[ParlTrack]

Proposal for a directive – amending act
Recital 1

(1) Directive 2003/87/EC of the European Parliament and of the Council of 13 October 2003 establishing a scheme for greenhouse gas emission allowance trading within the Community and amending Council Directive 96/61/EC16 established a system for greenhouse gas emission allowance trading within the Community in order to promote reductions of greenhouse gas emissions, without causing damage to public health or the environment, in a cost-effective and economically efficient manner. 16 OJ L 275, 25.10.2003, p. 32. Directive as amended by Directive 2004/101/EC (OJ L 338, 13.11.2004, p. 18).

2008/07/08
Committee: ENVI

Urszula KRUPA

Proposal for a directive – amending act
Recital 2

(2) The ultimate objective of the United Nations Framework Convention on Climate Change, which was approved on behalf of the European Community by Council Decision 94/69/EC of 15 December 1993 concerning the conclusion of the United Nations Framework Convention on Climate Change (UNFCCC)17, is to stabilise greenhouse gas concentrations in the atmosphere at a level that would prevent dangerous anthropogenic interference with the climate system. In order to meet that objective, the overall global annual mean surface temperature increase should not exceed 2°C above pre-industrial levels. The latest Intergovernmental Panel on Climate Change Assessment (IPCC) report18 shows that, in order to reach that objective, global emissions of greenhouse gases must peak by 2020. This implies the increasing of efforts by the Community and the quick involvement of developed countries and encouraging the participation of developing countries in the emission reduction process. ~~17 18~~17 OJ L 33, 7.2.1994, p. 11. OJ L 33, 7.2.1994, p. 11. 18 Intergovernmental Panel on Climate Change Intergovernmental Panel on Climate Change 4th Assessment report, adopted on 17 4th Assessment report, adopted on 17 November 2007 in Valencia, Spain, and November 2007 in Valencia, Spain, and available at www.ipcc.ch available at www.ipcc.ch

2008/07/08
Committee: ENVI

Urszula KRUPA

Proposal for a directive – amending act
Recital 5

(5) In order to enhance the certainty and predictability of the Community scheme, provisions should be specified to increase the level of contribution of the Community scheme to achieving an overall reduction of more than 20%, in particular in view of the objective of the European Council for a 30% reduction by 2020 that is considered ~~scientifically necessary to avoid dangerous~~necessary by some scientists to avoid climate change.

2008/07/08
Committee: ENVI

Urszula KRUPA

Proposal for a directive – amending act
Recital 7

(7) While experience gathered during the first trading period shows the potential of the Community scheme and the finalisation of national allocation plans for the second trading period will deliver significant emission reductions by 2012, the review has confirmed that a more harmonised emission trading system is imperative, in order to better exploit the benefits of emission trading, to avoid distortions in the internal market and to facilitate the linking of emissions trading systems. Furthermore, more predictability should be ensured and the scope of the system should be extended by including new sectors and gases with a view to both reinforcing a carbon price signal necessary to trigger the necessary investments and offering new abatement opportunities, which will lead to lower overall abatement costs and increased efficiency of the system.

2008/07/08
Committee: ENVI

Urszula KRUPA

Proposal for a directive – amending act
Recital 11

(11) The Community-wide quantity of allowances should decrease ~~in a linear manner~~ calculated from the mid-point of the period 2008 to 2012, ensuring that the emissions trading system delivers gradual and predictable reductions of emissions over time. The annual decrease of allowances should be equal to 1.74% of the allowances issued by Member States pursuant to Commission Decisions on Member States' national allocation plans for the period 2008 to 2012, so that the Community scheme contributes cost- effectively to achieving the commitment of the Community to an overall reduction in emissions of at least 20% by 2020.

2008/07/08
Committee: ENVI

Urszula KRUPA

Proposal for a directive – amending act
Recital 14

(14) All Member States will need to make substantial investments to reduce the carbon intensity of their economies by 2020 and those Member States where income per capita is still significantly below the Community average and whose economies are in the process of catching up with the richer Member States will need to make a significant effort to improve energy efficiency. The objectives of eliminating distortions to intra- Community competition and of ensuring the highest degree of economic efficiency in the transformation of the EU economy towards a low carbon economy make it inappropriate to treat economic sectors differently under the Community scheme in individual Member States. It is thereforeIt is necessary to develop other mechanisms to support the efforts of those Member States with relatively lower income per capita and higher growth prospects. 970% of the total quantity of allowances to be auctioned should be distributed amongst Member States according to their relative share of 2005 emissions in the Community scheme. 130% of this quantity should be distributed to the benefit of those Member States for the purpose of solidarity and growth in the Community, to be used to reduce emissions and adapt to the effects of climate change. This distribution of this 130% should take into account levels of income per capita in the year 2005 and the growth prospects of Member States, and be higher for Member States with low income levels per head and high growth prospects. Member States with an average level of income per capita that is more than 20% higher than the average in the Community should contribute to this distribution, except where the direct costs of the overall package estimated in SEC(2008) 85 exceed 0.7% of GDP.

2008/07/08
Committee: ENVI

Urszula KRUPA

Proposal for a directive – amending act
Recital 15

(15) Given the considerable efforts of combating climate change and of adapting to its inevitable effects, it is appropriate that at least 20% of the proceeds from the auctioning of allowances should be used ~~to reduce greenhouse gas emissions,~~ to adapt to the impacts of climate change, to fund research and development ~~for reducing emissions and adaptation~~, to develop renewable energies to meet the EU’s commitment to using 20% renewable energies by 2020, to meet the commitment of the Community to increase energy efficiency by 20% by 2020, for the capture and geological storage of greenhouse gases, to contribute to the Global Energy Efficiency and Renewable Energy Fund20, for measures to avoid deforestation and facilitate adaptation in developing countries, and for addressing social aspects such as possible increases in electricity prices in lower and middle income households. This proportion is significantly below the expected net revenues for public authorities from auctioning, taking into account potentially reduced income from corporate taxes. In addition, proceeds from auctioning of allowances should be used to cover administrative expenses of the management of the Community scheme. Provisions should be included on monitoring the use of funds from auctioning for these purposes. Such notification does not release Member States from the obligation laid down in Article 88(3) of the Treaty, to notify certain national measures. The Directive does not prejudice the outcome of any future State aid procedures that may be undertaken in accordance with Articles 87 and 88 of the Treaty. 20 COM(2006) 583, 6.10.2006. COM(2006) 583, 6.10.2006.

2008/07/08
Committee: ENVI

Urszula KRUPA

Proposal for a directive – amending act
Recital 16

(16) ~~Consequently, full auctioning should be the rule from 2013 onwards for the power sector, taking into account their ability to pass on the increased cost of CO2, and n~~No free allocation should be given for carbon capture and storage as the incentive for this arises from allowances not being required to be surrendered in respect of emissions which are stored. Electricity generators may receive free allowances for heat produced through high efficiency cogeneration as defined by Directive 2004/8/EC in the event that such heat produced by installations in other sectors were to be given free allocations, in order to avoid distortions of competition.

2008/07/08
Committee: ENVI

Urszula KRUPA

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 with the Community. These rules should take account of the level of reafforestation and the most greenhouse gas and energy efficient techniques (BAT), 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..

2008/07/08
Committee: ENVI

Urszula KRUPA

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, this could 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 free of charge up to 100% to sectors or sub- sectors meeting the relevant criteria. 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.

2008/07/08
Committee: ENVI

Urszula KRUPA

Proposal for a directive – amending act
Recital 28

(28) In order to clarify the coverage of all kinds of boilers, burners, turbines, heaters, furnaces, incinerators, kilns, ovens, dryers, engines, flares, and thermal or catalytic afterburning which are significant in terms of emission quantity by this Directive, a definition of combustion installation should be added.

2008/07/08
Committee: ENVI

Urszula KRUPA

Proposal for a directive – amending act
Recital 33

(33) [As regards the approach to allocation, aviation should be treated as other industries which receive transitional free allocation rather than as electricity generators. This means that 80% of allowances should be allocated for free in 2013, and thereafter the free allocation to aviation should decrease each year by equal amounts resulting in no free allocation in 2020electricity generators. The Community and its Member States should continue to seek to reach an agreement on global measures to reduce greenhouse gas emissions from aviation and review the situation of this sector as part of the next review of the Community scheme.]

2008/07/08
Committee: ENVI

Urszula KRUPA

Proposal for a directive – amending act
Recital 34

(34) The measures necessary for the implementation of this Directive should be adopted in accordance with Council Decision 1999/468/EC of 28 June 1999 laying down the procedures for the exercise of implementing powers conferred on the Commission. In particular power should be conferred on the Commission to adopt measures for the auctioning of allowances, for transitional Community- wide allocation of allowances, for the monitoring, reporting and verification of emissions, for the accreditation of verifiers and for implementing harmonised rules for projects. Since those measures are of general scope and are designed to amend non-essential elements of this Directive and to supplement this Directive by the addition or modification of new non-essential elements, they should be adopted in accordance with the regulatory procedure with scrutiny provided for in Article 5a of Decision 1999/468/EC.

2008/07/08
Committee: ENVI

Urszula KRUPA

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

Directive 2003/87/EC
Article 1 – new paragraph

"It also provides for the reductions of greenhouse gas emissions to be increased ~~so as to~~, which may contribute to the levels of reductions that are considered scientifically necessary to avoid dangerous climate change."

2008/07/10
Committee: ENVI

Urszula KRUPA

Proposal for a directive – amending act
Article 1 – point 2

Directive 2003/87/EC
Article 3

~~(2) Article 3 is amended as follows: (a)~~deleted point (ch) is replaced by the following: "(c) 'greenhouse gases' means the gases listed in Annex II and other gaseous constituents of the atmosphere, both natural and anthropogenic, that absorb and re-emit infrared radiation;" (b) following: "(h) 'new entrant' means any installation carrying out one or more of the activities indicated in Annex I, which has obtained a greenhouse gas emission permit subsequent to the submission to the Commission of the list referred to in Article 11(1);" (c) "[(t)] 'Combustion installation' means any stationary technical unit in which fuels are oxidised producing heat or mechanical energy or both, and other directly associated activities including waste gas scrubbing are carried out; [(u)] 'Electricity generator' means an installation that, on or after 1 January 2005, has produced electricity for sale to third parties, and which is only covered by the category 'Supply of power or heat' in Annex I."The following points are added:

2008/07/10
Committee: ENVI

Urszula KRUPA

Proposal for a directive – amending act
Article 1 – point 5

Directive 2003/87/EC
Article 9

Community-wide quantity of allowances The Community-wide quantity of allowances issued each year starting in 2013 shall decrease in a linear manner beginning from the mid-point of the period 2008 to 2012. The quantity shall decrease by a linear factor of 1.74% compared to the average annual total quantity of allowances issued by Member States in accordance with the Commission Decisions on their national allocation plans for the period 2008 to 2012. The Commission shall, by 30 June 2010, publish the absolute quantity of allowances for 2013, based on the total quantities of allowances issued by the Member States in accordance with the Commission Decisions on their national allocation plans for the period 2008 to 2012. The Commission shall review the linear factor no later than 2025."‘Article 9 deleted

2008/07/10
Committee: ENVI

Urszula KRUPA

Proposal for a directive – amending act
Article 1 – point 6

Directive 2003/87/EC
Article 9a

1. In respect of installations that were included in the Community scheme during the period 2008 to 2012 pursuant to Article 24(1), the quantity of allowances to be issued from 1 January 2013 shall be adjusted to reflect the average annual quantity of allowances issued in respect of those installations during the period of their inclusion, adjusted by the linear factor referred to in Article 9. 2. In respect of installations which are only included in the Community scheme from 2013 onwards, Member States shall ensure that the operators of such installations may submit to the relevant competent authority independently verified emissions data in order for them to be taken into account for the quantity of allowances to be issued. Any such data shall be submitted, by 30 April 2010 at the latest, to the relevant competent authority in accordance with the provisions adopted pursuant to Article 14(1). If the data submitted are duly substantiated, the competent authority shall notify the Commission thereof by 30 June 2010 and the quantity of allowances to be issued, adjusted by the linear factor referred to in Article 9, shall be adjusted accordingly. 3. The Commission shall publish the adjusted quantities referred to in paragraphs 1 and 2."Article 9a deleted Adjustment of the Community-wide quantity of allowances

2008/07/10
Committee: ENVI

Urszula KRUPA

Proposal for a directive – amending act
Article 1 - Point 7

Directive 2003/87/EC
Article 10 - paragraph 2

2. The total quantity of allowances to be auctioned by each Member State shall be composed as follows: (a) 970% of the total quantity of allowances to be auctioned being distributed amongst Member States in shares that are identical to the share of verified emissions under the Community scheme in 2005 of the Member State concerned; (b) 130% of the total quantity of allowances to be auctioned being distributed amongst certain Member States for the purpose of solidarity and growth within the Community, thereby increasing the amount of allowances that those Member States auction under point (a) by the percentages specified in Annex IIa. For the purposes of point (a), in respect of Member States which did not participate in the Community scheme in 2005, their share shall be calculated using their verified Community scheme emissions under the Community scheme in 2007. If necessary, the percentages referred to in point (b) of the first subparagraph shall be adapted in a proportional manner to ensure that the redistribution is 130%.

2008/07/14
Committee: ENVI

Urszula KRUPA

Proposal for a directive – amending act
Article 1 - Point 7

Directive 2003/87/EC
Article 10 - paragraph 3 - point a

(a) to ~~reduce greenhouse gas emissions, including by~~ contribut~~ing~~e to the Global Energy Efficiency and Renewable Energy Fund, to adapt to the impacts of climate change and to fund research and development for reducing emissions and adapting, including participation in initiatives within the framework of European Strategic Energy Technology Plan;

2008/07/14
Committee: ENVI

Urszula KRUPA