BETA

37 Amendments of Edina TÓTH related to 2021/0211(COD)

Proposal for a directive
Recital 8

(8) The EU ETS should incentivise production from installations that partly or fully reduce greenhouse gas emissions. Therefore, the description of some categories of activities in Annex I to Directive 2003/87/EC should be amended to ensure an equal treatment of installations in the sectors concerned. In addition, free allocation for the production of a product should be independent of the nature of the production process. It is therefore necessary to modify the definition of the products and of the processes and emissions covered for some benchmarks to ensure a level playing field for new and existing technologies. It is also necessary to decouple the update of the benchmark values for refineries and for hydrogen to reflect the increasing importance of production of hydrogen outside the refineries sector.

2022/02/22
Committee: ENVI

(28) Achieving the increased climate ambition will require substantial public resources in the EU as well as national budgets to be dedicated to the climate transition. To complement and reinforce the substantial climate-related spending in the EU budget, all auction revenues that are not attributed to the Union budget should be used for climate-related purposes. This includes the use for financial support to address social aspects in lower- and middle-income households by reducing distortive taxes. Further, to address distributional and social effects of the transition in low-income Member States, an additional amount of ~~2,5~~4 % of the Union-wide quantity of allowances from [year of entry into force of the Directive] to 2030 should be used to fund the energy transition of the Member States with a gross domestic product (GDP) per capita below 65 % of the Union average in 2016- 2018, through the Modernisation Fund referred to in Article 10d of Directive 2003/87/EC.

2022/02/22
Committee: ENVI

Proposal for a directive
Recital 30

(30) The Carbon Border Adjustment Mechanism (CBAM), established under Regulation (EU) […./..] of the European Parliament and of the Council51 , is an alternative to free allocation to address the risk of carbon leakage. To the extent that sectors and subsectors are covered by that measure, they should not receive free allocation. However, a transitional phasing-out of free allowances is needed to allow producers, importers and traders to adjust to the new regime. The reduction of free allocation should be implemented by applying a factor to free allocation for CBAM sectors, while the CBAM is phased in. Sufficient safeguards should nevertheless be provided for the products intended for exports and their producers. This percentage (CBAM factor) should be equal to 100 % during the transitional period between the entry into force of [CBAM Regulation] and 2025, 90 % in 2026 and should be reduced by 10 percentage points each year to reach 0 % and thereby eliminate free allocation by the tenth year. The relevant delegated acts on free allocation should be adjusted accordingly for the sectors and subsectors covered by the CBAM, taking into account the need to maintain free allowances for the products that are exported. The free allocation no longer provided to the CBAM sectors based on this calculation (CBAM demand) must be auctioned and the revenues will accrue to the Innovation Fund, so as to support innovation in low and zero carbon technologies, carbon capture and utilisation (‘CCU’), carbon capture and geological storage (‘CCS’), renewable energy and energy storage, in a way that contributes to mitigating climate change. Special attention should be given to projects in CBAM sectors. To respect the proportion of the free allocation available for the non- CBAM sectors, the final amount to deduct from the free allocation and to be auctioned should be calculated based on the proportion that the CBAM demand represents in respect of the free allocation needs of all sectors receiving free allocation. _________________ 51 [please insert full OJ reference]

2022/02/22
Committee: ENVI

Proposal for a directive
Recital 33

(33) The scope of the Innovation Fund referred to in Article 10a(8) of Directive 2003/87/EC should be extended to support innovation in low-carbon technologies and processes that concern the consumption of fuels in the sectors of buildings and road transport. In addition, the Innovation Fund should serve to support investments to decarbonise the maritime transport sector, including investments in sustainable alternative fuels, such as hydrogen and ammonia that are produced from renewables, as well as zero-emission propulsion technologies like wind technologies. Considering that revenues generated from penalties raised in Regulation xxxx/xxxx [FuelEU Maritime]52 are allocated to the Innovation Fund as external assigned revenue in accordance with Article 21(5) of the Financial Regulation, the Commission should ensure that due consideration is given to support for innovative projects aimed at accelerating the development and deployment of renewable and low carbon fuels in the maritime sector, as specified in Article 21(1) of Regulation xxxx/xxxx [FuelEU Maritime]. To ensure sufficient funding is available for innovation within this extended scope, the Innovation Fund should be supplemented with 50 million allowances, stemming partly from the allowances that could otherwise be auctioned, and partly from the allowances that could otherwise be allocated for free, in accordance with the current proportion of funding provided from each source to the Innovation Fund. Projects supported from the Innovation Fund should respect the principle of geographical balance. _________________ 52[add ref to the FuelEU Maritime Regulation].

2022/02/22
Committee: ENVI

Proposal for a directive
Recital 35

(35) Carbon Contracts for Difference (CCDs) are an important element to trigger emission reductions in industry, offering the opportunity to guarantee investors in innovative climate-friendly technologies a price that rewards CO2 emission reductions above those induced by the current price levels in the EU ETS. The range of measures that the Innovation Fund can support should be extended to provide support to projects through price- competitive tendering, such as CCDs and respect the principle of geographical balance. The Commission should be empowered to adopt delegated acts on the precise rules for this type of support.

2022/02/22
Committee: ENVI

Proposal for a directive
Recital 38

(38) The scope of the Modernisation Fund should be aligned with the most recent climate objectives of the Union by requiring that investments are consistent with the objectives of the European Green Deal and Regulation (EU) 2021/1119, and eliminating the support to any investments related to solid fossil fuels. In addition, the percentage of the Modernisation Fund that needs to be devoted to priority investments should be increased to 80 %; energy efficiency should be targeted as a priority area at the demand side; and support of households to address energy poverty, including in rural and remote areas, should be included within the scope of the priority investments.

2022/02/22
Committee: ENVI

Proposal for a directive
Recital 43

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

2022/02/22
Committee: ENVI

Proposal for a directive
Recital 47

~~(47) The regulated entities falling within the scope of the emissions trading in the sectors of buildings and road transport should be subject to similar greenhouse gas emissions permit require~~deleted (This amendments as the operators of stationary installations. It is necessary to establish rules on permit applications, conditions for permit issuance, content, and review, and any changes related to the regulated entity. In order for the new system to start in an orderly manner, Member States should ensure that regulated entities falling within thpplies throughout the text. Adopting it will necessitate sco~~pe of the new emissions tra~~rresponding cha~~ve a valid permit as of the start of the system in 2025.~~nges throughout.)

2022/02/24
Committee: ENVI

Proposal for a directive
Recital 48

(48) The total quantity of allowances for the new emissions trading should follow a linear trajectory to reach the 2030 emissions reduction target, taking into account the cost-efficient contribution of buildings and road transport of 43 % emission reductions by 2030 compared to 2005. The total quantity of allowances should be established for the first time in 2026, to follow a trajectory starting in 2024 from the value of the 2024 emissions limits (1 109 304 000 CO2t), calculated in accordance with Article 4(2) of Regulation (EU) 2018/842 of the European Parliament and of the Council59 on the basis of the reference emissions for these sectors for the period from 2016 to 2018. Accordingly, the linear reduction factor should be set at 5,15 %. From 2028, the total quantity of allowances should be set on the basis of the average reported emissions for the years 2024, 2025 and 2026, and should decrease by the same absolute annual reduction as set from 2024, which corresponds to a 5,43 % linear reduction factor compared to the comparable 2025 value of the above defined trajectory. If those emissions are significantly higher than this trajectory value and if this divergence is not due to small-scale differences in emission measurement methodologies, the linear reduction factor should be adjusted to reach the required emissions reduction in 2030. _________________ 59Regulation (EU) 2018/842 of the European Parliament and of the Council of 30 May 2018 on binding annual greenhouse gas emission reductions by Member States from 2021 to 2030 contributing to climate action to meet commitments under the Paris Agreement and amending Regulation (EU) No 525/2013 (OJ L 156, 19.6.2018, p. 26).deleted (This amendment applies throughout the text. Adopting it will necessitate corresponding changes throughout.)

2022/02/24
Committee: ENVI

Proposal for a directive
Recital 49

(49) The auctioning of allowances is the simplest and the most economically efficient method for allocating emission allowances, which also avoids windfall profits. Both the buildings and road transport sectors are under relatively small or non-existent competitive pressure from outside the Union and are not exposed to a risk of carbon leakage. Therefore, allowances for buildings and road transport should only be allocated via auctioning wideleted (This amendment applies throughout the text. Adopting it will necessitate corresponding changes throu~~t there being any free allocation.~~ghout.)

2022/02/24
Committee: ENVI

Proposal for a directive
Recital 50

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

2022/02/24
Committee: ENVI

Proposal for a directive
Recital 51

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

2022/02/24
Committee: ENVI

Proposal for a directive
Recital 52

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

2022/02/24
Committee: ENVI

Proposal for a directive
Recital 54

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

2022/02/24
Committee: ENVI

Proposal for a directive
Recital 55

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

2022/02/24
Committee: ENVI

Proposal for a directive
Recital 56

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

2022/02/24
Committee: ENVI

Proposal for a directive
Recital 57

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

2022/02/24
Committee: ENVI

Proposal for a directive
Recital 58

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

2022/02/24
Committee: ENVI

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

2022/02/24
Committee: ENVI

Proposal for a directive
Recital 60

(60) In order to adopt non-legislative acts of general application to supplement or amend certain non-essential elements of a legislative act, the power to adopt acts in accordance with Article 290 of the Treaty on the Functioning of the European Union should be delegated to the Commission in respect of Articles 10(4) and 10a(8) of that Directive. Moreover, to ensure synergies with the existing regulatory framework, the delegation in Articles 10(4) and 10a(8) of Directive 2003/87/EC should be extended to cover the sectors of road transport and buildings. It is of particular importance that the Commission carry out appropriate consultations during its preparatory work, including at expert level, and that those consultations be conducted in accordance with the principles laid down in the Interinstitutional Agreement on Better Law-Making of 13 April 2016. In particular, to ensure equal participation in the preparation of delegated acts, the European Parliament and the Council receive all documents at the same time as Member States' experts, and their experts systematically have access to meetings of Commission expert groups dealing with the preparation of delegated acts. In accordance with the Joint Political Declaration of 28 September 2011 of Member States and the Commission on explanatory documents66 , Member States have undertaken to accompany, in justified cases, the notification of their transposition measures with one or more documents explaining the relationship between the components of a directive and the corresponding parts of national transposition instruments. With regard to this Directive, the legislator considers the transmission of such documents to be justified _________________ 66 OJ C 369, 17.12.2011, p. 14.

2022/02/24
Committee: ENVI

Proposal for a directive
Recital 63

(63) Furthermore, in order to ensure that the level of allowances that remains in the Market Stability Reserve after the invalidation is predictable, the invalidation of allowances in the reserve should no longer depend on the auction volumes of the previous year. The number of allowances in the reserve should, therefore, be fixed at a level of 42 000 million allowances, which corresponds to the lower threshold for the value of the TNAC.

2022/02/24
Committee: ENVI

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

Directive 2003/87/EC
Article 2 – paragraph 1

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

2022/02/24
Committee: ENVI

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

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

In addition, ~~2,5~~4 % of the total quantity of allowances between [year following the entry into force of the Directive] and 2030 shall be auctioned for the Modernisation Fund. The beneficiary Member States for this amount of allowances shall be the Member States with a GDP per capita at market prices below 65 % of the Union average during the period 2016 to 2018. The funds corresponding to this quantity of allowances shall be distributed in accordance with Part B of Annex IIb.

2022/02/28
Committee: ENVI

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

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

(h) measures intended to improve energy efficiency, efficient and renewable heating and cooling systems, district heating systems and insulation, or to provide financial support in order to address social aspects in lower- and middle-income households, including by reducing distortive taxes;;

2022/02/28
Committee: ENVI

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

Directive 2003/87/EC
Article 10a - paragraph 1 – subparagraphs 2a and 2b

(i) the following two subparagraphs are inserted after the second subparagraph: ‘In the case of installations covered by the obligation to conduct an energy audit under Article 8(4) of Directive 2012/27/EU of the European Parliament and of the Council(*) [Article reference to be updated with the revised Directive], free allocation shall only be granted fully if the recommendations of the audit report are implemented, to the extent that the pay-back time for the relevant investments does not exceed five years and that the costs of those investments are proportionate. Otherwise, the amount of free allocation shall be reduced by 25 %. The amount of free allocation shall not be reduced if an operator demonstrates that it has implemented other measures which lead to greenhouse gas emission reductions equivalent to those recommended by the audit report. The measures referred to in the first subparagraph shall be adjusted accordingly. No free allocation shall be given to installations in sectors or subsectors to the extent they are covered by other measures to address the risk of carbon leakage as established by Regulation (EU) …./.. [reference to CBAM](**). The measures referred to in the first subparagraph shall be adjusted accordingly _________ (*) Directive 2012/27/EU of the European Parliament and of the Council of 25 October 2012 on energy efficiency, amending Directives 2009/125/EC and 2010/30/EU and repealing Directives 2004/8/EC and 2006/32/EC (OJ L 315, 14.11.2012, p. 1).”; (**) [CBAM full reference]’Deleted

2022/02/28
Committee: ENVI

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

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

The ban on giving free allocation to the production of these products, set out in the first subparagraph shall not apply to any part of the production of these products that is exported to third countries that do not have a carbon pricing mechanism similar or equivalent to the EU ETS.

2022/03/04
Committee: ENVI

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

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

(d) Where the annual reduction rate exceeds ~~2,5~~1,6 % or is below 0,2 %, the benchmark values for the period from 2026 to 2030 shall be the benchmark values applicable in the period from 2013 to 2020 reduced by whichever of those two percentage rates is relevant, in respect of each year between 2008 and 2028.;

2022/03/04
Committee: ENVI

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

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

The Innovation Fund shall cover the sectors listed in Annex I and Annex III, including environmentally safe carbon capture and utilisation (“CCU”) that contributes substantially to mitigating climate change, as well as products substituting carbon intensive ones produced in sectors listed in Annex I, and to help stimulate the construction and operation of projects aimed at the environmentally safe capture and geological storage (“CCS”) of CO2, as well as of innovative renewable or low carbon energy and energy storage technologies; in geographically balanced locations. The Innovation Fund may also support break- through innovative technologies and infrastructure to decarbonise the maritime sector and for the production of low- and zero-carbon fuels in aviation, rail and road transport. Special attention shall be given to projects in sectors covered by the [CBAM regulation] to support innovation in low carbon technologies, CCU, CCS, renewable energy and energy storage, in a way that contributes to mitigating climate change.

2022/03/01
Committee: ENVI

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

Directive 2003/87/EC
Article 10a – paragraph 8 – subparagraph 4

PIn accordance with the principle of geographical balance, projects in the territory of all Member States, including small-scale projects, shall be eligible. Technologies receiving support shall be innovative and not yet commercially viable at a similar scale without support but shall represent breakthrough solutions or be sufficiently mature for application at pre- commercial scale.

2022/03/01
Committee: ENVI

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

Directive 2003/87/EC
Article 10a – paragraph 8 – subparagraph 5

The Commission shall ensure that the allowances destined for the Innovation Fund are auctioned in accordance with the principles and modalities laid down in Article 10(4), as well as with the principle of geographical balance. Proceeds from the auctioning shall constitute external assigned revenue in accordance with Article 21(5) of the Financial Regulation. Budgetary commitments for actions extending over more than one financial year may be broken down over several years into annual instalments.

2022/03/01
Committee: ENVI

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

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

The investments supported shall be consistent with the aims of this Directive, as well as the objectives of the Communication from the Commission of 11 December 2019 on The European Green Deal (*) and Regulation (EU) 2021/1119 of the European Parliament and of the Council (**) and the long-term objectives as expressed in the Paris Agreement. No support from the Modernisation Fund shall be provided to energy generation facilities that use solid fossil fuels.”;

2022/03/01
Committee: ENVI

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

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

(a) the generation and use of electricity from renewable sources and from low- carbon fuels where it is replacing a more carbon-intensive system;

2022/03/01
Committee: ENVI

Proposal for a directive
Article 1 – paragraph 1 – point 14 – point b Directive 2003/87/EC

(b) heating and cooling from renewable sources and from low-carbon fuels when it is replacing amore carbon-intensive system;

2022/03/01
Committee: ENVI

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

Directive 2003/87/EC
Article 29 a

(19a) Article 29a is replaced by the following: "Article 29a Measures in the event of excessive price fluctuations ~~1. If, for more than six consecutive~~If in a calendar months, the average allowance price on the European carbon market is more than t~~hree~~wo times the average price of allowances during the ~~two preceding years~~ five months period centered by the mon the European carbon market, the Commission shall immediately convene a meeting of the Committee established by Article 9 of Decision No 280/2004/EC. 2. paragraph 1 does not correspond to changing market fundamentals, one of the following measures may be adopted, taking into account the degree of price evolution: (a)a measure which allows Member States to bring forward the auctioning of a part of the quantity to be auctioned; (b)a measure which allows Member States to auction up to 25 % of the remaining allowances in the new entrants reserve. Those measures shall be adopted in accordance with the management procedure referred to in Article 23(4). 3. account of the reports submitted by the Commission to the European Parliament and to the Council pursuant to Article 29, as well as any other relevant information provided by Member States. 4. The arrangements for the application of these provisions shall be laid down in the acts referred to in Article 10(4). (https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A02003L0087- two years prior to that month, 150 million allowances shall be automatically released from the market stability reserve established by Decision (EU) 2015/1814 and shall be auctioned according to Article 10 of this Directive during the second, third and fourth months following the month in which that criteria was met. The respective auctioning amounts for each of the three months shall be evenly distributed. If the amount of the allowances contained in the reserve is less than 150 million, all allowances in the reserve shall be released. If the price evolution referred to in Any measure shall take utmost Or. en 20210101&qid=1642503235409)

2022/03/01
Committee: ENVI

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

Directive 2003/87/EC
Chapter IV a

~~(21) The following Chapter IVa is inserted after Article 30: [...]~~ deleted (This amendment applies throughout the Chapter IVa. Adopting it will necessitate corresponding changes throughout.)

2022/03/01
Committee: ENVI

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

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

5a. Unless otherwise decided in the first review carried out in accordance with Article 3, from 2023 allowances held in the reserve above ~~400 million allowances shall no longer be valid.~~ the total number of allowances auctioned during the previous year shall no longer be valid. Or. en (https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A02015D1814- 20180408&qid=1642503924151)

2022/03/02
Committee: ENVI

Proposal for a directive
Annex I – paragraph 1 – point b – point -i (new)

Directive 2003/87/EC
Annex I – table – row 1 – column 1

(-i) in the first row, the first column is replaced by the following: "Combustion of fuels in installations with a total rated thermal input exceeding 20 MW (except in installations for the incineration of hazardous ~~or municipal waste)~~ waste or for the recovery of municipal waste)”; Or. en (https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A02003L0087- 20210101&qid=1644507286911)

2022/03/02
Committee: ENVI