28 Amendments of Rovana PLUMB related to 2021/0214(COD)
Amendment 186 #
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 emissonly covers the risk of relocation outside the Union and not the import of carbon intensive products into the Unions.
Amendment 215 #
Proposal for a regulation
Recital 11
Recital 11
(11) The CBAM seeks to replacecomplement 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 whileOnce the CBAM has fully demonstrated its effectiveness in equalising CO2 costs between imported and domestic products, free allowances in sectors covered by the CBAM areshould be progressively 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 Union.
Amendment 246 #
Proposal for a regulation
Recital 12 a (new)
Recital 12 a (new)
(12a) While the surrendering of CBAM certificates for Union imports addresses the risk of carbon leakage on the Union market, it is essential to also 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 carbon costs. To this purpose, the Commission should present a report to the European Parliament and to the Council accompanied with a legislative proposal to address the carbon leakage risk on export markets before the end of the transition period. This proposal should consider WTO-compatible solutions such as export adjustment mechanisms that would equaliseCO2 costs, taking into account the carbon pricing schemes developed by third countries. Pending the development of such a legislative proposal, free allocation related to Union exports of the products listed in Annex I should not be subject to the phasing out of the free allowances in accordance with the procedure of Article 10a of Directive 2003/87/EC.
Amendment 267 #
Proposal for a regulation
Recital 13
Recital 13
(13) As an instrument to prevent carbon leakage and reduce GHG emissions the CBAM should ensure that imported products are subject to a regulatory system that applies carbon costs equivalent to the ones that otherwise would have been borne under the EU ETS, resulting in an equalisation of carbon costs between imported domestic products. The CBAM is a climate measure which should prevent the risk of carbon leakage and support the Union’s increased ambition on climate mitigation, while ensuring WTO compatibility.
Amendment 309 #
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 initially 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 developmendt of a transition period and upon further assessmentthe relevant methodologies by the Commission, as well to indirect emissions, mirroring the scope of the EU ETS.
Amendment 369 #
Proposal for a regulation
Recital 29
Recital 29
(29) The goods under this Regulation should be selected after a careful analysis of their relevance in terms of cumulated GHG emissions and risk of carbon leakage in the corresponding EU ETS sectors while limiting complexity and administrative burden. In particular, the actual selection should take into account basic materials and basic products covered by the EU ETS with the objective of ensuring that imports of energy intensive products into the Union are on equal footing with EU products in terms of EU ETS carbon pricing, and to mitigate risks of carbon leakage. Other relevant criteria to narrow the selection should be: firstly, relevance of sectors in terms of emissions, namely whether the sector is one of the largest aggregate emitters of GHG emissions; secondly, sector’s exposure to significant risk of carbon leakage, as defined pursuant to Directive 2003/87/EC; thirdly, the need to balance broad coverage in terms of GHG emissions while limiting complexity and administrative effort. Specific attention should also be paid to the risk of market distortions between the different sectors covered by the CBAM
Amendment 475 #
Proposal for a regulation
Recital 52
Recital 52
(52) The Commission should evaluate the application of this Regulation before the end of the transitional period and report to the European Parliament and the Council. The report of the Commission should in particular focus on possibilities to enhance climate actions towards the objective of a climate neutral Union by 2050. The Commission should, as part of that evaluation, develop the relevant methodologies to apply the CBAM indirect emissions, and 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 . __________________ 47Commission Recommendation 2013/179/EU of 9 April 2013 on the use of common methods to measureto ensure an equalisation of CO2 costs between imported and cdommunicate the life cycle environmental performance of products and organisations (OJ L 124, 4.5.2013, p. 1)estic products.
Amendment 533 #
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 the risk of carbon leakage. For this purpose, the CBAM aims to equalise carbon costs between imported products and domestic products included in the scope of this Regulation.
Amendment 561 #
Proposal for a regulation
Article 1 – paragraph 3
Article 1 – paragraph 3
3. The mechanism will 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, once the European Commission has fully demonstrated its effectiveness in equalising CO2 costs between imported and domestic products as part of the evaluation scheduled in Article 30, paragraph 4.
Amendment 705 #
Proposal for a regulation
Article 7 – paragraph 3 a (new)
Article 7 – paragraph 3 a (new)
3a. The Commission is empowered to adopt delegated acts in accordance with Article 28 to amend Annex III to set out a method for calculating embedded emissions for determining the actual indirect embedded emissions for simple goods and complex goods and the default values. By 1 January 2025, The Commission shall adopt this method to include indirect emissions in goods, and update Annex III accordingly.
Amendment 741 #
Proposal for a regulation
Article 8 – paragraph 3 – subparagraph 1
Article 8 – paragraph 3 – subparagraph 1
The Commission is empowered to adopt implementing acts concerning the principles of verification referred to in paragraph 1 as regards 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. Such implementing acts shall be equivalent to the provisions set in Implementing Regulation (EU)2018/2067.
Amendment 755 #
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, verifier accredited pursuant to article 18 of this Regulation. The accreditation will be 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 direct or indirect form of compensation on exportation.
Amendment 764 #
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 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 837 #
Proposal for a regulation
Article 14 – paragraph 3
Article 14 – paragraph 3
3. The information in the database referred to in paragraph 2 shall be confidentialmade available to the public, unless it is deemed as business confidential. Information equivalent to the one made publicly available for EU producers under the EU ETS central database shall be made public.
Amendment 873 #
Proposal for a regulation
Article 17 – paragraph 1 – point b a (new)
Article 17 – paragraph 1 – point b a (new)
(ba) the declarant has not repeatedly failed to comply with CBAM obligations in accordance to Article 26 and has not been involved in practices of circumvention in accordance to Article 27.
Amendment 1094 #
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), 7(3), 18(3) and 27(5) shall be conferred on the Commission for an indeterminate period of time.
Amendment 1099 #
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), 7(3),18(3) and 27(5) may be revoked at any time by the European Parliament or by the Council.
Amendment 1104 #
Proposal for a regulation
Article 28 – paragraph 7
Article 28 – paragraph 7
7. A delegated act adopted pursuant to Articles 2(10), 2(11), 7(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 1117 #
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, and develop methods of calculating embedded emissions based on environmental footprint methods.
Amendment 1143 #
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 assessment of 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 1153 #
Proposal for a regulation
Article 30 – paragraph 2 a (new)
Article 30 – paragraph 2 a (new)
2a. Before the end of the transitional period, the Commission shall present a report to the European Parliament and the Council accompanied with a legislative proposal to address the carbon leakage risk on export markets. This proposal should consider WTO- compatible solutions such as export adjustment mechanisms that would equalise CO2 costs, taking into account the carbon pricing schemes developed by third countries. Pending the development and adoption of such legislative proposal, free allocation related to EU exports of the products listed in Annex I should not be subject to the phasing out of the free allowances in accordance with the procedure of Article 10a of Directive2003/87/EC (ETS).
Amendment 1165 #
Proposal for a regulation
Article 30 – paragraph 3 a (new)
Article 30 – paragraph 3 a (new)
Amendment 1177 #
Proposal for a regulation
Article 30 – paragraph 3 b (new)
Article 30 – paragraph 3 b (new)
3b. Based on the report and no later than 2030, the Commission should either activate the phasing out of the free allowances as of 2030 in accordance with the procedure of Article 10a of Directive 2003/87/EC (ETS) in relation to the products listed in Annex I of the Regulation, or propose a revision of this Regulation.
Amendment 1246 #
Proposal for a regulation
Annex I – subheading 1 – row 1 a (new)
Annex I – subheading 1 – row 1 a (new)
Amendment 1262 #
Proposal for a regulation
Annex III – point 2 – introductory part
Annex III – point 2 – introductory part
2. Determination of actual direct embedded emissions for simple goods
Amendment 1263 #
Proposal for a regulation
Annex III – point 2 – paragraph 1 – introductory part
Annex III – point 2 – paragraph 1 – introductory part
For determining the specific actual embedded emissions of simple goods produced in a given installation, only direct emissions shall be accounted for. For this purpose, the following equation is to be applied:
Amendment 1268 #
Proposal for a regulation
Annex III – point 2 – paragraph 4 a (new)
Annex III – point 2 – paragraph 4 a (new)
No later than 1st January 2025, The Commission shall develop a calculation methodology to include indirect emissions in goods, and update Annex III accordingly.
Amendment 1270 #
Proposal for a regulation
Annex III – point 3 – introductory part
Annex III – point 3 – introductory part
3. Determination of actual direct embedded emissions for complex goods