80 Amendments of Sara MATTHIEU related to 2021/0214(COD)
Amendment 78 #
Proposal for a regulation
Recital 8
Recital 8
(8) As long as a significant number of the Union’s international partners have policy approaches that do not result in the same level of climate ambition, there is aand as the EU raises its ambition on climate protection, there is an increasing risk of carbon leakage. Carbon leakage occurs if, for reasons of costs related to climate policies, businesses in certain industry 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 could lead to an increase in their total emissions globally, 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 90 #
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, both free allocation under the EU ETS and compensation for indirect emissions costs weakens the price signal that the system provides for the installations receiving ithem compared to full auctioning and full payment of indirect emissions costs in contradiction with the ‘polluter pays principle’, and thus affects the incentives for investment into further abatement of emissions.
Amendment 103 #
Proposal for a regulation
Recital 11
Recital 11
(11) The CBAM seeks to replace 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. 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. 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 UnionCurrently over 95% of EU's industrial emissions are covered by free emission allowances. A CBAM will only achieve its aim of higher international climate ambition if it is designed to provide real incentives for industries within and outside the EU to reduce their emissions. The CBAM should therefore replace these existing carbon leakage mechanisms by terminating derogations from the application of the ‘polluter pays principle’, while ensuring equal treatment between EU and non-EU products through equivalent carbon pricing for imports and domestic products. Free allocations and indirect cost compensation should cease to apply as of 1 January 2025.
Amendment 112 #
Proposal for a regulation
Recital 12
Recital 12
(12) While the objective of the CBAM is to prevent thelower global carbon emissions and support the implementation of the goals of the Paris Agreement, including by preventing any risk of carbon leakage, this Regulation would also encourage the use of more GHG emissions-efficient technologies by producers from third countries, so that less emissions per unit of output are generated.
Amendment 129 #
Proposal for a regulation
Recital 14
Recital 14
(14) This Regulation should 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. This Regulation should also not apply to third countries classified as “least-developed” by the United Nations.
Amendment 140 #
Proposal for a regulation
Recital 17
Recital 17
(17) The GHG emissions to be regulated by the CBAM should correspond to those GHG emissions covered by Annex I to the EU ETS in Directive 2003/87/EC, namely carbon dioxide (‘CO2’) as well as, where relevant, nitrous oxide (‘N2O’) and perfluorocarbons (‘PFCs’). The CBAM should initiallyreflect future revisions of the EU ETS in terms of regulated GHG emissions. The CBAM should apply to direct emissions of those GHG from the production of goods up to the time of import into the customs territory of the Union, and after the end of a transition period and upon further assessment, as well to indirect emissions, mirroring the scope of the EU ETS.
Amendment 160 #
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 . Before the end of the transitional period, the Commission will present a new legislation proposal with a view to extending the scope of this Regulation to goods other than those listed in Annex I, including oil refineries, paper, glass, plastics, and downstream products using goods covered by this Regulation. _________________ 42 Commission 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 181 #
Proposal for a regulation
Recital 34
Recital 34
(34) However, aluminium products should be included in the CBAM as they are highly exposed to carbon leakage. Moreover, in several industrial applications they are in direct competition with steel products because of characteristics closely resembling those of steel products. Inclusion of aluminium is also relevant as the scope of the CBAM may be extended to covers also indirect emissions in the future.
Amendment 188 #
Proposal for a regulation
Recital 42
Recital 42
(42) The system should allow operators of production installations in third countries to register in a central database and to make their verified embedded GHG emissions from production of goods available to authorised declarants. An operator should be able to choose not to have its name, address and contact details in the central database made accessible to the public.
Amendment 189 #
Proposal for a regulation
Recital 43
Recital 43
(43) CBAM certificates differ from EU ETS allowances for which daily auctioning is an essential feature. The need to set a clear price for CBAM certificates makes a daily publication excessively burdensome and confusing for operators, as daily prices risk becoming obsolete upon publication. Thus, the publication of CBAM direct emission prices on a weekly basis would accurately reflect the pricing trend of EU ETS allowances and pursue the same climate objective. The calculation of the price of CBAM certificates should therefore be set on the basis of a longer timeframe (on a weekly basis) than in the timeframe established by the EU ETS (on a daily basis). The Commission should be tasked to calculate and publish that average price.
Amendment 193 #
Proposal for a regulation
Recital 50
Recital 50
(50) A transitional period should apply during the period 2023 until 20254. A CBAM without financial adjustment should apply, with the objective to facilitate a smooth roll out of the mechanism hence reducing the risk of disruptive impacts on trade. Declarants should have to report on a quarterly basis the actual embedded emissions in goods imported during the transitional period, detailing direct and indirect emissions as well as any carbon price paid abroad.
Amendment 195 #
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. Before the end of the transitional period, the Commission should assess the governance system with a view to creating a European CBAM Authority which would coordinate the work of relevant authorities, help centralising data and provide a single contact point for operators, authorised declarants and any interested parties, with all relevant information concerning the implementation of the this Regulation.
Amendment 201 #
Proposal for a regulation
Recital 52
Recital 52
(52) The Commission should collect information, evaluate the application of this Regulation and develop methods of calculating embedded emissions based on the environmental footprint methods before the end of the transitional period and reportsubmit a report and a legislative proposal to the European Parliament and the Council. The report of the Commission should in particular focus on possibilities tolegislative proposal should focus on enhanceing 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 . _________________ 47 Commission Recommendation 2013/179/EU of 9 April 2013propose to extend the scope to other goods and services at risk of carbon leakage, including oil refineries, paper, glass, plastics aiming at matching the same product scope as ETS, as well as to downstream products using goods covered by the CBAM. The Report should provide an assessment of the governance system onf 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)Regulation, if appropriate, to be accompanied by a legislative proposal to introduce a European CBAM Authority; it should also evaluate the risks of circumvention and fraud identified and, if appropriate, propose measures to address them.
Amendment 218 #
Proposal for a regulation
Recital 55
Recital 55
(55) As the CBAM aims to encourage cleaner production processes, the EU stands ready to work with low and middle- income countries towards the de- carbonisation of their manufacturing industries. Moreover, the Union should support less d and provide them. with the necessary technical assistance and with the sharing or GHG-abating technology in order to facilitate their adaptation to the new obligations established by this regulation. Least Developed cCountries with the necessary technical assistance in order to facilitate their adaptation to the new obligations established by this regulation. have limited capacity to decarbonise their industries, and compliance with CBAM obligations would be highly demanding for them; moreover, manufacturing capacities and associated emissions in these countries are negligible on a global scale. In order not to place a disproportionate burden on these countries, and in line with the ‘common but differentiated responsibility’ principle, the CBAM will not apply to them. However, to prevent risks of circumvention, the Commission will set up a system to monitor potential circumvention and will take measures where appropriate.
Amendment 222 #
Proposal for a regulation
Recital 55 a (new)
Recital 55 a (new)
(55 a) Revenues from the CBAM should flow into the general budget of the European Union and should constitute internal assigned revenue for the purpose of Article 21(3) of the Financial Regulation. To further ensure that the aim of the CBAM is solely to reduce global carbon emission, these new resources should contribute to supporting the implementation of the Green Deal by stepping up the Union’s contribution to international climate finance and help to Least-developed Countries.
Amendment 229 #
Proposal for a regulation
Article 1 – paragraph 1
Article 1 – paragraph 1
1. This Regulation establishes a carbon border adjustment mechanism (the ‘CBAM’) for addressing greenhouse gas emissions embedded in the goods referred to in Annex I, upon their importation into the customs territory of the Union, in order to prevent thereduce global carbon emissions and support the implementation of the goals of the Paris Agreement by preventing any risk of carbon leakage.
Amendment 239 #
Proposal for a regulation
Article 1 – paragraph 3
Article 1 – paragraph 3
3. The mechanism will progressively becomshall be 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 and compensation of indirect costs in accordance with Articles 10a and 10b of that Directive.
Amendment 244 #
Proposal for a regulation
Article 2 – paragraph 3
Article 2 – paragraph 3
3. By way of derogation from paragraphs 1 and 2, this Regulation does not apply to goods originating in countries and territories listed in Annex II, Section A and in Least-Developed Countries (LDCs) as designated by the United Nations.
Amendment 249 #
Proposal for a regulation
Article 2 – paragraph 10 a (new)
Article 2 – paragraph 10 a (new)
10 a. The Commission shall continuously monitor whether the conditions in paragraphs 5, 7 and 8 are fulfilled for all countries and territories listed in Annex II, Sections A and B, also based on any source of information that the Commission deems appropriate, including submissions from Civil Society Organisations.
Amendment 261 #
Proposal for a regulation
Article 2 – paragraph 12
Article 2 – paragraph 12
12. The Union, may conclude agreements with third countries with a view to take account of carbon pricing mechanisms in these countries in the application of Article 9. Such agreements shall not lead to undue preferential treatment of imports from the third countries as regards the CBAM certificates to be surrendered and cannot take into account any carbon pricing mechanisms that are considered to be practices of circumvention within the meaning of Article 27(2).
Amendment 268 #
Proposal for a regulation
Article 3 – paragraph 1 – point 3
Article 3 – paragraph 1 – point 3
(3) ‘emissions’ mean the release of greenhouse gases into the atmosphere from the production of goods and from the generation of the energy consumed for the production of goods;
Amendment 272 #
Proposal for a regulation
Article 3 – paragraph 1 – point 15 a (new)
Article 3 – paragraph 1 – point 15 a (new)
(15 a) ‘indirect emissions’ mean emissions from the production of energy consumed for the production processes of goods;
Amendment 273 #
Proposal for a regulation
Article 3 – paragraph 1 – point 16
Article 3 – paragraph 1 – point 16
(16) ‘embedded emissions’ mean direct and indirect emissions released during the production of goods, calculated pursuant to the methods set out in Annex III, and indirect emissions released during the production of energy consumed by the producer of goods to be calculated pursuant to the methods to be set out by the Commission in a delegated act to be adopted in accordance with article 28 of this Regulation;
Amendment 276 #
Proposal for a regulation
Article 3 – paragraph 1 – point 22
Article 3 – paragraph 1 – point 22
(22) ‘actual emissions’ mean the emissions calculated based on primary data from the production processes of goods and from the production of energy consumed for the production processes of goods;
Amendment 277 #
Proposal for a regulation
Article 3 – paragraph 1 – point 23
Article 3 – paragraph 1 – point 23
(23) ‘carbon price’ means the sum of the monetary amount paid in a third country in the form of a tax or emission allowances under a greenhouse gas emissions trading system, calculated on greenhouse gases covered by such a measure and released during the production of goods and the monetary amount paid in a third country for the greenhouse gases released during the production of energy consumed during the production processes of goods;
Amendment 285 #
(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.
Amendment 286 #
Proposal for a regulation
Article 7 – paragraph 1
Article 7 – paragraph 1
1. Embedded direct emissions in goods shall be calculated pursuant to the methods set out in Annex III.
Amendment 288 #
Proposal for a regulation
Article 7 – paragraph 2
Article 7 – paragraph 2
2. Embedded direct emissions in goods other than electricity shall be determined based on the actual emissions in accordance with the methods set out in Annex III, points 2 and 3. When actual emissions cannot be adequately determined, the embedded emissions shall be determined by reference to default values in accordance with the methods set out in Annex III, point 4.1.
Amendment 293 #
Proposal for a regulation
Article 7 – paragraph 7 a (new)
Article 7 – paragraph 7 a (new)
7 a. The Commission is empowered to adopt delegated acts providing a methodology for the calculation of the actual embedded indirect emissions for simple and complex goods and of relevant default values as well as a methodology for the determination of the CBAM price of embedded indirect emissions. Those delegated acts shall be adopted in accordance with Article 28.
Amendment 294 #
Proposal for a regulation
Article 7 – paragraph 7 b (new)
Article 7 – paragraph 7 b (new)
7 b. The Commission shall adopt the implementing and delegated acts referred to in paragraphs 6 and 7a by 31 December 2023, with a view to ensuring their application from 1 January 2024.
Amendment 296 #
Proposal for a regulation
Article 8 – paragraph 2
Article 8 – paragraph 2
2. For embedded emissions in goods produced in registered installations in a third country in accordance with Article 10, the authorised declarant may choose toshall, if available, use verified information disclosed to it in accordance with Article 10(7) to fulfil the obligation referred to in paragraph 1.
Amendment 297 #
Proposal for a regulation
Article 8 – paragraph 3 – introductory part
Article 8 – paragraph 3 – introductory part
3. The Commission is empowered to adopt implementingdelegated acts concerning the principles of verification referred to in paragraph 1 as rAnnex V and the obligation to set thresholds for deciding whether misstatements or non-conformities are material and concerning the supporting documentation needed for the verification report. Regardsing the possibility to waive the obligation for the verifier to visit the installation where relevant goods are produced and the obligation to set thresholds for deciding whether misstatements or non-conformities are material and concerning the supporting documentation needed for the verification report, this may be possible only in duly justified circumstances and in such cases where the installation has a well- known standard profile regarding production and technology, allowing for a reliable estimation of embedded emissions.
Amendment 300 #
Proposal for a regulation
Article 8 – paragraph 3 – subparagraph 1
Article 8 – paragraph 3 – subparagraph 1
The implementingdelegated acts referred to in the first subparagraph shall be adopted in accordance with the examination procedure referred to in Article 29(2)8.
Amendment 301 #
Proposal for a regulation
Article 9 – paragraph 1
Article 9 – paragraph 1
1. An authorised declarant may claim in its CBAM declaration a reduction in the number of CBAM certificates to be surrendered in order for the carbon price paid in the country of origin for the declared embedded emissions to be taken into account, unless that paid price falls into the practices of circumvention within the meaning of Article 27(2).
Amendment 302 #
Proposal for a regulation
Article 9 – paragraph 2
Article 9 – paragraph 2
2. The authorised declarant shall keep records of the documentation, certified by an independent person, required to demonstrate that the declared embedded emissions were subject to a carbon price in the country of origin of the goods and keep evidence of the proof of the actual payment for that carbon price which should not have been subject to an export rebate or any other form of compensation on exportation. The documentation shall be certified by a qualified independent person, whose name and contact details appear on the documentation. Upon request, the authorised declarant shall transmit such documentation to the relevant competent authority.
Amendment 309 #
Proposal for a regulation
Article 9 – paragraph 4
Article 9 – paragraph 4
4. The Commission is empowered to adopt implementing acts establishing the methodology for calculating the reduction in the number of CBAM certificates to be surrendered, regarding the conversion of the carbon price paid in foreign currency into euro at yearly average exchange rate in accordance with paragraph 1, and regarding the qualifications ofand the requirements the independent person certifying the information shall satisfy as well as elements of proof of the carbon price paid and the absence of export rebates or other forms of compensation on exportation being applied as referred to in paragraph 2. Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 29(2).
Amendment 315 #
Proposal for a regulation
Article 10 – paragraph 5 – point b
Article 10 – paragraph 5 – point b
(b) ensure that the embedded emissions referred to in point (a) are verified in accordance with the verification principles set out in Annex V by a verifier accredited pursuant to Article 18, including through installation visits by the verifier;
Amendment 316 #
Proposal for a regulation
Article 10 – paragraph 5 a (new)
Article 10 – paragraph 5 a (new)
5 a. The operator shall without delay inform the Commission of any changes in the information referred to in paragraph 5 following the registration and the Commission shall update the relevant information.
Amendment 321 #
Proposal for a regulation
Article 10 – paragraph 8
Article 10 – paragraph 8
8. The operator may, at any time, ask to be deregistered from the database and shall be removed from the database four years after the year in which an authorised declarant used the information in the database relating to that operator to fulfil the obligation referred to in Article 8.
Amendment 333 #
Proposal for a regulation
Article 11 – paragraph 2
Article 11 – paragraph 2
2. Member States shall require that competent authorities exchange any information thatUpon request, competent authorities shall, without undue delay, provide each other with any document submitted by an authorised declarant, when this is essential or relevant to the exercise of their functions and duties.
Amendment 338 #
Proposal for a regulation
Article 12 – paragraph 1
Article 12 – paragraph 1
The Commission shall assist the competent authorities in carrying out their obligations under this Regulation and coordinate their activities. The Commission shall set up an expert group of representatives from Member States’ competent authorities in order to exchange information and best practices on the application of this regulation. Such expert group shall meet at least twice a year.
Amendment 343 #
Proposal for a regulation
Article 14 – paragraph 1
Article 14 – paragraph 1
1. The competent authority of each Member State shall establish a national registry of declarants authorised in that Member State in the form of a standardised electronic database containing the data regarding the CBAM certificates of those declarants, and to provide for confidentiality in accordance with the conditions set out in Article 13. Access to databases shall be granted to the competent authorities of the other Member States.
Amendment 353 #
Proposal for a regulation
Article 15 – paragraph 2
Article 15 – paragraph 2
2. The central administrator shall carry out risk-based controls on transactions recorded in national registries through an independent transaction log to ensure that there are no irregularities in the calculation, purchase, holding, surrender, re-purchase and cancellation of CBAM certificates.
Amendment 363 #
Proposal for a regulation
Article 17 – paragraph 1 – point a a (new)
Article 17 – paragraph 1 – point a a (new)
(a a) the declarant has not been involved in repeated infringements of the Regulation which led to the revocation of an authorisation by the competent authorities of other Member States;
Amendment 365 #
Proposal for a regulation
Article 17 – paragraph 1 a (new)
Article 17 – paragraph 1 a (new)
1 a. An authorisation is valid for a period of five years.
Amendment 374 #
Proposal for a regulation
Article 17 – paragraph 9
Article 17 – paragraph 9
9. The competent authority shall revoke the authorisation for a declarant who no longer meets the conditions laid down in paragraph 1, or who fails to cooperate with that authority. The competent authority shall inform the Commission and the competent authorities of the other Member States of the revocation.
Amendment 379 #
Proposal for a regulation
Article 19 – paragraph 1
Article 19 – paragraph 1
1. The competent authority may review the CBAM declaration within the period ending with the fourth year after the year in which the declaration should have been submitted. The review may consist in verifying the information provided in the CBAM declaration on the basis of the information communicated by the customs authorities in accordance with Article 25(2) and any other relevant evidence, and on the basis of any audit deemed necessary, including at the premises of the authorised declarant. The competent authority shall conduct reviews wherever there are indications of inaccuracies, as well as randomised reviews of CBAM declarations, to the extent necessary in order to deliver statistically significant reports to the Commission on incorrect CBAM declarations.
Amendment 384 #
Proposal for a regulation
Article 19 – paragraph 2
Article 19 – paragraph 2
2. Where a CBAM declaration in accordance with Article 6 has not been submitted, the competent authority of the Member State of establishment of the authorised declarant shall assess the CBAM obligations of that declarant on the basis of the information at its disposal and calculate the total number of CBAM certificates due at the latest by the 31 December of the fourth year following that when the CBAM declaration should have been submitted. The calculations shall use adequate values to assess the CBAM obligations with a view to preventing any incentive for authorised declarants to avoid submitting the required CBAM declaration.
Amendment 388 #
Proposal for a regulation
Article 21 – paragraph 1 – introductory part
Article 21 – paragraph 1 – introductory part
1. The Commission shall calculate the price of CBAM certificates as the sum of the prices of direct and indirect emissions. The price of direct emissions shall correspond to the average price of the closing prices of EU ETS allowances on the common auction platform in accordance with the procedures laid down in Commission Regulation (EU) No 1031/201054 for each calendar week. _________________ 54 Commission Regulation (EU) No 1031/2010 of 12 November 2010 on the timing, administration and other aspects of auctioning of greenhouse gas emission allowances pursuant to Directive 2003/87/EC (OJ L 302, 18.11.2010, p. 1).
Amendment 390 #
Proposal for a regulation
Article 21 – paragraph 1 – subparagraph 1
Article 21 – paragraph 1 – subparagraph 1
For those calendar weeks in which there are no auctions scheduled on the common auction platform, the price of CBAM certificatedirect emissions shall be the average price of the closing prices of EU ETS allowances of the last week in which auctions on the common auction platform took place.
Amendment 391 #
Proposal for a regulation
Article 21 – paragraph 3
Article 21 – paragraph 3
3. The price of indirect emissions shall be determined based on the methodology to be provided in the delegated acts referred to in paragraph 7a of Article 7. The Commission is empowered to adopt implementing acts to further define the methodology to calculate the average price of CBAM certificates and practical arrangements for the publication of the price. Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 29(2).
Amendment 396 #
Proposal for a regulation
Article 24 a (new)
Article 24 a (new)
Amendment 403 #
Proposal for a regulation
Article 25 – paragraph 2
Article 25 – paragraph 2
2. The customs authorities shall periodically communicatecommunicate on an yearly basis information on the goods declared for importation, which shall include the EORI number and the CBAM account number of the declarant, the 8-digit CN code of the goods, the quantity, the country of origin, the date of declaration and the customs procedure, to the competent authority of the Member State where the declarant has been authorised.
Amendment 405 #
Proposal for a regulation
Article 25 – paragraph 4
Article 25 – paragraph 4
4. The customs authorities may communicateshall carry out checks on the goods in accordance with Article 12(1)46 of Regulation (EU) No 952/2013, confidential information acquired by the customs authorities in the course of performing their duty or provided on a confidential basis, to the competent authority of the Member State where the declarant has been authorisedincluding the 8-digit CN code, the quantity and the country of origin of the imported goods with a view to assisting competent authorities in reviewing the CBAM declarations in accordance with Article 19. The cCompetent authorities of the Member States shall treat and exchange this information in accordance with Councilmission shall include the risks relating to CBAM in the design of the common risk criteria and standards pursuant to Article 50 of Regulation (ECU) No 515/97952/2013.
Amendment 409 #
Proposal for a regulation
Article 26 – paragraph 4 a (new)
Article 26 – paragraph 4 a (new)
4 a. In case of repetitive failure from an authorised declarant to comply with the obligations of the present Regulation, the Commission may request the competent authorities of the relevant Member States to withdraw the import authorisation referred to in Article 5.
Amendment 410 #
Proposal for a regulation
Article 26 – paragraph 5
Article 26 – paragraph 5
5. Member States may apply administrative or criminal sanctions for failure to comply with the CBAM legislation in accordance with their national rules in addition to penalties referred to in paragraph 2. Such sanctions shall be effective, proportionate and dissuasive. Member states shall in all cases apply administrative or criminal sanctions for any person other than an authorised declarant, introducing goods into the customs territory of the Union without surrendering CBAM certificates.
Amendment 414 #
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 includ relation to goods included in the scope of this Regulation include practices with insufficient due cause or economic justification other than avoiding obligations as laid down in this Regulation and consist of, but are not limited to: (a) subsidies or indirect subsidies, such as favourable tax arrangements or energy pricing, for the production of goods covered by the CBAM to cover parts of or the entirety of a CO2 price paid in the third country; (b) a CO2 price paid in a third country placed only on goods to be imported into the scope of this Regulation has insufficient due cause or economic justification other than avoidingcustoms territory of the Union or other kinds of dual production and sale practices aiming at eluding CBAM; (c) declaring the origin of goods from a country referred to under paragraph 3 of Article 2 or from any other intermediary country or region where the goods have been transhipped before export to the Union, in order to avoid, or mitigate, the obligations as laid down in this Regulation and consist in; (d) deliberate shifting production of goods to a country referred to under paragraph 3 of Article 2 for the sole purpose of avoiding the obligations laid down in this Regulation;. (e) 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 Regulation.
Amendment 432 #
Proposal for a regulation
Article 27 – paragraph 3
Article 27 – paragraph 3
3. A Member State or any party affected or benefitted by any of 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 imported goods included in the scope of this Regulation 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. Interested parties other than directly affected parties, such as environmental organisations and non- governmental organisations, which find concrete evidence of circumvention of this Regulation, may also notify the Commission of their findings. The Commission shall continually monitor any significant change of pattern of trade of goods and slightly modified products at Union level, including based on market surveillance and on any relevant source of information, including submissions by and reporting from civil society organisations.
Amendment 436 #
Proposal for a regulation
Article 27 – paragraph 4
Article 27 – paragraph 4
4. The notifications referred to in paragraph 3 shall state the reasons on which it isthey are based and shall include relevant data and statistics regarding the goods and products referred to in paragraph 2. The Commission shall investigate possible circumvention when notified by a Member State, an affected party or an interested party and when such notifications meet the requirements outlined in this paragraph.
Amendment 438 #
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 32 are occurring in one or more Member States, it can proceed according to the following options: (a) it is empowered to adopt delegated acts in accordance with Article 28 to supplement the scope of this Regulation as necessary in order to include slightly modified products for anti-circumvention purposes. additional products for anti-circumvention purposes and if necessary it may adopt a new legislative proposal; (b) if in particular the practices of circumvention referred to in point (c) of paragraph 2 materialise in a Least- Developed Country the Commission may, if appropriate, temporarily remove the relevant exemption from CBAM referred to in paragraph 3 of Article 2; (c) in particular for the practices of circumvention referred to in point (d) of paragraph 2, the Commission shall introduce a tariff-rate quota based on export levels during the three preceding years. Beyond the level set by the tariff- rate quota, the exemption from CBAM for the country in question shall cease to apply.
Amendment 444 #
Proposal for a regulation
Article 27 – paragraph 5 a (new)
Article 27 – paragraph 5 a (new)
5 a. The Commission shall report every two years to the European Parliament and the Council on the main circumvention practices identified.
Amendment 454 #
Proposal for a regulation
Article 28 – paragraph 2
Article 28 – paragraph 2
2. The power to adopt delegated acts referred to in Articles 2(10), 2(11), 6(7a), 8(3), 18(3) and 27(5) shall be conferred on the Commission for an indeterminate period of time.
Amendment 456 #
Proposal for a regulation
Article 28 – paragraph 3
Article 28 – paragraph 3
3. The delegation of power referred to in Articles 2(10), 2(11), 6(7a), 8(3), 18(3) and 27(5) may be revoked at any time by the European Parliament or by the Council.
Amendment 459 #
Proposal for a regulation
Article 28 – paragraph 7
Article 28 – paragraph 7
7. A delegated act adopted pursuant to Articles 2(10), 2(11), 6(7a), 8(3), 18(3) and 27(5) shall enter into force only if no objection has been expressed either by the European Parliament or by the Council within a period of two months of notification of that act to the European Parliament and to the Council or if, before the expiry of that period, the European Parliament and the Council have both informed the Commission that they will not object. That period shall be extended by two months at the initiative of the European Parliament or of the Council.
Amendment 466 #
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, andto develop methods of calculating embedded emissions based on environmental footprint methods.
Amendment 472 #
Proposal for a regulation
Article 30 – paragraph 1 a (new)
Article 30 – paragraph 1 a (new)
1 a. Before the end of the transitional period, the Commission shall present a legislative proposal with a view to extending the scope of this Regulation to goods other than those listed in Annex I goods, including but not limited to oil refineries, paper, glass, plastics, chemicals and downstream products.
Amendment 479 #
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: - an assessment of the possibilitgovernance system with a viesw to further exsetting up a European CBAM Authority which would be grantend 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 thetasks of coordinating relevant authorities, centralising data and providing a single contact point for operators, authorised declarants and any interested parties; - an assessment of the measures aiming at preventing and addressing circumvention practices; - 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 491 #
Proposal for a regulation
Article 30 – paragraph 3 a (new)
Article 30 – paragraph 3 a (new)
3 a. The Commission shall monitor the functioning of the Carbon Border Adjustment Mechanism. Each year, it shall submit a report to the European Parliament and to the Council on the functioning of the Carbon Border Adjustment Mechanism, including the volumes of imported products covered by this Regulation broken-down by exporting country, the quantity of emissions embedded in those products, as well as products’ average emissions-intensity. The Commission shall also provide an assessment of the impacts of this regulation on the risk of carbon leakage relevant sectors, of the evidence and risk of circumvention and of the administrative procedures for declarants.
Amendment 496 #
Proposal for a regulation
Chapter IX – title
Chapter IX – title
IX CoordTermination withof free allocation of allowances under the EU ETS
Amendment 498 #
Proposal for a regulation
Article 31 – paragraph 1
Article 31 – paragraph 1
1. The CBAM certificates to be surrendered in accordance with Article 22 shall be adjusted to reflect the extent to which EU ETS allowances are allocated free of charge in accordance with Article 10a of Directive 2003/87/EC to installations producing, within the Union, the goods listed in Annex Ireflect the price paid by the installations producing within the Union territory and being covered by the EU ETS in accordance with Directive XXXX/XX/XX (revised EU ETS), which will provide for a termination of free allocation of allowances as of the date referred to in paragraph 3(d) of Article 36 of this Regulation.
Amendment 502 #
Proposal for a regulation
Article 35 – paragraph 2 – point b
Article 35 – paragraph 2 – point b
(b) the actual total embedded direct emissions, expressed in tonnes of CO2e emissions per megawatt-hour of electricity or for other goods in tonne of CO2e emissions per tonne of each type of goods, calculated in accordance with the method set out in Annex III;
Amendment 503 #
Proposal for a regulation
Article 35 – paragraph 2 – point c
Article 35 – paragraph 2 – point c
(c) the actual total embedded indirect emissions, expressed in tonnes of CO2e emissions per tonne of each type of other goods than electricity, calculated in accordance with a method set out in an implementingdelegated act referred to in paragraph 67a of Article 7;
Amendment 508 #
Proposal for a regulation
Article 35 – paragraph 6
Article 35 – paragraph 6
6. The Commission is empowered to adopt implementing acts concerning the information to be reported, the procedures for communicating the information referred to in paragraph 3 and the conversion of the carbon price paid in foreign currency into euro at yearly average exchange rate. The Commission is also empowered to adopt implementing acts to further define the necessary elements of the calculation method set out in Annex III, including determining system boundaries of production processes, emission factors, installation-specific values of actual emissions and their respective application to individual goods as well as laying down methods to ensure the reliability of data, including the level of detail and the verification of this data. The Commission is further empowered to adopt implementing acts to develop a calculation method for indirect emissions embedded in imported goods.
Amendment 513 #
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 20254.
Amendment 518 #
Proposal for a regulation
Article 36 – paragraph 3 – point b
Article 36 – paragraph 3 – point b
(b) Article 35 shall apply until 28 February 20265.
Amendment 521 #
Proposal for a regulation
Article 36 – paragraph 3 – point c
Article 36 – paragraph 3 – point c
(c) Articles 5 and 17 shall apply from 1 September 20254.
Amendment 526 #
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 20265.
Amendment 544 #
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 average emission intensity of the 10 per cent worst performing EU installations for that type of goods with a view to encouraging companies to provide data on actual embedded emissions.
Amendment 548 #
Proposal for a regulation
Annex V – Part 1 – paragraph 1 – point c
Annex V – Part 1 – paragraph 1 – point c
(c) installation visits by the verifier shall be mandatory except where specific criteria for waiving the installation visit are met;
Amendment 549 #
Proposal for a regulation
Annex I
Annex I
Aluminium Aluminium CN code Greenhouse gas 7601 – Unwrought Carbon dioxide aluminium and perfluorocarbons perfluorocarbons 7603 – Aluminium Carbon dioxide powders and flakes and perfluorocarbons perfluorocarbons 7604 – Aluminium Carbon dioxide bars, rods and and profiles perfluorocarbons 7605 – Aluminium Carbon dioxide wire and perfluorocarbons perfluorocarbons 7606 – Aluminium Carbon dioxide plates, sheets and and strip, of a thickness perfluorocarbons exceeding 0,2 mm 7607 – Aluminium Carbon dioxide foil (whether or not and printed or backed perfluorocarbons with paper, paper- board, plastics or similar backing materials) of a thickness (excluding any backing) not exceeding 0,2 mm 7608 – Aluminium Carbon dioxide tubes and pipes and perfluorocarbons perfluorocarbons 7609 00 00 – Carbon dioxide Aluminium tube or and pipe fittings (for perfluorocarbons example, couplings, elbows, sleeves) 7610 - Aluminium Carbon dioxide structures and (excluding perfluorocarbon prefabricated s buildings of heading 9406) and parts of structures (for example, bridges and bridgesections, towers, lattice masts, roofs, roofing frameworks, doors and windows and their frames and thresholds for doors, balustrades, pillars and columns); aluminium plates, rods, profiles, tubes and the like, prepared for use in structures: 7611 00 00 - Carbon dioxide Aluminium and reservoirs, tanks, perfluorocarbon vats and similar s containers, for any material (other than compressed or liquefied gas), of a capacity exceeding 300 litres, whether or not lined or heat- insulated, but not fitted with mechanical or thermal equipment 7612 - Aluminium Carbon dioxide casks, drums, cans, and boxes and similar perfluorocarbon containers s (including rigid or collapsible tubular containers), for any material (other than compressed or liquefied gas), of a capacity not exceeding 300 litres, whether or not lined or heat-insulated, but not fitted with mechanical or thermal equipment: 7613 00 00 - Carbon dioxide Aluminium and containers for perfluorocarbon compressed or s liquefied gas 7614 - Stranded Carbon dioxide wire, cables, plaited and bands and the like, perfluorocarbon of aluminium, not s electrically insulated