[ParlTrack]

Draft legislative resolution
Citation 2

— having regard to Article 294(23) and Article 192(12) of the Treaty on the Functioning of the European Union, ~~pursuant to which~~as well as the Commission proposal submitted ~~the proposal~~ to Parliament (C9- 0318/2021),

2022/02/22
Committee: ENVI

Anna ZALEWSKA

Proposal for a directive
Citation 1

Having regard to the Treaty on the Functioning of the European Union, and in particular Article 192(12) and Article 194(3) thereof,

2022/02/22
Committee: ENVI

Anna ZALEWSKA

Proposal for a directive
Recital 3 a (new)

(3a) The Union is committed to fighting against energy poverty, with at least 50 million Europeans still suffering from energy poverty, and will ensure that its legislative proposals and amendments affecting the energy sector do not impede efforts in this regard.

2022/02/22
Committee: ENVI

Anna ZALEWSKA

(4a) Legislative proposals should take into account evolving circumstances, and in particular, the economic and energy crisis the EU is currently facing, which is putting many businesses at competitive disadvantage and increasing the households at risk of energy poverty. Particular attention should be paid to speculative actions that may affect this and should be addressed immediately.

2022/02/22
Committee: ENVI

Anna ZALEWSKA

Proposal for a directive
Recital 7

(7) All sectors of the economy need to contribute to achieving those emission reductions. Therefore, the ambition of the EU Emissions Trading System (EU ETS), established by Directive 2003/87/EC of the European Parliament and of the Council41 to promote reductions of greenhouse gas emissions in a cost-effective and economically efficient manner, should be increased in a manner commensurate with this economy-wide net greenhouse gas emissions reduction target for 2030. and at the same time, constantly to assess the impacts of the EU ETS on the development of production and energy sectors in order to provide a tool to support the transition, not to attenuate the economic activity. _________________ 41 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).

2022/02/22
Committee: ENVI

Anna ZALEWSKA

Proposal for a directive
Recital 8 a (new)

(8a) To achieve the transformation to a low-emission technology in the district heating sector with its specificities, it is necessary to define a separate emission benchmark for district heat, which would be based on the heat generation process reflecting technological progress.

2022/02/22
Committee: ENVI

Anna ZALEWSKA

Proposal for a directive
Recital 26

(26) Achieving the Union’s emissions reduction target for 2030 will require a reduction in the emissions of the sectors covered by the EU ETS of 61 % compared to 2005. ~~The Union-wide quantity of allowances of the EU ETS needs to be reduced to create the necessary long-term carbon price signal and drive for this degree of decarbonisation.~~ To this end, the linear reduction factor should be increased, also taking into account the inclusion of emissions from maritime transport. The latter should be derived from the emissions from maritime transport activities reported in accordance with Regulation (EU) 2015/757 for 2018 and 2019 in the Union, adjusted, from year 2021, by the linear reduction factor.

2022/02/22
Committee: ENVI

Anna ZALEWSKA

Proposal for a directive
Recital 27

(27) Bearing in mind that this Directive amends Directive 2003/87/EC in respect of a period of implementation that has already started on 1 January 2021, for reasons of predictability, environmental effectiveness and simplicity, the steeper linear reduction pathway of the EU ETS should be a straight line from 2021 to 2030, such as to achieve emission reductions in the EU ETS of 61 % by 2030, as the appropriate intermediate step towards Union economy-wide climate neutrality in 2050. As the increased linear reduction factor can only apply from the year following the entry into force of this Directive, a one-off reduction of the quantity of allowances should reduce the total quantity of allowances so that it is in line with this level of annual reduction having been made from 2021 onwards.deleted

2022/02/22
Committee: ENVI

Anna ZALEWSKA

Proposal for a directive
Recital 29

(29) Further incentives to reduce greenhouse gas emissions by using cost- efficient techniques should be provided. To that end, the free allocation of emission allowances to stationary installations from 2026 onwards should be conditional on investments in techniques to increase energy efficiency and reduce emissions. Ensuring that this is focused on larger energy users would result in a substantial reduction in burden for businesses with lower energy use, which may be owned by small and medium sized enterprises or micro- enterprises. [Reference to be confirmed with the revised EED]. The relevant delegated acts should be adjusted accordingly.deleted

2022/02/22
Committee: ENVI

Anna ZALEWSKA

Proposal for a directive
Recital 30

(30) The Carbon Border Adjustment Mechanism (CBAM), established under Regulation (EU) […./..] of the European Parliament and of the Council51 , is an alternative to free allocation to address the risk of carbon leakage. To the extent that sectors and subsectors are covered by that measure, they should not receive free allocation. However, a transitional phasing-out of free allowances is needed to allow producers, importers and traders to adjust to the new regime. The reduction of free allocation should be implemented by applying a factor to free allocation for CBAM sectors, while the CBAM is phased in. This percentage (CBAM factor) should be equal to 100 % during the transitional period between the entry into force of [CBAM Regulcomplements free allocation and is intended to protect against the increased risk of carbon leakage stemming from the enhanced climate mitigation] a~~nd 2025, 90 % in 2026 and should be reduced by 10 percentage points each year to reach 0 % and thereby eliminate free allocation b~~mbitions of the Union. By the tenth year. The relevant delegated acts on free allocation should be adjusted accordingly for the sectors and subsectors covered by the CBAM. The free allocation no longer provided to the CBAM sectors based on this calculation (CBAM demand) must be auctioned and the revenues will accrue to the Innovation Fund, so as to support innovation in low carbon technologies, carbon capture and utilisation (‘CCU’), carbon capture and geological storage (‘CCS’), renewable energy and energy storage, in a way that contributes to mitigating climate change. Special attention should be given to projects in CBAM sectors. To respect the proportion of the free allocation available for the non-CBAM sectors, the final amd of 2027, the Commission will review the functioning of the CBAM and if it is sufficiently proven that the system is fit for the protection against carbon leakage, it may present a proposal to gradually phase ount to deduct from the free allocation and to be auctioned should be calculated based on the proportion that the CBAM demand represents in respect of the free allocation needs of all sectors receiving free allocationfree allowances for sectors covered by the CBAM, but not earlier than in 2030. _________________ 51 [please insert full OJ reference]

2022/02/22
Committee: ENVI

Anna ZALEWSKA

Proposal for a directive
Recital 30 a (new)

(30a) The Innovation Fund may, where appropriate, also support innovation in low carbon technologies, carbon capture and utilisation (‘CCU’), carbon capture and geological storage (‘CCS’), renewable energy and energy storage, carbon dioxide removal ('CDR') practises, including technological carbon removals such as direct air capture ('DAC'), in a way that contributes to mitigating climate change.

2022/02/22
Committee: ENVI

Anna ZALEWSKA

Proposal for a directive
Recital 31

(31) In order to better reflect technological progress and adjust the corresponding benchmark values to the relevant period of allocation while ensuring emission reduction incentives and properly rewarding innovation, the maximum adjustment of the benchmark values should be increased from 1,6 % to ~~2,5~~1,9 % per year. For the period from 2026 to 2030, the benchmark values should thus be adjusted within a range of 4 % to 5038 % compared to the value applicable in the period from 2013 to 2020.

2022/02/22
Committee: ENVI

Anna ZALEWSKA

Proposal for a directive
Recital 38

(38) The scope of the Modernisation Fund should be aligned with the most recent climate objectives of the Union by requiring that investments are consistent with the objectives of the European Green Deal and Regulation (EU) 2021/1119, and eliminating the support to any investments related to fossil fuels. In addition, the percentage of the Modernisation Fund that needs to be devoted to priority investments should be increased to 870 %; energy efficiency should be targeted as a priority area at the demand side; and support of households to address energy poverty, including in rural and remote areas, should be included within the scope of the priority investments.

2022/02/22
Committee: ENVI

Anna ZALEWSKA

Proposal for a directive
Recital 40

(40) Renewable liquid and gaseous fuels of non-biological origin and recycled carbon fuels can be important to reduce greenhouse gas emissions in sectors that are hard to decarbonise. Where recycled carbon fuels and renewable liquid and gaseous fuels of non-biological origin are produced from captured carbon dioxide under an activity covered by this Directive, the emissions should be accounted under that activity where the CO2 is emitted into the atmosphere. To ensure that renewable fuels of non-biological origin and recycled carbon fuels contribute to greenhouse gas emission reductions and to avoid double counting for fuels that do so, it is appropriate to explicitly extend the empowerment in Article 14(1) to the adoption by the Commission of implementing acts laying down the necessary adjustments for how to account for the eventual release of carbon dioxide and how to avoid double counting to ensure appropriate incentives are in place, taking also into account the treatment of these fuels under Directive (EU) 2018/2001.

2022/02/22
Committee: ENVI

Anna ZALEWSKA

Proposal for a directive
Recital 43

(43) The Communication of the Commission on Stepping up Europe’s 2030 climate ambition57 , underlined the particular challenge to reduce the emissions in the sectors of road transport and buildings. Therefore, the Commission announced that a further expansion of emissions trading could include emissions from road transport and buildings. Emissions trading for these two new sectors would be established through separate but adjacent emissions trading. This would avoid any disturbance of the well-functioning emissions trading in the sectors of stationary installations and aviation. The new system is accompanied by complementary policies and measures safeguarding against undue price impacts, shaping expectations of market participants and aiming for a carbon price signal for the whole economy. Previous experience has shown that the development of the new market requires setting up an efficient monitoring, reporting and verification system. In view of ensuring synergies and coherence with the existing Union infrastructure for the EU ETS covering the emissions from stationary installations and aviation, it is appropriate to set up emissions trading for the road transport and buildings sectors via an amendment to Directive 2003/87/ЕC. _________________ 57 COM(2020)562 final.deleted

2022/02/22
Committee: ENVI

Anna ZALEWSKA

Proposal for a directive
Recital 44

(44) In order to establish the necessary implementation framework and to provide a reasonable timeframe for reaching the 2030 target, emissions trading in the two new sectors should start in 2025. During the first year, the regulated entities should be required to hold a greenhouse gas emissions permit and to report their emissions for the years 2024 and 2025. The issuance of allowances and compliance obligations for these entities should be applicable as from 2026. This sequencing will allow starting emissions trading in the sectors in an orderly and efficient manner. It would also allow the EU funding and Member State measures to be in place to ensure a socially fair introduction of the EU emissions trading into the two sectors so as to mitigate the impact of the carbon price on vulnerable households and transport users.deleted

2022/02/22
Committee: ENVI

Anna ZALEWSKA

Proposal for a directive
Recital 45

(45) Due to the very large number of small emitters in the sectors of buildings and road transport, it is not possible to establish the point of regulation at the level of entities directly emitting greenhouse gases, as is the case for stationary installations and aviation. Therefore, for reasons of technical feasibility and administrative efficiency, it is more appropriate to establish the point of regulation further upstream in the supply chain. The act that triggers the compliance obligation under the new emissions trading should be the release for consumption of fuels which are used for combustion in the sectors of buildings and road transport, including for combustion in road transport of greenhouse gases for geological storage. To avoid double coverage, the release for consumption of fuels which are used in other activities under Annex I to Directive 2003/87/EC should not be covered.deleted

2022/02/22
Committee: ENVI

Anna ZALEWSKA

Proposal for a directive
Recital 46

(46) The regulated entities in the two new sectors and the point of regulation should be defined in line with the system of excise duty established by Council Directive (EU) 2020/26258 , with the necessary adaptations, as that Directive already sets a robust control system for all quantities of fuels released for consumption for the purposes of paying excise duties. End-users of fuels in those sectors should not be subject to obligations under Directive 2003/87/EC. _________________ 58Council Directive (EU) 2020/262 of 19 December 2019 laying down the general arrangements for excise duty (OJ L 58 27.2.2020, p. 4).deleted

2022/02/22
Committee: ENVI

Anna ZALEWSKA

Proposal for a directive
Recital 47

(47) The regulated entities falling within the scope of the emissions trading in the sectors of buildings and road transport should be subject to similar greenhouse gas emissions permit requirements as the operators of stationary installations. It is necessary to establish rules on permit applications, conditions for permit issuance, content, and review, and any changes related to the regulated entity. In order for the new system to start in an orderly manner, Member States should ensure that regulated entities falling within the scope of the new emissions trading have a valid permit as of the start of the system in 2025.deleted

2022/02/24
Committee: ENVI

Anna ZALEWSKA

Proposal for a directive
Recital 48

(48) The total quantity of allowances for the new emissions trading should follow a linear trajectory to reach the 2030 emissions reduction target, taking into account the cost-efficient contribution of buildings and road transport of 43 % emission reductions by 2030 compared to 2005. The total quantity of allowances should be established for the first time in 2026, to follow a trajectory starting in 2024 from the value of the 2024 emissions limits (1 109 304 000 CO2t), calculated in accordance with Article 4(2) of Regulation (EU) 2018/842 of the European Parliament and of the Council59 on the basis of the reference emissions for these sectors for the period from 2016 to 2018. Accordingly, the linear reduction factor should be set at 5,15 %. From 2028, the total quantity of allowances should be set on the basis of the average reported emissions for the years 2024, 2025 and 2026, and should decrease by the same absolute annual reduction as set from 2024, which corresponds to a 5,43 % linear reduction factor compared to the comparable 2025 value of the above defined trajectory. If those emissions are significantly higher than this trajectory value and if this divergence is not due to small-scale differences in emission measurement methodologies, the linear reduction factor should be adjusted to reach the required emissions reduction in 2030. _________________ 59Regulation (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).deleted

2022/02/24
Committee: ENVI

Anna ZALEWSKA

Proposal for a directive
Recital 49

(49) The auctioning of allowances is the simplest and the most economically efficient method for allocating emission allowances, which also avoids windfall profits. Both the buildings and road transport sectors are under relatively small or non-existent competitive pressure from outside the Union and are not exposed to a risk of carbon leakage. Therefore, allowances for buildings and road transport should only be allocated via auctioning without there being any free allocation.deleted

2022/02/24
Committee: ENVI

Anna ZALEWSKA

Proposal for a directive
Recital 50

(50) In order to ensure a smooth start to emissions trading in the buildings and road transport sectors and taking into account the need of the regulated entities to hedge or buy ahead allowances to mitigate their price and liquidity risk, a higher amount of allowances should be auctioned early on. In 2026, the auction volumes should therefore be 30 % higher than the total quantity of allowances for 2026. This amount would be sufficient to provide liquidity, both if emissions decrease in line with reduction needs, and in the event emission reductions only materialise progressively. The detailed rules for this front-loading of auction volume are to be established in a delegated act related to auctioning, adopted pursuant to Article 10(4) of Directive 2003/87/EC.deleted

2022/02/24
Committee: ENVI

Anna ZALEWSKA

(51) The distribution rules on auction shares are highly relevant for any auction revenues that would accrue to the Member States, especially in view of the need to strengthen the ability of the Member States to address the social impacts of a carbon price signal in the buildings and road transport sectors. Notwithstanding the fact that the two sectors have very different characteristics, it is appropriate to set a common distribution rule similar to the one applicable to stationary installations. The main part of allowances should be distributed among all Member States on the basis of the average distribution of the emissions in the sectors covered during the period from 2016 to 2018.deleted

2022/02/24
Committee: ENVI

Anna ZALEWSKA

Proposal for a directive
Recital 52

(52) The introduction of the carbon price in road transport and buildings should be accompanied by effective social compensation, especially in view of the already existing levels of energy poverty. About 34 million Europeans reported an inability to keep their homes adequately warm in 2018, and 6,9 % of the Union population have said that they cannot afford to heat their home sufficiently in a 2019 EU-wide survey60 . To achieve an effective social and distributional compensation, Member States should be required to spend the auction revenues on the climate and energy-related purposes already specified for the existing emissions trading, but also for measures added specifically to address related concerns for the new sectors of road transport and buildings, including related policy measures under Directive 2012/27/EU of the European Parliament and of the Council61 . Auction revenues should be used to address social aspects of the emission trading for the new sectors with a specific emphasis in vulnerable households, micro-enterprises and transport users. In this spirit, a new Social Climate Fund will provide dedicated funding to Member States to support the European citizens most affected or at risk of energy or mobility poverty. This Fund will promote fairness and solidarity between and within Member States while mitigating the risk of energy and mobility poverty during the transition. It will build on and complement existing solidarity mechanisms. The resources of the new Fund will in principle correspond to 25 % of the expected revenues from new emission trading in the period 2026-2032, and will be implemented on the basis of the Social Climate Plans that Member States should put forward under Regulation (EU) 20…/nn of the European Parliament and the Council62 . In addition, each Member State should use their auction revenues inter alia to finance a part of the costs of their Social Climate Plans. _________________ 60 Data from 2018. Eurostat, SILC [ilc_mdes01]. 61Directive 2012/27/EU of the European Parliament and of the Council of 25 October 2012 on energy efficiency, amending Directives 2009/125/EC and 2010/30/EU and repealing Directives 2004/8/EC and 2006/32/EC (OJ L 315, 14.11.2012, p. 1–56). 62[Add ref to the Regulation establishing the Social Climate Fund].deleted

2022/02/24
Committee: ENVI

Anna ZALEWSKA

Proposal for a directive
Recital 53

(53) Reporting on the use of auctioning revenues should be aligned with the current reporting established by Regulation (EU) 2018/1999 of the European Parliament and of the Council63 . _________________ 63 Regulation (EU) 2018/1999 of the European Parliament and of the Council of 11 December 2018 on the Governance of the Energy Union and Climate Action, amending Regulations (EC) No 663/2009 and (EC) No 715/2009 of the European Parliament and of the Council, Directives 94/22/EC, 98/70/EC, 2009/31/EC, 2009/73/EC, 2010/31/EU, 2012/27/EU and 2013/30/EU of the European Parliament and of the Council, Council Directives 2009/119/EC and (EU) 2015/652 and repealing Regulation (EU) No 525/2013 of the European Parliament and of the Council (OJ L 328, 21.12.2018, p. 1–77).deleted

2022/02/24
Committee: ENVI

Anna ZALEWSKA

Proposal for a directive
Recital 54

(54) Innovation and development of new low-carbon technologies in the sectors of buildings and road transport are crucial for ensuring the cost-efficient contribution of these sectors to the expected emission reductions. Therefore, 150 million allowances from emissions trading in the buildings and road transport sectors should also be made available to the Innovation Fund to stimulate the cost-efficient emission reductions.deleted

2022/02/24
Committee: ENVI

Anna ZALEWSKA

Proposal for a directive
Recital 55

(55) Regulated entities covered by the buildings and road transport emissions trading should surrender allowances for their verified emissions corresponding to the quantities of fuels they have released for consumption. They should surrender allowances for the first time for their verified emissions in 2026. In order to minimise the administrative burden, a number of rules applicable to the existing emissions trading system for stationary installations and aviation should be made applicable to emissions trading for buildings and road transport, with the necessary adaptations. This includes, in particular, rules on transfer, surrender and cancellation of allowances, as well as the rules on the validity of allowances, penalties, competent authorities and reporting obligations of Member States.deleted

2022/02/24
Committee: ENVI

Anna ZALEWSKA

Proposal for a directive
Recital 56

(56) For emissions trading in the buildings and road transport sectors to be effective, it should be possible to monitor emissions with high certainty and at reasonable cost. Emissions should be attributed to regulated entities on the basis of fuel quantities released for consumption and combined with an emission factor. Regulated entities should be able to reliably and accurately identify and differentiate the sectors in which the fuels are released for consumption, as well as the final users of the fuels, in order to avoid undesirable effects, such as double burden. To have sufficient data to establish the total number of allowances for the period from 2028 to 2030, the regulated entities holding a permit at the start of the system in 2025 should report their associated historical emissions for 2024.deleted

2022/02/24
Committee: ENVI

Anna ZALEWSKA

Proposal for a directive
Recital 57

(57) It is appropriate to introduce measures to address the potential risk of excessive price increases, which, if particularly high at the start of the buildings and road transport emissions trading, may undermine the readiness of households and individuals to invest in reducing their greenhouse gas emissions. These measures should complement the safeguards provided by the Market Stability Reserve established by Decision (EU) 2015/1814 of the European Parliament and of the Council64 and that became operational in 2019. While the market will continue to determine the carbon price, safeguard measures will be triggered by rules-based automatism, whereby allowances will be released from the Market Stability Reserve only if concrete triggering conditions based on the increase in the average allowance price are met. This additional mechanism should also be highly reactive, in order to address excessive volatility due to factors other than changed market fundamentals. The measures should be adapted to different levels of excessive price increase, which will result in different degrees of the intervention. The triggering conditions should be closely monitored by the Commission and the measures should be adopted by the Commission as a matter of urgency when the conditions are met. This is without prejudice to any accompanying measures that Member States may adopt to address adverse social impacts. _________________ 64Decision (EU) 2015/1814 of the European Parliament and of the Council of 6 October 2015 concerning the establishment and operation of a market stability reserve for the Union greenhouse gas emission trading scheme and amending Directive 2003/87/EC (OJ L 264, 9.10.2015, p. 1).deleted

2022/02/24
Committee: ENVI

Anna ZALEWSKA

Proposal for a directive
Recital 58

(58) The application of emissions trading in the buildings and road transport sectors should be monitored by the Commission, including the degree of price convergence with the existing ETS, and, if necessary, a review should be proposed to the European Parliament and the Council to improve the effectiveness, administration and practical application of emissions trading for those sectors on the basis of acquired knowledge as well as increased price convergence. The Commission should be required to submit the first report on those matters by 1 January 2028.deleted

2022/02/24
Committee: ENVI

Anna ZALEWSKA

Proposal for a directive
Recital 59

(59) In order to ensure uniform conditions for the implementation of Articles 3gd(3), 12(3b) and 14(1) of Directive 2003/87/EC, implementing powers should be conferred on the Commission. To ensure synergies with the existing regulatory framework~~, the conferral of implementing powers in Articles 14 and 15 of that Directive should be extended to cover the sectors of road transport and buildings~~. Those implementing powers should be exercised in accordance with Regulation (EU) No 182/2011 of the European Parliament and of the Council65 . _________________ 65Regulation (EU) No 182/2011 of 16 February 2011 laying down the rules and general principles concerning mechanisms for control by the Member States of the Commission's exercise of implementing powers (OJ L 55, 28.02.2011, p. 13).

2022/02/24
Committee: ENVI

Anna ZALEWSKA

Proposal for a directive
Recital 61

(61) A well-functioning, reformed EU ETS comprising an instrument to stabilise the market is a key means for the Union to reach its agreed target for 2030 and the commitments under the Paris Agreement. The Market Stability Reserve seeks to address the imbalance between supply and demand of allowances in the market. Article 3 of Decision (EU) 2015/1814 provides that the reserve is to be reviewed three years after it becomes operational, paying particular attention to the percentage figure for the determination of the number of allowances to be placed in the Market Stability Reserve, the threshold for the total number of allowances in circulation (TNAC) that determines the intake of allowances, and the number of allowances to be released from the reserve. The amount of allowances held by entities that is not used to cover obligations under the EU ETS should not be included in the TNAC calculations to trigger market stability reserve thresholds.

2022/02/24
Committee: ENVI

Anna ZALEWSKA

Proposal for a directive
Recital 62

(62) Considering the need to deliver a stronger investment signal to reduce emissions in a cost-efficient manner and with a view to strengthening the EU ETS, Decision (EU) 2015/1814 should be amended so as to increase the percentage rate for determining the number of allowances to be placed each year in the Market Stability Reserve. In addition, for lower levels of the TNAC, the intake should be equal to the difference between the TNAC and the threshold that determines the intake of allowances. This would prevent the considerable uncertainty in the auction volumes that results when the TNAC is close to the threshold, and at the same time ensure that the surplus reaches the volume bandwidth within which the carbon market is deemed to operate in a balanced manner.

2022/02/24
Committee: ENVI

Anna ZALEWSKA

Proposal for a directive
Recital 63

(63) Furthermore, in order to ensure that the level of allowances that remains in the Market Stability Reserve after the invalidation is predictable, the invalidation of allowances in the reserve should no longer depend on the auction volumes of the previous year. The number of allowances in the reserve should, therefore, be fixed at a level of 400 million allowances, which corresponds to the lower threshold for the value of the TNAC.deleted

2022/02/24
Committee: ENVI

Anna ZALEWSKA

Proposal for a directive
Recital 65 a (new)

(65a) To ensure that efficient decarbonisation of its sectors is incentivised, rather than just contributing to the increase of excessive prices, the Market Stability Reserve therefore should be responsive and function so that disturbances in the market and unnatural or disproportionate increases in carbon price or deficiencies in allowances circulating are addressed and corrected immediately.

2022/02/24
Committee: ENVI

Anna ZALEWSKA

Proposal for a directive
Recital 65 b (new)

(65b) If the rate of the total number of allowances in circulation to be placed in the reserve each year is substantially decreased, using the allowances in the reserve would enable to counteract the disproportionately and unnaturally frequency of high price increases and also address existing structural imbalances on the supply side of allowances faced by some Member States. In addition, the rate after 2023 may be established separately from the general review of Directive 2003/87/EC and Decision (EU) 2015/1814 to address inconsistencies of the EU ETS in line with the Union’s increased climate ambition for 2030 to ensure market predictability, and as such, the allowances in the reserve should not be cancelled.

2022/02/24
Committee: ENVI

Anna ZALEWSKA

Proposal for a directive
Recital 66 a (new)

(66a) However, there is an uncontrolled price surge on the EU ETS market over the last year and a half, suggesting that a significant increase of allowances in the EU ETS is necessary. Furthermore, that analysis did not take into consideration the current energy crisis which have led to sudden increases in energy prices for businesses and households in the EU. Therefore, any proposal to continue the doubled uptake rates beyond 2023 should not be pursued until the energy prices become stable and affordable again.

2022/02/24
Committee: ENVI

Anna ZALEWSKA

Proposal for a directive
Article 1 – paragraph 1 – point 1

Directive 2003/87/EC
Article 2 – paragraph 1

1. This Directive shall apply to the activities listed in Annexes I and III, and to the of greenhouse gases listed in Annex II. Where an installation that is included in the scope of the EU ETS due to the operation of combustion units with a total rated thermal input exceeding 20 MW changes its production processes to reduce its greenhouse gas emissions and no longer meets that threshold, it shall remain in the scope of the EU ETS until the end of the relevant five year period referred to in Article 11(1), second subparagraph, following the change to its production process.

2022/02/24
Committee: ENVI

Anna ZALEWSKA

Proposal for a directive
Article 1 – paragraph 1 – point 2 – point a

Directive 2003/87/EC
Article 3 – paragraph 1 – point b

(b) ‘emissions’ means the release of greenhouse gases into the atmosphere from sources in an installation or the release from an aircraft performing an aviation activity listed in Annex I or from ships performing a maritime transport activity listed in Annex I of the gases specified in respect of that activity, or the release of greenhouse gases corresponding to the activity referred to in Annex III;;

2022/02/24
Committee: ENVI

Anna ZALEWSKA

Proposal for a directive
Article 1 – paragraph 1 – point 5

Directive 2003/87/EC
Article 3f – paragraph 1

The administering Member State shall ensure that each aircraft operator submits to the competent authority in that Member State a monitoring plan setting out measures to monitor and report emissions and ~~tonne-kilometre data for the purpose of an application under Article 3e and~~ that such plans are approved by the competent authority in accordance with the acts referred to in Article 14.

2022/02/24
Committee: ENVI

Anna ZALEWSKA

Proposal for a directive
Article 1 – paragraph 1 – point 8 a (new)

Directive 2003/87/EC
Article 6 a (new)

(8a) The following article is inserted: Article 6a Carbon removal certification Preceded by close consultation with Member States, if appropriate, the Commission may consider a thorough study regarding the introduction of carbon removal credits to be utilised in the EU ETS. 'Carbon removal' means the deliberate (anthropogenic) extraction of carbon dioxide from the atmosphere or upper ocean, coupled with subsequent secure storage of that carbon.

2022/02/24
Committee: ENVI

Anna ZALEWSKA

Proposal for a directive
Article 1 – paragraph 1 – point 10

Directive 2003/87EC
Article 9 – paragraph 3

In [~~the~~at least two years following entry into force of this amendment], the Union-wide quantity of allowances shall be decreased by [-- million allowances (to be determined depending on year of entry into force)]~~. In the same year~~ preceded by an impact assessment of the market situation and adequate measures that can prevent unjustified price surges. In the year following entry into force of this amendment, the Union-wide quantity of allowances shall be increased by 79 million allowances for maritime transport. Starting in [the year following entry into force of this amendment], the linear factor shall be 4,2 %. The Commission shall publish the Union-wide quantity of allowances within 3 months of [date of entry into force of the amendment to be inserted].;

2022/02/24
Committee: ENVI

Anna ZALEWSKA

Proposal for a directive
Article 1 – paragraph 1 – point 11 – point a

Directive 2003/87/EC
Article 10 – paragraph 1 – subparagraph 3a

In addition, ~~2,5~~8 % of the total quantity of allowances between ~~[year following the entry into force of the Directive]~~2021 and 2030 shall be auctioned for the Modernisation Fund. The beneficiary Member States for this amount of allowances shall be the Member States with a GDP per capita at market prices below 65 % of the Union average during the period 2016 to 2018. The funds corresponding to this quantity of allowances shall be distributed in accordance with Part B of Annex IIb.

2022/02/28
Committee: ENVI

Anna ZALEWSKA

Proposal for a directive
Article 1 – paragraph 1 – point 11 – point a a (new)Directive 2003/87/EC

Article 10 – paragraphs 1a a to 1 a c (new)

(aa) The following paragraphs are inserted: “1aa. Starting from 2024, Member States with a deficit of allowances in any year in the period after 2023 shall have their allowances exempted from the operation of market stability reserve in the following year up to the amount of their deficit in the previous year. 1ab. For Member States with structural imbalance of allowances that persists even after the exemption from the operation of the market stability reserve in the following year, the allowances in the Market Stability Reserve shall be used to cover this imbalance. This shall be done by comparing the total number of allowances for the beneficiary Member State against the emissions generated in the sectors covered by the EU ETS in the same year. For the purpose of this calculation, the total number of allowances shall take into account all allowances: (a) to be auctioned by particular Member States in accordance with Article 10 together with (b) the total number of allowances received for free by installations in this Member State in accordance with Article 10a, and (c) the national allocation from the Modernisation Fund for that Member State in accordance with Article 10d. 1ac. After establishing the level of deficit, the national share of the Modernisation Fund shall be increased by the same amount or the Member State shall receive this amount of allowances from the Market Stability Reserve allowances that would otherwise be cancelled in that year. Should this be insufficient to fully compensate the deficit in year 'n', then the rest of it shall be covered by using allowances already placed in the Market Stability Reserve to ensure a respective increase of the Modernisation Fund allocation for this Member State in year 'n+1’.”

2022/02/28
Committee: ENVI

Anna ZALEWSKA

Proposal for a directive
Article 1 – paragraph 1 – point 11 – point b

Directive 2003/87/EC
Article 10 – paragraph 3 –introductory part

3. Member States shall determine the use of revenues generated from the auctioning of allowances~~, except for the revenues established as own resources in accordance with Article 311(3) TFEU and entered in the Union budget. Member States shall use~~. Member States should use at least 50 % of their revenues generated from the auctioning of allowances referred to in paragraph 2, or the equivalent in financial value of these revenues, with the exception of the revenues used for the compensation of indirect carbon costs referred to in Article 10a(6), for one or more of the following:;

2022/02/28
Committee: ENVI

Anna ZALEWSKA

Proposal for a directive
Article 1 – paragraph 1 – point 11 – point c a (new)

Directive 2003/87/EC
Article 10 – paragraph 3 – subparagraph 1– points k a to k b (new)

(ca) in paragraph 3, first subparagraph, the following points are added: “(ka) innovative carbon removal methods, including by natural as well as technological means, such as direct air capture, and its geological and/or biological sequestration or utilisation, that ensures a secure removal from the atmosphere, including means of upscaling and supporting the development and rolling-out of such processes; (kb) others deemed appropriate by Member States which contribute to climate mitigation by means of, but not limited to, reducing greenhouse gas emissions, decarbonising efforts, or removing greenhouse gases from the atmosphere.”

2022/02/28
Committee: ENVI

Anna ZALEWSKA

Proposal for a directive
Article 1 – paragraph 1 – point 11 – point d

Directive 2003/87/EC
Article 10 – paragraph 4 – subparagraph 1

4. The Commission is empowered to adopt delegated acts in accordance with Article 23 to supplement this Directive concerning the timing, administration and other aspects of auctioning, ~~including the modalities for the transfer of a share of revenues to the Union budget,~~ in order to ensure that it is conducted in an open, transparent, harmonised and non- discriminatory manner.

2022/02/28
Committee: ENVI

Anna ZALEWSKA

Proposal for a directive
Article 1 – paragraph 1 – point 11 – point d a (new)Directive 2003/87/EC

Article 10 – paragraph 5 a (new)

(da) the following paragraph is added: “5a. The Commission shall by 2025 prepare a comprehensive legislative proposition intended to enhance the supervision of the European carbon market as well as related derivative markets. The Commission shall especially consider the need to erect a centralised supervisory body with broad competences related to market intervention and sanctioning powers.”

2022/02/28
Committee: ENVI

Anna ZALEWSKA

Proposal for a directive
Article 1 – paragraph 1 – point 12 – point a – point i

Directive 2003/87/EC
Article 10a – paragraph 1 – subparagraph 2a

In the case of installations covered by the obligation to conduct an energy audit under Article 8(4) of Directive 2012/27/EU of the European Parliament and of the Council(*) [Article reference to be updated with the revised Directive], free allocation shall only be granted fully if the recommendations of the audit report are implemented, to the extent that the pay-back time for the relevant investments does not exceed five years and that the costs of those investments are proportionate. Otherwise, the amount of free allocation shall be reduced by 25 %. The amount of free allocation shall not be reduced if an operator demonstrates that it has implemented other measures which lead to greenhouse gas emission reductions equivalent to those recommended by the audit report. The measures referred to in the first subparagraph shall be adjusted accordingly.deleted

2022/02/28
Committee: ENVI

Anna ZALEWSKA

Proposal for a directive
Article 1 – paragraph 1 – point 12 – point a – point i

Directive 2003/87/EC
Article 10a – paragraph 1 – subparagraph 2b

No free allocation shall be given to installations in sectors or subsectors to the extent they are covered by other measures to address the risk of carbon leakage as established by Regulation (EU) …./.. [reference to CBAM](**). The measures referred to in the first subparagraph shall be adjusted accordinglydeleted

2022/02/28
Committee: ENVI

Anna ZALEWSKA

Proposal for a directive
Article 1 – paragraph 1 – point 12 – point a – point ii a (new)

Directive 2003/87/EC
Article 10a – paragraph 1 – subparagraph 3 a (new)

(iia) the following subparagraph is inserted after the third subparagraph: “To provide additional incentives to reduce greenhouse gas emissions and improve energy efficiency, the agreed EU ex ante benchmarks will be reviewed before the 2026-2030 period with a view to possibly revising the definition and boundaries of the system of existing product benchmarks and district heating benchmark. By way of derogation from subparagraph 1, the ratios for district heating to be determined ensure the allocation of allowances in a way that provides an incentive to reduce greenhouse gas emissions. These indicators for the entire period referred to in Article 11, second paragraph, takes the value specified in Commission Implementing Regulation (EU) 2021/447 for the heat benchmark.”

2022/03/04
Committee: ENVI

Anna ZALEWSKA

Proposal for a directive
Article 1 – paragraph 1 – point 12 – point b

Directive 2003/87/EC
Article 10a – paragraph 1a

1a. No free allocation shall be given in relation to the production of products listed in Annex I of Regulation [CBAM] as from the date of application of the Carbon Border Adjustment Mechanism. By way of derogation from the previous subparagraph, for the first years of operation of Regulation [CBAM], the production of these products shall benefit from free allocation in reduced amounts. A factor reducing the free allocation for the production of these products shall be applied (CBAM factor). The CBAM factor shall be equal to 100 % for the period during the entry into force of [CBAM regulation] and the end of 2025, 90 % in 2026 and shall be reduced by 10 percentage points each year to reach 0 % by the tenth year. The reduction of free allocation shall be calculated annually as the average share of the demand for free allocation for the production of products listed in Annex I of Regulation [CBAM] compared to the calculated total free allocation demand for all installations, for the relevant period referred to in Article 11, paragraph 1. The CBAM factor shall be applied. Allowances resulting from the reduction of free allocation shall be made available to support innovation in accordance with Article 10a(8).;deleted

2022/03/04
Committee: ENVI

Anna ZALEWSKA

Proposal for a directive
Article 1 – paragraph 1 – point 12 – point c – point i

Directive 2003/87/EC
Article 10a – paragraph 2 –subparagraph 3– point c

(c) For the period from 2026 to 2030, the benchmark values shall be determined in the same manner as set out in points (a) and (d) on the basis of information submitted pursuant to Article 11 for the years 2021 and 2022 and on the basis of applying the annual reduction rate in respect of each year between 2008 and 2028. Installations where emissions from combustion of biomass that complies with the criteria set out pursuant to Article 14 contribute to more than 95 % of the total greenhouse gas emissions in years 2021 and 2022 shall not be taken into account in determination of benchmark values. The calculation of the annual reduction rate of each product benchmark shall only consider installations that were included in the initial determination of the respective product benchmark even though more installations may receive free allocation from such product benchmarks as a result of the modification of benchmark definitions and system boundaries pursuant to Article 10a(1), fifth subparagraph;

2022/03/04
Committee: ENVI

Anna ZALEWSKA

Proposal for a directive
Article 1 – paragraph 1 – point 12 – point c – point ii

Directive 2003/87/EC
Article 10a – paragraph 2 - subparagraph 3 - point d

(d) Where the annual reduction rate exceeds 2,5 % or is below 0,2 %, the benchmark values for the period from 2026 to 2030 shall be the benchmark values applicable in the period from 2013 to 2020 reduced by whichever of those two percentage rates is relevant, in respect of each year between 2008 and 2028, except in case of heat benchmark for district heating, whose maximum annual reduction rate should be defined in line with the district heating sector decarbonisation commitments until 2030 and should not exceed 1,6%.;

2022/03/04
Committee: ENVI

Anna ZALEWSKA

Proposal for a directive
Article 1 – paragraph 1 – point 12 – point d a (new)Directive 2003/87/EC

Article 10a – paragraphs 5a and 5b

(da) paragraph 5a and 5b are replaced by the following: “5a. By way of derogation from paragraph 5, an additional amount of up to 35 % of the total quantity of allowances shall, to the extent necessary, be used to increase the maximum amount of free allocation available under paragraph 5. 5b. Where less than 35 % of the total quantity of allowances is needed to increase the maximum amount available under paragraph 5: - a maximum of 50 million allowances shall be used to increase the amount of allowances available to support innovation in accordance with Article 10a(8); and - a maximum of 0,5 % of the total quantity of allowances shall be used to increase the amount of allowances available to modernise the energy systems of certain Member States in accordance with Article 10d.”

2022/03/04
Committee: ENVI

Anna ZALEWSKA

Proposal for a directive
Article 1 – paragraph 1 – point 12 – point e

Directive 2003/87/EC
Article 10a – paragraph 6 – subparagraph 1

Member States should adopt financial measures in accordance with the second and fourth subparagraphs in favour of sectors or subsectors which are exposed to a genuine risk of carbon leakage due to significant indirect costs that are actually incurred from greenhouse gas emission costs passed on in electricity prices, provided that such financial measures are in accordance with State aid rules, and in particular do not cause undue distortions of competition in the internal market. The financial measures adopted should not compensate indirect costs covered by free allocation in accordance with the benchmarks established pursuant to paragraph 1. Where a Member State spends an amount higher than the equivalent of 25 % of their auction revenues of the year in which the indirect costs were incurred, it sh~~all~~ould set out the reasons for exceeding that amount.;

2022/03/04
Committee: ENVI

Anna ZALEWSKA

Proposal for a directive
Article 1 – paragraph 1 – point 12 – point e

Directive 2003/87/EC
Article 10a – paragraph 6 – subparagraph 1 a (new)

The list of sectors or subsectors considered as exposed to a genuine risk of carbon leakage due to significant indirect costs shall be determined following the methodology foreseen under Article 10(b)1. Accordingly, sectors and subsectors in relation to which the product resulting from multiplying their intensity of trade by their indirect emission intensity, divided by their gross value added, exceeds0,2, shall be deemed to be at risk of indirect carbon leakage. Furthermore the determination of eligibility shall include qualitative assessments, taking into account the criteria mentioned in Articles 10b(2), points (a), (b) and (c), and assessments at a 6-digit or an 8-digit level (Prodcom) for sectors for which the abovementioned product does not exceed 0,2 but exceeds 0,15 and for sectors that have previously been assessed at Prodcom level in the context of Article 10b. ;

2022/03/04
Committee: ENVI

Anna ZALEWSKA

Proposal for a directive
Article 1 – paragraph 1 – point 12 – point g

Directive 2003/87/EC
Article 10a – paragraph 8 – subparagraph 1

365 million allowances from the quantity which could otherwise be allocated for free pursuant to this Article, and 85 million allowances from the quantity which could otherwise be auctioned pursuant to Article 10, ~~as well as the allowances resulting from the reduction of free allocation referred to in Article 10a(1a),~~ shall be made available to a Fund with the objective of supporting innovation in low-carbon technologies and processes, and contribute to zero pollution objectives (the ‘Innovation Fund’). Allowances that are not issued to aircraft operators due to the closure of aircraft operators and which are not necessary to cover any shortfall in surrenders by those operators, shall also be used for innovation support as referred to in the first subparagraph.

2022/03/01
Committee: ENVI

Anna ZALEWSKA

Proposal for a directive
Article 1 – paragraph 1 – point 12 – point g

Directive 2003/87/EC
Article 10a – paragraph 8 – subparagraph 3

The Innovation Fund shall cover the sectors listed in Annex I and Annex III, including environmentally safe carbon capture and utilisation (“CCU”) that contributes substantially to mitigating climate change, as well as products substituting carbon intensive ones produced in sectors listed in Annex I, and to help stimulate the construction and operation of projects aimed at the environmentally safe capture and geological storage (“CCS”) of CO2, as well as of innovative renewable energy and energy storage technologies; in geographically balanced locations. Likewise, investments developing innovative methods and breakthrough technologies (such as but not limited to direct air capture) in anthropogenic greenhouse gas removal from the atmosphere, and its biological or geological sequestration, or creative utilisation, should be encouraged. Investments in hydrogen technologies may, where appropriate, also be encouraged. The Innovation Fund may also support break- through innovative technologies and infrastructure to decarbonise the maritime and aviation sector and for the production of low- and zero-carbon fuels in aviation, rail and road transport. Special attention shall be given to projects in sectors covered by the [CBAM regulation] to support innovation in low carbon technologies, CCU, CCS, renewable energy and energy storage, in a way that contributes to mitigating climate change.

2022/03/01
Committee: ENVI

Anna ZALEWSKA

Proposal for a directive
Article 1 – paragraph 1 – point 12 – point g

Directive 2003/87/EC
Article 10a – paragraph 8 – subparagraph 6

Projects shall be selected on the basis of objective and transparent criteria, taking into account, the need to ensure the fair geographical distribution of the projects, the level of emissions in a given Member State to define relevant emissions savings achieved by a given project, and where relevant, the extent to which projects contribute to achieving emission reductions well below the benchmarks referred to in paragraph 2. Projects shall have the potential for widespread application or to significantly lower the costs of transitioning towards a low-carbon economy in the sectors concerned. Projects involving CCU shall deliver a net reduction in emissions and ensure avoidance or permanent storage of CO2. In the case of grants provided through calls for proposals, up to 60 % of the relevant costs of projects may be supported, out of which up to 40 % need not be dependent on verified avoidance of greenhouse gas emissions, provided that pre-determined milestones, taking into account the technology deployed, are attained. In the case of support provided through competitive bidding and in the case of technical assistance support, up to 100 % of the relevant costs of projects may be supported.

2022/03/01
Committee: ENVI

Anna ZALEWSKA

Proposal for a directive
Article 1 – paragraph 1 – point 12 a (new)Directive 2003/87/EC

Article 10b – paragraph 4

(12a) in Article 10b, paragraph 4 is replaced by the following: “Other sectors and subsectors are considered to be able to pass on more of the costs of allowances in product prices, and shall be allocated allowances free of charge at 30 % of the quantity determined pursuant to Article 10a. Unless otherwise decided in the review pursuant to Article 30, free allocations to other sectors and subsectors~~, except district heating,~~ shall decrease by equal amounts after 2026 so as to reach a level of no free allocation in 2030. ~~(https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A02003L0087-20210101)~~” Or. en

2022/03/01
Committee: ENVI

Anna ZALEWSKA

Proposal for a directive
Article 1 – paragraph 1 – point 12 b (new)Directive 2003/87/EC

Article 10b – paragraph 4 – subparagraph 1 a (new)

~~(https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A02003L0087-20210101)~~(12b) in Article 10b(4), the following subparagraph is added: “Allowances for district heating shall be allocated free of charge at 70% of the quantity determined pursuant to Article 10a. The free allocation for district heating shall decrease by a linear reduction factor referred to in Article 30c(2) of this Directive.” Or. en

2022/03/01
Committee: ENVI

Anna ZALEWSKA

Proposal for a directive
Article 1 – paragraph 1 – point 14 – point a

Directive 2003/87/EC
Article 10d – paragraph 1 – subparagraph 2

The investments supported shall be consistent with the aims of this Directive, as well as the ~~objectives of the Communication from the Commission of 11 December 2019 on The European Green Deal (*) and~~ Regulation (EU) 2021/1119 of the European Parliament and of the Council (**) and the long-term objectives as expressed in the Paris Agreement. No support from the Modernisation Fund shall be provided to energy generation facilities that use fossil fuels~~.”;~~, except for: (a) source meeting the threshold of 270 gCO2 per 1 kWh of energy output from the combined generation (combining electrical, heating and cooling, and mechanical energy); (b) district heating facilities for which use of natural gas is allowed. The administrative and operationalisation costs of Member States shall be ensured from the Modernisation Fund.

2022/03/01
Committee: ENVI

Anna ZALEWSKA

Proposal for a directive
Article 1 – paragraph 1 – point 14 – point b

Directive 2003/87/EC
Article 10d – paragraph 2 – introductory part

2. At least 870 % of the financial resources from the Modernisation Fund shall be used to support investments in the following:

2022/03/01
Committee: ENVI

Anna ZALEWSKA

Proposal for a directive
Article 1 – paragraph 1 – point 14 – point b

Directive 2003/87/EC
Article 10d – paragraph 2 – point a a (new)

(aa) the generation of energy by hydrogen generators;

2022/03/01
Committee: ENVI

Anna ZALEWSKA

Proposal for a directive
Article 1 – paragraph 1 – point 14 – point b

Directive 2003/87/EC
Article 10d – paragraph 2 – point f a (new)

(fa) developing means to enable natural and technological carbon removal means, and its geological and biological sequestration or utilisation;

2022/03/01
Committee: ENVI

Anna ZALEWSKA

Proposal for a directive
Article 1 – paragraph 1 – point 14 – point b

Directive 2003/87/EC
Article 10d – paragraph 2 – point f b (new)

(fb) other means deemed appropriate by Member States;

2022/03/01
Committee: ENVI

Anna ZALEWSKA

Proposal for a directive
Article 1 – paragraph 1 – point 15 – point -a (new)

Directive 2003/87/EC
Article 12 – paragraph 1 – introductory part

1.(-a) in paragraph 1, the introductory part is replaced by the following: “1. Without prejudice to the Article 29b, Member States shall ensure that allowances can be transferred between:”

2022/03/01
Committee: ENVI

Anna ZALEWSKA

Proposal for a directive
Article 1 – paragraph 1 – point 15 – point e

Directive 2003/87/EC
Article 12 – paragraph 3 b – subparagraph 1

An obligation to surrender allowances shall not arise in respect of emissions of greenhouse gases which are considered to have been captured and utilised to become permanently chemically bound in a product so that they do not enter the atmosphere under normal use, and in respect of greenhouse gases that are captured and used to produce recycled carbon fuels and renewable liquid and gaseous fuels of non-biological origin.

2022/03/01
Committee: ENVI

Anna ZALEWSKA

Proposal for a directive
Article 1 – paragraph 1 – point 19 a (new)

Directive 2003/87/EC
Article 27 – paragraph 1

(19a) In Article 27, paragraph 1 is replaced by the following: “1. Following consultation with the operator, Member States may exclude from the EU ETS installations which have reported to the competent authority emissions of less than 250 000 tonnes of carbon dioxide equivalent and, where they carry out combustion activities, have a rated thermal input below 35 MW, excluding emissions from biomass, in each of the three years preceding the notification under point (a), and which are subject to measures that will achieve an equivalent contribution to emission reductions, if the Member State concerned complies with the following conditions: (a) it notifies the Commission of each such installation, specifying the equivalent measures applying to that installation that will achieve an equivalent contribution to emission reductions that are in place, before the list of installations pursuant to Article 11(1) has to be submitted and at the latest when this list is submitted to the Commission; (b) it confirms that monitoring arrangements are in place to assess whether any installation emits 250 000 tonnes or more of carbon dioxide equivalent, excluding emissions from biomass, in any one calendar year. Member States may allow simplified monitoring, reporting and verification measures for installations with average annual verified emissions between 2008 and 2010 which are below 5 000 tonnes a year, in accordance with Article 14; (c) it confirms that if any installation emits 250 000 tonnes or more of carbon dioxide equivalent, excluding emissions from biomass, in any one calendar year or the measures applying to that installation that will achieve an equivalent contribution to emission reductions are no longer in place, the installation will be reintroduced into the EU ETS; (d) it publishes the information referred to in points (a), (b) and (c) for public comment. Hospitals may also be excluded if they undertake equivalent measures. ” Or. en (https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A02003L0087- 20210101&qid=1641400487702)

2022/03/01
Committee: ENVI

Anna ZALEWSKA

Proposal for a directive
Article 1 – paragraph 1 – point 19 d (new)

Directive 2003/87/CE
Article 29 a

(19d) Article 29a is replaced by the following: "Article 29a Measures in the event of excessive price fluctuations 1. ~~If, for more than six consecutive months, the allowance price is more than three times~~The Commission shall convene a meeting not later than within 7 working days of the Committee established by Article 9 of Decision No 280/2004/EC, if: (a) for two consecutive months or more, the monthly average allowance price reaches twice or more the average price of allowances during the preceding two and a half year period on the European carbon market, or (b) over the course of a year, the monthly average allowance price has risen twice or more than the average price of allowances during the ~~two~~ preceding ~~years~~two- year period on the European carbon market, the Commission shall immediately convene a meeting of the Committee established by Article 9 of Decision No 280/2004/EC. 2. If the price evolution referred to in paragraph 1 does not correspond to changing market fundamentalsor (c) there is a sudden spike in the allowance price that reaches 50 % higher than its average price of allowances in the preceding three months. 2. For the purposes of paragraph 1: (a) the “monthly average carbon price” for any month is calculated by dividing the sum of the settlement prices of the relevant December futures contract as traded on the relevant carbon market exchange for each relevant day in the month by the number of relevant days in the month; (b) the “average price of allowances during the two preceding years period” is calculated by dividing the sum of the settlement prices of the relevant December futures contract as traded on the relevant carbon market exchange for each relevant day in the two year period ending with the last month before the first month of the period of three consecutive months by the number of relevant days in the two year period. 3. If the price evolution referred to in paragraph 1 is triggered, one of the following measures ~~may be adop~~shall be implemented, taking into account the degree of price evolution: (a) a measure which allows Member States to bring by bringing forward the auctioning of a part of the quantity to be auctioned; in a subsequent calendar year. (b) a measure which allows Member States to by the release for auction up to 25 % of the remaining allowances in the new entrants reserve. Those measures shall be adopted in accordance with the management procedure referred to in Article 23(4). 3. Any measure shall take utmost account of the reports submitted by the Commission to the European Parliament and to the Council pursuant to Article 29, as well as any other relevant information provided by Member States. 4. The arrangements for the application of these provisions shall be laid down in the acts referred to in Article 10(4)(c) by the release an appropriate quantity of allowances from the Market Stability Reserve. 4. The Committee may also consider additional interventions if the circumstances justify further or earlier action.

2022/03/01
Committee: ENVI

Anna ZALEWSKA

Proposal for a directive
Article 1 – paragraph 1 – point 19 c (new)

Directive 2003/87/EC
Article 29 a a (new)

(19c) The following Article is inserted: “Article 29aa 1. The access to the EU ETS market should be limited to entities that are installations, aviation and maritime operators with compliance obligations under the EU ETS. 2. Financial intermediaries purchasing allowances on account of the entities mentioned in par. 1 and not their own can be an exception. 3. The quantity of EU ETS allowances purchased during auctions by financial intermediaries cannot exceed what is reasonably needed to fulfil their contractual obligations towards entities referred to in paragraph 1. 4. Article 6(5) of Commission Regulation (EU) No 1031/2010 should be adjusted in accordance with paragraphs 1 and 2.”

2022/03/01
Committee: ENVI

Anna ZALEWSKA

Proposal for a directive
Article 1 – paragraph 1 – point 21

Directive 2003/87/EC
Chapter IV a

~~(21) The following Chapter IVa is inserted after Article 30: [...]~~deleted

2022/03/01
Committee: ENVI

Anna ZALEWSKA

Proposal for a directive
Article 2 – paragraph 1 – point 1 – point a

Decision (EU) 2015/2814
Article 1 – paragraph 4

The total number of allowances in circulation in a given year shall be the cumulative number of allowances issued and not put in reserve in the period since 1 January 2008, including the number that were issued pursuant to Article 13(2) of Directive 2003/87/EC as in force until 18 March 2018 in that period and entitlements to use international credits exercised by installations under the EU ETS in respect of emissions up to 31 December of that given year, minus the cumulative tonnes of verified emissions from installations under the EU ETS between 1 January 2008 and 31 December of that same given year, any allowances cancelled in accordance with Article 12(4) of Directive 2003/87/EC.; The total number of allowances in circulation in a given year shall not take into account the amount of allowances held by entities that is not used to cover obligations under the EU ETS. The Commission is empowered to adopt implementing act to determine the number of allowances according to the previous sentence in accordance with the examination procedure referred to in Article 22a(2).

2022/03/02
Committee: ENVI

Anna ZALEWSKA

Proposal for a directive
Article 2 – paragraph 1 – point 1 – point b

As from ~~[the year following the entry into force of this Directive]~~2026, the calculation of the total number of allowances in circulation shall include the number of allowances issued in respect of aviation and maritime transport since the beginning of that year, and the number of allowances surrendered by aircraft operators and ship operators in respect of emissions for which allowances are the units which can be used in respect of EU ETS obligations.

2022/03/02
Committee: ENVI

Anna ZALEWSKA

Proposal for a directive
Article 2 – paragraph 1 – point 1 – point c

Decision (EU) 2015/1814
Article 1 – paragraph 5 – subparagraph 1

In any given year, if the total number of allowances in circulation is between 833 million and 1 096 million, a number of allowances equal to the difference between the total number of allowances in circulation, as set out in the most recent publication as referred to in paragraph 4 of this Article, and 833 million, shall be deducted from the volume of allowances to be auctioned by the Member States under Article 10(2) of Directive 2003/87/EC and shall be placed in the reserve over a period of 12 months beginning on 1 September of that year. If the total number of allowances in circulation is above 1 096 million allowances, the number of allowances to be deducted from the volume of allowances to be auctioned by the Member States under Article 10(2) of Directive 2003/87/EC and to be placed in the reserve over a period of 12 months beginning on 1 September of that year shall be equal to 12 % of the total number of allowances in circulation. ~~By way of derogation from the last sentence, until 31 December 2030, the percentage shall be doubled.~~

2022/03/02
Committee: ENVI

Anna ZALEWSKA

Proposal for a directive
Article 2 – paragraph 1 – point 1 – point c

Decision (EU) 2015/1814
Article 1 – paragraph 5 a

~~5a. Unless otherwise decided in the first review carried out in accordance with Article 3, from 2023 allowances held in the reserve above 400 million allowances shall no longer be valid.;~~deleted

2022/03/02
Committee: ENVI

Anna ZALEWSKA

Proposal for a directive
Article 2 – paragraph 1 – point 1 – point c a (new)

Decision (EU) 2015/1814
Article 1 – paragraph 6

~~6. allowances in circulation is less than 400 million~~(ca) paragraph 6 is replaced by the following: 6. In any year, each time the total number of allowances in circulation is less In any year, if the total number of than 400 million or the clearing price of allowance in the auctions carried out in accordance with the act adopted under Article 10(4) surpass 40 EUR, 100 million allowances shall be released from the reserve and added to the volume of allowances to be auctioned by the Member States under Article 10(2) of Directive 2003/87/EC. Where fewer than 100 million allowances are in the reserve, all allowances in the reserve shall be released under this paragraph.

2022/03/02
Committee: ENVI

Anna ZALEWSKA

Proposal for a directive
Article 2 – paragraph 1 – point 2

Decision (EU) 2015/1814
Article 1 a

~~(2) the following Article 1a is inserted: [...]~~deleted

2022/03/02
Committee: ENVI

Anna ZALEWSKA

Proposal for a directive
Article 4 – paragraph 1

1. Member States shall bring into force the laws, regulations and administrative provisions necessary to comply with Articles 1 and 2 of this Directive by ~~31 December 2023~~[24 months after the date of entry into force of this Directive] at the latest. They shall forthwith communicate to the Commission the text of those provisions.

2022/03/02
Committee: ENVI

Anna ZALEWSKA

Proposal for a directive
Annex I – paragraph 1 – point a

Directive 2003/87/EC
Annex 1 – point 2

2. When the total rated thermal input of an installation is calculated in order to decide upon its inclusion in the EU ETS, the rated thermal inputs of all technical units which are part of it, in which fuels are combusted within the installation, shall be added together. These units may include all types of boilers, burners, turbines, heaters, furnaces, incinerators, calciners, kilns, ovens, dryers, engines, fuel cells, chemical looping combustion units, flares, and thermal or catalytic post-combustion units. Units with a rated thermal input under 3 MW and units which use exclusively biomass that complies with the sustainability criteria and greenhouse gas emission saving criteria for the use of biomass shall not be taken into account for the purposes of this calculation.;

2022/03/02
Committee: ENVI

Anna ZALEWSKA

Proposal for a directive
Annex I – point 2

Directive 2003/87/EC
Annex III a

~~ANNEX IIIa ADJUSTMENT OF LINEAR REDUCTION FACTOR IN ACCORDANCE WITH ARTICLE 30c(2) [...]~~deleted

2022/03/02
Committee: ENVI

Anna ZALEWSKA

Proposal for a directive
Annex I – point 3 – point b a (new)

Directive 2003/87/EC
Annex IV – Part B – Monitoring – subparagraph 5 a (new)

(ba) in part B, section “Monitoring of carbon dioxide emissions”, the following subparagraph is added: “The emission factor for sustainable aviation fuel, provided for in Regulation on ensuring a level playing field for sustainable air transport, with any necessary adjustments for application under this Directive, as set out in the implementing acts referred to in Article 14, shall be zero.”;

2022/03/02
Committee: ENVI

Anna ZALEWSKA

Proposal for a directive
Annex I – point 3 – point c

Directive 2003/87/EC
Annex IV – Part C

~~(c) the following Part C is added: [...]~~deleted

2022/03/02
Committee: ENVI

Anna ZALEWSKA

Proposal for a directive
Annex I – point 4

Directive 2003/87/EC
Annex V – Part C

~~(4) in Annex V to Directive 2003/87/EC, the following Part C is added: [...]~~deleted

2022/03/02
Committee: ENVI

85 Amendments of Anna ZALEWSKA related to 2021/0211(COD)

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