44 Amendments of Kathleen VAN BREMPT related to 2021/0214(COD)
Amendment 74 #
Proposal for a regulation
Recital 6 a (new)
Recital 6 a (new)
(6 a) Global warming already reached 1.18°C in December 2020, leading to world wide draughts, floods, storms and heatwaves. If we continue at the current trend, global warming will reach 1.5°C in 2034. The outcome of the COP 26 in Glasgow, lacks the needed ambition and stronger commitments to turn the tide. The new announcements and updates of the NDCs after Glasgow will reduce temperature rises only by 0.1%, still leading to a disastrous estimated temperature rise between 1.8°C and 2.9°C by 2100;
Amendment 80 #
Proposal for a regulation
Recital 9
Recital 9
(9) The initiative for a carbon border adjustment mechanism (‘CBAM’) is a part of the ‘Fit for 55 Package’. That mechanism is to serve as an essential element of the EU toolbox to meet the objective of a climate-neutral Union by 2050 in line with the Paris Agreement by addressing risks of carbon leakage resulting from the increased Union climate ambition. The CBAM should serve as one element in the EU’s comprehensive strategy towards global sustainable trade and the ambition to reduce global carbon emissions;
Amendment 84 #
Proposal for a regulation
Recital 9 a (new)
Recital 9 a (new)
(9 a) It is necessary to come forward with a holistic and comprehensive impact assessment of the entire fit for 55 package. Stakeholders, both within and outside of the EU borders, will not only feel the consequences of the separate proposals, but will also experience combined effects of the various proposals together, as they are all interlinked. Therefore, aside from the 13 separate impact assessments already carried out, an impact assessment of the entire package as a whole should be performed.
Amendment 87 #
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 and indirect cost compensation systems weakens the price signal that the system provides for the installations receiving ithem compared to full auctioning and thus affectselectricity pricing without compensation and thus lower the incentives for investment into further abatement of emissions. Therefore, to promote further emission reductions in the industrial and power sectors, free allocation and indirect cost compensation shall be phased out as soon as possible and following at least the same pattern as the gradual phase in of CBAM certificates, in order to respect WTO legal principles of non-discrimination and not to distort existing trade patterns to the Union's advantage;
Amendment 106 #
Proposal for a regulation
Recital 11 a (new)
Recital 11 a (new)
(11 a) The gradual phase out of free allowances for the products covered by the CBAM would occur by applying a factor reducing the free allocation for these products (CBAM factor). The CBAM factor shall be equal to 100% for the period during the entry into force of this Regulation and the end of 2024, 90% in 2025, 80% in 2026, 65% in 2027, 50% in 2028, 30% in 2029 and will reach 0% by the end of 2030. The phase in of CBAM certificates will follow the same mirroring pattern;
Amendment 109 #
Proposal for a regulation
Recital 12
Recital 12
(12) While the objective of the CBAM is to lower global carbon emissions by preventing the risk of carbon leakage, this Regulation would also encourage the use of more GHG emissions-efficient technologies by producers from third countries, so that less emissions per unit of output are generated. Special attention, intensive dialogue, administrative, technical and financial support is needed regarding LDCs, empowering them to reach the green transition in a sustainable and fair way and enabling them to be full- fledged participators in global sustainable trade;
Amendment 115 #
Proposal for a regulation
Recital 12 a (new)
Recital 12 a (new)
(12 a) To meet the Union objectives and international commitments, such as those under WTO agreements and the Paris agreement and in line with the principle of CBDR, the Commission should come forward with a proposal and sufficient funding to support LDCs in complying with the various CBAM requirements. This should entail, amongst others, the necessary administrative and technical assistance and financial support to facilitate LDC’s adaptation to the new obligations established by this regulation as well as support the help them cut emissions and accomplish the green transition.
Amendment 117 #
Proposal for a regulation
Recital 12 b (new)
Recital 12 b (new)
(12 b) In the transitional phase, producers of LDCs in the sectors covered by the CBAM should be supported in complying with the administrative requirements of the CBAM and assisted in mapping the real emissions of their production processes. At the same time, possible environmental and energy improvements in the production process (such as regarding raw material use, circular economy aspects, energy efficiency and use of renewable energy) should be proposed, technical and knowledge transfers should take place and best practices should be shared.
Amendment 118 #
Proposal for a regulation
Recital 12 c (new)
Recital 12 c (new)
(12 c) During the implementation phase, when revenues will be generated from the sale of CBAM certificates and the financial consequences of the CBAM will be sensed in third countries, sufficient support and funding should be attributed to helping LDCs in implementing the environment, climate, energy and resource related improvements to help them lower emissions, cut CBAM costs and accomplish the green transition.
Amendment 120 #
Proposal for a regulation
Recital 12 d (new)
Recital 12 d (new)
(12 d) As the sole aim of the CBAM is to reduce global carbon emissions, the revenues generated from the sale of CBAM certificates, or the equivalent in financial value of these revenues, should be channeled towards global climate funding. Sufficient funding should be made available to realize the support for LDCs as stipulated above;
Amendment 141 #
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 initiaapply to direct emissions as welly applys to indirect 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 end of a transition period and upon further assessment, as well to indirect emissions, mirroring the scope of the EU ETS.mirroring the scope of the EU ETS and leading to as equal carbon costs as possible for domestic production and imports;
Amendment 166 #
Proposal for a regulation
Recital 30
Recital 30
(30) The use of the first criterion allows listing the following industrial sector in terms of cumulated emissions: iron and steel, refineries, cement, organic basic chemicals and polymers, and fertilisers.
Amendment 172 #
Proposal for a regulation
Recital 32
Recital 32
Amendment 178 #
Proposal for a regulation
Recital 33
Recital 33
(33) Similar tTechnical constraints apply to refinery products, for which it is not possible to unambiguously assign GHG emissions to individual output products. At the same time, the relevant benchmark in the EU ETS does not directly relate to specific products, such as gasoline, diesel or kerosene, but to all refinery output.
Amendment 179 #
Proposal for a regulation
Recital 34
Recital 34
(34) However, aluminium products should be included in the CBAM as they are highly exposed to carbon leakage. Moreover, in several industrial applications they are in direct competition with steel products because of characteristics closely resembling those of steel products. Inclusion of aluminium is also relevant as the scope of the CBAM may be extended to cover also indirect emissions in the futureThe scope of the CBAM shall cover also indirect emissions related to electricity consumption, heating and cooling, used to produce CBAM products. To eliminate risks of carbon leakage due to resource shuffling, indirect emissions shall be calculated based on the average marginal or other price-setting power generation unit in the relevant electricity market. Where such data are not available, average CO2 intensity of the relevant power market supplying the producing installation shall be used instead.
Amendment 192 #
Proposal for a regulation
Recital 50
Recital 50
(50) A transitional period should apply during the period 2023 until the end of 20254. A CBAM without financial adjustment should apply, with the objective to facilitate a smooth roll out of the mechanism hence reducing the risk of disruptive impacts on trade. Declarants should have to report on a quarterly basis the actual embedded emissions in goods imported during the transitional period, detailing direct and indirect emissions as well as any carbon price paid abroad.
Amendment 206 #
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, 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, such as all sectors covered by ETS and downstream sectors, and to develop methods of calculating embedded emissions based on the environmental footprint methods47 . _________________ 47 Commission Recommendation 2013/179/EU of 9 April 2013 on the use of common methods to measure and communicate the life cycle environmental performance of products and organisations (OJ L 124, 4.5.2013, p. 1).
Amendment 213 #
Proposal for a regulation
Recital 53
Recital 53
(53) In light of the above, an extensive dialogue with third countries should continue and t, trade partners, EU’s and third country’s industries, federations, international organisations, NGO’s, think tanks and all other involved stakeholders should continue in order to boost global climate action and maximize engagement and the chances of the CBAM succeeding. There should be space for cooperation and solutions that could inform the specific choices that will be made on the details of the design of the measure during the implementation, in particular during the transitional period.
Amendment 219 #
Proposal for a regulation
Recital 55
Recital 55
(55) As the CBAM aims to encourage cleaner production processes, and in line with the CBDR principle, the EU stands ready to work with low and middle- income countries towards the de- carbonisation of their manufacturing industries. Moreover, the UnCommission should support less developed countriecome forward with a proposal and sufficient funding to support LDCs with the necessary technical and financial assistance in order to facilitate their adaptation to the new obligations established by this regulation. In the transitional phase, producers of LDCs in the sectors covered by the CBAM should be supported in complying with the administrative requirements of the CBAM, assisted in mapping the real emissions of their production processes and supported to determine production process improvements. During the implementation phase, when the CBAM has financial consequences, LDCs should be supported to cut emissions and thus CBAM costs and accomplish the green transition.
Amendment 233 #
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 reduce global carbon emissions by preventing the risk of carbon leakage.
Amendment 271 #
Proposal for a regulation
Article 3 – paragraph 1 – point 15 a (new)
Article 3 – paragraph 1 – point 15 a (new)
(15 a) ‘indirect emissions’ mean emissions from the production of electricity, heating and cooling, which is consumed during the production processes of goods.
Amendment 274 #
Proposal for a regulation
Article 3 – paragraph 1 – point 16
Article 3 – paragraph 1 – point 16
(16) ‘embedded emissions’ mean direct emissions released during the production of goods and inputs of CBAM products into those goods, as well as indirect emissions from the production of electricity, heating and cooling consumed during the production of goods, calculated pursuant to the methods set out in Annex III;
Amendment 278 #
Proposal for a regulation
Article 3 – paragraph 1 – point 28
Article 3 – paragraph 1 – point 28
Amendment 287 #
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 actual emissions cannot be adequately determined, the embedded emissions shall be determined by reference to default values in accordance with the methods set out in Annex III, point 4.1. In determining indirect emissions from the consumption of electricity, heating and cooling embedded in goods other than electricity, the annual average emissions intensity of the marginal or other price- setting generator in the relevant electricity market shall be used. Where such data are not available, the average emissions intensity of fossil fuel-based generation plants in the relevant power market supplying the producing installation shall be used instead;
Amendment 291 #
Proposal for a regulation
Article 7 – paragraph 6
Article 7 – paragraph 6
6. The Commission is empowered to adopt implementdelegated acts, ing actscordance with Article 28, 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 indirect emissions related to electricity, heating and cooling consumption, 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 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 292 #
Proposal for a regulation
Article 7 – paragraph 7
Article 7 – paragraph 7
Amendment 397 #
Proposal for a regulation
Article 24 a (new)
Article 24 a (new)
Article 24 a Revenues from the sale of CBAM certificates In line with the Union objectives and international commitments, such as those under WTO agreements, the Paris agreement and the CBDR principle, the Commission should come forward with a proposal and sufficient funding to support LDCs. This should entail, amongst others, the necessary administrative and technical assistance and financial support to facilitate LDC’s adaptation to the new obligations established by this regulation and the accomplishment of a sustainable transition. In the transitional phase, producers of LDCs in the sectors covered by the CBAM should be supported in complying with the administrative requirements of the CBAM and assisted in mapping the real emissions of their production processes. At the same time, possible environmental and energy improvements in the production process (such as regarding raw material use, circular economy aspects, energy efficiency and use of renewable energy) should be proposed, technical and knowledge transfers should take place and best practices should be shared. During the implementation phase, when revenues will be generated from the sale of CBAM certificates and the financial consequences of the CBAM will be sensed in third countries, sufficient support and funding should be attributed to helping LDCs in implementing the environment, climate, energy and resource related improvements to lower emissions, cut CBAM costs and accomplish the green transition.
Amendment 401 #
Proposal for a regulation
Article 24 b (new)
Article 24 b (new)
Article 24 b To ensure that the sole aim of the CBAM is to reduce global carbon emissions, the revenues generated from the sale of CBAM certificates, or the equivalent in financial value of these revenues, shall be channeled towards global climate funding. Sufficient funding shall be made available to accomplish the goals set out in the previous paragraph.
Amendment 458 #
Proposal for a regulation
Article 28 – paragraph 5 a (new)
Article 28 – paragraph 5 a (new)
5 a. This committee of experts shall be inclusive and consist of people who, together, are knowledgeable of all the various effects of the CBAM, representing the interests of all affected stakeholders and society as a whole.
Amendment 468 #
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 goodgoods and services other than those listed in Annex I, such as all the sectors covered by the ETS and downstream sectors, and develop methods of calculating embedded emissions based on environmental footprint methods.
Amendment 490 #
Proposal for a regulation
Article 30 – paragraph 3 a (new)
Article 30 – paragraph 3 a (new)
3 a. Before the end of the fourth year following the entry into force of this Regulation, the Commission shall conduct a review of the carbon leakage risks posed to EU ETS installations producing products listed in Annex I of this Regulation for export beyond the customs territory of the Union. This review shall take into account relevant risk factors, including the extent to which third countries have adopted equivalent carbon pricing or regulatory policies to the Union, the ability of EU ETS installations to deduct carbon prices already paid in the EU or pass on emission costs in third country markets, and the prospects for global cooperation on carbon leakage protection.
Amendment 492 #
Proposal for a regulation
Article 30 – paragraph 3 b (new)
Article 30 – paragraph 3 b (new)
3 b. If the remaining risk of carbon leakage to exporters determined by the review referred to in paragraph 4 is deemed to place into question the effectiveness of the Union’s climate policy of pricing emissions for EU ETS installations, the Commission shall propose legislative amendments to eliminate this risk. If necessary, any such legislative proposals shall respect the WTO legal principles of non- discrimination and shall not distort existing trade patterns to the Union’s advantage.
Amendment 497 #
Proposal for a regulation
Article 31 – paragraph 1
Article 31 – paragraph 1
1. The CBAM certificates to be surrendered in accordance with Article 22 shall be adjusted to reflect the extent to which EU ETS allowances are allocated free of charge in accordance with Article 10a of Directive 2003/87/EC to installations producing, within the Union, the goods listed in Annex I. The CBAM certificates to be surrendered in accordance with Article 22 shall be adjusted to reflect the extent to which EU ETS allowances are allocated free of charge in accordance with Article 10a of Directive 2003/87/EC to installations producing, within the Union, the goods listed in Annex I. The gradual phase out of free allowances and mirroring phase in of CBAM certificates will occur by applying the “CBAM factor”, reducing the free allocation to installations producing these products within the Union. The CBAM factor shall be equal to 100% for the period during the entry into force of this Regulation and the end of 2024, 90% in 2025, 80% in 2026, 65% in 2027, 50% in 2028, 30% in 2029 and will reach 0% by the end of 2030.
Amendment 514 #
Proposal for a regulation
Article 36 – paragraph 3 – point a
Article 36 – paragraph 3 – point a
(a) Articles 32 to 34 shall apply until 31 December 20254.
Amendment 516 #
Proposal for a regulation
Article 36 – paragraph 3 – point b
Article 36 – paragraph 3 – point b
(b) Article 35 shall apply until 28 February 20265.
Amendment 520 #
Proposal for a regulation
Article 36 – paragraph 3 – point c
Article 36 – paragraph 3 – point c
(c) Articles 5 and 17 shall apply from 1 September 20254.
Amendment 524 #
Proposal for a regulation
Article 36 – paragraph 3 – point d
Article 36 – paragraph 3 – point d
(d) Articles 4, 6, 7, 8, 9, 14, 15, 16, 19, 20, 21, 22, 23, 24, 24 a (new) 25, 26, 27 and 31 shall apply from 1 January 20265.
Amendment 531 #
Proposal for a regulation
Annex I – point 2 – point i (new)
Annex I – point 2 – point i (new)
i) Organic chemicals and polymers
Amendment 536 #
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 537 #
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 538 #
Proposal for a regulation
Annex III – point 2 – paragraph 3 – introductory part
Annex III – point 2 – paragraph 3 – introductory part
‘Attributed emissions’ mean the part of the installation’s direct emissions during the reporting period that are caused by the production process resulting in goods g when applying the system boundaries of the process defined by the implementing acts adopted pursuant to Article 7(6). The attributed emissions shall be calculated using the following equation:
Amendment 539 #
Proposal for a regulation
Annex III – point 2 – paragraph 3 – subparagraph 1
Annex III – point 2 – paragraph 3 – subparagraph 1
Amendment 540 #
Proposal for a regulation
Annex III – point 2 – paragraph 3 – subparagraph 1 a (new)
Annex III – point 2 – paragraph 3 – subparagraph 1 a (new)
Attrg = DirEm + EmH,imp –EmH,exp + Gcorr,imp – Gcorr,exp + Emel –Emel,exp
Amendment 541 #
Proposal for a regulation
Annex III – point 2 – paragraph 4
Annex III – point 2 – paragraph 4
Where DirEm are the direct emissions, resulting from the production process, expressed in tonnes of CO2e, within the system boundaries referred to in the implementing act pursuant to Article 7(6). ; EmH,imp are the indirect emissions accounted for heat imported to the installation and consumed within the system boundaries of the process; EmH,exp are emission equivalents of heat exported from the process system boundaries; Gcorr,imp is a correction factor taking into account imports of waste gases or greenhouse gases used as process input; Gcorr,exp is a similar correction factor for exports of such gases from the system boundaries of the process; Emel are the indirect emissions accounted for electricity consumed within the system boundaries of the process, including any electricity consumed from the relevant power grid from which the installation is supplied; Emel,exp are emission equivalents of electricity exported from the process system boundaries; EmH is to be calculated using the emission factor for heat given in the implementing act pursuant to Article 7, Emel is to be calculated using the emission factor for electricity given in that act. Where offsite power is consumed, the annual average emissions intensity of the marginal or other price-setting generator in the relevant electricity market shall be used.Where such data are not available, the average emissions intensity of fossil- fuel based generation plants in the relevant power market supplying the producing installation shall be used instead. For Gcorr the implementing act shall specify the types of gases and of their use eligible for corrections, and relevant calculation factors.