100 Amendments of Catherine GRISET related to 2021/0214(COD)
Amendment 133 #
Proposal for a regulation
Recital 1 a (new)
Recital 1 a (new)
(1a) The European Green Deal, with its ambitious targets, has increased costs for European producers. An instrument ensuring a level playing field with third countries, which do not have the same ambitious climate policies as the EU, is thus required.
Amendment 134 #
Proposal for a regulation
Recital 1 a (new)
Recital 1 a (new)
(1a) The European Green Deal with its ambitious objectives has brought to the increase of cost for European producers, thus it is necessary to have an instrument to ensure a level playing field with third countries, which do not have the same ambitious climate policies as the EU has.
Amendment 136 #
Proposal for a regulation
Recital 3
Recital 3
(3) Tackling climate and other environmental-related challenges and reaching the objectives of the Paris Agreement are at the core of the European Green Deal. The value of the European Green Deal has only grown in light of the very severe effects of the COVID-19 pandemic on the health and economic well- being of the Union’s citizens, the need to develop European policies promoting localism and the relocation of the most strategic industries.
Amendment 157 #
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, while at the same time preventing investment drain and ensuring a level playing field in order to preserve the competitiveness of European industry.
Amendment 159 #
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, while at the same time ensuring a level playing field in order to preserve the competitiveness of EU industries.
Amendment 167 #
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 171 #
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 204 #
Proposal for a regulation
Recital 11
Recital 11
(11) The CBAM seeks to streplace these existing mechanisms by addressing the risk ofn 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 while free allowances in sectors covered by the CBAM are phased out. The combined and transitional application of EU ETS allowances allocated freeprotection in view of higher EU climate ambition by 2030 and thereafter replace progressively these existing mechanisms by addressing the risk 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 Unionbon leakage in a different way.
Amendment 209 #
Proposal for a regulation
Recital 11
Recital 11
(11) The CBAM seeks to replace 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 while free allowances in sectors covered by the CBAM are 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 during a pilot phase that will allow for its effectiveness to be assessed following a transitional period making it possible to ensure that genuinely equivalent carbon pricing of direct and indirect emissions between the European Union and third countries has been achieved.
Amendment 221 #
Proposal for a regulation
Recital 11 a (new)
Recital 11 a (new)
(11a) First, under the import provisions, the CBAM seeks to ensure 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 while free allowances in sectors covered by the CBAM are progressively phased out as of 2030 and only provided that the CBAM has proved to be effective to prevent the risk of carbon leakage both for imports and 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 232 #
Proposal for a regulation
Recital 11 b (new)
Recital 11 b (new)
(11b) Second, under the export provisions, the CBAM seeks to limit the risk of replacement of European low- carbon exports with carbon intense products on third-country markets which would undermine the objective of reducing global emissions. It is necessary to continue addressing the risks of carbon leakage associated with European exports to third countries which have not yet limited or priced GHG emissions at the same levels as the EU, by introducing allowance adjustments for exports as of the start of the progressive phasing out of free allowances. Those allowance adjustments for exports are established as a component of the EU ETS and are introduced as part of the CBAM to prevent carbon leakage associated with European exports. To this end, the allowance adjustments for export would remain in force independently from the reduction commitments of free allowances under the EU ETS until other countries take equivalent and effective steps to impose carbon costs on competing production.
Amendment 236 #
Proposal for a regulation
Recital 11 c (new)
Recital 11 c (new)
(11c) Given the unique characteristics of price formation on the EU electricity market, that are not existing in third countries, the mechanism in Article 10a(6) shall remain outside the scope of CBAM until the CBAM can accurately mirror the indirect costs that are actually passed on in electricity prices in Europe.
Amendment 270 #
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. The CBAM is a climate measure which should prevent the risk of carbon leakage and supportpartially linked to the Union’s increased ambition on climate mitigation, while ensuring WTO compatibility.
Amendment 280 #
Proposal for a regulation
Recital 14
Recital 14
(14) This Regulation should apply to goods imported into the customs territory of the Union from third countries, except where their production has already been subject to the EU ETS, whereby it applies to third countries or territories, or to a carbon pricing system fully linked with the EU ETS. Exceptions will be granted only to those goods imported into the customs territory of the Union which are subject to carbon cost burden equivalent to that incurred under the EU ETS.
Amendment 285 #
Proposal for a regulation
Recital 14 a (new)
Recital 14 a (new)
(14a) This Regulation should also apply to goods produced in EU installations subject to the EU ETS and exported from the customs territory of the Union to third countries which have not yet limited or priced GHG emissions at the same levels as the EU.
Amendment 290 #
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 and where the carbon cost burden is equivalent to that under 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 II. 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 301 #
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 end of a transition period and upon further assessment, as well to indirect emissions, mirroring the scope of the EU ETS. Including indirect emissions and pricing them in the CBAM should be done only once the mismatch between indirect carbon costs and indirect carbon emissions has been reduced to a minimum, as the European electricity grid decarbonises.
Amendment 315 #
Proposal for a regulation
Recital 19
Recital 19
(19) However, while the EU ETS sets an absolute cap on the GHG emissions from the activities under its scope and allows tradability of allowances (so called ‘cap and trade system’), the CBAM should not establish quantitative limits to import, so as to ensure that trade flows are not restricted. Moreover, while the EU ETS applies to installations based in the Union, the CBAM should be applied to certain goods imported into the customs territory of the Union. Overseas territories should benefit from special treatment to avoid any negative effects deriving from the application of the CBAM on their production.
Amendment 319 #
Proposal for a regulation
Recital 19
Recital 19
(19) However, while the EU ETS sets an absolute cap on the GHG emissions from the activities under its scope and allows tradability of allowances (so called ‘cap and trade system’), the CBAM should not establish quantitative limits to import or export, so as to ensure that trade flows are not restricted. Moreover, while the EU ETS applies to installations based in the Union, the CBAM should be applied to certain goods imported into or exported from the customs territory of the Union.
Amendment 324 #
Proposal for a regulation
Recital 20
Recital 20
(20) The CBAM system has some specific features compared with the EU ETS, including on the calculation of the price of CBAM certificates, on the possibilities to trade certificates and on their validity over time. These are due to the need to preserve the effectiveness of the CBAM as a measure preventing carbon leakage over time and to ensure that the management of the system is not excessively burdensome in terms of obligations imposed on the operators and of resources for the administration, while at the same time preserving an equivalent level of flexibility available to operators under the EU ETS. European SMEs and VSEs should benefit from a derogation system to prevent and limit the administrative burden caused by the implementation of the CBAM.
Amendment 330 #
Proposal for a regulation
Recital 21
Recital 21
(21) In order to preserve its effectiveness as a carbon leakage measure, the CBAM needs to reflect closely the EU ETS price. While on the EU ETS market the price of allowances is determined through auctions, the price of CBAM certificates for imports should reasonably reflect the price of such auctions through averages calculated on a weekly basis. Such weekly average prices reflect closely the price fluctuations of the EU ETS and allow a reasonable margin for importers to take advantage of the price changes of the EU ETS while at the same ensuring that the system remains manageable for the administrative authorities.
Amendment 331 #
Proposal for a regulation
Recital 22
Recital 22
(22) Under the EU ETS, the total number of allowances issued (the ‘cap’) determines the supply of emission allowances and provides certainty about the maximum emissions of GHG. The carbon price is determined by the balance of this supply against the demand of the market. Scarcity is necessary for there to be a price incentive. As it is not possible to impose a cap on the number of CBAM import certificates available to importers, if importers had the possibility to carry forward and trade CBAM import certificates, this could result in situations where the price for CBAM certificates would no longer reflect the evolution of the price in the EU ETS. That would weaken the incentive for decarbonisation between domestic and imported goods, favouring carbon leakage and impairing the overarching climate objective of the CBAM import. It could also result in different prices for operators of different countries. Therefore, the limits to the possibilities to trade CBAM import certificates and to carry them forward is justified by the need to avoid undermining the effectiveness and climate objective of the CBAM and to ensure even handed treatment to operators from different countries. However, in order to preserve the possibility for importers to optimise their costs, this Regulation should foresee a system where authorities can re-purchase a certain amount of excess certificates from the importers. Such amount is set at a level which allows a reasonable margin for importers to leverage their costs over the period of validity of the import certificates whilst preserving the overall price transmission effect, ensuring that the environmental objective of the measure is preserved.
Amendment 337 #
Proposal for a regulation
Recital 23
Recital 23
(23) Given that the CBAM, under the import provisions, applies to imports of goods into the customs territory of the Union rather than to installations, certain adaptations and simplifications would also need to apply in the CBAM regime. One of those simplifications should consist in a declarative system where importers should report the total verified GHG emissions embedded in goods imported in a given calendar year. A different timing compared to the compliance cycle of the EU ETS should also be applied to avoid any potential bottleneck resulting from obligations for accredited verifiers under this Regulation and the EU ETS.
Amendment 341 #
Proposal for a regulation
Recital 23 a (new)
Recital 23 a (new)
(23a) Under the export provisions of the CBAM, given that the installations concerned can be easily identified, the CBAM would apply to EU installations. The adjustment allowances provided for exported products will calibrate the regulatory obligation and the net regulatory burden imposed under the CBAM regime when those goods are exported from the customs territory of the Union to third countries which have not yet limited or priced GHG emissions at the same levels as the EU.
Amendment 349 #
Proposal for a regulation
Recital 25
Recital 25
(25) While the EU ETS applies to certain production processes and activities, the CBAM should target the corresponding imports or exports of goods. That requires clearly identifying imported or exported goods by way of their classification in the Combined nomenclature41 (‘CN’) and linking them to embedded GHG emissions. __________________ 41Council Regulation (EEC) No 2658/87 of 23 July 1987 on the tariff and statistical nomenclature and on the Common Customs Tariff (OJ L 256, 7.9.1987, p. 1).
Amendment 361 #
Proposal for a regulation
Recital 28 a (new)
Recital 28 a (new)
(28a) The Commission should take into account the economic and social effects of the scope of the CBAM and its potential expansion and should propose measures to minimise these effects on European export producers.
Amendment 364 #
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, particularly for SMEs and VSEs. 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. fourthly, the impact of Covid-19 on global supply chain disruption and the rise in raw materials prices.
Amendment 366 #
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 fourthly, the impact of Covid-19 on global supply chain disruption and the increasing of prices in raw materials and other strategic sectors.
Amendment 382 #
Proposal for a regulation
Recital 33
Recital 33
(33) Similar technical 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. Due to these constraints, refinery products should be eligible to be included in the scope only if an unambiguous, verifiable and effective methodology is developed in close cooperation with the refining industry.
Amendment 387 #
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 future. However, including indirect emissions and pricing them in the CBAM could be considered only once the mismatch between indirect carbon costs and indirect carbon emissions has been reduced to a minimum. If after the initial transitional period, the data collected by the Commission shows that the CBAM cannot effectively protect against carbon leakage and incentivise the reduction of global emissions, further phase-in of CBAM and phase-out of free allocation of emission allowances should be paused until an effective solution can be found.
Amendment 395 #
Proposal for a regulation
Recital 35 a (new)
Recital 35 a (new)
(35a) In case European industries producing goods subject to the CBAM face serious difficulties as a result of its implementation, an in-depth assessment developed in close cooperation with the industrial sectors should be made as promptly as possible to examine whether a CBAM is effective and practicable.
Amendment 400 #
Proposal for a regulation
Recital 36 a (new)
Recital 36 a (new)
(36a) Before widening the scope of the CBAM to new sectors, including downstream products using goods covered by the CBAM, a prior assessment should be made by the European Commission in consultation with the industrial sectors in order to check its practicability and effectiveness.
Amendment 401 #
Proposal for a regulation
Recital 36 b (new)
Recital 36 b (new)
(36b) Circumvention practices must be prohibited, where a change in the pattern of trade between third countries and the Union or between third countries, or between individual companies or within the same undertaking in relation with products included in the scope of this regulation, whether slightly modified or not, stems from a practice, process or work that have insufficient due cause or economic justification other than avoiding obligations as laid down in this Regulation. Those practices should include all types of circumvention practices, including resource shuffling, cost absorption, manipulation of emissions data, wrongful labelling of goods and slight modifications of the product so as to import a product under a different customs code thereby avoiding the present Regulation.
Amendment 412 #
Proposal for a regulation
Recital 43
Recital 43
(43) CBAM certificates for imports differ from EU ETS allowances for which daily auctioning is an essential feature. The need to set a clear price for CBAM import certificates makes a daily publication excessively burdensome and confusing for operators, as daily prices risk becoming obsolete upon publication. Thus, the publication of CBAM import prices on a weekly basis would accurately reflect the pricing trend of EU ETS allowances and pursue the same climate objective. The calculation of the price of CBAM certificates should therefore be set on the basis of a longer timeframe (on a weekly basis) than in the timeframe established by the EU ETS (on a daily basis). The Commission should be tasked to calculate and publish that average price.
Amendment 416 #
Proposal for a regulation
Recital 44
Recital 44
(44) In order to give the authorised declarants flexibility in complying with their CBAM obligations and allow them to benefit from fluctuations in the price of EU ETS allowances, the CBAM import certificates should be valid for a period of two years from the date of purchase. The authorised declarant should be allowed to re-sell to the national authority a portion of the certificates bought in excess. The authorised declarant should build up during the year the amount of certificates required at the time of surrendering, with thresholds set at the end of each quarter.
Amendment 439 #
Proposal for a regulation
Recital 50
Recital 50
(50) A transitional period should apply during the period 2023 until 2025. AUnder the import provisions, 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 446 #
Proposal for a regulation
Recital 50 a (new)
Recital 50 a (new)
(50a) Under the export provisions of the CBAM, the allowance adjustments for exports would be implemented as of the start of the phasing out of EU ETS allowances allocated free of charge. A transitional period of two years before the implementation of allowance adjustments for exports is needed to ensure a swift implementation of the mechanism. Particular attention should be paid to the arrangements for the calculation of corresponding allowance adjustments, the operation of registries, the application of the monitoring and reporting guidelines and verification.
Amendment 460 #
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 and possibilities to improve carbon leakage measures to ensure a level playing field between the EU and third countries. The Commission shouldall, 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, including downstream products using goods covered by the CBAM, and to develop methods of calculating embedded emissions based on the environmental footprint methods47 . With regard to indirect emissions, the evaluation shall take into account the mismatch between indirect carbon costs and indirect carbon emissions and that EU producers are exposed to carbon costs passed on in electricity prices due to the functioning of the EU energy market (indirect carbon costs). __________________ 47Commission 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 466 #
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, 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 measure and communicate the life cycle environmental performance of products and organisations (OJ L 124, 4.5.2013, p. 1).
Amendment 513 #
Proposal for a regulation
Recital 55
Recital 55
(55) As the CBAM aims to encourage cleaner production processes, the EU stands ready to work with low and middle- income countries towardsincome should be used primarily to support the de- carbonisation of their manufacturing industries. Moreover, the Union should support less developed countries with the necessary technical assistance in order to facilitate their adaptation to the new obligations established by this regulationEuropean industry, technological innovation within it and its competitiveness. These resources should be allocated directly to Member States for redistribution under a sector-by-sector approach.
Amendment 517 #
Proposal for a regulation
Recital 55 a (new)
Recital 55 a (new)
(55a) This assistance should be financed under the expenditure programmes in the Union budget, in particular the Neighbourhood, Development and International Cooperation Instrument (NDICI) or the Instrument for Pre- Accession Assistance (IPA III) and not through revenue generated by the CBAM.
Amendment 526 #
Proposal for a regulation
Recital 59
Recital 59
(59) It is of particular importance that the Commission carry out appropriate consultations during its preparatory work, including at expert and industry level, and that those consultations be conducted in accordance with the principles laid down in the Interinstitutional Agreement on Better Law-Making of 13 April 201651 . In particular, to ensure equal participation in the preparation of delegated acts, the European Parliament and the Council receive all documents at the same time as Member States' experts, and their experts systematically have access to meetings of Commission expert groups dealing with the preparation of delegated acts. __________________ 51Interinstitutional Agreement between the European Parliament, the Council of the European Union and the European Commission on Better Law-Making (OJ L 123, 12.5.2016, p. 1).
Amendment 528 #
Proposal for a regulation
Recital 61
Recital 61
(61) The financial interests of the UnionMember States should be protected through proportionate measures throughout the expenditure cycle, including the prevention, detection and investigation of irregularities, the recovery of funds lost, wrongly paid or incorrectly used and, where appropriate, administrative and financial penalties.
Amendment 540 #
Proposal for a regulation
Article premier – paragraph 1
Article premier – 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 and encourage third countries to align with European standards.
Amendment 543 #
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 or exportation from the customs territory of the Union, in order to prevent the risk of carbon leakage.
Amendment 544 #
Proposal for a regulation
Article 1 – paragraph 2
Article 1 – paragraph 2
2. The CBAM complements the system established for greenhouse gas emission allowance trading within the Union by Directive 2003/87/EC by applying an equivalent set of rules to imports into or export from the customs territory of the Union of goods referred to in Article 2.
Amendment 552 #
Proposal for a regulation
Article 1 – paragraph 3
Article 1 – paragraph 3
3. The mechanism willshall, if effective, 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, without prejudice to the maintenance of EU ETS allowances allocated free of charge until 2030 and only provided that the CBAM has proven to be effective to prevent the risk of carbon leakage both for imports into or exports from the customs territory of the Union.
Amendment 562 #
Proposal for a regulation
Article premier – paragraph 3
Article premier – 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, without prejudice to the maintenance of EU ETS allowances allocated free of charge until 2030 and only provided that the CBAM has proven to be effective in preventing the risk of carbon leakage.
Amendment 583 #
Proposal for a regulation
Article 2 – paragraph 2 a (new)
Article 2 – paragraph 2 a (new)
2a. This Regulation also applies to goods listed in Annex I when those goods are produced in EU installations subject to the EU ETS and exported from the Customs territory of the European Union to third countries, which have not yet limited or priced GHG emissions at the same levels as the EU.
Amendment 585 #
Proposal for a regulation
Article 2 – paragraph 3
Article 2 – paragraph 3
3. By way of derogation from paragraphs 1, 2 and 2a, this Regulation does not apply to goods originating in or exported to countries and territories listed in Annex II, Section A.
Amendment 596 #
Proposal for a regulation
Article 2 – paragraph 5 a (new)
Article 2 – paragraph 5 a (new)
5a. The regulatory obligation and the net regulatory burden imposed in the country where the goods are originating in are equivalent to those imposed under the EU ETS.
Amendment 598 #
Proposal for a regulation
Article 2 – paragraph 6
Article 2 – paragraph 6
6. The Commission is empowered to adopt implementing acts in order to determine the conditions for applying the CBAM to goods referred to in paragraph 2 and 2a. Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 29(2).
Amendment 640 #
Proposal for a regulation
Article 3 – paragraph 1 – point 4 a (new)
Article 3 – paragraph 1 – point 4 a (new)
(4a) ‘exportation’ means the release for export of goods produced in EU installations subject to the EUETS as provided in Article 269 of regulation (EU) N° 952/2013;
Amendment 649 #
Proposal for a regulation
Article 3 – paragraph 1 – point 13
Article 3 – paragraph 1 – point 13
(13) ‘declarant’ means a person lodging a customs declaration, either for release for free circulation in its own name or for export, or the person in whose name such a declaration is lodged in accordance with Regulation (EU) No 952/2013;
Amendment 657 #
Proposal for a regulation
Article 3 – paragraph 1 – point 19
Article 3 – paragraph 1 – point 19
(19) ‘surrender’ means offsetting of CBAM certificates against the declared embedded emissions in imported or exported goods;
Amendment 668 #
Proposal for a regulation
Article 3 – paragraph 1 – point 28 a (new)
Article 3 – paragraph 1 – point 28 a (new)
(28a) ‘indirect emissions costs’ mean EUA costs passed on in electricity prices. These are not an indication of the physical indirect emissions in the production.
Amendment 675 #
Proposal for a regulation
Article 4 – title
Article 4 – title
Importation and exportation of goods
Amendment 679 #
Proposal for a regulation
Article 4 – paragraph 1
Article 4 – paragraph 1
Goods shall only be imported into or exported from the customs territory of the Union by a declarant that is authorised by the competent authority in accordance with Article 17 (‘authorised declarant’).
Amendment 680 #
Proposal for a regulation
Article 5 – title
Article 5 – title
Application for an import authorisation
Amendment 688 #
Proposal for a regulation
Article 5 a (new)
Article 5 a (new)
Article 5a Notification and registration of exports Any declarant wishing to obtain adjustments to their emission allowances corresponding to the embedded emissions of the goods produced in the EU and exported outside the territory of the customs union shall be registered as a declarant according to Article 4 and shall notify the competent authorities of its intention at the time of lodging the pre- departure declaration. On release of the goods, the customs office of export will transmit the necessary particulars of the export movement to the competent authority, which shall issue a certificate establishing the allowance adjustments to be granted to calibrate the regulatory obligation.
Amendment 690 #
Proposal for a regulation
Article 6 – title
Article 6 – title
CBAM import declaration
Amendment 707 #
Proposal for a regulation
Article 7 – paragraph 6
Article 7 – paragraph 6
6. The Commission is empowered to adopt 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 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 725 #
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 736 #
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. Provisions laid down in such implementing acts shall be equivalent to the provisions set in Regulation 2018/2067.
Amendment 780 #
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 verify and to 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 793 #
Proposal for a regulation
Article 10 – paragraph 8 a (new)
Article 10 – paragraph 8 a (new)
8a. The central data base should, insofar as possible, mirror the information provided in the ETS database.
Amendment 808 #
Proposal for a regulation
Article 11 – paragraph 1 – subparagraph 2
Article 11 – paragraph 1 – subparagraph 2
The Commission shall make available to the Member States a list of all competent national authorities and publish this information in the Official Journal of the European Union.
Amendment 843 #
Proposal for a regulation
Article 14 – paragraph 4
Article 14 – paragraph 4
4. The Commission shall establish a central database at the EU level accessible to the public containing the names, addresses and contact details of the operators and the location of installations in third countries in accordance with Article 10(2). An operator may choose not to have its name, address and contact details accessible to the public. The central database should insofar as possible, mirror the ETS database.
Amendment 922 #
Proposal for a regulation
Article 19 – paragraph 2
Article 19 – paragraph 2
2. Where a CBAM declaration in accordance with Article 6 has not been submitted, the competent authority of the Member State of establishment of the authorised declarant shall assess the CBAM obligations of that declarant on the basis of the information at its disposal and calculate the total number of CBAM certificates due at the latest by the 31 December of the fourth year following that when the CBAM declaration should have been submitted. This information shall be submitted to the competent authority.
Amendment 934 #
Proposal for a regulation
Article 20 – paragraph 2 – point 1 (new)
Article 20 – paragraph 2 – point 1 (new)
Amendment 936 #
Proposal for a regulation
Article 20 a (new)
Article 20 a (new)
Article 20a CBAM Export certificates 1. Member States may apply administrative or criminal sanctions for failure to comply with the CBAM legislation in accordance with their national rules in addition to penalties referred to in paragraphs2 and 4a. Such sanctions shall be effective, proportionate and dissuasive. 2. For those export of goods listed in Annex I, the competent authority shall grant adjustment allowances certificates for goods produced in EU installations subject to the EU ETS and exported from the customs territory of the Union to third countries which have not yet limited or priced GHG emissions at the same level as the EU to calibrate the regulatory obligation and the net regulatory burden imposed under the CBAM. The adjustment allowances for the emissions embedded in the good exported mentioned in the certificate shall be deducted in accordance with Article 5 from the annual amount of allowances above the benchmark, or by default, the amount of allowances not covered by the fallback benchmarks to be surrendered to the competent authority.
Amendment 937 #
Proposal for a regulation
Article 21 – title
Article 21 – title
Price of CBAM import certificates
Amendment 947 #
Proposal for a regulation
Article 22 – title
Article 22 – title
Surrender of CBAM import certificates
Amendment 951 #
Proposal for a regulation
Article 23 – title
Article 23 – title
Re-purchase of CBAM import certificates
Amendment 953 #
Proposal for a regulation
Article 24 – title
Article 24 – title
Cancellation of CBAM import certificates
Amendment 956 #
Proposal for a regulation
Article 24 – paragraph 1 a (new)
Article 24 – paragraph 1 a (new)
The revenues generated from the sale of CBAM certificates shall be allocated to Member States to be used for the decarbonisation of European industries and the deployment of low-carbon technologies, as they face higher production costs as a result of the ambitious targets set under the European Green Deal, as well as to cover the administrative costs of the CBAM.
Amendment 966 #
Proposal for a regulation
Article 25 – paragraph 5 – point a (new)
Article 25 – paragraph 5 – point a (new)
(a) The Commission shall report annually to the European Parliament and the Council, with a view to drawing up an exhaustive list of unfair practices and fraud and circumvention practices related to the MACF in third countries.
Amendment 969 #
Proposal for a regulation
Article 26 – title
Article 26 – title
Penalties in relation to imports of goods
Amendment 975 #
Proposal for a regulation
Article 26 – paragraph 4 – point a a (new)
Article 26 – paragraph 4 – point a a (new)
(aa) In case of repeated failure to surrender a number of CBAM certificates corresponding to the emissions embedded in goods imported during the previous year, or in case of submission of false information in the CBAM declaration, an authorized declarant, and any of its related parties, may be automatically excluded from the register for a period of 3 years from the date of exclusion. The respective verifier – and any of its related parties - who has certified the accuracy of the information in the CBAM declaration has its certification withdrawn by the competent authority.
Amendment 983 #
Proposal for a regulation
Article 26 – paragraph 5
Article 26 – paragraph 5
5. Member States may apply administrative or criminal sanctions for failure to comply with the CBAM legislation in accordance with their national rules in addition to penalties referred to in paragraph 2s2 and 4a. Such sanctions shall be effective, proportionate and dissuasive.
Amendment 992 #
Proposal for a regulation
Article 27 – paragraph 2
Article 27 – paragraph 2
2. Practices of circumvention include situations where a change in the pattern of trade in relation to goods included in the scope of this Regulationbetween third countries and the Union or between third countries themselves or between individual companies or within the same undertaking in relation to goods included in the scope of this Regulation , whether slightly modified or not, stems from a practice, process or work that has insufficient due cause or economic justification other than avoiding obligations or seeking benefits as laid down in this Regulation and consist in replacing those goods with slightly modified products, which are not included in the list of goods in Annex I but belong to a sector included in the scope of this Regulationor undermining their effects, including on overall GHG emissions and on prices of the goods concerned.
Amendment 1015 #
Proposal for a regulation
Article 27 – paragraph 2 a (new)
Article 27 – paragraph 2 a (new)
2a. The practice, process or work referred to in paragraph 2 include, inter alia: (a) the slight modification of the goods included in the scope of this Regulation to make it fall under customs codes which are normally not subject to the obligations of this Regulation, provided that the modification does not alter its essential characteristics; (b) false declarations as to the identity of the producer of the goods or of the nature of the goods or the production process involved to product these goods; (c) the consignment of the goods via third countries to which more favourable obligations apply; (d) the reorganisation by exporters or producers of their patterns and channels of sales in order to avoid obligations as laid down in this Regulation, or undermine their effects, including on overall GHG emissions and on prices of the goods, for instance via practices of resource shuffling. (e) the assembly of parts by an assembly operation in the Union or a third country to avoid obligations as laid down in this Regulation.
Amendment 1036 #
Proposal for a regulation
Article 27 – paragraph 3
Article 27 – paragraph 3
3. A Member State or any party affected or benefitted by the situations described in paragraphs 2 to 2f may notify the Commission if it is confronted, over a two- month period compared with the same period in the preceding year with a significant decrease in the volume of imported goods included in the scope of this Regulation and an increase of volume of imports of slightly modified products, which are not included in the list of goods in Annex I. The Commission shall continually monitor any significant change of pattern of trade of goods and slightly modified products at Union level.
Amendment 1077 #
Proposal for a regulation
Article 27 a (new)
Article 27 a (new)
Amendment 1083 #
Proposal for a regulation
Article 27 b (new)
Article 27 b (new)
Article 27 b Following a complaint made by any party, or at the request of Member States or on its own initiative, the Commission may decide, following an investigation, to extend obligations laid down in this regulation, in whatever way is necessary to prevent future circumvention of the present Regulation, when circumvention of the measures in force is taking place. This includes the possibility for the Commission to impose a penalty on an authorised Declarant involved in the circumvention, if this is proportionate, from the date of registration of imports. Given the circumstances of the individual case, the Commission may also decide to ban those imports from entering the Union territory during a certain period or to prevent the authorized Declarant and any of its related parties to import goods subject to the present Regulation into the Union for a certain period.
Amendment 1085 #
Proposal for a regulation
Article 27 c (new)
Article 27 c (new)
Article 27 c Decisions referred to in paragraph 2b shall be subject to an appeal procedure.
Amendment 1087 #
Proposal for a regulation
Article 27 d (new)
Article 27 d (new)
Article 27 d Investigations shall be initiated pursuant to this Article on the initiative of the Commission or at the request of a Member State or of any interested party on the basis of sufficient evidence regarding possible circumvention practices as defined in paragraphs 2 and 2a. Initiations shall be made by means of a Commission regulation which shall also instruct customs authorities of Member States to subject imports to registration in accordance with Article 27(5). The Commission shall provide information to the Member States once a party or a Member State has submitted a request to initiate an investigation and the Commission has completed its analysis thereof, or where the Commission has itself determined that there is a need to initiate an investigation.
Amendment 1088 #
Proposal for a regulation
Article 27 e (new)
Article 27 e (new)
Article 27 e Investigations shall be carried out by the Commission. The Commission may be assisted by customs authorities and the investigation shall be concluded within 4 months.
Amendment 1089 #
Proposal for a regulation
Article 27 f (new)
Article 27 f (new)
Article 27 f Where the facts as finally ascertained justify the extension of obligations, this shall be done by the Commission adopting delegated acts.
Amendment 1113 #
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, including downstream products using goods covered by this Regulation, and develop methods of calculating embedded emissions based on environmental footprint methods.
Amendment 1133 #
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 - developed in close cooperation with the industrial sectors - of the rules to be applied during the trial period established pursuing to article 30a and 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, including downstream products using goods 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 1140 #
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, without undermining the proper functioning of the internal market or increasing costs for consumers.
Amendment 1159 #
Proposal for a regulation
Article 30 – paragraph 3
Article 30 – paragraph 3
3. The report by the Commission shall, if appropriate, be accompanied by a legislative proposal. The proposal should consider, inter alia, the option to maintain the allocation of free allowances for EU exports and to allocate a refund for the carbon costs that EU producers incur under the EU Emissions Trading System.
Amendment 1183 #
Proposal for a regulation
Article 30 a (new)
Article 30 a (new)
Amendment 1191 #
Proposal for a regulation
Article 30 b (new)
Article 30 b (new)
Article 30 b Emergency clause In case European industries producing goods subject to the CBAM face serious difficulties in relation to its implementation during the transitional period or the trial period, an individual assessment should be made as promptly as possible to examine whether a CBAM is still effective and practicable for the sector concerned.
Amendment 1217 #
Proposal for a regulation
Article 32 – paragraph 1
Article 32 – paragraph 1
During the transitional period of this Regulation, the import provision of the CBAM mechanism shall apply as a reporting obligation as set out in Articles 33 to 35.
Amendment 1222 #
Proposal for a regulation
Article 35 – paragraph 1
Article 35 – paragraph 1
1. Each declarant shall, for each quarter of a calendar year, submit a report (‘CBAM report’) containing information on the goods imported or exported during that quarter, to the competent authority of the Member State of importation or exportation or, if goods have been imported or exported to more than one Member State, to the competent authority of the Member State at the declarant’s choice, no later than one month after the end of each quarter.
Amendment 1224 #
Proposal for a regulation
Article 35 – paragraph 2 – introductory part
Article 35 – paragraph 2 – introductory part
2. The CBAM report shall include the following information for imports and where relevant for exports:
Amendment 1244 #
Proposal for a regulation
Article 36 – paragraph 3 – point d a (new)
Article 36 – paragraph 3 – point d a (new)
da) In order to ensure carbon neutrality and a level playing field, Article 31 shall only apply when carbon costs are equal for the EU and third countries.
Amendment 1254 #
Proposal for a regulation
Annex I – subheading 6 – row 1 (new)
Annex I – subheading 6 – row 1 (new)
Inclusion of a new Combined Nomenclature (‘CN’) code: 2804 10 00 – Hydrogen