51 Amendments of Alexander BERNHUBER related to 2021/0214(COD)
Amendment 145 #
Proposal for a regulation
Recital 8
Recital 8
(8) As long as a significant number of the Union’s international partners have very different policy approaches that do not result in the same level of climate ambition than that of the Union and lead to significant differences in the price of GHG emissions, there is a risk of carbon leakage. Carbon leakage occurs if, for reasons of costs related to different levels of ambition in climate policies, businesses in certain industry or trade sectors or subsectors were to transfer production to other countries or imports from those countries would replace equivalent but less GHG emissions intensive products. That risk exists not only for industrial goods, but also for agricultural products. That could lead to an increase in their total emissions globally, while undermining the effectiveness of Union emission reduction policies, thus jeopardising the reduction of GHG emissions that is urgently needed if the world is to keep the global average temperature to well below 2 °C above pre- industrial levels.
Amendment 153 #
Proposal for a regulation
Recital 9
Recital 9
(9) The initiative for a carbon border adjustment mechanism (‘CBAM’) is a part of the ‘Fit for 55 Package’. That mechanism is to serve as an essential element of the EU toolbox to meet the objective of a climate-neutral Union by 2050 in line with the Paris Agreement by addressing risks of carbon leakage resulting from the increased Union climate ambition. As stated in Article 2 of the Paris Agreement, the adaption to climate change, fostering climate resilience and lowering greenhouse gas emissions must be ensured in a manner that does not threaten food production. Therefore, measures are necessary to maintain and secure agricultural and food production within the Union and prevent negative impacts the mechanism could impose on this sector.
Amendment 177 #
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 191 #
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 247 #
Proposal for a regulation
Recital 12 a (new)
Recital 12 a (new)
(12a) However, the problem of carbon leakage has to be seen in a broader context of the cumulative impact of the Union's growing environmental ambitions, as expressed, inter alia, in the European Green Deal component strategies, on the competitiveness of the Union economy as a whole. The disparity in production standards and requirements between the Union and its external trading partners is evident not only in the sectors covered by the EU ETS scheme, but also, inter alia, in agriculture. In particular the fact that agricultural goods produced using fertilisers are not covered by CBAM represents a significant competitive disadvantage. Therefore, a multi-pronged approach for agriculture is needed: the combat against carbon leakage through CBAM should be accompanied by financial incentives to support farmers. New resources for this purpose should be created from the revenues generated from CBAM.
Amendment 264 #
Proposal for a regulation
Recital 13
Recital 13
(13) As an instrument to prevent carbon leakage and reduce GHG emissions the CBAM should ensure that imported products are subject to a regulatory system that applies carbon costs equivalent to the ones that otherwise would have been borne under the EU ETS. The CBAM is a climate and environmental protection measure which should prevent the risk of carbon leakage, promote carbon pricing globally, enhance decarbonisation in a cost- effective way and support the Union’s increased ambition on climate mitigation, while ensuring WTO compatibility.
Amendment 273 #
Proposal for a regulation
Recital 13 a (new)
Recital 13 a (new)
(13a) Imported agricultural basic commodities such as wheat or maize produced with the use of fertilisers covered by this Regulation have an economic advantage in terms of production costs if the production of fertilisers in the country of origin of these agricultural basic commodities is not subject to a comparable CO2 pricing system. In order to mitigate this problem, certain agricultural basic commodities should also be subject to CO2 pricing, whereby the pricing should only relate to the use of fertilisers.
Amendment 274 #
Proposal for a regulation
Recital 13 b (new)
Recital 13 b (new)
(13b) Union law already contains provisions on production methods that apply 'mirror' measures to products imported from third countries, for example the ban on the import of animals and products derived from animals that have been administered antimicrobial drugs used for growth promotion purposes and antimicrobials reserved for human health, as provided for in Regulation (EU) 2019/6. However, due to the increasingly stringent requirements in the Union's agriculture, it is necessary to extend such provisions and impose on imports the same requirement as those applicable to European farmers.
Amendment 277 #
Proposal for a regulation
Recital 13 c (new)
Recital 13 c (new)
(13c) Therefore, the CBAM should not only be a climate protection measure, but rather also an environmental protection measure. Especially with regard to the production conditions of agricultural products, the Union pursues higher and stricter goals than many of its trading partners. Accordingly, not only should carbon leakage be prevented in the agricultural sector, but a mechanism should also be developed that monetises lower environmental requirements with regard to the production of agricultural products. Such a mechanism should primarily cover agricultural products such as cane sugar or palm oil.
Amendment 282 #
Proposal for a regulation
Recital 14
Recital 14
(14) This Regulation should initially apply to goods imported into the customs territory of the Union from third countries, except where their production has already been subject to the EU ETS, whereby it applies to third countries or territories, or to a carbon pricing system fully linked with the EU ETS. In a further step, this Regulation should in any case be expanded to goods whose production depends on goods listed in Annex I, in particular to agricultural products.
Amendment 351 #
Proposal for a regulation
Recital 26
Recital 26
(26) The product coverage of the CBAM should reflectprioritise the activities covered by the EU ETS as that scheme is based on quantitative and qualitative criteria linked to the environmental objective of Directive 2003/87/EC and is the most comprehensive GHG emissions regulatory system in the Union.
Amendment 353 #
Proposal for a regulation
Recital 28
Recital 28
(28) Whilst the ultimate objective of the CBAM is a broad product coverage, it would be prudent to start with a selected number of sectors with relatively homogeneous products where there is a risk of carbon leakage. Union sectors deemed at risk of carbon leakage are listed in Commission Delegated Decision 2019/70842 . Any further extension of the sectors and products covered by the CBAM should take place after an exhaustive scientific analysis and risk assessment, based on the latest available scientific evidence. The potential contribution of such extension, and possible negative effects, as well as the effects on the stability of the internal market, should also be taken into consideration. Nevertheless, it is clear that an further extension to goods whose production depends on goods listed in Annex I, especially agricultural products, is necessary. __________________ 42Commission Delegated Decision (EU) 2019/708 of 15 February 2019 supplementing Directive 2003/87/EC of the European Parliament and of the Council concerning the determination of sectors and subsectors deemed at risk of carbon leakage for the period 2021 to 2030 (OJ L 120, 8.5.2019, p. 2).
Amendment 375 #
Proposal for a regulation
Recital 30
Recital 30
(30) The use of the first criterion allows listing the following industrial sector in terms of cumulated emissions: iron and steel, refineries, cement, and organic basic chemicals, and fertilisers.
Amendment 377 #
Proposal for a regulation
Recital 30 a (new)
Recital 30 a (new)
(30a) In addition, certain agricultural basic commodities are also to fall within the scope of this Regulation, with specific provisions applying here.
Amendment 378 #
Proposal for a regulation
Recital 30 b (new)
Recital 30 b (new)
(30b) The Union’s agricultural sector is one of the most productive and advanced in the world in terms of its commitment to climate and environmental protection. European food is already a global standard for food that is safe, plentiful, nutritious and of high quality. However, one of the main challenges it will face once the European Green Deal strategies are developed is climate dumping from countries that make slow progress in adopting their greener agricultures. Therefore, the scope of the CBAM should be extended to some agricultural basic commodities. The inclusion of agricultural products in the scope of the CBAM is all the more important as the agricultural sector will be both directly and indirectly affected by the inclusion of other products, notably fertilisers, steel and aluminium.
Amendment 379 #
Proposal for a regulation
Recital 30 c (new)
Recital 30 c (new)
(30c) Since fertilisers are used exclusively for agricultural production, it seems appropriate to create separate provisions for some agricultural basic commodities. In order to create a level- playing field with regard to the production of the main agricultural basic commodities, a CO2 border adjustment should also take place here.
Amendment 380 #
Proposal for a regulation
Recital 30 d (new)
Recital 30 d (new)
(30d) The Commission will determine the main agricultural basic commodities produced with the use of fertilisers, in relation to their import volume. These agricultural basic commodities are to be subject to CO2 pricing based on a standard value with regard to the use of fertilisers in the respective country of origin. Therefore, the power to adopt acts in accordance with Article 290 TFEU should be delegated to the Commission in respect of the determination of the main agricultural basic commodities produced using fertilisers, in relation to their import volume, and in respect of the establishment of a calculation method for determining a standard value in relation to the use of fertilisers of the main agricultural products.
Amendment 444 #
Proposal for a regulation
Recital 50 a (new)
Recital 50 a (new)
(50a) The inclusion of some agricultural basic commodities in the CBAM, such as fertilisers, will have a significant impact on downstream sectors in the Union. However, given the impact of additional costs on the competitiveness of Union economic sectors, including the farming sector, a risk of carbon leakage cannot be immediately ruled out. It seems appropriate to propose that the revenue from the CBAM should be used as earmarked revenue in the Union budget with a view to offsetting both the cost of setting the mechanism up and the removal of free allowances, and to helping to finance transitional measures for Union economic sectors the competitiveness of which will be affected. In particular, revenues from the pricing of fertilisers and certain agricultural basic commodities should be earmarked and used exclusively for agricultural support measures or allocated to the CAP budget.
Amendment 454 #
Proposal for a regulation
Recital 51
Recital 51
(51) To facilitate and ensure a proper functioning of the CBAM, the Commission should provide support to the competent authorities responsible for the application of this Regulation in carrying out their obligations as well as ensure that Member States’ administrations are reimbursed for additional costs incurred as a result of implementing this Regulation.
Amendment 459 #
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 Commissionassess as accurately as possible the real impact that the CBAM mechanism has on climate and environmental protection, on the competitiveness and viability of the Union economy, especially in the agricultural sector and on SMEs, as well as actual compliance costs. The report should, as part of that evaluation, initiate colllso examine the effects on sustainable innovation and changes in trade flows and supply chains, notably concerning fertilisers, and the effectis on 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 the prices of fertilisers and agricultural production. The effects of the potential extension of the scope of this Regulation to agriculture and agri-food products, and other products at risk of carbon leakage, as well as to indirect emissions, should also be evaluated. The Commission should also develop methods of calculating embedded emissions based on the environmental footprint methods47. With regard to indirect emissions, the evaluation should take into account the exposure of Union producers to carbon costs passed on in electricity prices due to the functioning of the Union 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 483 #
Proposal for a regulation
Recital 52 a (new)
Recital 52 a (new)
(52a) Agriculture is a sector of strategic importance in terms of food security and food autonomy. Therefore, the inclusion of agricultural products in the scope of the CBAM is all the more important because the farming sector is likely to be both directly and indirectly affected by the inclusion of other products used as inputs that will affect its production costs. The impact of the inclusion of fertilisers in the CBAM on European agriculture, food security and food autonomy must be reviewed before the CBAM including the financial adjustment for fertilisers should apply.
Amendment 550 #
Proposal for a regulation
Article 1 – paragraph 3
Article 1 – paragraph 3
3. The mechanism willmay 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 576 #
Proposal for a regulation
Article 2 – paragraph 1
Article 2 – paragraph 1
1. This Regulation applies to goods as listed in Annex I, originating in a third country, when those goods, or processed products from those goods as resulting from the inward processing procedure referred to in Article 256 of Regulation (EU) No 952/2013 of the European Parliament and of the Council53 , are imported into the customs territory of the Union and when those goods, or products processed from those goods are exported to third countries at a later date. __________________ 53Regulation (EU) No 952/2013 of the European Parliament and of the Council of 9 October 2013 laying down the Union Customs Code (OJ L 269, 10.10.2013, p. 1).
Amendment 578 #
Proposal for a regulation
Article 2 – paragraph 1 a (new)
Article 2 – paragraph 1 a (new)
1a. This Regulation also applies to agricultural basic commodities determined by the Commission through a delegated act, originating in a third country, when those products are imported into the customs territory of the Union.
Amendment 579 #
Proposal for a regulation
Article 2 – paragraph 2
Article 2 – paragraph 2
2. This Regulation applies to the goods referred to in paragraph 1 and 1a where those goods, or products processed from those good in case of export to third countries, are brought to the continental shelf or the exclusive economic zone of a Member State.
Amendment 586 #
Proposal for a regulation
Article 2 – paragraph 3
Article 2 – paragraph 3
3. By way of derogation from paragraphs 1, 1a and 2, this Regulation does not apply to goods originating in countries and territories listed in Annex II, Section A.
Amendment 599 #
Proposal for a regulation
Article 2 – paragraph 6 a (new)
Article 2 – paragraph 6 a (new)
6a. The Commission is empowered to adopt delegated acts in accordance with Article 28 to determine the main basic agricultural commodities produced with the use of fertilisers, in relation to their import volume.
Amendment 691 #
Proposal for a regulation
Article 6 – paragraph 2 – point a a (new)
Article 6 – paragraph 2 – point a a (new)
(aa) the total quantity of each type of goods or the share of these goods in products processed from those goods, as referred to in point (a) of this paragraph, exported during the calendar year preceding the declaration, expressed in megawatt hours for electricity and in tonnes for other goods;
Amendment 692 #
Proposal for a regulation
Article 6 – paragraph 2 – point c
Article 6 – paragraph 2 – point c
(c) the total number of CBAM certificates corresponding to the total embedded emissions, to be surrendered, after the reduction due on the account of the carbon price paid in a country of origin in accordance with Article 9 and the adjustment necessary of the extent to which EU ETS allowances are allocated free of charge in accordance with Article 31 and an adjustment corresponding to the share of the total embedded emissions of imported goods, or products processed from those goods, that were exported to third countries in accordance with [Article 9a].
Amendment 699 #
Proposal for a regulation
Article 7 – paragraph 1 a (new)
Article 7 – paragraph 1 a (new)
1a. The embedded emissions in agricultural basic commodities pursuant to Article 2 (1a) shall be calculated based on default values of fertiliser use of the respective country of origin. The Commission shall develop a calculation method for this purpose by end of 2023 at the latest.
Amendment 706 #
Proposal for a regulation
Article 7 – paragraph 3 a (new)
Article 7 – paragraph 3 a (new)
3a. The Commission is empowered to adopt implementing acts in order to determine the calculation method for determining a standard value in relation to the use of fertilisers of the main agricultural basics products referred to in paragraph 1a. Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 29 (2).
Amendment 723 #
Proposal for a regulation
Article 7 a (new)
Article 7 a (new)
Article 7a Monetisation of external costs The Commission shall present, by the end of 2023 at the latest, a legislative proposal on the monetization of external costs in the production of agricultural goods resulting from lower environmental standards than those of the Union, with a view to subjecting these costs to a levy when imported.
Amendment 768 #
Proposal for a regulation
Article 9 a (new)
Article 9 a (new)
Article 9 a 1. An authorised declarant may claim in its CBAM declaration a reduction in the number of CBAM certificates to be surrendered equivalent to the share of the total embedded emissions of imported goods, or products processed from those goods, that were exported outside of the Union at a later date. 2. The authorised declarant shall keep records of the documentation required to demonstrate that the goods, or products processed from those goods were exported outside the Union. 3. The authorised declarant shall keep those records referred to in paragraph 2 until the end of the fourth year after the year during which the CBAM declaration has been or should have been submitted.
Amendment 944 #
Proposal for a regulation
Article 21 – paragraph 3 a (new)
Article 21 – paragraph 3 a (new)
3a. The revenues generated by the sale of CBAM certificates shall be assigned to cover the costs following the implementation of the CBAM mechanism, particularly to mitigate negative economic effects within the Union.
Amendment 945 #
Proposal for a regulation
Article 21 – paragraph 3 b (new)
Article 21 – paragraph 3 b (new)
3b. The revenue from the pricing of fertilisers and certain agricultural basic commodities shall be earmarked and used exclusively for agricultural support measures or allocated to the CAP budget.
Amendment 1106 #
Proposal for a regulation
Article 30 – paragraph 1
Article 30 – paragraph 1
1. The Commission shall collect the information necessary with a view to extending the scope of this Regulation to indirect emissions and goods other than those listed in Annex I, and develop methods of calculating embedded emissions based on environmental footprint methodmonitoring the impact of the CBAM mechanism on climate and environmental protection, on the competitiveness of the Union economy, especially in the agricultural and food sector, and with regard to SMEs, on the viability of production facilities in the sectors covered by the Regulation, on the structure and volume of Union imports, on the costs of final customers and on developing countries. Based on the outcome of that scrutiny, the Commission shall examine the feasibility and relevance of extending the scope of this Regulation to indirect emissions and goods other than those listed in Annex I and Ia, giving high priority to assessing the impact of the potential inclusion of further agricultural products. The Commission shall also develop methods of calculating embedded emissions based on environmental footprint methods and ensure an efficient and transparent verification and control system to guarantee the accuracy of the information received from third-country producers.
Amendment 1127 #
Proposal for a regulation
Article 30 – paragraph 2
Article 30 – paragraph 2
2. Before the end of the transitional period, the Commission shall present a report to the European Parliament and the Council on the application of this Regulation. The report shall contain, in particular, the assessment of the possibilities to further 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 1144 #
Proposal for a regulation
Article 30 – paragraph 2 – point a (new)
Article 30 – paragraph 2 – point a (new)
(a) an in-depth assessment developed 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;
Amendment 1145 #
Proposal for a regulation
Article 30 – paragraph 2 – point b (new)
Article 30 – paragraph 2 – point b (new)
(b) an assessment of the governance system;
Amendment 1146 #
Proposal for a regulation
Article 30 – paragraph 2 – point c (new)
Article 30 – paragraph 2 – point c (new)
(c) an 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 1147 #
Proposal for a regulation
Article 30 – paragraph 2 – point d (new)
Article 30 – paragraph 2 – point d (new)
(d) an assessment of the real impact on climate and environmental protection;
Amendment 1148 #
Proposal for a regulation
Article 30 – paragraph 2 – point e (new)
Article 30 – paragraph 2 – point e (new)
(e) an identification of the effects on sustainable innovation and changes in trade flows, supply chains and prices with regards to fertilisers and agricultural sector;
Amendment 1149 #
Proposal for a regulation
Article 30 – paragraph 2 – point f (new)
Article 30 – paragraph 2 – point f (new)
(f) an assessment of the effects from the potential extension of the scope of this Regulation to more agricultural and food products and its potential implications.
Amendment 1168 #
Proposal for a regulation
Article 30 – paragraph 3 a (new)
Article 30 – paragraph 3 a (new)
3a. By 31 December 2026, the Commission shall submit a report to the European Parliament and the Council on the impact of this Regulation on exports from the Union in sectors covered by the EU ETS. This report shall include, in particular, an assessment of the impact of this Regulation on the competitiveness of exports of products covered by Annex I. In addition, the report shall include an assessment of the impact of this Regulation on input and food prices in the EU and an assessment of the impact on the competitiveness of food production in the EU.
Amendment 1174 #
Proposal for a regulation
Article 30 – paragraph 3 b (new)
Article 30 – paragraph 3 b (new)
3b. If the report referred to in paragraph 3a determines that this Regulation has a significant negative impact on the competitiveness of food production in the EU and the competitiveness of exports of products covered by Annex I, and that those exports risk carbon leakage, the Commission's report shall be accompanied, if appropriate, by a legislative proposal to address those impacts and risks. Such a legislative proposal shall comply with WTO rules, in particular the legal principles on non- discrimination, and shall not have the effect of distorting existing trade flows to the benefit of the Union.
Amendment 1182 #
Proposal for a regulation
Article 30 a (new)
Article 30 a (new)
Amendment 1221 #
Proposal for a regulation
Article 33 – paragraph 2
Article 33 – paragraph 2
2. The customs authorities shall, at the moment of the release of those goods for free circulation at the latest, inform the declarant of the obligation referred to in paragraph 1. The Commission shall ensure that the new obligations imposed on customs authorities under this Regulation do not impose an excessive administrative burden or create substantial compliance cost.
Amendment 1231 #
Proposal for a regulation
Article 36 – paragraph 3 – point a
Article 36 – paragraph 3 – point a
(a) Articles 32 to 34 shall apply until 31 December 2025of the year that the Commission has evaluated the application of this Regulation, reported to the European Parliament and the Council and the European Parliament has given its consent to the full application of the CBAM including the financial adjustment.
Amendment 1238 #
Proposal for a regulation
Article 36 – paragraph 3 – point d
Article 36 – paragraph 3 – point d
(d) Articles 4, 6, 7, 8, 9, 14, 15, 16, 19, 20, 21, 22, 23, 24, 25, 26, 27 and 31 shall apply from 1 January 2026of the year after the commission has evaluated the application of this Regulation, reported to the European Parliament and the Council and the European Parliament has given its consent to the full application of the CBAM including the financial adjustment.
Amendment 1249 #
Proposal for a regulation
Annex I – subheading 3
Annex I – subheading 3
Amendment 1294 #
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. 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 tenfold average emission intensity of the 10 per cent worst performing EU installations for that type of goods.