[ParlTrack]

Proposal for a directive
Recital 13 a (new)

(13a) For as long as landfilling of untreated municipal waste is still permitted in parts of the Union, landfill emissions shall be included in the EU ETS as well, to level the playing field between waste management technologies.

2022/02/22
Committee: ENVI

Emma WIESNER, Claudia GAMON, Frédérique RIES, Jan HUITEMA, Catherine CHABAUD

Proposal for a directive
Recital 15

(15) In 2013, the Commission adopted a strategy for progressively integrating maritime emissions into the Union's policy for reducing greenhouse gas emissions. As a first step in this approach, the Union established a system to monitor, report and verify emissions from maritime transport in Regulation (EU) 2015/757 of the European Parliament and of the Council47 , to be followed by the laying down of reduction targets for the maritime sector and the application of a market based measure. In line with the commitment of the co- legislators expressed in Directive (EU) 2018/410 of the European Parliament and of the Council48 , action by the International Maritime Organization (IMO) or the Union should start from 2023, including preparatory work on adoption and implementation of a measure ensuring that the sector duly contributes to the efforts needed to achieve the objectives agreed under the Paris Agreement and due consideration being given by all stakeholders. In order to increase the environmental effectiveness of EU measures and avoid unfair competition and incentives for circumvention, the scope of Regulation (EU) 2015/757 should be amended to cover ships with a gross tonnage above 400. The EU ETS should include such ships where they have annual emissions over 1 000 tonnes CO2 equivalents per year. The maritime emissions covered by the EU ETS should also include methane, which should therefore be part of the scope of Regulation (EU) 2015/757. _________________ 47Regulation (EU) 2015/757 of the European Parliament and of the Council of 29 April 2015 on the monitoring, reporting and verification of carbon dioxide emissions from maritime transport, and amending Directive 2009/16/EC (OJ L 123, 19.5.2015, p. 55). 48Directive (EU) 2018/410 of the European Parliament and of the Council of 14 March 2018 amending Directive 2003/87/EC to enhance cost-effective emission reductions and low-carbon investments, and Decision (EU) 2015/1814 (OJ L 76, 19.3.2018, p. 3).

2022/02/22
Committee: ENVI

Emma WIESNER, Claudia GAMON, Martin HOJSÍK, Frédérique RIES, Michal WIEZIK, Pascal CANFIN, Jan HUITEMA, Linea SØGAARD-LIDELL, Catherine CHABAUD

Proposal for a directive
Recital 24 a (new)

(24a) The EU ETS should as much as possible avoid undue exemptions and distortive measures. Municipal waste incineration is an important source of greenhouse gas emissions and should be included under the EU ETS. The inclusion would encourage waste prevention and recycling and contribute to the economy-wide decarbonisation. Since recycling and regeneration activities are already covered by the EU ETS, the inclusion would reinforce incentives for sustainable management of waste in line with the waste hierarchy. It would complement other elements of EU waste legislation. Moreover, integrating waste incineration into the EU ETS would create a level playing field between the regions that have included municipal waste incineration under the scope, reducing the risk of tax competition between regions.

2022/02/22
Committee: ENVI

Emma WIESNER, Claudia GAMON, Frédérique RIES, Nils TORVALDS, Jan HUITEMA, Linea SØGAARD-LIDELL, Andreas GLÜCK

Proposal for a directive
Recital 28

(28) Achieving the increased climate ambition will require substantial public resources in the EU as well as national budgets to be dedicated to the climate transition. To complement and reinforce the substantial climate-related spending in the EU budget, all auction revenues that are not attributed to the Union budget should be used for climate-related purposes. This includes the use for financial support to address social aspects in lower- and middle-income households by reducing distortive taxes. Further, to ~~address distributional and social effects of the transition in low-income Member States~~support the transition to innovative decarbonised technologies and processes, and to the upscaling of relevant technologies across the Union in a way that contributes to mitigating climate change in line with the objectives set out in Regulation (EU) 2021/1119, an additional amount of 2,5 % of the Union- wide quantity of allowances from [year of entry into force of the Directive] to 2030 should be used to fund the energy transition of the Member States with a gross domestic product (GDP) per capita below 65 % of the Union average in 2016-2018, through the Modernisation Fund referred to in Article 10d of Directive 2003/87/ECfor the Innovation Fund, to be renamed the Net-Zero Fund.

2022/02/22
Committee: ENVI

Pascal CANFIN, Jan HUITEMA, Véronique TRILLET-LENOIR, Frédérique RIES, Martin HOJSÍK, Michal WIEZIK

Proposal for a directive
Recital 32 a (new)

(32a) In order to achieve climate neutrality by 2050 at the latest as laid down in Regulation (EU) 2021/1119, the EU needs to close a significant investment gap as provided in the Communication 'Strategy for Financing the Transition to a Sustainable Economy'1a. To reach our decarbonisation objective, breakthrough innovation, upscaling of already existing relevant technologies and certified natural carbon removals are needed. To support the in-depth and economy-wide decarbonation in the EU all these three pillars should be addressed by the Innovation Fund, which should be renamed as the Net-Zero fund. _________________ 1aCOM(2021)390 final, Communication 'Strategy for Financing the Transition to a Sustainable Economy'

2022/02/22
Committee: ENVI

Emma WIESNER, Claudia GAMON, Frédérique RIES, Pascal CANFIN, Jan HUITEMA, Nicolae ŞTEFĂNUȚĂ, Linea SØGAARD-LIDELL, Andreas GLÜCK, Catherine CHABAUD

Proposal for a directive
Recital 33

(33) The scope of the Innovation Fund referred to in Article 10a(8) of Directive 2003/87/EC should be extended to support both innovation projects and measures that implement and scale up innovative technologies that contribute significantly to decarbonisation in line with the Union´s climate targets. To reflect this, the Fund should be renamed "Net-Zero Fund". The Fund should support innovation in low-carbon technologies and processes that concern the consumption of fuels in the sectors of buildings and road transport. In addition, the Innovation Fund should serve to support investments to decarbonise the maritime transport sector, including investments in sustainable alternative fuels, such as hydrogen and ammonia that are produced from renewables, as well as zero-emission propulsion technologies like wind technologies. Considering that revenues generated from penalties raised in Regulation xxxx/xxxx [FuelEU Maritime]52 are allocated to the ~~Innovation~~Net-Zero Fund as external assigned revenue in accordance with Article 21(5) of the Financial Regulation, the Commission should ensure that due consideration is given to support for innovative projects aimed at accelerating the development and deployment of renewable and low carbon fuels in the maritime sector, as specified in Article 21(1) of Regulation xxxx/xxxx [FuelEU Maritime]. To ensure sufficient funding is available for innovation within this extended scope, the ~~Innovation~~Net-Zero Fund should be supplemented with 50 million allowances, stemming partly from the allowances that could otherwise be auctioned, and partly from the allowances that could otherwise be allocated for free, in accordance with the current proportion of funding provided from each source to the ~~Innovation~~Net-Zero Fund. _________________ 52[add ref to the FuelEU Maritime Regulation].

2022/02/22
Committee: ENVI

Emma WIESNER, Nils TORVALDS, Linea SØGAARD-LIDELL, Jan HUITEMA

Proposal for a directive
Recital 35

(35) Carbon Contracts for Difference (CCDs) are an important element to trigger emission reductions in industry, offering the opportunity to guarantee investors in innovative climate-friendly technologies a price that rewards CO2 emission reductions above those induced by the current price levels in the EU ETS. The range of measures that the ~~Innovation~~Net-Zero Fund can support should be extended to provide support to projects through price- competitive tendering, such as CCDs. The Commission should be empowered to adopt delegated acts on the precise rules for this type of support. When implementing the CCDs, it should be ensured that they are compliant with state aid and world trade rules, and compatible with the Carbon Border Adjustment Mechanism, and that they are designed in a way that does not distort the EU ETS market. It is crucial that they are based on market principles and transparency.

2022/02/22
Committee: ENVI

Emma WIESNER, Pascal CANFIN, Nils TORVALDS, Jan HUITEMA, Linea SØGAARD-LIDELL, Catherine CHABAUD

Proposal for a directive
Recital 38

(38) The scope of the Modernisation Fund should be aligned with the most recent climate objectives of the Union by requiring that investments are consistent with the objectives of the European Green Deal and Regulation (EU) 2021/1119, and eliminating the support to any investments related to fossil fuels. In addition, the percentage of the Modernisation Fund that needs to be devoted to priority investments should be increased to 8100 %; energy efficiency should be targeted as a priority area at the demand side; and support of households to address energy poverty, including in rural and remote areas, should be included within the scope of the priority investments.

2022/02/22
Committee: ENVI

Emma WIESNER, Nils TORVALDS, Pascal CANFIN, Jan HUITEMA, Linea SØGAARD-LIDELL, Ulrike MÜLLER, Catherine CHABAUD

Proposal for a directive
Recital 67 a (new)

(67a) In line with Regulation (EU) 2021/1119, highest priority should be given to direct emissions reductions, which will have to be complemented by increased CO2 removals in order to achieve climate neutrality. Therefore, a future revision of the EU ETS and of the overall EU climate policy framework should also analyse how negative emissions could be included in emissions trading, including a clear scope and strict criteria and safeguards to ensure that such removals are not merely offsetting necessary emissions reductions but are genuine and permanent.

2022/02/24
Committee: ENVI

Emma WIESNER, Claudia GAMON, Pascal CANFIN, Jan HUITEMA, Linea SØGAARD-LIDELL, Ulrike MÜLLER, Catherine CHABAUD

Proposal for a directive
Recital 67 b (new)

(67b) The success of the European carbon market is critical from a global perspective, as it will encourage more countries to introduce market driven carbon pricing. The Carbon Border Adjustment Mechanism will extend carbon pricing to imported products sold on the EU market, but the EU should at the same time engage in international cooperation for the introduction of carbon pricing mechanisms. The Commission should further analyse how linkages with other carbon markets could be established while ensuring the achievement of the EU´s own economy-wide climate target. The Commission should actively pursue the establishment of an international “Carbon club” for ensuring continuous exchange in good faith with the EU’s trade partners. Its objective should be to allow for the comparison and coordination of carbon pricing measures as well as non-carbon pricing measures with an impact on emission reduction. The Carbon club should also support the comparability of climate measures by ensuring the quality of climate monitoring, reporting and verification among its members. Membership of the club should be informal, open and on a voluntary basis for countries aiming at high climate ambition in line with the Paris Agreement.

2022/02/24
Committee: ENVI

Emma WIESNER, Frédérique RIES, Nils TORVALDS, Jan HUITEMA, Linea SØGAARD-LIDELL, Catherine CHABAUD

Proposal for a directive
Article 1 – paragraph 1 – point 1

Directive 2003/87/EC
Article 2 – paragraph 1

1. This Directive shall apply to the activities listed in Annexes I and III, and to the of greenhouse gases listed in Annex II. Where an installation that is included in the scope of the EU ETS due to the operation of combustion units with a total rated thermal input exceeding 20 MW changes its production processes to reduce its greenhouse gas emissions and no longer meets that threshold~~, it shall remain in the scope of the EU ETS until the end of the relevant five year period referred to in Article 11(1), second subparagraph, follow~~ or no longer emits greenhouse gases, it may decide to remain ing the ~~change to its production process~~scope of the EU ETS.

2022/02/24
Committee: ENVI

Emma WIESNER, Claudia GAMON, Frédérique RIES, Jan HUITEMA, Catherine CHABAUD

Proposal for a directive
Article 1 – paragraph 1 – point 4

Directive 2003/87/EC
Article 3a – paragraph 1

Articles 3b to 3f shall apply to the allocation and issue of allowances in respect of the aviation activities listed in Annex I. Articles 3g to 3ge shall apply in respect of the maritime transport activities listed in Annex I, in respect of CO2 and methane emissions from ships with greenhouse gas emissions above 1 000 tonnes CO2eq per year.

2022/02/24
Committee: ENVI

Emma WIESNER, Claudia GAMON, Frédérique RIES, Jan HUITEMA, Andreas GLÜCK

Proposal for a directive
Article 1 – paragraph 1 – point 6

Directive 2003/87/EC
Article 3ga a (new)

Article 3gaa Ocean Fund 1. 50 % of the revenues generated from the auctioning of allowances referred to in Article 3g shall be auctioned to establish a fund (‘the Ocean Fund’) under the Fund established under Article 10a(8), applying the rules for governance and support as laid down in that Article. Its objective shall be to support projects and investments referred to in paragraph 2. Furthermore, the external assigned revenues referred to in Article 21(2) of Regulation (EU) [FuelEU Maritime] shall be allocated to the Ocean Fund. 2. Funds provided under the Ocean Fund shall be used to support projects and investments in relation to the following: improvement of the energy efficiency of ships and ports; innovative technologies and infrastructure for decarbonising the maritime transport sector, including as regards short sea shipping and ports; deployment of sustainable alternative fuels, such as hydrogen and ammonia, that are produced from renewable energy; zero-emission propulsion technologies, including wind technologies; development of innovative technologies and fuels for ice-class ships and winter navigation in frozen areas. 20% of the revenues under the Fund shall be used to contribute to the protection, restoration and better management of marine ecosystems impacted by global warming, such as marine protected areas; and to promote a crosscutting sustainable blue economy such as renewable marine energy.

2022/02/24
Committee: ENVI

Emma WIESNER, Claudia GAMON, Nils TORVALDS, Jan HUITEMA, Catherine CHABAUD

Proposal for a directive
Article 1 – paragraph 1 – point 6

Directive 2003/87/EC
Article 3ge – paragraph 1

1. The Commission shall consider possible amendments in relation to the adoption by the International Maritime Organization of a global market-based measure to reduce greenhouse gas emissions from maritime transport. In the event of the adoption of such a measure, and in any event before the 2028 global stocktake and no later than 30 September 2028, the Commission shall present a report to the European Parliament and to the Council in which it shall examine any such measure. WThe re ~~appropriate, the Commission may follow to~~port shall examine the ambition and overall environmental integrity of the measures decided upon by IMO, including their general ambition in relation to targets under the Paris Agreement, to the Union economy-wide greenhouse gas emissions reduction target for 2030 and to the climate- neutrality objective as defined in Regulation (EU) 2021/1119. Where appropriate, the Commission may accompany the report with a legislative proposal to the European Parliament and to the Council to amend this Directive ~~as appropriate~~, including concerning its coverage of voyages to and from the EU, in a manner that is consistent with the aim of preserving the environmental integrity and effectiveness of Union climate action, in particular the Union economy-wide greenhouse emissions reduction target for 2030 and the climate-neutrality objective as defined in Regulation (EU) 2021/1119.

2022/02/24
Committee: ENVI

Emma WIESNER, Claudia GAMON, Martin HOJSÍK, Frédérique RIES, Pascal CANFIN, Jan HUITEMA, Linea SØGAARD-LIDELL, Andreas GLÜCK, Catherine CHABAUD

Proposal for a directive
Article 1 – paragraph 1 – point 7

Directive 2003/87/EC
Article 3h – paragraph 1 a (new)

From [the year of entry into force of this amendment], the provisions of this Chapter shall apply to greenhouse gas emissions permits in respect of municipal waste incineration installations. The obligation to surrender allowances in respect of emissions from these installations shall apply to emissions from the year 2025 onwards.

2022/02/24
Committee: ENVI

Emma WIESNER, Claudia GAMON, Frédérique RIES, Nils TORVALDS, Jan HUITEMA, Andreas GLÜCK, Catherine CHABAUD

Proposal for a directive
Article 1 – paragraph 1 – point 11 – point a

Directive 2003/87/EC
Article 10 – paragraph 1 – subparagraph 3a

In addition, 2,5 % of the total quantity of allowances between [year following the entry into force of the Directive] and 2030 shall be auctioned for the Modernisation Fund. The beneficiary Member States for this amount of allowances shall be the Member States with a GDP per capita at market prices below 65 % of the Union average during the period 2016 to 2018. The funds corresponding to this quantity of allowances shall be distributed in accordance with Part B of Annex IIbNet-Zero Fund established in accordance with Article 10a(8) to support to the transition to innovative decarbonised technologies and processes, and to the upscaling of relevant technologies across the Union, in a way that contributes to mitigating climate change in line with the objectives set out in Regulation (EU) 2021/1119.

2022/02/28
Committee: ENVI

Emma WIESNER, Frédérique RIES, Pascal CANFIN, Nils TORVALDS, Jan HUITEMA, Linea SØGAARD-LIDELL, Andreas GLÜCK, Ulrike MÜLLER, Catherine CHABAUD

Proposal for a directive
Article 1 – paragraph 1 – point 11 – point b a (new)

Directive 2003/87/EC
Article 10 – paragraph 3 – subparagraph 1 – point d

(ba) in paragraph 3, first subparagraph, point (d) is replaced by the following: "(d) forestry and soil sequestration in the Union; ~~(https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A02003L0087-20210101)~~" Or. en

2022/02/28
Committee: ENVI

Emma WIESNER, Jan HUITEMA, Linea SØGAARD-LIDELL

Proposal for a directive
Article 1 – paragraph 1 – point 12 – point a – point i

Directive 2003/87/EC
Article 10a – paragraph 1 – subparagraph 2a

IBy January 2025, economic operators in sectors or sub-sectors eligible for free allocation of emissions allowances pursuant to Article 10a and 10b shall establish industrial decarbonisation plans. These plans shall be carried out at company level and cover measures and related investments for each installation owned by the company. The decarbonisation plans shall be consistent with the objective to achieve carbon neutrality by 2050 at the latest as laid down in Regulation (EU) 2021/1119. The plan shall be consistent with any sectoral roadmaps prepared in accordance with Article 10 of Regulation (EU) 2021/1119. The industrial decarbonization plan shall include: (a) targets and milestones set by the operator to reach, at company level, the necessary emissions reductions to Union climate objectives laid down in Regulation (EU) 2021/1119; (b) measures and related financial and investments plans for each installation owned by the company, in particular identifying installations that will be replaced by new low-carbon technologies, modernised, retrofitted or closed; (c) an explanation of how the measures and related investments referred to in point (b) will reduce greenhouse gas emissions in order to reach the targets and milestones referred to in point (a); (e) a description of the progress made towards achieving these targets. The attainment of the targets and milestones referred to in point (a) of the previous subparagraph shall be verified by 31 December 2025 and by 31 December every year thereafter, in accordance with the verification and accreditation procedures provided for in Article 15. If the targets and milestones set in accordance with point (a) are not achieved: (a) The installations that are amongst the 10 % least efficient installations in a sector or subsector in the Union shall no longer receive free allocation; (b) For installations that are more efficient than the 10 % least efficient installations but worse than the 60 % most efficient installations in a sector or subsector in the Union, free allowances shall be reduced by 50 %; (c) For installations falling outside of the two categories described above, free allocations shall be reduced by 25 %. Any allowances that are not allocated due to a reduction of free allocation in accordance with the rules laid down above shall be transferred in the Net-Zero Fund. In case a company has not established an industrial decarbonisation plan, it shall no longer receive free allocation. Furthermore, in the case of installations covered by the obligation to conduct an energy audit or have a certified energy management system under Article 8(4) of Directive 2012/27/EU of the European Parliament and of the Council~~(*)~~ [Article reference to be updated with the revised Directive], free allocation shall only be granted fully if a certified energy management system can be proven or the recommendations of the audit report are implemented, to the extent that the pay- back time for the relevant investments does not exceed ~~five~~eight years and that the costs of those investments are proportionate. Otherwise, the amount of free allocation shall be reduced by 250 %. The amount of free allocation shall not be reduced if an operator demonstrates that it has implemented other measures which lead to greenhouse gas emission reductions equivalent to those recommended by the audit report. The measures referred to in the first subparagraph shall be adjusted accordingly.

2022/02/28
Committee: ENVI

Emma WIESNER, Pascal CANFIN, Nils TORVALDS, Jan HUITEMA, Linea SØGAARD-LIDELL, Catherine CHABAUD

Proposal for a directive
Article 1 – paragraph 1 – point 12 – point b

Directive 2003/87/EC
Article 10 – paragraph 1a – subparagraph 4

Allowances resulting from the reduction of free allocation shall be made available to support innovation and to scale up zero- and low-carbon technologies contributing significantly to climate neutrality in the Union in accordance with Article 10a(8).;

2022/03/04
Committee: ENVI

Emma WIESNER, Claudia GAMON, Frédérique RIES, Nils TORVALDS, Jan HUITEMA, Linea SØGAARD-LIDELL, Catherine CHABAUD