16 Amendments of Sirpa PIETIKÄINEN related to 2014/0011(COD)
Amendment 18 #
Proposal for a decision
Recital 1 a (new)
Recital 1 a (new)
(1a) In the light of the need to maintain the incentives in the EU's Emissions Trading System during the negotiations on the Energy Efficiency Directive (2012/27/EU) the European Commission came forward with a declaration to examine options, including among others permanent withholding of the necessary amount of allowances, for action with a view to adopting as soon as possible further appropriate structural measures to strengthen the ETS during phase 3, and make it more effective.
Amendment 29 #
Proposal for a decision
Recital 2
Recital 2
(2) The report from the Commission to the European Parliament and the Council on the state of the European carbon market in 21027 identified the need for measures in order to tackle structural supply-demand imbalances. The impact assessment on the 2030 climate and energy policy framework8 indicates that this imbalance is expected to continue, and would not be sufficiently addressed by adapting the linear trajectory to a more stringent target within this framework. A change in the linear factor only changes gradually the cap. Accordingly, the surplus would also only gradually decline, such that the market would have to continue to operate for more than a decade with a surplus of around 2 billion allowances or more. In order to address this problem and to make the European Emission Trading System more resilient to imbalances, a market stability reserve should be established. To ensure regulatory certainty as regards auction supply in phase 3 and allow for some lead-time adjusting to the introduction of the design change, the market stability reserve should be established as of phase 4 starting in 2021. In order to preserve a maximum degree of predictability, clear rules should be set for placing allowances into the reserve and releasing them from the reserve. Where the conditions are met, beginning in 2021, allowances corresponding to 1230% of the number of allowances in circulation in year x-21 should be put into the reserve. A corresponding number of allowances should be released from the reserve when the total number of allowances in circulation is lower than 4200 million. __________________ 7 COM(2012)652 final. 8 Insert reference.
Amendment 32 #
Proposal for a decision
Recital 2
Recital 2
(2) The report from the Commission to the European Parliament and the Council on the state of the European carbon market in 21027 identified the need for measures in order to tackle structural supply-demand imbalances. The impact assessment on the 2030 climate and energy policy framework8 indicates that this imbalance is expected to continue, and would not be sufficiently addressed by adapting the linear trajectory to a more stringent target within this framework. A change in the linear factor only changes gradually the cap. Accordingly, the surplus would also only gradually decline, such that the market would have to continue to operate for more than a decade with a surplus of around 2 billion allowances or more, thereby preventing the ETS from delivering the necessary investment signal to reduce CO2 emissions in a cost efficient manner. In order to address this problem and to make the European Emission Trading System more resilient to imbalances, a market stability reserve should be established. To ensure regulatory certainty as regards auction supply in phase 3 and allow for some lead-time adjusting to the introduction of the design change, the market stability reserve should be established as of phase 4 starting in 20212017. In order to preserve a maximum degree of predictability, clear rules should be set for placing allowances into the reserve and releasing them from the reserve. Where the conditions are met, beginning in 20217, allowances corresponding to 12% of the number of allowances in circulation in year x-2 should be put into the reserve. A corresponding number of allowances should be released from the reserve when the total number of allowances in circulation is lower than 400 million. __________________ 7 COM(2012)652 final. 8 Insert reference.
Amendment 41 #
Proposal for a decision
Recital 3
Recital 3
(3) Furthermore, in addition to the establishment of the market stability reserve, a few consequential amendments should be made to Directive 2003/87/EC to ensure consistency and smooth operation of the ETS. In particular, the operation of Directive 2003/87/EC may lead to large volumes of allowances to be auctioned at the end of each trading period which can undermine market stability. Accordingly, in order to avoid an imbalanced market situation of supply of allowances at the end of one trading period and the beginning of the next with possibly disruptive effects for the market, provision should be made for the auctioning of part ofcancelling any large increase of supply at the end of one trading period in the first two years of the next period.
Amendment 45 #
Proposal for a decision
Recital 3 a (new)
Recital 3 a (new)
(3a) A large surplus decreases the carbon price signal and does not provide the necessary certainty investors require to invest in the transition towards a low- carbon economy, including energy supply. A stronger carbon price signal is necessary to avoid locking the EU into high carbon capital and investment. The establishment of the market stability reserve is not expected to avoid such lock in. Therefore, by 31 December 2015, the Commission should make a proposal for an EU-wide Emissions Performance Standard for the power sector by 31 December 2016, with the aim of the proposed act entering into force by 2018. Such a proposal should minimise any negative impact on the EU's competitiveness while taking into account the potential environmental benefits.
Amendment 69 #
Proposal for a decision
Recital 4
Recital 4
(4) The Commission should review the functioning of the market stability reserve in relation to its operation in the light of experience of its application. The review of the functioning of the market stability reserve should in particular consider whether the rules on placing allowances in the reserve are appropriate with regard to the aim pursued to tackle structural supply- demand imbalances, and consider whether the current allowance price provides an appropriate incentive for low carbon investment. Where the allowance price is not at the required level, such a review should also consider the need for the establishment of an EU-wide emissions performance standard for the power sector.
Amendment 73 #
Proposal for a decision
Recital 4
Recital 4
(4) The Commission should review the functioning of the market stability reserve in relation to its operation in the light of experience of its application. The review of the functioning of the market stability reserve should in particular consider whether the rules on placing allowances in the reserve are appropriate with regard to the aim pursued to tackle structural supply- demand imbalances. The review should be carried out in 2021.
Amendment 94 #
Proposal for a decision
Article 1 – paragraph 1
Article 1 – paragraph 1
1. A market stability reserve is established, and shall operate from 1 January 20217.
Amendment 126 #
Proposal for a decision
Article 1 – paragraph 3
Article 1 – paragraph 3
3. In each year beginning in 2021, a number of allowances equal to 1230% of the total number of allowances in circulation in year x-21, as published in May year x-1, shall be placed in the reserve, unless this number of allowances to be placed in the reserve would be less than 100 million.
Amendment 131 #
Proposal for a decision
Article 1 – paragraph 3
Article 1 – paragraph 3
3. In each year beginning in 20217, a number of allowances equal to 12% of the total number of allowances in circulation in year x-2, as published in May year x-1, shall be placed in the reserve, unless this number of allowances to be placed in the reserve would be less than 100 million.
Amendment 137 #
Proposal for a decision
Article 1 – paragraph 4
Article 1 – paragraph 4
4. In any year, if the total number of allowances in circulation is lower than 4200 million, 10025 million allowances shall be released from the reserve. In case less than 100 million allowances are in the reserve, all allowances in the reserve shall be released under this paragraph.
Amendment 157 #
Proposal for a decision
Article 2 – paragraph 1 – point -1 a (new)
Article 2 – paragraph 1 – point -1 a (new)
Directive 2003/87/EC
Article 9 – paragraph 3 a (new)
Article 9 – paragraph 3 a (new)
-1a. In Article 9, the following paragraph shall be inserted after the third paragraph: "In 2021 and in each subsequent year the linear reduction factor referred to in the first paragraph shall be 2,6%."
Amendment 173 #
Proposal for a decision
Article 2 – paragraph 1 – point 3
Article 2 – paragraph 1 – point 3
Directive 2003/87/EC
Article 10 – paragraph 1 a
Article 10 – paragraph 1 a
1a. Where the total volume of allowances to be auctioned by Member States inissued in each of the last two years of each period referred to in Article 13(1) exceeds by more than 30% the expected average auction volume for the first two years of the following period before application of Article 1(3) of Decision [OPEU please insert number of this Decision when known], two-thirds of the difference between the volumesthe annual volume implied by the linear reduction factor in Article 9 the difference shall be deducted from auction volumes in the last year of the period and added in equal instalments to the volumes to be auctioned by Member States in the first two years of the following perioand retired.
Amendment 216 #
Proposal for a decision
Article 3 – paragraph 1
Article 3 – paragraph 1
By 31 December 20261, the Commission shall on the basis of an analysis of the orderly functioning of the European carbon market review the market stability reserve and submit a proposal, where appropriate, to the European Parliament and to the Council. The review shall pay particular attention to the percentage figure for the determination of the number of allowances to be placed into the reserve according to Article 1(3) and the numerical value of the threshold for the total number of allowances in circulation set by Article 1(4).
Amendment 219 #
Proposal for a decision
Article 3 – paragraph 1 a (new)
Article 3 – paragraph 1 a (new)
By 31 December 2015, the Commission shall also consider whether the establishment of an EU-wide emissions performance standard for the power sector is necessary to ensure an adequate price signal exists to incentivise low carbon investment and where appropriate the Commission shall make a proposal to the European Parliament and to the Council for the establishment of such an EU-wide Emissions Performance Standard.
Amendment 225 #
Proposal for a decision
Article 4 – paragraph 1
Article 4 – paragraph 1
Article 10(1) of Directive 2003/87/EC as amended by Directive 2009/29/EC shall continue to apply until 31 December 202016.