Activities of Silvia MODIG related to 2021/0202(COD)
Plenary speeches (2)
Revision of the Market Stability Reserve for the EU Emissions Trading System (debate)
Binding annual greenhouse gas emission reductions by Member States (Effort Sharing Regulation) - Land use, land use change and forestry (LULUCF) - Revision of the Market Stability Reserve for the EU Emissions Trading System (debate)
Shadow reports (1)
REPORT on the proposal for a decision of the European Parliament and of the Council amending Decision (EU) 2015/1814 as regards the amount of allowances to be placed in the market stability reserve for the Union greenhouse gas emission trading scheme until 2030
Amendments (19)
Amendment 13 #
Proposal for a decision
Recital 1
Recital 1
(1) The Paris Agreement, adopted in December 2015 under the United Nations Framework Convention on Climate Change (UNFCCC) entered into force in November 2016 (“the Paris Agreement”)25 . The Parties to the Paris Agreement have agreed to hold the increase in the global average temperature well below 2 °C above pre-industrial levels and to pursue efforts to limit the temperature increase to 1,5 °C above pre-industrial levels while reflecting equity and the principle of common but differentiated responsibilities and respective capabilities, in the light of different national circumstances. __________________ 25 Paris Agreement (OJ L 282, 19.10.2016, p. 4).
Amendment 14 #
Proposal for a decision
Recital 1 a (new)
Recital 1 a (new)
(1a) The urgency of not exceeding the Paris Agreement goal of 1,5 °C has become more significant following the findings of the Intergovernmental Panel on Climate Change (IPCC) in its reports of 7 August 2021 entitled ‘Climate Change 2021: The Physical Science Basis’ and of 8 October 2018 entitled ‘Global warming of 1.5 °C’. The IPCC found that the consequences of climate change are much more destructive if global warming is failed to delimit to 1,5 °C and reaches 2°C. In addition, global temperature will reach or exceed the 1,5 °C mark earlier than previously anticipated, namely averaging over the next 20 years. It also found that unless there are immediate and ambitious reductions in greenhouse gas emissions, it will no longer be possible to limit global warming to close to 1,5 °C or even 2°C.
Amendment 15 #
Proposal for a decision
Recital 1 b (new)
Recital 1 b (new)
(1b) In its resolution of 28 November 2019 on the climate and environment emergency1a, the European Parliament urged the Commission to take immediate and ambitious action to limit global warming to 1,5°C and to avoid massive biodiversity loss, including by addressing inconsistencies in current Union policies with the climate and environment emergency and by ensuring that all relevant future legislative and budgetary proposals are fully aligned with the objective of limiting global warming to under 1,5°C and that they do not contribute to biodiversity loss. __________________ 1a P9_TA(2019)0078
Amendment 16 #
Proposal for a decision
Recital 1 c (new)
Recital 1 c (new)
(1c) The need for urgent action is further intensified by the increase in the frequency and intensity of extreme weather conditions as a direct result of climate change. According to the United Nations Office for Disaster Risk Reduction, the number of disasters recorded and the scale of economic losses have nearly doubled in the last 20 years, much of which increase corresponds to the significant rise in the number of climate-related disasters that pose a significant threat to human health. Furthermore, in its resolution 48/13 of 8 October 2021, the U.N. Human Rights Council recognised right to a safe, clean, healthy and sustainable environment as a human right.
Amendment 17 #
Proposal for a decision
Recital 1 d (new)
Recital 1 d (new)
(1d) The Union should therefore address this urgency by stepping up its efforts and establishing itself as an international leader in the fight against climate change while reflecting the principles of equity and of common but differentiated responsibilities and respective capabilities, as laid down in Article 2(2) of the Paris Agreement.
Amendment 18 #
Proposal for a decision
Recital 1 e (new)
Recital 1 e (new)
(1e) The Union’s climate and environmental policy should be implemented in line with the principle of a fair and just transition that leaves no one behind. In addition, pursuant to Article 191(2) of the Treaty on the Functioning of the European Union (TFEU), Union policy on the environment is to aim at a high level of protection taking into account the diversity of situations in the various regions of the Union, and is to be based on the precautionary principle and on the principles that preventive action should be taken, that environmental damage should, as a priority, be rectified at source and that the polluter should pay.
Amendment 20 #
Proposal for a decision
Recital 2
Recital 2
(2) Tackling climate and environmental-related challenges and reaching the objectives of the Paris Agreement are at the core ofddressed in the Communication on “The European Green Deal”, adopted by the Commission on 11 December 201926 . __________________ 26 COM(2019)640 final.
Amendment 24 #
Proposal for a decision
Recital 3
Recital 3
(3) The European Green Deal combines a comprehensive set of mutually reinforcing measurprovides a starting point for achievement of the Union’s climate-neutrality objective by 2050 at latest and initiatives aimed at achieving climate neutrality in the EU by 2050,the aim to achieve negative emissions thereafter as laid out in Article 2(2) of Regulation (EU) 2021/1119. It combines a set of mutually reinforcing measures and initiatives and sets out a new growth strategy that aims to transform the Union into a fair and prosperous society, with a modern, resource-efficient and competitive economy, where economic growth is decoupled from resource use. It also aims to protect, conserve and enhance the Union's natural capital, and protect the health and well-being of citizens from environment-related risks and impacts. At the same time, this transition affects women and menall genders differently and has a particular impact on some disadvantaged groups, such as older people, persons with disabilities and persons with a minority racial or ethnic background. It must therefore be ensured that the transition is just and inclusive, leaving no one behind.
Amendment 25 #
Proposal for a decision
Recital 4
Recital 4
(4) The necessity and value of the European Green Deal have only grown in light of the very severe effects of the COVID-19 pandemic on the health, living and working conditions and well-being of the Union’s citizens, which have shown that our society and our economy need to improve their resilience to external shocks and act early to prevent or mitigate them. European citizens continue to express strong views that this applies in particular to climate change27 . In addition, the Intergovernmental Science-Policy Platform on Biodiversity and Ecosystem Services (IPBES) in its report of 29 October 2020 entitled ‘Biodiversity and Pandemics’ pointed out that the underlying causes of pandemics are the same global environmental changes that drive biodiversity loss and climate change. Climate change has been implicated in disease emergence and will likely cause substantial future pandemic risk. According to the report, the cost of inaction vastly outweighs the cost of action. __________________ 27Special Eurobarometer 513 on Climate Change, 2021 (https://ec.europa.eu/clima/citizens/support _en).
Amendment 33 #
Proposal for a decision
Recital 6
Recital 6
(6) In Regulation (EU) 2021/1119 of the European Parliament and of the Council29 the Union has enshrined the target of economy-wide climate neutrality by 2050 at latest and the aim to achieve negative emissions thereafter in legislation. That Regulation also establishes a binding Union domestic reduction commitment of net greenhouse gas emissions (emissions after deduction of removals) of at least 55 % below 1990 levels by 2030. __________________ 29Regulation (EU) 2021/1119 of the European Parliament and of the Council of 30 June 2021 establishing the framework for achieving climate neutrality and amending Regulations (EC) No 401/2009 and (EU) 2018/1999 (‘European Climate Law’) (OJ L 243, 9.7.2021, p. 1).
Amendment 34 #
Proposal for a decision
Recital 7
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 Council30 , should be adjusted to be in line with the economy-wide net greenhouse gas emissions reduction commitment for 2030, the Union’s climate-neutrality objective by 2050 at latest and the aim to achieve negative emissions thereafter laid out in Article 2(2) of Regulation (EU) 2021/1119 and the goal of the Paris Agreement, while reflecting the principles of equity and of common but differentiated responsibilities and respective capabilities of nations. __________________ 30 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).
Amendment 39 #
Proposal for a decision
Recital 8
Recital 8
(8) In order to address the structural imbalance between supply and demand of allowances in the market, which weakened the EU ETS through lower carbon prices leading to insufficient incentives for emission reductions, Decision (EU) 2015/1814 of the European Parliament and of the Council31 established a market stability reserve (the ‘reserve’) in 2018, which has been operational since 2019. __________________ 31 Decision (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).
Amendment 40 #
Proposal for a decision
Recital 8 a (new)
Recital 8 a (new)
(8a) A robust and forward-looking reserve is essential to ensure the integrity of and effectively steer the EU ETS in order for the policy tool to contribute to the Union’s climate-neutrality objective by 2050 at latest and the aim to achieve negative emissions thereafter laid out in Article 2(2) of Regulation (EU) 2021/1119. The EU ETS, and therefore the reserve, should also be aligned with the pursuit to limit the global temperature increase to 1,5°C above pre-industrial levels, recognizing that this would significantly reduce the risks and impacts of climate change, while reflecting equity and the principle of common but differentiated responsibilities and respective capabilities, in the light of different national circumstances pursuant to Article 2 of the Paris Agreement.
Amendment 42 #
Proposal for a decision
Recital 10
Recital 10
(10) WCurrently, where the number of allowances in circulation is above the established upper threshold, an amount of allowances corresponding to a given percentage of these allowances is deducted from the volumes of allowances to be auctioned and placed in the reserve. Meanwhile, a corresponding number of allowances is released from the reserve to Member States, and added to the volumes of the allowances to be auctioned, if the total number of allowances in circulation falls below the established lower threshold.
Amendment 45 #
Proposal for a decision
Recital 11
Recital 11
(11) Directive (EU) 2018/410 of the European Parliament and of the Council32 amended Decision (EU) 2015/1814 by doubling the percentage rate to be used for determining the number of allowances to be placed each year in the reserve from 12 % to 24 % until 31 December 2023. Such an adjustment was necessary in order to ensure that the EU ETS remains fit for purpose and resilient. __________________ 32Directive (EU) 2018/410 of the European Parliament and of the Council of 14 March 2018 amending Directive 2003/87/EC to enhance cost-effective emission reductions and low-carbon investments, and Decision (EU) 2015/1814 (OJ L 76, 19.3.2018, p. 3).
Amendment 53 #
Proposal for a decision
Recital 14
Recital 14
(14) The analysis carried out in the context of the reserve’s review and the expected developments relevant to the carbon market demonstrate that a rate of 12 % of the total number of allowances in circulation to be placed in the reserve each year after 2023 is insufficient to prevent a significant increase of the surplus of allowances in the EU ETS. Therefore, after 2023 the percentage figure should continue to be 24 %, and the minimum number of allowances to be placed in the reserve should also continue to be 200 millionnot revert under the current level.
Amendment 55 #
Proposal for a decision
Recital 14 a (new)
Recital 14 a (new)
(14a) From 2018 to 2019, when the reserve began operating, the surplus of allowances fell significantly from 1,65 billion to around 1,385 billion allowances. In 2020, due to lower demand as a result of economic slowdown caused by the COVID-19 pandemic, the surplus increased to 1,579 billion allowances. With new variants emerging and governments posing new restrictions effecting economic activities, it is unclear how the reserve can absorb the surplus under the current rules during the coming years. In addition, Germany, Slovenia and Czechia have recently announced plans hastening the phase out of coal, creating a possibility of additional supply of allowances to the market. These decisions can be followed by other Member States in the future.
Amendment 64 #
Proposal for a decision
Recital 15
Recital 15
(15) If the rate of the total number of allowances in circulation to be placed in the reserve each year reverts to 12 % after 2023, a potentially harmful surplus of allowances in the EU ETS may disturb market stability. In addition, the rate of 24 % after 2023 should be established separately from the general review of Directive 2003/87/EC and Decision (EU) 2015/1814 to strengthen the EU Emissions Trading System in line with the Union’s increased climate ambition for 2030 to ensure market predictabilityensure a minimum for the intake rate of the reserve.
Amendment 66 #
Proposal for a decision
Recital 15 a (new)
Recital 15 a (new)
(15a) The post-2023 rules of the reserve should be further scrutinized under the Commission's proposal for a Directive of the European Parliament and of the Council amending Directive 2003/87/EC establishing a system for greenhouse gas emission allowance trading within the Union, Decision (EU) 2015/1814 concerning the establishment and operation of a market stability reserve for the Union greenhouse gas emission trading scheme and Regulation (EU) 2015/757. The functioning of the reserve and EU ETS should be aligned with the ambition enshrined in Regulation (EU) 2021/1119 and the Paris Agreement, while reflecting equity and the principle of common but differentiated responsibilities and respective capabilities, in the light of different national circumstances.