25 Amendments of Dan-Ştefan MOTREANU related to 2021/0214(COD)
Amendment 178 #
Proposal for a regulation
Recital 10
Recital 10
(10) Existing mechanisms to address the risk of carbon leakage in sectors or sub- sectors at risk of carbon leakage are the transitional free allocation of EU ETS allowances and financial measures to compensate for indirect emission costs incurred from GHG emission costs passed on in electricity prices respectively laid down in Articles 10a(6) and 10b of Directive 2003/87/EC. However, free allocatSuch measures are based on strict benchmarks set by the best performing installations so that they preserve an incentive to reduce emissions under the EU ETS weakens the price signal that the system providesand provide a carbon price signal for emissions above the benchmark level; they have proven so foar the installations receiving it compared to full auctioning o be effective in mitigating the risk of carbon leakage, although in the context of lower carbon prices thand thus affects the incentives for investment into further abatement of emissionsose experienced recently and those forecasted by 2030.
Amendment 192 #
Proposal for a regulation
Recital 11
Recital 11
(11) The CBAM seeks to replacestrengthen carbon leakage protection in view of higher Union climate ambition by 2030 and thereafter replace progressively these existing mechanisms by addressing the risk of carbon leakage in a different way, namely by ensuring equivalent carbon pricing for imports and domestic products and by ensuring that Union products exported to the global market are not replaced by more carbon intensive products, which would undermine the objective of reducing global emissions. As indicated in the Impact Assessment accompanying the Commission proposal, “changes in employment are largely driven by the presence (or not) of free allocation”, since retaining free allocation results in better impact on employment. To ensure a gradual transition from the current system of free allowances to the CBAM, the CBAM should be progressively phased in while free allowances in sectors covered by the CBAM are phased out by 2030 after a test phase and an assessment by the Commission has proven the effectiveness of this Regulation in terms of protection from the risk of carbon leakage both for imports and exports. The combined and transitional application of EU ETS allowances allocated free of charge and of the CBAM should in no case result in more favourable treatment for Union goods compared to goods imported into the customs territory of the Union.
Amendment 217 #
Proposal for a regulation
Recital 11 a (new)
Recital 11 a (new)
(11a) While the surrendering of CBAM certificates for Union imports addresses the risk of carbon leakage on the Union market, it is essential to avoid also the risk that Union exports on global markets are replaced by more carbon intensive goods or by goods that are not subject to equivalent climate policy and carbon costs. To this purpose, after the test period 2026-2028, the Commission should present an in-depth report to the European Parliament and to the Council accompanied with a legislative proposal to address the carbon leakage risk on export markets. If the report concludes that the surrendering of CBAM certificates by importers is effective in addressing the carbon leakage risk on the Union market and that the free allocation rules related to Union domestic sales should be amended, the legislative proposal should ensure the maintenance of free allocation related to Union exports and provide the calculation methodology for determining this allocation.
Amendment 310 #
Proposal for a regulation
Recital 17 a (new)
Recital 17 a (new)
(17a) The implementing act pursuant to Article 7(6) should include all input materials that contribute significantly to GHG emissions. In the case of stainless steel (CN codes 7218-7223), ferro-alloys should be included in the list of input materials as they fulfil this criterion.
Amendment 467 #
Proposal for a regulation
Recital 52
Recital 52
(52) The Commission should evaluate the application of this Regulation before the end of the transitional period and report to the European Parliament and the Council. The report of the Commission should in particular focus on possibilities to enhance climate actions towards the objective of a climate neutral Union by 2050. The Commission should, as part of that evaluation, initiate collection of information necessary to possibly extend the scope to indirect emissions, as well as to other goods and services at risk of carbon leakage, and to develop methods of calculating embedded emissions based on the environmental footprint methods47 . With regard to indirect emissions, the evaluation shall take into account the exposure of Union producers to carbon costs passed on in electricity prices due to the functioning of the EU energy market. __________________ 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 504 #
Proposal for a regulation
Recital 54
Recital 54
(54) The Commission should strive to engage in an even handed manner and in line with the international obligations of the EU, with the third countries whose trade to the EU is affected by this Regulation, to explore possibilities for dialogue and cooperation with regard to the implementation of specific elements of the Mechanism set out this Regulation and related implementing acts. It should also explore possibilities for concluding agreements to take into account their carbon pricing mechanism, provided that they deliver equivalent GHG emissions reductions and carbon costs constraints.
Amendment 549 #
Proposal for a regulation
Article 1 – paragraph 3
Article 1 – paragraph 3
3. The mechanism willshould progressively 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, if it has proven to be effective to prevent the risk of carbon leakage both for imports into or exports from the customs territory of the Union, and without prejudice to maintaining EU ETS allowances free of charge at benchmark level until a test period with actual surrendering obligation by declarants running until 2030 has proven such effectiveness.
Amendment 712 #
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 996 #
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 RegulationPractices of circumvention include situations where a change goods included in the scope of this Regulation, whether slightly modified or not, stems from a practice, process or work has insufficient due cause or economic justification other than avoiding obligations as laid down in this Regulation, or undermining their effects, including on overall GHG emissions and on prices of the like products.
Amendment 1012 #
Proposal for a regulation
Article 27 – paragraph 2 a (new)
Article 27 – paragraph 2 a (new)
2a. The practice, process or work referred to in the first subparagraph include, inter alia: (a) the slight modification of the product concerned to make it fall under customs codes which are normally not subject to the obligations of this Regulation, provided that the modification does not alter its essential characteristics; (b) false declarations as to the identity of the producer of the product concerned or of the nature of the product concerned or the production process involved in making it; (c) the consignment of the product concerned via third countries to which no or more favourable obligations apply; (d) there organisation by exporters or producers of their patterns and channels of sales in order to eventually avoid obligations as laid down in this Regulation, or undermine their effects, including on overall GHG emissions and on prices of the like products, for instance via practices of resource shuffling. For the purposes of this sub-point, resource shuffling shall be defined as any practice, process or work that that have insufficient due cause or economic justification other than avoiding obligations as laid down in this Regulation, or undermining their effects, without delivering environmental benefits on global GHG emissions; (e) in the circumstances indicated in paragraph 2, the assembly of parts by an assembly operation in the Union or a third country; (f) Any other measure to eventually avoid 6 or evade obligations as laid down in this Regulation, or undermine their effects, including on overall GHG;
Amendment 1028 #
Proposal for a regulation
Article 27 – paragraph 3
Article 27 – paragraph 3
3. A Member State or any party affected or benefitted by the situations described in paragraph 2 may notify the Commission if it is confronted, over a two- month period compared with the same period in the preceding year with a significant decrease in the volume of imporFollowing a complaint from an interested party or on its own initiative, the Commission may decide, following an investigation, to extend goods included in the scope ofobligations laid down in this Rregulation and an increase of volume of imports of slightly modified products, which are not included in the list of goods in Annex I. The Commission shall continually monitor any significant change of pattern of trade of goods and slightly modified products at Union level, in whatever way is necessary to prevent future circumvention of the Mechanism, when circumvention of the measures in force is taking place.
Amendment 1045 #
Proposal for a regulation
Article 27 – paragraph 4
Article 27 – paragraph 4
4. The notificatDecisions referred to in the third paragraph 3 shall state the reasons on which it is based and shall include relevant data and statistics regarding the goods and products referred to in paragraph 2be subject to the appeal procedure as set out in Article 30.
Amendment 1052 #
Proposal for a regulation
Article 27 – paragraph 5
Article 27 – paragraph 5
5. Where the Commission, taking into account the relevant data, reports and statistics, including when provided by the customs authorities of Member States, has sufficient reasons to believe that the circumstances referred to in paragraph 3 are occurring in one or more Member States, it is empowered to adopt delegated acts in accordance with Article 28 to supplement the scope of this Regulation in ordInvestigations shall be initiated pursuant to this Article on the initiative of the Commission or at the request of a Member State or of any interested party on the basis of sufficient evidence regarding the factors set out in the second paragraph. Initiations shall be made by means of commission regulation which shall also instruct customs authorities of Member States to subject imports to registration. The Commission shall provide information to the Member States once an interested party or a Member State has submitted a request justifying the initiation of an investigation and the Commission has completed its analysis thereof, or where to include slightly modified products for anti-circumvention purposeshe Commission has itself determined that there is a need to initiate an investigation.
Amendment 1061 #
Proposal for a regulation
Article 27 – paragraph 5 a (new)
Article 27 – paragraph 5 a (new)
5a. Investigations shall be carried out by the Commission. The Commission may be assisted by customs authorities and the investigation shall be concluded in due time.
Amendment 1065 #
Proposal for a regulation
Article 27 – paragraph 5 b (new)
Article 27 – paragraph 5 b (new)
5b. The Commission Decision finding circumvention shall impose a penalty pursuant to article 26 on an Authorised Declarant involved in the circumvention and, if appropriate, the operator of the installation located in the third country that is linked to the Authorised Declarant. Where appropriate, the penalty shall also entail the withdrawal of import authorisation and be extended to the operator.
Amendment 1076 #
Proposal for a regulation
Article 27 a (new)
Article 27 a (new)
Amendment 1138 #
Proposal for a regulation
Article 30 – paragraph 2
Article 30 – paragraph 2
2. Before the end of the transitional period, the Commission shall present a report to the European Parliament and the Council on the application of this Regulation. The report shall contain, in particular, an in-depthe assessment ofdeveloped in close cooperation with the industrial sectors, of the rules to be applied in the testing period established pursuant to article 30a and the possibilities to further extend the scope of embedded emissions to indirect emissions and to other goods at risk of carbon leakage than those already covered by this Regulation, as well as an assessment of the governance system. It shall also contain the assessment of the possibility to further extend the scope to embedded emissions of transportation services as well as to goods further down the value chain and services that may be subject to the risk of carbon leakage in the future.
Amendment 1188 #
Proposal for a regulation
Article 30 a (new)
Article 30 a (new)
Article 30 a The Commission shall monitor and evaluate the mechanism's effectiveness with regard to the risk of carbon leakage before phasing out free allocation to sectors at risk of carbon leakage covered by this regulation. To this end, the Commission shall, after consultation of the sectors subject to this regulation, present a report to the European Parliament and the Council evaluating: - the first three years (2026-2028) of the surrendering obligation pursuant to article 22; - the risk of carbon leakage on export markets. If the evaluation is positive, the report shall be accompanied by a legislative proposal phasing out free allocation to sectors subject to this regulation, as set out in Article 10.a.1 of Directive 2003/87/EC, and implementing a solution to address the risk of carbon leakage on export market.
Amendment 1248 #
Proposal for a regulation
Annex I – subheading 1 – row 1 a (new)
Annex I – subheading 1 – row 1 a (new)
2523 30 00 - Aluminous Cement Carbon dioxide
Amendment 1251 #
Proposal for a regulation
Annex I – subheading 4 a (new)
Annex I – subheading 4 a (new)
CN code 850231- Electric generating sets and rotary converters: wind powered
Amendment 1273 #
Proposal for a regulation
Annex III – point 3 – paragraph 2 – introductory part
Annex III – point 3 – paragraph 2 – introductory part
Where AttrEmg are the attributed emissions of goods g, and ALg the activity level of the goods, the latter being the amount of goods produced in the reporting period in that installation, and EEInpMat are the embedded emissions of the input materials (precursors) consumed in the production process. Only input materials listed as relevant to the system boundaries of the production process as specified in the implementing act adopted pursuant to Article 7(6) are to be considered. The implementing act pursuant to Article 7(6) shall include all input materials that contribute significantly to GHG emissions. In the case of stainless steel (CN codes 7218-7223), ferro-alloys shall be included in the list of input materials as they fulfil this criterion. The relevant EEInpMat are calculated as follows:
Amendment 1278 #
Proposal for a regulation
Annex III – point 4 – paragraph 2
Annex III – point 4 – paragraph 2
For the purpose of determining default values, only actual values shall be used for the determination of embedded emissions. In the absence of actual data, or when the use of actual data would lead to low default values favouring freeriding behaviour, literature values may be used. The Commission shall publish guidance for the approach taken to correct for waste gases or greenhouse gases used as process input, before collecting the data required to determine the relevant default values for each type of goods listed in Annex I. Default values shall be determined based on the best available data. They shall be revised periodically through implementing acts based on the most up-to-date and reliable information, including on the basis of information provided by a third country or group of third countries.
Amendment 1285 #
Proposal for a regulation
Annex III – point 4 – point 4.1 – paragraph 1
Annex III – point 4 – point 4.1 – paragraph 1
When actual emissions cannot be adequately determined by the authorised declarant, default values shall be used. Default values shall represent the highest known carbon intensity of the relevant good in order to avoid carbon leakage and any free riding behaviour. These values shall be set at the average emission intensity of each exporting country and for each of the goods listed in Annex I other than electricity, increased by a mark-up, the latter to be determined in the implementing acts of this Regulation. When reliable data for the exporting country cannot be applied for a type of goods, the default values shall be based on the average emission intensity of the 10 per cent worst performing EU installations for that type of goodsAverage country data shall be consistent with rules on calculations of embedded emissions pursuant to article 7 and Annex III and be verified by verifiers accredited pursuant to article 18. When reliable and verified data for the exporting country cannot be applied for a type of goods, the default values shall be based on the average emission intensity of the 10 per cent worst performing EU installations for that type of goods, increased by a mark- up, the latter to be determined in the implementing acts of this Regulation. The mark-up to be applied pursuant this point shall ensure that the default values reflect the highest known carbon intensity of the relevant good in order to avoid carbon leakage any free riding behaviour.
Amendment 1310 #
Proposal for a regulation
Annex III – point 6 – paragraph 1
Annex III – point 6 – paragraph 1
Amendment 1313 #
Proposal for a regulation
Annex III – point 6 – paragraph 2
Annex III – point 6 – paragraph 2