Activities of Luis GARICANO related to 2020/2043(INI)
Plenary speeches (1)
A WTO-compatible EU carbon border adjustment mechanism (debate)
Opinions (1)
OPINION towards a WTO-compatible EU carbon border adjustment mechanism
Amendments (11)
Amendment 1 #
Draft opinion
Paragraph 1
Paragraph 1
1. Recalls that a carbon border taxadjustment mechanism has long been a candidate for a genuine and green source of own revenue for the EU budget and was among the ‘basket’ of preferred options for new own resources taken up in Parliament’s legislative resolution of 16 September1 ; _________________ 1Texts adopted, P9_TA- PROV(2020)0220.
Amendment 14 #
Draft opinion
Paragraph 2
Paragraph 2
2. Acknowledges that the primary purpose of the carbon border adjustment mechanism (CBAM) must be to protect the climate, to enable internationally effective carbon pricing schemes, to mitigate the carbon leakage dilemma in the context of the Emissions Trading Scheme (ETS) and to prevent distortions to competition and trade; stresses that the CBAM will help the EU to meet its climate targets while keeping a level playing field in international trade, with the aim of galvanising the rest of the world into taking climate action in line with Paris Agreement;
Amendment 15 #
Draft opinion
Paragraph 2 a (new)
Paragraph 2 a (new)
2a. Acknowledges that the introduction of the CBAM might lead to the progressive phase out of free allocation of allowances, since the mechanism would ensure that EU producers and foreign importers face the same carbon costs in the EU market; calls for the CBAM design to include a partial reimbursement of EU Allowances for exports in order to ensure a level playing field for EU goods in third markets, thus maintaining a strong incentive to decarbonise while avoiding carbon leakage;
Amendment 26 #
Draft opinion
Paragraph 3
Paragraph 3
3. Recalls that the Parliament, the Council and the Commission agreed on the creation of new own resources in the course of the next Multiannual Financial Framework (MFF), including the CBAM, in the Interinstitutional Agreement on budgetary discipline, on cooperation in budgetary matters and on sound financial management, as well as on new own resources, including a roadmap for the introduction of new own resources (IIA); Stresses that dedicating the financial flows resulting from the CBAM to the EU budget would help to mitigate issues of fiscal equivalence and ensure a fairly distributed impact across Member States, as well as ensuring a lean structure with minimal administrative overheads; concludes, therefore, that defining the proceeds as an EU own resource, and decreasing GNI-based contributions accordingly to first cover a share of the repayment costs of the Next Generation EU instrument, and reducing the share of GNI-based contributions in the financing of the Union's budget, would help to mutualise the budgetary impact of the CBAM in a fair way across all Member States;
Amendment 35 #
Draft opinion
Paragraph 4
Paragraph 4
4. Welcomes the fact that the CBAM, if used awhen it becomes a basis for an own resource, would according to the IIA, will bring the revenue side of the EU budget into closer alignment with strategic policy objectives such as the European Green Deal, the fight against climate change and the circular economy, and that it would thereby help to generate co- benefits, incentives and EU added value;
Amendment 41 #
Draft opinion
Paragraph 5 a (new)
Paragraph 5 a (new)
5a. Highlights that the CBAM’s design can be fully compatible with World Trade Organization law if it is designed on the basis of the EU ETS and applies to imports embedding materials covered by the EU ETS, and thus avoid retaliation against the EU economy while raising the expected revenues;
Amendment 45 #
Draft opinion
Paragraph 6
Paragraph 6
6. Is determined to ensure that the CBAM-based own resource constitute universal income and that it be deemed to cover a share of the repayment costs of the Next Generation EU instrument; underlines that any earmarking of CBAM revenues would contravene the IIA, the Own Resources Decision and the Financial Regulation;
Amendment 49 #
Draft opinion
Paragraph 6 a (new)
Paragraph 6 a (new)
Amendment 51 #
Draft opinion
Paragraph 3
Paragraph 3
3. Urges that the proposed CBAM apply to all importsany import embedding materials covered by the EU ETS be subject to the CBAM in order to avoid distortions between products in the internal market and along the value chain;
Amendment 65 #
Draft opinion
Paragraph 4
Paragraph 4
4. Recommends that a design be introduced that measures the carbon content of each imports through theirits basic materials composition (as outlined in the proposal from the European Economic and Social Committee); recalls that this feasible approximation would weigh each basic material covered by the EU ETS and multiply it by its carbon intensity value – which ideally should be defined at country level; stresses, however, that importers who are more carbon efficient should be allowed to demonstrate the specific carbon intensity of their products;
Amendment 73 #
Draft opinion
Paragraph 5
Paragraph 5
5. Requests that the implementation of the CBAM should lead to the progressive phasing out of the free allocation of allowances, following an appropriate transition period, since the mechanism ensures that EU producers and importers would have to deal with the same carbon costs in the EU market; notes that this phasing out should be coupled in parsymmetricallely with the introduction of partial export rebates; such export rebates should not refund more than the current level of free allowances, in order to maintain strong decarbonisation incentives, while ensuring a level playing field for EU exports;