31 Amendments of Aldo PATRICIELLO related to 2021/0214(COD)
Amendment 172 #
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, free allocation under the EU ETS weakens the price signal that the system provides for the installations receiving it compared to full auctioning and thus affects the incentives for investment into further abatement of emissions.
Amendment 196 #
Proposal for a regulation
Recital 11
Recital 11
(11) The CBAM seeks to replacecomplement and conceivably replace, after 2030, 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 systemthat this new mechanism achieves the above objective, and prior to any gradual phasing-out of free EU ETS allowances to the CBAM, the CBAM should be progressively phased in while free allowances in sectors covered by the CBAM are phased out, there is a need to assess a fully-operational CBAM based on the data gathered by the European Commission in the period 2026-2028, and to evaluate the impacts on value chains. Furthermore, before any reduction in the free allowances allocated is contemplated, an effective export protection mechanism must be established to ensure that the environmental objectives of the CBAM are not undermined by carbon leakage arising from the cancellation of European exports. 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 Union.
Amendment 229 #
Proposal for a regulation
Recital 11 a (new)
Recital 11 a (new)
(11a) The mechanism in Article 10a(6) of Directive 2003/87/EC should remain outside the scope of CBAM given the unique characteristics of price formation on the Union electricity market, that are not existing in third countries.
Amendment 235 #
Proposal for a regulation
Recital 11 b (new)
Recital 11 b (new)
(11b) While CBAM tackles the risk of carbon leakage in the internal market, it is also essential to avoid the risk that Union exports to global markets are replaced by more carbon intensive goods or by goods that are not subject to equivalent climate policies and carbon costs. For this purpose, after the 2026- 2028 test period, in 2029 the Commission should present an in-depth report to the European Parliament and to the Council accompanied by a legislative proposal to address the risk of carbon leakage on export markets. If that report confirms that the surrendering of CBAM certificates by importers is effective in addressing carbon leakage in the internal market and that free allocation rules on Union domestic sales should be changed, the legislative proposal should ensure the maintenance of free allocation related to Union exports and provide the calculation methodology for determining this allocation.
Amendment 287 #
Proposal for a regulation
Recital 15
Recital 15
(15) In order to exclude from the CBAM third countries or territories fully integrated into, or linked, to, the EU ETS in the event of future agreements, the power to adopt acts in accordance with Article 290 of TFEU should be delegated to the Commission in respect of amending the list of countries in Annex IIand only when the carbon costs passed on in the products imported are completely equivalent to those under the ETS within the EU, and when there is a free energy market, the European Commission should submit a proposal to the European Parliament and the Council to amend the current Regulation. Conversely, those third countries or territories should be excluded from the list in Annex II and be subject to CBAM whereby they do not effectively charge the ETS price on goods exported to the Union.
Amendment 411 #
Proposal for a regulation
Recital 40
Recital 40
(40) An authorised declarant should be allowed to claim a reduction in the number of CBAM certificates to be surrendered corresponding to the carbon price already paid for those emissions in other jurisdictions, but only if such jurisdictions make provision for a free energy market.
Amendment 548 #
Proposal for a regulation
Article 1 – paragraph 3
Article 1 – paragraph 3
3. The mechanism willshould complement and progressively become 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 in accordance with Article 10a of that Directive, provided that it has proven to be effective to prevent the carbon leakage risk of both imports into and exports from the Union customs territory, and without prejudice to keeping EU ETS allowances free of charge at benchmark level, until a test period with actual surrendering obligation by declarants running until 2030 has proven such effectiveness.
Amendment 558 #
Proposal for a regulation
Article 1 – paragraph 3
Article 1 – paragraph 3
3. The mechanism willcould progressively become, after 2030 and only if the data gathered in the period 2026- 2028 show the CBAM to effectively protect against carbon leakage and if an export protection mechanism has been successfully introduced, 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 in accordance with Article 10a of that Directive.
Amendment 594 #
Proposal for a regulation
Article 2 – paragraph 5 – point b a (new)
Article 2 – paragraph 5 – point b a (new)
(ba) The carbon costs of imported products are completely equivalent to those under the EU’s ETS;
Amendment 618 #
Proposal for a regulation
Article 2 – paragraph 11
Article 2 – paragraph 11
11. The Commission is empowered to adopt delegated acts in accordance with Article 28should submit a proposal to the European Parliament and the EU Council to amend the lists in Annex II, Sections A or B, depending on whether the conditions in paragraphs 5, 7 or 9 are satisfied. Before that proposal is submitted, the European Commission should conduct a detailed consultation with stakeholders.
Amendment 637 #
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, in accordance with the provisions of the MRR;
Amendment 695 #
Proposal for a regulation
Article 6 – paragraph 2 – point c a (new)
Article 6 – paragraph 2 – point c a (new)
(ca) the emissions verification report, including the details of the verifier;
Amendment 700 #
Proposal for a regulation
Article 7 – paragraph 2
Article 7 – paragraph 2
2. Embedded 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 the actual emissions cannot be adequately determined, the embedded emissions shall be determined by reference to default valuesse shall be determined in conjunction with the parties concerned by reference to default values which must be high enough to ensure preferential use of the real data in the emissions declaration in accordance with the methods set out in Annex III, point 4.1.
Amendment 719 #
Proposal for a regulation
Article 7 – paragraph 6
Article 7 – paragraph 6
6. The Commission is empowered to adopt delegated implementing acts concerning detailed rules regarding the elements of the calculation methods set out in Annex III, including determining system boundaries of production processes, emission factors, installation-specific values of actual emissions and default values and their respective application to individual goods as well as laying down methods to ensure the reliability of data on the basis of which the default values shall be determined, including the level of detail and the verification of the data. Where necessary, those acts shall provide that the default values can be adapted to particular areas, regions or countries to take into account specific objective factors such as geography, natural resources, market conditions, prevailing energy sources, or industrial processes. The delegated implementing acts shall build upon existing legislation for the verification of emissions and activity data for installations covered by Directive 2003/87/EC, in particular Implementing Regulation (EU) No 2018/2067.
Amendment 724 #
Proposal for a regulation
Article 8 – paragraph 1
Article 8 – paragraph 1
1. The authorised declarant shall ensure that the total embedded emissions declared in the CBAM declaration submitted pursuant to Article 6 are verified by a verifier accredited pursuant to Article 18, based on the verification principles set out in Annex V. The competent authority is authorised to verify the accuracy of the information in the CBAM declaration.
Amendment 743 #
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. The reduction may only be granted to countries operating in a free energy market, so as to ensure a genuine level playing field.
Amendment 758 #
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 personaccredited verifier, 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.
Amendment 762 #
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 verification methodology, 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 of the independent person certifying the information 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 775 #
Proposal for a regulation
Article 10 – paragraph 1
Article 10 – paragraph 1
1. The Commission shall, upon request by a register the information on operators of an installations located in a third country, register the information on that operator and on itsies and on their installations in athe central database referred to in Article 14(4).
Amendment 777 #
Proposal for a regulation
Article 10 – paragraph 6
Article 10 – paragraph 6
6. The records referred to in paragraph 5, point (c), shall be sufficiently detailed to enable the verification in accordance with paragraph 5, point (b), and to enable any competent authority to conduct audits and review, in accordance with Article 19(1), the CBAM declaration made by an authorised declarant to whom the relevant information was disclosed in accordance with paragraph 8.
Amendment 784 #
Proposal for a regulation
Article 10 – paragraph 7
Article 10 – paragraph 7
7. An operator mayust disclose the information on the verification of embedded emissions referred to in paragraph 5 to an authorised declarant. The authorised declarant shall be entitled to avail itself of that disclosed information to fulfil the obligation referred to in Article 8.
Amendment 1136 #
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, an in-depthe assessment of- developed in close cooperation with the industrial sectors, of the rules to be applied in the testing period established pursuant to Article 31 paragraph 4, and the possibilities to further extend 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 the 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 1186 #
Proposal for a regulation
Article 30 a (new)
Article 30 a (new)
Article 30a The Commission shall review the functioning of the CBAM on the basis of the data gathered in the period 2026-2028 with a view to assessing its effectiveness in protecting industries against the risk of carbon leakage and its impact on the security of national supply and on value chains. In 2029, the Commission shall submit a report to the European Parliament and the Council on the effectiveness of the CBAM on the basis of the impact assessment conducted on the data gathered in the period 2026-2028, and shall also do so whenever the assessment of the effectiveness of the CBAM in addressing carbon leakage dictates that EU ETS allowances should continue to be allocated free of charge pursuant to Article 10a of Directive 2003/87/EC in order to prevent the risk of carbon leakage post-2030. The report shall also cover the mechanism established to protect exports.
Amendment 1210 #
Proposal for a regulation
Article 31 – paragraph 2 a (new)
Article 31 – paragraph 2 a (new)
2a. The CBAM is complemented by a WTO compatible offsetting mechanism granting free allowances to exporters for an amount linked to the emissions embedded in EU products exported to third countries, which do not impose carbon cost. The Commission adopts implementing acts laying down a calculation methodology for the amount of free allowances to be granted pursuant to subparagraph 1.
Amendment 1213 #
Proposal for a regulation
Article 31 – paragraph 2 b (new)
Article 31 – paragraph 2 b (new)
2b. The Commission shall monitor and evaluate the mechanism’s effectiveness regarding the carbon leakage risk before phasing out free allowances to the sectors covered by this Regulation. To this end, the Commission shall, after having consulted with the sectors covered by this Regulation, present a report to the European Parliament and the Council evaluating: (i) the first three years (2026-2028) of the surrendering obligation pursuant to article 22; (ii) the risk of carbon leakage in export markets. If the effectiveness of CBAM is proven, the report shall be accompanied by a legislative proposal phasing out free allocation to sectors covered by this Regulation, as set out in Article 10.a.1 of Directive [the revised ETS directive], and implementing a solution to address the risk of carbon leakage on export market.
Amendment 1239 #
Proposal for a regulation
Article 36 – paragraph 3 – point d
Article 36 – paragraph 3 – point d
d) Articles 4, 6, 7, 8, 9, 10, 14, 15, 16, 19, 20, 21, 22, 23, 24, 25, 26, 27 and 31 shall apply from 1 January 2026.
Amendment 1282 #
Proposal for a regulation
Annex III – point 4 – paragraph 2
Annex III – point 4 – paragraph 2
For the purpose of determining default values, only actual values shall be used for the determination of embedded emissions. In the absence of actual data, literature values may be used. The Commission shall publish guidance for the approach taken to correct for waste gases or greenhouse gases used as process input, before collecting the data required to determine the relevant default values for each type of goods listed in Annex I. Default values shall be determined based on the best available data. They shall be revised periodically through implementing acts based on the most up-to-date and reliable information, including on the basis of information provided by stakeholders, a third country or group of third countries.
Amendment 1287 #
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. Default values shall represent the highest known carbon intensity of the relevant good in order to avoid carbon leakage and any free riding behaviour. 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 goodsAverage country data shall be consistent with rules on calculations of embedded emissions pursuant to Article 7 and Annex III and be verified by verifiers accredited pursuant to Article 18. When reliable and verified 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, increased by a mark- up, the latter to be determined in the implementing acts of this Regulation. The mark-up to be applied pursuant this point shall ensure that the default values reflect the highest known carbon intensity of the relevant good in order to avoid carbon leakage any free riding behaviour.
Amendment 1290 #
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 and to be high enough to facilitate production of the statement of actual emissions data.
Amendment 1311 #
Proposal for a regulation
Annex III – point 6 – paragraph 1
Annex III – point 6 – paragraph 1
Amendment 1314 #
Proposal for a regulation
Annex III – point 6 – paragraph 2
Annex III – point 6 – paragraph 2