BETA

16 Amendments of Daniel CASPARY related to 2008/0013(COD)

Proposal for a directive – amending act
Recital 3

(3) The European Council has made a firm commitment to reduce the overall greenhouse gas emissions of the Community by at least 20% below 1990 levels by 2020, and by 30% provided that other developed countries commit themselves to comparable emission reductions and economically more advanced developing countries contribute adequately according to their responsibilities and respective capabilities. This ambitious contribution by Europe, together with the emission trading system, is in any case placing a comparatively heavy burden on the European economy in the international context. By 2050, global greenhouse gas emissions should be reduced by at least 50% below their 1990 levels. All sectors of the economy should contribute to achieving these emission reductions.

2008/06/27
Committee: INTA

Proposal for a directive – amending act
Recital 6

(6) Once the Community and third countries conclude an international agreement according to which ~~appropriate~~ global action will be taken beyond 2012, considerable support ~~should~~must be given to credit emission reductions made in those countries. In advance of such an agreement, greater certainty ~~should~~must nonetheless be given on the continued use of credits from outside the Community.

2008/06/27
Committee: INTA

Proposal for a directive – amending act
Recital 17 a (new)

(17a) It may realistically assumed that the (Kyoto II) international agreement will lay down different obligations for industrialised and emerging countries (‘common but differentiated treatment’). This presents the Community with the challenge of making an effective contribution to the containment of CO2 emissions. The agreement could lead to international acceptance of increased CO2 emissions in certain emerging countries. The Community is therefore obliged to take into account the resulting distortions of competition. ‘Carbon leakage’ arises by not only as a result of failure to comply with the international agreement but also where different obligations are imposed by it.

2008/06/27
Committee: INTA

Proposal for a directive – amending act
Recital 18

(18) Transitional free allocation to installations should be provided for through harmonised Community-wide rules ("benchmarks") in order to minimise distortions of competition within the Community and with regard to international competitors. These rules should take account of the most greenhouse gas and energy efficient techniques, substitutes, alternative production processes, use of biomass, renewables and greenhouse gas capture and storage. Any such rules should not give incentives to increase emissions and ensure that an increasing proportion of these allowances is auctioned. Allocations must be fixed prior to the trading period so as to enable the market to function properly. They shall also avoid undue distortions of competition on the markets for electricity and heat supplied to industrial installations. These rules should apply to new entrants carrying out the same activities as existing installations receiving transitional free allocations. To avoid any distortion of competition within the internal market, no free allocation should be made in respect of the production of electricity by new entrants. Allowances which remain in the set-aside for new entrants in 2020 should be auctioned.

2008/06/27
Committee: INTA

Proposal for a directive – amending act
Recital 19

(19) The Community will continue to take the lead in the negotiation of an ambitious international agreement that will achieve the objective of limiting global temperature increase to 2°C and is encouraged by the progress made in Bali towards this objective. In the event that other developed countries and other major emitters of greenhouse gases do not participate in this international agreement, ~~could~~this will lead to an increase in greenhouse gas emissions in third countries where industry would not be subject to comparable carbon constraints (‘carbon leakage’), and at the same time could put certain energy- intensive sectors and sub-sectors in the Community which are subject to international competition at an economic disadvantage. This could undermine the environmental integrity and benefit of actions by the Community. To address the risk of carbon leakage, the Community will allocate allowances 100% free of charge ~~up to 100% to sectors or sub-sectors meeting the relevant criteria~~to energy-intensive sectors. The definition of these sectors and sub-sectors and the measures required will be subject to re- assessment to ensure that action is taken where necessary and to avoid overcompensation. For those specific sectors or sub-sectors where it can be duly substantiated that the risk of carbon leakage cannot be prevented otherwise, where electricity constitutes a high proportion of production costs and is produced efficiently, the action taken may take into account the electricity consumption in the production process, without changing the total quantity of allowances.

2008/06/27
Committee: INTA

Proposal for a directive – amending act
Recital 20

(20) The Commission should therefore review the situation by June 2011 at the latest, consult with all relevant social partners, and, in the light of the outcome of the international negotiations, submit a report accompanied by any appropriate proposals. In this context, the Commission should identify which energy intensive industry sectors or sub-sectors are likely to be subject to carbon leakage not later than 30 June 2010. It should base its analysis on the assessment of the inability to pass on the cost of required allowances in product prices without significant loss of market share to installations outside the Community not taking comparable action to reduce emissions. Energy-intensive industries which are determined to be exposed to a significant risk of carbon leakage could receive a higher amount of free allocation or an effective carbon equalisation system could be introduced with a view to putting installations from the Community which are at significant risk of carbon leakage and those from third countries on a comparable footing. Such a system could apply requirements to importers that would be no less favourable than those applicable to installations within the EU, for example by requiring the surrender of allowances. Any action taken would need to be in conformity with the principles of the UNFCCC, in particular the principle of common but differentiated responsibilities and respective capabilities, taking into account the particular situation of Least Developed Countries. It would also need to be in conformity with the international obligations of the Community including the WTO agreement.deleted

2008/06/27
Committee: INTA

Proposal for a directive – amending act
Recital 20 a (new)

(20 a) Allocation of quotas 100% free of charge will make redundant the inclusion of imports in emission trading. This guarantees compliance with the undertaking adopted in the context of the WTO and should also mean that third countries do not introduce such protectionist measures. At the same time, it will help to improve the negotiating climate and increase acceptance of effective European CO2 reduction mechanisms.

2008/06/27
Committee: INTA

Proposal for a directive – amending act
Recital 21

(21) In order to ensure equal conditions of competition within the Community, the use of credits for emission reductions outside the Community to be used by operators within the Community scheme should be harmonised. The Kyoto Protocol to the UNFCCC sets out quantified emission targets for developed countries for the period 2008 to 2012, and provides for the creation of Certified Emission Reductions (CERs) and Emission Reduction Units (ERUs) from Clean Development Mechanism (CDM) and Joint Implementation projects respectively and their use by developed countries to meet part of these targets. While the Kyoto framework does not enable ERUs to be created from 2013 onwards without new quantified emission targets being in place for host countries, CDM credits can potentially continue to be generated. ~~Additional~~The use of certified emission reductions (CERs) and emission reduction units (ERUs) should be provided for ~~once there is~~even without an international agreement on climate change from countries which have concluded that agreement. absence of such agreement, providing for further use of CERs and ERUs would undermine this incentive and make it more difficult to achieve the objectives of the Community on increasing renewable energy use. The use of CERs and ERUs should be consistent with the goal set by the In the Community of generating 20% of energy from renewable sources by 2020, and promoting energy efficiency, innovation and technological development. Where it is consistent with achieving these goals, the possibility should be foreseen to conclude agreements with third countries to provide incentives for reductions in emissions in these countries which bring about real, additional reductions in greenhouse gas emissions while stimulating innovation by companies established within the Community and technological development in third countries. Such agreements may be ratified by more than one country. Upon the conclusion by the Community of a satisfactory international agreement, access to credits from projects in third countries should be increased simultaneously with the increase in the level of emission reductions to be achieved through the Community scheme.

2008/06/27
Committee: INTA

Proposal for a directive – amending act
Recital 24

(24) Least Developed Countries are especially vulnerable to the effects of climate change, and are responsible only for a very low level of greenhouse gas emissions. Therefore, particular priority should be given to addressing the needs of Least Developed Countries when revenues generated from auctioning are used to facilitate developing countries' adaptation to the impacts of climate change. Given that very few CDM projects have been established in those countries, it is appropriate to give certainty on the acceptance of credits from projects started there after 2012, even in the absence of an international agreement. This entitlement should apply to Least Developed Countries until 2020 ~~, provided that they have by then either ratified a global agreement on climate change or a bilateral or multilateral agreement with the Community~~.

2008/06/27
Committee: INTA

Proposal for a directive – amending act
Article 1 - point 8

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

3. Free allocation ~~may~~shall be given to electricity generators in respect of the production of heat through high efficiency co-generation as defined by Directive 2004/8/EC for economically justifiable demand on the basis of uniform European benchmarks to ensure equal treatment with regard to other producers of heat. ~~In each year subsequent to 2013, the total allocation to such installations in respect of the production of that heat shall be adjusted by the linear factor referred to in Article 9~~These benchmarks shall be established and monitored in accordance with a harmonised procedure.

2008/06/27
Committee: INTA

Proposal for a directive – amending act
Article 1 - point 8

Directive 2003/87/EC
Article 10a – paragraph 7

7. Subject to Article 10b, the amount of allowances allocated free of charge under paragraphs 3 to 6 of this Article [and paragraph 2 of Article 3c] in 2013 shall be 80% of the quantity determined in accordance with the measures referred to in paragraph 1 and thereafter the free allocation shall decrease each year by equal amounts resulting in no free allocation in 2020.deleted

2008/06/27
Committee: INTA

Proposal for a directive – amending act
Article 1 - point 8

Directive 2003/87/EC
Article 10a – paragraph 7a (new)

7 a. Concerning the requirements set out in Annex I, uniform benchmarks shall be established throughout Europe. They shall be adopted and monitored in accordance with a harmonised procedure. On the basis of these benchmarks, installations shall receive allocations 100% free of charge, with the exception of installations which do not produce energy through cooperation.

2008/06/27
Committee: INTA

Proposal for a directive – amending act
Article 1 - point 8

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

8. In 2013 and in each subsequent year up to 2020, installations in sectors which are exposed to a significant risk of carbon leakage shall be allocated allowances free of charge up to 100 percent of the quantity determined in accordance with paragraphs 2 to 6.deleted

2008/06/27
Committee: INTA

Proposal for a directive – amending act
Article 1 - point 8

Directive 2003/87/EC
Article 10a – paragraph 9

At the latest by 30 June 2010 and every 3 years thereafter the Commission shall determine the sectors referred to in paragraph 8. That measure, designed to amend non- essential elements of this Directive by supplementing it, shall be adopted in accordance with the regulatory procedure with scrutiny referred to in Article [23(3)]. In the determination referred to in the first subparagraph the Commission shall take into account the extent to which it is possible for the sector or sub-sector concerned to pass on the cost of the required allowances in product prices without significant loss of market share to less carbon efficient installations outside the Community, taking into account the following: (a) would lead to a substantial increase in production cost; (b) for individual installations in the sector concerned to reduce emission levels for instance on the basis of the most efficient techniques; (c) geographic and product market, the exposure of the sectors to international competition; (d) energy policies implemented, or expected to be implemented outside the EU in the sectors concerned. For the purposes of evaluating whether the cost increase resulting from the Community scheme can be passed on, estimates of lost sales resulting from the increased carbon price or the impact on the profitability of the installations concerned may inter alia be used.deleted the extent to which auctioning the extent to which it is possible market structure, relevant the effect of climate change and

2008/06/27
Committee: INTA

Proposal for a directive – amending act
Article 1 - point 8

Directive 2003/87/EC
Article 10b

Measures to support certain energy intensive industries in the event of carbon Not later than June 2011, the Commission shall, in the light of the outcome of the international negotiations and the extent to which these lead to global greenhouse gas emission reductions, and after consulting with all relevant social partners, submit to the European Parliament and to the Council an analytical report assessing the situation with regard to energy-intensive sectors or sub-sectors that have been determined to be exposed to significant risks of carbon leakage. This shall be accompanied by any appropriate proposals, which may include: adjusting the proportion of allowances received free of charge by those sectors or sub-sectors under Article 10a; inclusion in the Community scheme of importers of products produced by the sectors or sub-sectors determined in accordance with Article 10a. Any binding sectoral agreements which lead to global emissions reductions of the magnitude required to effectively address climate change, and which are monitorable, verifiable and subject to mandatory enforcement arrangements shall also be taken into account when considering what measures are appropriate.'Article 10b deleted leakage

2008/06/27
Committee: INTA

Proposal for a directive – amending act
Annex I – point 2

Directive 2003/87/EC
Annex I – Point 2

2. In point 2 the following sentence is added: 'When calculating the total capacity of combustion installations, units with a rated thermal input under 3 MW shall not be taken into account for the purposes of this calculation.'deleted

2008/06/27
Committee: INTA