole shall decrease in a linear manner with a view to achieving the goals set out in Articles 1, 1a and 1b of this Regulation, in relation to the average annual total emissions reported in the CBAM reports received during the period 2023-2026. For each subsequent five-year period, this quantity shall be reduced by a linear factor determined by the European central carbon authority, with a view to achieving the targets set out in Articles 1, 1a and 1b of this Regulation, in relation to the average annual total of CBAM certificates issued by national authorities for the preceding five-year period. 3. For each five-year period provided for in the second paragraph of this article, the European central carbon authority shall draw up a European plan specifying the total quantity of CBAM certificates that it intends to allocate for that period. That plan shall be based on objective and transparent criteria, taking comments from the public into consideration.
Amendment 138 #
Proposal for a regulation
Article 20 b (new)
Article 20 b (new)
Article 20b Sectoral roadmaps for reducing imported emissions The Commission shall conduct a dialogue with the economic sectors in the EU affected by the implementation of the CBAM with a view to achieving the objectives set out in Articles 1, 1a and 1b of this Regulation. The Commission shall periodically draw up strategies for decarbonising emissions imported by relevant sectors of the economy, with quantified targets, in collaboration with stakeholders and building on the most ambitious existing initiatives.
Amendment 138 #
Proposal for a regulation
Recital 12
Recital 12
(12) While the objective of the CBAM is to prevent the risk of carbon leakageomote the reduction of the Union's imported emissions and ensuring the polluter-pays principle is applied to covered sectors, this Regulation would alsodoes this by encourageing the use of morereduction of GHG emissions-efficient technologies by producers from third countries related to the production processes of covered producers in the EU and from third countries, including through circular economy solutions , so that less emissions per unit of output are generated.
Amendment 140 #
Proposal for a regulation
Article 21 – paragraph 1 – introductory part
Article 21 – paragraph 1 – introductory part
1. The Commission shall calculate the price of CBAM certificates as the average price of the closing prices of EU ETS allowances on the common auction platform in accordance with the procedures laid down in Commission Regulation (EU) No 1031/201054for each calendar week. _________________ 54Commission Regulation (EU) No 1031/2010 of 12 November 2010 onEuropean central carbon authority shall calculate and set the timing, administration and other aspects of auctioning of greenhouse gas emission allowances pursuant to Directive 2003/87/EC (OJ L 302, 18.11.2010, p. 1)imum price of CBAM certificates.
Amendment 141 #
Proposal for a regulation
Article 21 – paragraph 2
Article 21 – paragraph 2
2. This averageminimum price shall be published by the CommissionEuropean central carbon authority on its website on the first working day of the following calendar week and shall be applied from the following working day to the first working day of the following calendar week.
Amendment 142 #
Proposal for a regulation
Article 21 – paragraph 3
Article 21 – paragraph 3
3. The Commission is empowered to adopt implementing acts to further define the methodology to calculate the average price of CBAM certificates and practical arshall ensure that European producers pay an averangements for the publication of the price. Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 29(2) carbon price equivalent to the price of CBAM certificates.
Amendment 147 #
Proposal for a regulation
Article 30 – paragraph 1
Article 30 – paragraph 1
Amendment 150 #
Proposal for a regulation
Recital 13
Recital 13
(13) As an instrument to prevent carbon leakage and reduce GHG emissions the CBAM should ensure that imported products are subject to a regulatory system that applies carbon costs equivalent to the ones that otherwise would have been borne under the EU ETS. The CBAM is a climate and environmental protection measure which should prevensupport the risk of carbon leakage and supporteduction of emissions in the Union’s increased ambition on climat line mwitigation, while ensuring WTO compatibilityh the European Green Deal and Regulation (EU) 2021/1119.
Amendment 152 #
Proposal for a regulation
Recital 13 a (new)
Recital 13 a (new)
(13 a) While not its main objective, the CBAM could also indirectly contribute to improving the Union's strategic resilience and autonomy, to shortening, making more sustainable and diversifying European industries' supply chains in order to reduce overdependence on a few markets, to relocating industrial production in sectors of strategic importance to the Union, and to creating quality jobs at local level.
Amendment 155 #
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, the assessment of the possibilities to further, accompanied by a legislative proposal. In line with the assessment of the arrangements, the legislative proposal shall extend the scope of embedded emissions to indirect emissions and to other goods at risk of carbon leakage other 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 furtherlisted by Commission Delegated Decision 2019/708. The legislative proposal shall also 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. Lastly, the legislative proposal shall introduce carbon content requirements for products imported for distribution, consumption or use on the EU market.
Amendment 158 #
Proposal for a regulation
Recital 14
Recital 14
(14) This Regulation should apply to goods imported into the customs territory of the Union from third countries, except where their production has already been subject to the EU ETS, whereby it applies to third countries or territories, or to a carbon pricing system fully linked with the EU ETS.
Amendment 159 #
Proposal for a regulation
Recital 14 a (new)
Recital 14 a (new)
(14 a) There should be no exemptions or reductions granted to imports, based on implicit carbon pricing or other greenhouse gas emission reduction policies. However, the Commission should engage in climate diplomacy and cooperate with its trade partners on decarbonisation policies, which should replace the CBAM but instead complement it.
Amendment 161 #
Proposal for a regulation
Recital 15
Recital 15
Amendment 162 #
Proposal for a regulation
Article 30 – paragraph 3
Article 30 – paragraph 3
3. The report by the Commission shall, if appropriaCommission shall collect all the information needed to eventually extend the scope of this Regulation to all imported goods. By 31 December 2030, the Commission shall present an assessment report to the European Parliament on this matter, be accompanied by a legislative proposalincluding whether the scope of this Regulation could be extended to agricultural products.
Amendment 163 #
Proposal for a regulation
Chapter IX – title
Chapter IX – title
IX Coordination with free allocation of allowances under the EU ETS during the transitional period until their abolition
Amendment 165 #
Proposal for a regulation
Article 31 – paragraph 1
Article 31 – paragraph 1
1. The CBAM certificates to be surrendered in accordance with Article 22 shall be adjusted to reflect the extent to which EU ETS allowances are allocated free of charge in accordance with Article 10a of Directive 2003/87/EC to installations producing, within the Union, the goods listed in Annex I, during the transitional period until the abolition of free allocation by 2030 at the latest.
Amendment 168 #
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 CommissionEuropean central carbon authority at the latest two months after the end of the quarter covered by a report.
Amendment 168 #
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 initially apply to direct 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 ETSso as to best reflect the carbon footprint of different productions.
Amendment 169 #
Proposal for a regulation
Recital 18
Recital 18
(18) The EU ETS and the CBAM have a common objective of pricing GHG emissions embedded in the same sectors and goods According to a report of the United Nations Conference on Trade and Development (UNCTAD), a CBAM which would merely be a competitiveness policy compensating for a difference in production costs between the EU and regions withrough the use of specific allowances or certificates. Both systems have a regulatory nature and are justified by the need to curb GHG emisst a binding climate policy would have a limited contribution to climate change mitigations, in line with the environmental objective set out in Unas it would reduce only 0.1 % of global CO2 emissions.
Amendment 172 #
Proposal for a regulation
Recital 19
Recital 19
(19) However, while the EU ETSThe CBAM should therefore sets an absolute cap on the GHG emissions from the activities under its scope and allows tradability of allowances (so called ‘cap and trade system’), the CBAM should not establish quantitative limits to import, so as to ensure that trade flows are not restricted. Moreover, while the EU ETS applies to installations based in the Union, the CBAM should be applied to certain goods imported into the customs territory of the Unionassociated with goods imported into the customs territory of the Union along the lines of the absolute cap set by the EU ETS for GHG emissions from activities falling within its scope.
Amendment 178 #
Proposal for a regulation
Recital 20
Recital 20
(20) The CBAM system has some specific features compared with the EU ETS, including on its own target for reducing imported emissions, on the calculation of the price of CBAM certificates, on the possibilities to trade certificates and on their validity over time. These are due to the need to preserve the effectiveness of the CBAM as a measure preventing carbon leakage over timeframework for organizing the reduction of the Union's imported emissions and to ensure that the management of the system is not excessively burdensome in terms of obligations imposed on the operators and of resources for the administration, while at the same time preserving an equivalent level of flexibility available to operators under the EU ETS.
Amendment 179 #
Proposal for a regulation
Recital 21
Recital 21
(21) In order to preserve its effectiveness as a carbon leakage measure, the CBAM needs to reflect closely the EU ETS price. While on the EU ETS market the price of allowances is determined through auctions, the price of CBAM certificates should reasonably reflect the price of such auctions through averages calculated on a weekly basis. Such weekly average prices reflect closely the price fluctuations of the EU ETS and allowensure that the CBAM does not unduly disadvantage developing and vulnerable countries, it is important that goods imported into the Union and goods produced within the Union a reasonable margin for importers to take advantage of the price changes of the EU ETS while at the same ensuring that the system remains manageable for the administrative authorities subject to equivalent carbon pricing consistent with the Paris Agreement.
Amendment 181 #
Proposal for a regulation
Recital 22
Recital 22
(22) Under the EU ETS, the total number of allowances issued (the ‘cap’) determines the supply of emission allowances and provides certainty about the maximum emissions of GHG. The carbon price is determined by the balance of this supply against the demand of the market. Scarcity is necessary for there to be a price incentive. As it is not possible to impose a cap on the number of CBAM certificates available to importers, if importers had the possibility to carry forward and trade CBAM certificates, this could result in situations where the price for CBAM certificates would no longer reflect the evolution of the price in the EU ETS. That would weaken the incentive for decarbonisation between domestic and imported goods, favouring carbon leakage and impairing the overarching climate objective of the CBAM. It could also result in different prices for operators of different countries. Therefore, the limits to the possibilities to trade CBAM certificates and to carry them forward is justified by the need to avoid undermining the effectiveness and climate objective of the CBAM and to ensure even handed treatment to operators from different countries. However, in order to preserve the possibility for importers to optimise their costs, this Regulation should foresee a system where authorities can re- purchase a certain amount of excess certificates from the importers. Such amount is set at a level which allows a reasonable margin for importers to leverage their costs over the period of validity of the certificates whilst preserving the overall price transmission effect, ensuring that the environmental objective of the measure is preservedIn order to address the risk that the carbon price may fluctuate too much, making it too uncertain for importers to plan the reduction of imported emissions, or that the carbon price may be too low to encourage the reduction of imported emissions, a new independent agency should be set up with a mandate to ensure the irreversible and gradual reduction of the Union's imported emissions through a monopoly on the issuance of CBAM certificates with a fixed price, the number of which decreases over time.
Amendment 191 #
Proposal for a regulation
Recital 26
Recital 26
(26) TIn a first phase, the product coverage of the CBAM should reflect the activities covered by the EU ETS as that scheme is based on quantitative and qualitative criteria linked to the environmental objective of Directive 2003/87/EC and is the most comprehensive GHG emissions regulatory system in the Union.
Amendment 194 #
Proposal for a regulation
Recital 28
Recital 28
(28) Whilst the ultimate objective of the CBAM is a broad product coverage, iand complete and swift replacement of the free allocation of allowances. It would be prudent to start with a selected number of sectors with relatively homogeneous products where there is a potential risk of carbon leakage. Union sectors deemed at risk of carbon leakage are listed in Commission Delegated Decision 2019/70842 . __________________ 42Commission 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 196 #
Proposal for a regulation
Recital 29
Recital 29
(29) The goods under this Regulation should be selected after a careful analysis of their relevance in terms of cumulatived GHG emissions and risk of carbon leakage in the corresponding EU ETS sectors while limiting complexity and administrative burden, and taking into consideration alternative approaches consistent with the polluter-pays principle to address the objectives of this Regulation. . In particular, the actual selection should take into account basic materials and basic products covered by the EU ETS with the objective of ensuring that imports of energy intensive products into the Union are on equal footing with EU products in terms of EU ETS carbon pricing, and to mitigate risks of carbon leakage. Other relevant criteria to narrow the selection should be: firstly, relevance of sectors in terms of emissions, namely whether the sector is one of the largest aggregate emitters of GHG emissions; secondly, sector’s exposure to significant risk of carbon leakage, as defined pursuant to Directive 2003/87/EC; thirdly, the need to balance broad coverage in terms of GHG emissions while limiting complexity and administrative effort.
Amendment 202 #
Proposal for a regulation
Recital 30
Recital 30
(30) The use of the first criterion allows listing the following industrial sector in terms of cumulated emissfollowing industrial sector should be included in the initial scope of this Regulations: iron and steel, refineries, cement, aluminium, organic basic chemicals, hydrogen, polymers ('plastics') and fertilisers.
Amendment 204 #
Proposal for a regulation
Recital 31
Recital 31
Amendment 205 #
Proposal for a regulation
Recital 32
Recital 32
Amendment 208 #
Proposal for a regulation
Recital 33
Recital 33
Amendment 211 #
Proposal for a regulation
Recital 34
Recital 34
Amendment 222 #
Proposal for a regulation
Recital 38
Recital 38
(38) As importers of goods covered by this Regulation should not have to fulfil their CBAM obligations under this Regulation at the time of importation, specific administrative measures should be applied to ensure that the obligations are fulfilled at a later stage. Therefore, importers should only be entitled to import CBAM goods after they have been granted an authorisation by competentthe CBAM authoritiesy responsible for the application of this Regulation.
Amendment 226 #
Proposal for a regulation
Recital 40
Recital 40
(40) An authorised declarant should be allowed to claim a reduction in the number of CBAM certificates to be surrendered corresponding to the explicit carbon price already paid for those emissions in other jurisdictions.
Amendment 229 #
Proposal for a regulation
Recital 43
Recital 43
(43) CBAM certificates differ from EU ETS allowances for which daily auctioning is an essential feature. The need to set a clear price for CBAM certificates makes a daily publication excessively burdensome and confusing for operators, as daily prices risk becoming obsolete upon publication. Thus, the publication of CBAM prices on a weekly basis would accurately reflect the pricing trend of EU ETS allowances and pursue the same climate objective. The calculation of the price of CBAM certificates should therefore be set on the basis of a longer timeframe (on a weekly basis) than in the timeframe established by the EU ETS (on a daily basis)is the most reasonable option. The Commission should be tasked to calculate and publish that average price.
Amendment 231 #
Proposal for a regulation
Recital 44
Recital 44
(44) In order to give the authorised declarants flexibility in complying with their CBAM obligations and allow them to benefit from fluctuations in the price of EU ETS allowances, the CBAM certificates should be valid for a period of two years from the date of purchase. The authorised declarant should be allowed to re-sell to the national authority a portion of the certificates bought in excess. The authorised declarant should build up during the year the amount of certificates required at the time of surrendering, with thresholds set at the end of each quarter.
Amendment 233 #
Proposal for a regulation
Recital 44
Recital 44
(44) In order to give the authorised declarants flexibility in complying with their CBAM obligations and allow them to benefit from fluctuations in the price of EU ETS allowances, the CBAM certificates should be valid for a period of two years from the date of purchase. The authorised declarant should be allowed to re-sell to the nationalCBAM authority a portion of the certificates bought in excess. The authorised declarant should build up during the year the amount of certificates required at the time of surrendering, with thresholds set at the end of each quarter.
Amendment 246 #
Proposal for a regulation
Recital 49
Recital 49
(49) Once third countries will be closely integrated into the Union electricity market via market coupling, technical solutions should be found to ensure the application of the CBAM to electricity exported from such countries into the customs territory of the Union. If technical solutions cannot be found, third countries that are market coupled should benefit from a time limited exemption from the CBAM until at the latest 2030 with regard solely to the export of electricity, provided that certain conditions are satisfied. However, those third countries should develop a roadmap and commit to implement a explicit carbon pricing mechanism providing for an equivalent price as the EU ETSto the price paid by the EU's domestic producers, and should commit to achieving carbon neutrality by 2050 [as well as?] to align with Union legislation in the areas of environment, climate, competition and energy. That exemption should be withdrawn at any time if there are reasons to believe that the country in question does not fulfil its commitments or it has not adopted by 2030 an ETS equivalent to the EU ETS.
Amendment 249 #
Proposal for a regulation
Recital 50
Recital 50
(50) A transitional period should apply for two years, during the period 2023 untilfrom 1 January 2023 until 31 December 20254. A CBAM without financial adjustment should apply, with the objective to facilitate a smooth roll out of the mechanism hence reducing the risk of disruptive impacts on trade. Declarants should have to report on a quarterly basis the actual embedded emissions in goods imported during the transitional period, detailing direct and indirect emissions as well as any carbon price paid abroad.
Amendment 260 #
Proposal for a regulation
Recital 51
Recital 51
Amendment 272 #
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 methane emissions, to indirect emissions, as well as to other energy intensive goods and services that risk of carbon leakage,are imported into the Union, to introduce generalized carbon content requirements for imported products for distribution, consumption or use on the EU market and to develop methods of calculating embedded emissions based on the environmental footprint methods47 . __________________ 47Commission 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 281 #
Proposal for a regulation
Recital 53
Recital 53
(53) In light of the above, a dialogue with third countries should continue and there should be space for cooperation and solutions that could inform the specific choices that will be made on the details of the design of the measure during the implementatiwith a view to establishing a new international economic order based on the principles of equity, sovereign equality, interdependence, common, in particular during the transitional periodterest, cooperation and solidarity among all states.
Amendment 284 #
Proposal for a regulation
Recital 53 a (new)
Recital 53 a (new)
(53 a) The Commission should engage with all stakeholders of the sectors covered by this Regulation, including trade unions, civil society and industry representatives.
Amendment 287 #
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 in this Regulation and related implementing acts. It should also explore possibili, as well as alternative approaches aimed at addressing the objectives for concluding agreements to take into account their carbon pricing mechanismof this Regulation, including common product carbon requirements.
Amendment 288 #
Proposal for a regulation
Recital 55
Recital 55
(55) As the CBAM aims to encourage cleaneGiven the different roles played in global environmental degradation, and in line with the principle of common but differentiated responsibility for produtection processes, the EU stands ready to work with low and middle- income countries towards the de- carbonisation of their manufacturing industrng the environment and promoting sustainable development, the EU has a duty to cooperate with low and middle- income countries to help them implement green industrial policies. Moreover, the Union should support less developed countries with the necessary technical assistancin accessing the best techniques available in order to facilitate their adaptation to the new obligations established by this regulation.
Amendment 290 #
Proposal for a regulation
Recital 55 a (new)
Recital 55 a (new)
(55 a) To support low and middle-income countries' decarbonisation, the Commission will need to implement policies to accompany the CBAM that can reduce, and eventually eliminate, the gaps between developed and developing countries, including by using part of the revenues generated by the CBAM to speed up the dissemination and adoption of cleaner production technologies and to tighten up climate change adaptation policies and planning.
Amendment 299 #
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 leakageogressively reduce the Union's imported emissions, reduce its overall carbon footprint, prevent any risk of carbon leakage and incentivize emissions reductions in sectors covered by this Regulation in third countries and within the Union.
Amendment 305 #
Proposal for a regulation
Article 1 – paragraph 1 a (new)
Article 1 – paragraph 1 a (new)
1a. This Regulation sets out a target for reducing greenhouse gas emissions embedded in the Union's importations for 2050, including sub-targets for each sector covered by this Regulation.
Amendment 306 #
Proposal for a regulation
Article 1 – paragraph 2
Article 1 – paragraph 2
2. The CBAM complements the systemUnion's regulatory framework for achieving its goal of reducing greenhouse gases by 2030 and its goal of climate neutrality in every economic sector by 2050 at the latest by applying, initially, a set of rules equivalent to those established for greenhouse gas emission allowance trading within the Union by Directive 2003/87/EC by applying an equivalent set of rules to imports into the customs territory of the Union of goods referred to in Article 2.
Amendment 317 #
Proposal for a regulation
Article 1 – paragraph 3
Article 1 – paragraph 3
3. The mechanism will progressively becomeis an alternative to the mechanisms established under Directive 2003/87/EC to prevent the risk of carbon leakage, notably the allocation of allowances free of charge and compensation of indirect emission costs in accordance with Article 10a of that Directive.
Amendment 327 #
Proposal for a regulation
Article 2 – paragraph 5 – point a
Article 2 – paragraph 5 – point a
(a) the EU ETS established pursuant to Directive 2003/87/EC applies to that country or territory or an agreement has been concluded between that third country or territory and the Union fully linking the EU ETS and the third country or territthat provides a carbon pricing mechanism similar ory emission trading systemquivalent to the EU ETS;
Amendment 330 #
Proposal for a regulation
Article 2 – paragraph 6
Article 2 – paragraph 6
6. The Commission is empowered to adopt implementdelegated acts ing acts in order to determinecordance with Article 28 in order to supplement this Regulation by setting out the conditions for applying the CBAM to goods referred to in paragraph 2. Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 29(2).
Amendment 362 #
Proposal for a regulation
Article 2 a (new)
Article 2 a (new)
Article 2 a Commitments and targets 1. The Union-wide greenhouse gas emissions embedded in the Union's importation shall be reduced by 65% at the latest compared to 2005. 2. The Commission shall adopt delegated acts in accordance with article 28 to supplement this Regulation by setting out sub-targets for each sector covered by this Regulation.
Amendment 363 #
Proposal for a regulation
Article 2 b (new)
Article 2 b (new)
Article 2 b Sectoral roadmaps 1. By 1 January 2025, the Commission, supported by the Advisory Board established in Article 3 of Regulation (EU) 2021/1119, shall publish indicative sectoral roadmap on achieving the sub- targets referred to in Article 2a(2). 2. The Commission shall engage closely with stakeholders, including trade union, civil society, academia, policy makers and industry representatives. 3. Every four years after the publication of the roadmap set out in paragraph 1 of this Article, the Commission shall update the roadmap in accordance to the latest scientific knowledge, while engaging closely with stakeholders as referred in paragraph 2 of this Article. 4. All data used to produce the sectoral roadmaps set out in paragraph 1 of this Article, and for their updates pursuant to paragraph 3 of this Article, shall be made available to the public, in an easily accessible form.
Amendment 368 #
Proposal for a regulation
Article 3 – paragraph 1 – point 11
Article 3 – paragraph 1 – point 11
(11) ‘competentCBAM authority’ means the authority, designated by each Member State in accordance with Article 11 of this Regulation;
Amendment 370 #
Proposal for a regulation
Article 3 – paragraph 1 – point 15
Article 3 – paragraph 1 – point 15
(15) ‘direct emissions’ mean emissions from the production processes of goods over which the producer has direct control, including emissions from the production of heating and cooling consumed during the production processes;
Amendment 372 #
Proposal for a regulation
Article 3 – paragraph 1 – point 16
Article 3 – paragraph 1 – point 16
(16) ‘embedded emissions’ mean direct and indirect emissions released during the production of goods and its upstream products applying the principles laid out in Articles 7 and 8, calculated pursuant to the methods set out in Annex III;
Amendment 375 #
Proposal for a regulation
Article 3 – paragraph 1 – point 28
Article 3 – paragraph 1 – point 28
(28) ‘indirect emissions’ mean greenhouse gas emissions from the production processes of electricity, heating and cooling, which is consumed during the production processes of goods.
Amendment 379 #
Proposal for a regulation
Article 4 – paragraph 1
Article 4 – paragraph 1
Goods shall only be imported into the customs territory of the Union by a declarant that is authorised by the competentCBAM authority in accordance with Article 17 (‘authorised declarant’).
Amendment 381 #
Proposal for a regulation
Article 5 – paragraph 1
Article 5 – paragraph 1
1. Any declarant shall, prior to importing goods as referred to in Article 2, apply to the competentCBAM authority at the place where it is established, for an authorisation to import those goods into the customs territory of the Union.
Amendment 383 #
Proposal for a regulation
Article 5 – paragraph 3 – point f
Article 5 – paragraph 3 – point f
(f) information necessary to demonstrate the declarant’s financial and operational capacity to fulfil its obligations under this Regulation and, if decided by the competentCBAM authority on the basis of a risk assessment, supporting documents confirming that information, such as the profit and loss account and the balance sheet for up to the three last financial years for which the accounts were closed;
Amendment 385 #
Proposal for a regulation
Article 5 – paragraph 5
Article 5 – paragraph 5
5. The authorised declarant shall inform the competentCBAM authority without delay of any changes of the information provided under paragraph 3, arising after the decision was taken, which may influence the decision taken pursuant to Article 17 or content of the authorisation in accordance with Article 17.
Amendment 388 #
Proposal for a regulation
Article 5 – paragraph 6
Article 5 – paragraph 6
6. The Commission is empowered to adopt implementing acts, concerning the standard format of the application and the delays and procedure to be followed by the competentCBAM authority when processing applications for authorisation in accordance with paragraph 1 and the rules for identification by the competentCBAM authority of the declarants for the importation of electricity. Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 29(2).
Amendment 391 #
Proposal for a regulation
Article 6 – paragraph 1
Article 6 – paragraph 1
1. By 31 May of each year, each authorised declarant shall submit a declaration (‘CBAM declaration’), for the calendar year preceding the declaration, to the competentCBAM authority.
Amendment 398 #
Proposal for a regulation
Article 7 – paragraph 3 a (new)
Article 7 – paragraph 3 a (new)
3a. The European Commission shall offer technical and financial assistance, financed by the revenues raised through this regulation, to authorised declarants from Least Developed Countries and Small Island Developing States with the aim to help facilitate the measurement, reporting and verification of embedded emissions based on actual emissions for these declarants, in accordance with Annex III of this Regulation.
Amendment 400 #
Proposal for a regulation
Article 7 – paragraph 4
Article 7 – paragraph 4
4. The authorised declarant shall keep records of the information required to calculate the embedded emissions in accordance with the requirements laid down in Annex IV. Those records shall be sufficiently detailed to enable verifiers accredited pursuant to Article 18 to verify the embedded emissions in accordance with Article 8 and Annex V and to enable the competentCBAM authority to review the CBAM declaration in accordance with Article 19(1).
Amendment 401 #
Proposal for a regulation
Article 7 – paragraph 5
Article 7 – paragraph 5
5. The authorised declarant shall keep those records of information referred to in paragraph 4, including the report of the verifier, until the end of the fourth year after the year in which the CBAM declaration has been or should have been submitted. Those records shall be sufficiently detailed to enable the accredited verifiers to verify the embedded emissions in accordance with Article 8 and to enable the CBAM authority to review the CBAM declaration in accordance with Article 19(1). Those records shall be kept for the period during which the CBAM authority may review the CBAM declaration as referred to in Article 19(1).
Amendment 405 #
Proposal for a regulation
Article 7 – paragraph 6
Article 7 – paragraph 6
6. The Commission is empowered to adopt implementing acts 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 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 410 #
Proposal for a regulation
Article 8 – paragraph 1 a (new)
Article 8 – paragraph 1 a (new)
1a. The CBAM authority is authorized to verify the accuracy of the information in the CBAM declaration.
Amendment 414 #
Proposal for a regulation
Article 8 – paragraph 3 – introductory part
Article 8 – paragraph 3 – introductory part
3. The Commission is empowered to adopt implementing actsdelegated acts in accordance with Article 28 supplementing this Regulation concerning the principles of verification referred to in paragraph 1 as regards the possibility to waive 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 415 #
Proposal for a regulation
Article 8 – paragraph 3 – subparagraph 1
Article 8 – paragraph 3 – subparagraph 1
Amendment 416 #
Proposal for a regulation
Article 9 – title
Article 9 – title
Amendment 417 #
Proposal for a regulation
Article 9 – paragraph 1
Article 9 – paragraph 1
1. An authorised declarant may claim in its CBAM declaration a reduction in the number of CBAM certificates to be surrendered in order for the explicit carbon price paid in the country of origin for the declared embedded emissions to be taken into account.
Amendment 421 #
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 person, required to demonstrate that the declared embedded emissions were subject to an explicit 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 424 #
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 public database referred to in Article 14(4).
Amendment 427 #
Proposal for a regulation
Article 10 – paragraph 2 – introductory part
Article 10 – paragraph 2 – introductory part
2. The request for registration referred to in paragraph 1 shall include the following information to be included in the public database upon registration:
Amendment 430 #
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 competentthe CBAM authority to review and verify, 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 435 #
Proposal for a regulation
Chapter III – title
Chapter III – title
Amendment 439 #
Proposal for a regulation
Article 11 – title
Article 11 – title
Amendment 442 #
Proposal for a regulation
Article 11 – paragraph 1 – introductory part
Article 11 – paragraph 1 – introductory part
1. Each Member State shall designate the competentThe Commission shall appoint the CBAM authority to carry outperform the obligations under this Regulation and inform the Commission thereof.
Amendment 444 #
Proposal for a regulation
Article 11 – paragraph 1 – subparagraph 1
Article 11 – paragraph 1 – subparagraph 1
Amendment 450 #
Proposal for a regulation
Article 11 – paragraph 2
Article 11 – paragraph 2
Amendment 452 #
Proposal for a regulation
Article 11 – paragraph 2
Article 11 – paragraph 2
2. Member StatesIn performing its obligations under this Regulation, the CBAM authority shall requiensure that competent authorities exchange any infthe Union-wide greenhouse gas emissions embedded in the Union's impormtation that is essential or relevare irreversibly and progressively reduced, antd tohat the exercise of their functions and dutiestarget, and sub-targets, laid out in Article 2a are achieved.
Amendment 454 #
Proposal for a regulation
Article 11 – paragraph 2 a (new)
Article 11 – paragraph 2 a (new)
2a. The CBAM authority shall operate in line with the principles of a fair and socially equitable transition for everyone, common but differentiated responsibilities, taking into account the best and most recent scientific data available, social, economic and environmental factors, including costs linked to inaction, and with a view to the proper application of the polluter pays principle, as defined in Article191 TFEU.
Amendment 455 #
Proposal for a regulation
Article 11 – paragraph 2 b (new)
Article 11 – paragraph 2 b (new)
2b. The basic tasks to be carried out by the CBAM authority shall be: - the setting of the price of CBAM certificates; - the setting of the annual quantity of CBAM certificates to be issued for the EU as a whole; - CBAM certificates' linear reduction factor.
Amendment 456 #
Proposal for a regulation
Article 11 a (new)
Article 11 a (new)
Article 11 a Decisions taken by the CBAM authority 1. The CBAM authority shall, without delay, take any decision required to implement this Regulation. 2. The CBAM authority shall take into account the advice of the European Scientific Advisory Board on Climate Change and the Union greenhouse gas budget set out in Regulation (EU) 2021/1119 when taking its decisions. 3. The Commission shall specify, by means of implementing acts, any further detailed arrangement or procedural rule concerning the decision-making of the CBAM authority. Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 29(2).
Amendment 457 #
Proposal for a regulation
Article 12
Article 12
Amendment 467 #
Proposal for a regulation
Article 13 – paragraph 1
Article 13 – paragraph 1
All information acquired by the competentCBAM authority in the course of performing its duty which is by its nature confidential or which is provided on a confidential basis shall be covered by an obligation of professional secrecy. Such information shall not be disclosed by the competent authority without the express permission of the person or authority that provided it. It may be shared with customs authorities, the Commission and the European Public Prosecutors Office and shall be treated in accordance with Council Regulation (EC) No 515/97.
Amendment 470 #
Proposal for a regulation
Article 14 – title
Article 14 – title
Amendment 474 #
Proposal for a regulation
Article 14 – paragraph 1
Article 14 – paragraph 1
1. The competentCBAM authority of each Member State shall establish a nationalpublic CBAM registry of all declarants authorised in that Member State in the form of a standardised electronic database containing the data regarding the CBAM certificates of thoseeach declarants, and to provide for confidentiality in accordance with the conditions set out in Article 13.
Amendment 476 #
Proposal for a regulation
Article 14 – paragraph 2 – point d
Article 14 – paragraph 2 – point d
(d) the number, the price of sale, the date of purchase, the date of surrender, or the date of re-purchase, or that of the cancellation by the competentCBAM authority, of CBAM certificates for each authorised declarant.
Amendment 481 #
Proposal for a regulation
Article 14 – paragraph 3
Article 14 – paragraph 3
3. The information in the database referred to in paragraph 2 shall be confidential other than the names of the authorized declarants and of the operator and of the third country installations included in the database which shall be accessible to the public.
Amendment 488 #
Proposal for a regulation
Article 14 – paragraph 4
Article 14 – paragraph 4
4. The Commission shall establish a central database accessible to the publicadopt implementing acts contaicerning the names, addresses and contact details of the operators and the location of installations infrastructure and specific processes of the CBAM registry and the electronic database containing third countries in accordance with Article 10(2). An operator may choose not to have its name, address and contact details accessible to the publice information referred to in paragraph 2. Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 29(2).
Amendment 491 #
Proposal for a regulation
Article 15
Article 15
Amendment 497 #
Proposal for a regulation
Article 16 – title
Article 16 – title
Accounts in the nationalCBAM registriesy
Amendment 500 #
Proposal for a regulation
Article 16 – paragraph 1
Article 16 – paragraph 1
1. The competentCBAM authority shall assign to each authorised declarant a unique CBAM account number.
Amendment 502 #
Proposal for a regulation
Article 16 – paragraph 2
Article 16 – paragraph 2
2. Each authorised declarant shall be granted access to its account in the CBAM registry.
Amendment 505 #
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 CBAM authority shall close the account of that declarant.
Amendment 507 #
Proposal for a regulation
Article 17 – paragraph 1 – introductory part
Article 17 – paragraph 1 – introductory part
1. The competentCBAM authority shall authorise a declarant who submits an application for authorisation in accordance with Article 5(1), if the following conditions are fulfilled:
Amendment 514 #
Proposal for a regulation
Article 17 – paragraph 2
Article 17 – paragraph 2
2. Where the competentCBAM authority finds that the conditions listed in paragraph 1 are not fulfilled, or where the applicant has failed to provide the information listed in Article 5(3), the authorisation of the declarant shall be refused.
Amendment 518 #
Proposal for a regulation
Article 17 – paragraph 3
Article 17 – paragraph 3
3. If the competentCBAM authority refuses to authorise a declarant, the declarant requesting the authorisation may, prior to an appeal, object to the relevant authority under national law, who shall either instruct the national administrator to open the account or uphold the refusal in a reasoned decision, subject to requirements of national law that pursue a legitimate objective compatible with this Regulation and are proportionate.
Amendment 521 #
Proposal for a regulation
Article 17 – paragraph 4 – introductory part
Article 17 – paragraph 4 – introductory part
4. A decision of the competentCBAM authority authorising a declarant shall contain the following information
Amendment 525 #
Proposal for a regulation
Article 17 – paragraph 6 – introductory part
Article 17 – paragraph 6 – introductory part
6. The competentCBAM authority shall require the provision of a guarantee in order to authorise a declarant in accordance with paragraph 1, if the declarant was not established throughout the two financial years that precede the year when the application in accordance with Article 5(1) was submitted.
Amendment 528 #
Proposal for a regulation
Article 17 – paragraph 6 – subparagraph 1
Article 17 – paragraph 6 – subparagraph 1
The competentCBAM authority shall fix the amount of such guarantee at the maximum amount, as estimated by the competentCBAM authority, of the value of the CBAM certificates that the authorised declarant have to surrender, in accordance with Article 22.
Amendment 530 #
Proposal for a regulation
Article 17 – paragraph 7
Article 17 – paragraph 7
7. The guarantee shall be provided as a bank guarantee, payable at first demand, by a financial institution operating in the Union or by another form of guarantee which provides equivalent assurance. Where the competentCBAM authority establishes that the guarantee provided does not ensure, or is no longer certain or sufficient to ensure the amount of CBAM obligations, it shall require the authorised declarant either to provide an additional guarantee or to replace the initial guarantee with a new guarantee, according to its choice.
Amendment 533 #
Proposal for a regulation
Article 17 – paragraph 8
Article 17 – paragraph 8
8. The competentCBAM authority shall release the guarantee immediately after 31 May of the second year in which the authorised declarant has surrendered CBAM certificates in accordance with Article 22.
Amendment 537 #
Proposal for a regulation
Article 17 – paragraph 9
Article 17 – paragraph 9
9. The competentCBAM authority shall revoke the authorisation for a declarant who no longer meets the conditions laid down in paragraph 1, or who fails to cooperate with that authority.
Amendment 546 #
Proposal for a regulation
Article 19 – paragraph 1
Article 19 – paragraph 1
1. The competentCBAM authority may review the CBAM declaration within the period ending with the fourth year after the year in which the declaration should have been submitted. The review may consist in verifying the information provided in the CBAM declaration on the basis of the information communicated by the customs authorities in accordance with Article 25a(2) and any other relevant evidence, and on the basis of any audit deemed necessary, including at the premises of the authorised declarant.
Amendment 552 #
Proposal for a regulation
Article 19 – paragraph 2
Article 19 – paragraph 2
2. Where a CBAM declaration in accordance with Article 6 has not been submitted, the competent authority of the Member State of establishment of the authorised declarantCBAM authority shall assess the CBAM obligations of that declarant on the basis of the information at its disposal and calculate the total number of CBAM certificates due at the latest by the 31 December of the fourth year following that when the CBAM declaration should have been submitted.
Amendment 556 #
Proposal for a regulation
Article 19 – paragraph 3
Article 19 – paragraph 3
3. Where the competentCBAM authority has established that the declared number of CBAM certificates to be surrendered is incorrect, or that no CBAM declaration has been submitted pursuant to paragraph 2, it shall adjust the number of CBAM certificates due by the authorised declarant. The competentCBAM authority shall notify the authorised declarant of the adjustment and request that the authorised declarant shall surrender the additional CBAM certificates within one month.
Amendment 558 #
Proposal for a regulation
Article 19 – paragraph 5
Article 19 – paragraph 5
5. Where CBAM certificates have been surrendered in excess of the number due, the competentCBAM authority shall, without delay, reimburse the authorised declarant the value of CBAM certificates surrendered in excess, calculated at the average price paid for CBAM certificates by the authorised declarant during the year of import.
Amendment 561 #
Proposal for a regulation
Article 20 – paragraph 1
Article 20 – paragraph 1
1. The competentCBAM authority of each Member State shall sell CBAM certificates to declarants authorised in that Member State at the price calculated in accordance with Article 21.
Amendment 563 #
Proposal for a regulation
Article 20 – paragraph 2
Article 20 – paragraph 2
2. The competentCBAM authority shall ensure that each CBAM certificate is assigned a unique unit identification code upon its creation and shall register the unique unit identification number, the price and date of sale of the certificate in the nationalCBAM registry in the account of the authorised declarant purchasing it.
Amendment 568 #
Proposal for a regulation
Article 20 a (new)
Article 20 a (new)
Article 20 a Quantity of CBAM certificates for the Union as a whole 1. For the period starting on 1 January 2026, the CBAM authority shall decide on the total quantity of CBAM certificates it will allocate for the EU as a whole. It shall take that decision at least three months before the beginning of that period on the basis of its European CBAM allocation plan, drawn up in accordance with this article, drawing on the CBAM reports received during the period 2023-2026 and taking due account of comments from the public. 2. For the five-year period beginning on 1 January 2026, the quantity of CBAM certificates issued each year for the EU as a whole shall decrease in a linear manner with a view to achieving the target set out in Article 2a of this Regulation, in relation to the average annual total emissions reported in the CBAM reports received during the period 2023-2026. For each subsequent five-year period, this quantity shall be reduced by a linear factor determined by the CBAM authority, with a view to achieving the targets and sub-targets laid out in Articles 2a of this Regulation, in relation to the average annual total of CBAM certificates issued for the preceding five-year period. 3. For each five-year period provided for in the second paragraph of this article, the CBAM authority shall draw up a European plan specifying the total quantity of CBAM certificates that it intends to allocate for that period. That plan shall be based on objective and transparent criteria, taking comments from the public into consideration.
Amendment 571 #
Proposal for a regulation
Article 21 – paragraph 1 – introductory part
Article 21 – paragraph 1 – introductory part
1. The CommissionBAM authority shall calculate the price of CBAM certificates as the average price of the closingand set the minimum prices of EU ETS allowances on the common auction platform in accordance with the procedures laid down in Commission Regulation (EU) No 1031/201054 for each calendar week. CBAM certificates. __________________ 54 Commission Regulation (EU) No 1031/2010 of 12 November 2010 on the timing, administration and other aspects of auctioning of greenhouse gas emission allowances pursuant to Directive 2003/87/EC (OJ L 302, 18.11.2010, p. 1).
Amendment 574 #
Proposal for a regulation
Article 21 – paragraph 1 – subparagraph 1
Article 21 – paragraph 1 – subparagraph 1
Amendment 576 #
Proposal for a regulation
Article 21 – paragraph 2
Article 21 – paragraph 2
2. This averageminimum price shall be published by the CommissionBAM authority on its website on the first working day of the following calendar week and shall be applied from the following working day to the first working day of the following calendar week.
Amendment 577 #
Proposal for a regulation
Article 21 – paragraph 2 a (new)
Article 21 – paragraph 2 a (new)
2a. The Commission shall ensure that European producers pay an average carbon price equivalent to the price of CBAM certificates.
Amendment 580 #
Proposal for a regulation
Article 22 – paragraph 1
Article 22 – paragraph 1
1. By 31 May of each year, the authorised declarant shall surrender a number of CBAM certificates to the competentCBAM authority that corresponds to the embedded emissions declared in accordance with Article 6(2)(c) and verified in accordance with Article 8 for the calendar year preceding the surrender
Amendment 582 #
Proposal for a regulation
Article 22 – paragraph 2
Article 22 – paragraph 2
2. For the purposes of paragraph 1, the authorised declarant shall ensure that the required number of CBAM certificates is available on its account in the nationalCBAM registry. In addition, the authorised declarant shall ensure that the number of CBAM certificates on its account in the national registry at the end of each quarter corresponds to at least 80 per cent of the embedded emissions, determined by reference to default values in accordance with the methods set out in Annex III, in all goods it has imported since the beginning of the calendar year.
Amendment 584 #
Proposal for a regulation
Article 22 – paragraph 3
Article 22 – paragraph 3
3. Where the competentCBAM authority finds that the number of CBAM certificates in the account of an authorised declarant is not in compliance with the obligations pursuant to paragraph 2, second sentence, that authority shall notify the adjustment and request that the authorised declarant surrenders the additional CBAM certificates within one month.
Amendment 587 #
Proposal for a regulation
Article 23 – paragraph 1
Article 23 – paragraph 1
1. The competentCBAM 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 nationalCBAM 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.
Amendment 589 #
Proposal for a regulation
Article 24 – paragraph 1
Article 24 – paragraph 1
By 30 June of each year, the competentCBAM authority of each Member State shall cancel any CBAM certificates that were purchased during the year before the previous calendar year and that remained in the accounts in the nationalCBAM registry of the declarants authorised in that Member State.
Amendment 590 #
Proposal for a regulation
Article 24 a (new)
Article 24 a (new)
Article 24 a Revenues generated by the sale of CBAM certificates and penalties 1. The revenues generated by the sale of CBAM certificates, and penalties as set in Article 26, shall constitute internal assigned revenue in accordance with Article 21(3) of Regulation (EU, Euratom) 2018/1046. They shall be assigned to cover the costs of the operation and maintenance of the CBAM authority. Any revenue remaining after covering these costs shall be assigned to the Union budget. 2. To meet Union objectives and international commitments, such as the Paris Agreement, the Convention on Biological Diversity, the United Nations Sustainable Development Goals, financial support shall be provided to support least developed countries in their efforts to decarbonize their industries. The Union's additional financial support shall be at least equivalent in financial value to the revenues generated by the sale of CBAM certificates and recovered penalties. 3. The additional financial support shall be conditional to the respect of the eight fundamental conventions of the International Labour Organization. 4. To ensure transparency of the use of revenues generated by the sale of CBAM certificates and recovered penalties, the Commission shall, on a yearly basis, report to the European Parliament and to the Council on how the equivalent in financial value of those revenues from the previous year has been used and how this has contributed to mitigating and adapting to climate change, enhancing biodiversity and restoring ecosystems in least developed countries.
Amendment 592 #
Proposal for a regulation
Article 25 – paragraph 1
Article 25 – paragraph 1
1. The customs authorities shall not allow the importation of goods unless the declarant is authorised by a competentthe CBAM authority at the latest at the release for free circulation of the goods.
Amendment 595 #
Proposal for a regulation
Article 25 – paragraph 2
Article 25 – paragraph 2
2. The customs authorities shall periodically communicate information on the goods declared for importation, which shall include the EORI number and the CBAM account number of the declarant, the 8-digit CN code of the goods, the quantity, the country of origin, the date of declaration and the customs procedure, to the competentCBAM authority of the Member State where the declarant has been authorised.
Amendment 596 #
Proposal for a regulation
Article 25 – paragraph 4
Article 25 – paragraph 4
4. The customs authorities may communicate in accordance with Article 12(1) of Regulation (EU) No 952/2013, confidential information acquired by the customs authorities in the course of performing their duty or provided on a confidential basis, to the competentCBAM authority of the Member State where the declarant has been authorised. The competent authorities of the Member States. It shall treat and exchange this information in accordance with Council Regulation (EC) No 515/97.
Amendment 602 #
Proposal for a regulation
Article 26 – paragraph 3
Article 26 – paragraph 3
3. Payment of the penalty shall in no case release the authorised declarant from the obligation to surrender the outstanding number of CBAM certificates in a given year to the competentCBAM authority of the Member State where the declarant has been authorised.
Amendment 603 #
Proposal for a regulation
Article 26 – paragraph 4 – introductory part
Article 26 – paragraph 4 – introductory part
4. If the competentCBAM authority determines that an authorised declarant has failed to comply with the obligation to surrender CBAM certificates as specified in paragraph 1, or that a person has introduced goods into the customs territory of the Union as specified in paragraph 2, the competent authority shall impose the penalty and notify the authorised declarant or, in the situation under paragraph 2, the person:
Amendment 604 #
Proposal for a regulation
Article 26 – paragraph 4 – point a
Article 26 – paragraph 4 – point a
(a) that the competentCBAM authority has concluded that the authorised declarant or the person fails to comply with the obligation of surrendering CBAM certificates for a given year;
Amendment 605 #
Proposal for a regulation
Article 26 – paragraph 4 – point e
Article 26 – paragraph 4 – point e
(e) of the action the competentCBAM authority considers the authorised declarant or the person should take to comply with its obligation under point (a) depending on the facts and circumstances of the case; and
Amendment 607 #
Proposal for a regulation
Article 26 – paragraph 4 – point f
Article 26 – paragraph 4 – point f
(f) of the right of the authorised declarant or of the person to appeal under national rules.
Amendment 613 #
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. ; (b) transhipment of those goods through third countries with the result of excluding such goods from CBAM under Article 2(3) or securing lower embedded emissions due to the application of Article 7 with respect to default values.
Amendment 635 #
Proposal for a regulation
Article 28 – paragraph 2
Article 28 – paragraph 2
2. The power to adopt delegated acts referred to in Articles 2(6), 2(10), 2(11), 18(32a(2), 8(3), 18(3), 27(5), 31(2) and 27(535(6) shall be conferred on the Commission for an indeterminate period of time.
Amendment 637 #
Proposal for a regulation
Article 28 – paragraph 3
Article 28 – paragraph 3
3. The delegation of power referred to in Articles 2(6), 2(10), 2(11), 18(32a(2), 8(3), 18(3), 27(5), 31(2) and 27(535(6) may be revoked at any time by the European Parliament or by the Council.
Amendment 640 #
Proposal for a regulation
Article 28 – paragraph 7
Article 28 – paragraph 7
7. A delegated act adopted pursuant to Articles 2(6), 2(10), 2(11), 18(32a(2), 8(3), 18(3), 27(5), 31(2) and 27(535(6) shall enter into force only if no objection has been expressed either by the European Parliament or by the Council within a period of two months of notification of that act to the European Parliament and to the Council or if, before the expiry of that period, the European Parliament and the Council have both informed the Commission that they will not object. That period shall be extended by two months at the initiative of the European Parliament or of the Council.
Amendment 648 #
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 emissionsectors and goods other than those listed in Annex I, andsuch as downstream products using goods covered by this Regulation, and to develop methods of calculating embedded emissions based on environmental footprint methods.
Amendment 659 #
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, the assessment of the possibilities to further, accompanied by a legislative proposal. In line with the assessment of the arrangements, the legislative proposal shall extend the scope of embedded emissions to methane emissions, to indirect emissions and to other goods at risk of carbon leakage other 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 furtherlisted by Commission Delegated Decision 2019/708. The legislative proposal shall also 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. Lastly, the legislative proposal shall introduce carbon content requirements for products imported for distribution, consumption or use on the EU market.
Amendment 669 #
Proposal for a regulation
Article 30 – paragraph 2 a (new)
Article 30 – paragraph 2 a (new)
2a. The Commission shall monitor the functioning of the CBAM. Each year, it shall submit a report to the European Parliament and to the Council on the functioning of the CBAM, including volumes of imported products covered by this Regulation, the quantity of emissions embedded in those products, as well as products' average emissions-intensity.
Amendment 671 #
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 proposal collect all the information needed to eventually extend the scope of this Regulation to all imported goods. By 31 December 2030, the Commission shall present an assessment report to the European Parliament on this matter.
Amendment 681 #
Proposal for a regulation
Chapter IX – title
Chapter IX – title
Amendment 683 #
Proposal for a regulation
Article 31 – paragraph 1
Article 31 – paragraph 1
1. The CBAM certificates to be surrendered in accordance with Article 22 shall be adjusted to reflect the extent to which EU ETS allowances are allocated free of charge in accordance with Article 10a of Directive 2003/87/EC to installations producing, within the Union, the goods listedNo free allocation shall be given in relation to the production within the Union of products listed in Annex I as from the date of application of the CBAM, as provided in article 36(3). By way of derogation from the first subparagraph, until 31 December 2025, the production of those products shall benefit from free allocation in reduced amounts except for the categories of cement referred to in Annex I.
Amendment 694 #
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 696 #
Proposal for a regulation
Article 31 – paragraph 2 a (new)
Article 31 – paragraph 2 a (new)
2a. 50% of the allowances resulting from the reduction of free allocation shall be made available to the Innovation Fund to support the EU industries and workers. The other 50% shall be transferred to the EU budget.
Amendment 702 #
Proposal for a regulation
Article 33 – paragraph 3
Article 33 – paragraph 3
3. The customs authorities shall, by means of the surveillance mechanism established pursuant to Article 56(5) of Regulation (EU) No 952/2013, communicate to the competentCBAM authority of the Member State of importation information on imported goods, including processed products resulting from the outward processing procedure. Such information shall include the EORI number of the declarant, the 8-digit CN code, the quantity, the country of origin and the declarant of the goods, the date of declaration and the customs procedure.
Amendment 703 #
Proposal for a regulation
Article 35 – paragraph 1
Article 35 – paragraph 1
1. Each declarant shall, for each quarter of a calendar year, submit a report (‘CBAM report’) containing information on the goods imported during that quarter, to the competent authority of the Member State of importation or, if goods have been imported to more than one Member State, to the competent authority of the Member State at the declarant’s choice,CBAM authority no later than one month after the end of each quarter.
Amendment 708 #
Proposal for a regulation
Article 35 – paragraph 3
Article 35 – paragraph 3
3. The competentCBAM 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.
Amendment 709 #
Proposal for a regulation
Article 35 – paragraph 4
Article 35 – paragraph 4
4. The competentCBAM authority shall impose a proportionate and dissuasive penalty on declarants who fail to submit a CBAM report.
Amendment 710 #
Proposal for a regulation
Article 35 – paragraph 5 – introductory part
Article 35 – paragraph 5 – introductory part
5. If the competentCBAM authority determines that a declarant has failed to comply with the obligation to submit a CBAM report as specified in paragraph 1, the competent authority shall impose the penalty and notify the declarant:
Amendment 711 #
Proposal for a regulation
Article 35 – paragraph 5 – point a
Article 35 – paragraph 5 – point a
(a) that the competentCBAM authority has concluded that the declarant fails to comply with the obligation of submitting a report for a given quarter;
Amendment 712 #
Proposal for a regulation
Article 35 – paragraph 5 – point e
Article 35 – paragraph 5 – point e
(e) of the action the competentCBAM authority considers the declarant should take to comply with its obligation under point (a) depending on the facts and circumstances of the case; and
Amendment 714 #
Proposal for a regulation
Article 35 – paragraph 6
Article 35 – paragraph 6
6. The Commission is empowered to adopt implementing acts concerning the information to be reported, the procedures for communicating the information referred to in paragraph 3 and the conversion of the carbon price paid in foreign currency into euro at yearly average exchange rate. The Commission is also empowered to adopt implementing acts to further define the necessary elements of the calculation method set out in Annex III, including determining system boundaries of production processes, emission factors, installation-specific values of actual emissions and their respective application to individual goods as well as laying down methods to ensure the reliability of data, including the level of detail and the verification of this data. The Commission is further empowered to adopt implementing actsdelegated acts in accordance with Article 28 supplementing this Regulation to develop a calculation method for indirect emissions embedded in imported goods.
Amendment 718 #
Proposal for a regulation
Article 36 – paragraph 3 – point a
Article 36 – paragraph 3 – point a
(a) Articles 32 to 34 shall apply until 31 December 20254.
Amendment 719 #
Proposal for a regulation
Article 36 – paragraph 3 – point b
Article 36 – paragraph 3 – point b
(b) Article 35 shall apply until 28 February 20265.
Amendment 722 #
Proposal for a regulation
Article 36 – paragraph 3 – point c
Article 36 – paragraph 3 – point c
(c) Articles 5 and 17 shall apply from 1 September 20254.
Amendment 725 #
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 20265.
Amendment 732 #
Proposal for a regulation
Annex I – subheading 5 a (new)
Annex I – subheading 5 a (new)
Chemicals
Amendment 733 #
Proposal for a regulation
Annex I – table 5 a (new)
Annex I – table 5 a (new)
CN Code Greenhouse gas 29 - Organic Chemicals Carbon dioxide 2804 10 000 - Hydrogen Carbon dioxide 2814 10 000 - Anhydrous amonia Carbon dioxide 2814 20 00 - Amonia in aqueous solution Carbon dioxide
Amendment 734 #
Proposal for a regulation
Annex I – subheading 5 b (new)
Annex I – subheading 5 b (new)
Polymers
Amendment 735 #
Proposal for a regulation
Annex I – table 5 b (new)
Annex I – table 5 b (new)
CN Code Greenhouse gas 39 - Plastics and articles thereof Carbon dioxide and nitrous oxide