114 Amendments of Yannick JADOT related to 2021/0214(COD)
Amendment 135 #
Proposal for a regulation
Recital 2
Recital 2
(2) The Paris Agreement33 , adopted in December 2015 under the United Nations Framework Convention on Climate Change (‘UNFCCC’), entered into force in November 2016. The Parties to the Paris Agreement, inBy adopting the Glasgow Climate Pact, its AParticle 2, have agreed to holdes recognised that limiting the increase in the global average temperature well below 21,5 °C above pre- industrial levels and to pursue efforts to limit would significantly reduce the risks and impacts of climate change, and committed to strengthen temperature increase to 1.5°C above pre-industrial levelsheir 2030 targets by the end of 2022 to close the ambition gap. __________________ 33 OJ L 282, 19.10.2016, p.4.
Amendment 142 #
Proposal for a regulation
Recital 7 a (new)
Recital 7 a (new)
(7a) Around 27% of global CO2 emissions from fuel combustion currently relate to internationally traded goods and, while the Union has substantially reduced its domestic GHG emissions, the GHG emissions embedded in imports to the Union have been constantly rising, thereby undermining the Union’s efforts to reduce its global GHG footprint.
Amendment 149 #
Proposal for a regulation
Recital 8
Recital 8
(8) As long as a significant number of the Union’s international partners have policy approaches that do not result in the same level of climate ambition, thereand as the Union increases its aclimate ambition, there could be a potential risk of carbon leakage. Carbon leakage occurs if, for reasons of costs related to climate policies, businesses in certain industry sectors or subsectors were to transfer production to other countries or imports from those countries would replace equivalent but less GHG emissions intensive products. That could lead to an increase in their total emissions globally, thus jeopardising the reduction of GHG emissions that is urgently needed if the world is to keep the global average temperature to well below 2 °C above pre- industrial levels.
Amendment 151 #
Proposal for a regulation
Recital 8 a (new)
Recital 8 a (new)
(8a) Subject to compliance with the specific measures set out in Article XX of the GATT, there is nothing to prevent the adoption or application by any WTO member of measures necessary to protect the health and life of people and animals and the preservation of plant life, or related to the conservation of finite natural resources.
Amendment 166 #
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 ETSand compensation schemes for indirect emission costs under the EU ETS, besides being very costly for public resources, undermine the polluter pays principle and weakens the price signal that the system provides for the installations receiving it compared to full auctioning and thus affectsfull payment of indirect emissions costs, thus heavily reducing the incentives for investment into further abatement of emissions. The excess free emissions allowances have even produced unjustified windfall profits (more than EUR 25 billion between 2008 and 2015). Moreover, free allowances and compensation of indirect emission costs weaken the CBAM’s compatibility with WTO rules. The CBAM should therefore be introduced in parallel with the phasing out of the free allowances and state aid compensation schemes for indirect emission costs for the covered sectors.
Amendment 203 #
Proposal for a regulation
Recital 11
Recital 11
(11) The CBAM seeks to replaces 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 CBAMcarbon leakage mechanisms by terminating derogations from the application of the ‘polluter pays principle’ granted until now to European industries and by simultaneously creating fairness between the Union’s producers and those of third countries, by ensuring equivalent carbon pricing for imports and domestic products. The allocation of free allowances and the compensation of indirect emission costs will come to an end by 1 January 2025, twhen 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 favourabltarts fully applying. The auctioning of allowances will provide much needed resources to the Union, above EUR 14 billion per year in 2030, to invest in the transformation to reach climate neutrality. By spurring investments into the ecological transition of the industry, the end of free allowances and compensation of indirect emission costs will also create savings for public budgets, as damages to health and environment due treo atment for Union goods compared to goods imported intoospheric industrial pollution cost Europe between EUR 280 to 430 billion per year1a. __________________ 1a'Counting the cuostoms territory of the Union.s of industrial pollution', European Environmental Agency, 2021
Amendment 237 #
Proposal for a regulation
Recital 12
Recital 12
(12) While tThe objective of the CBAM is, combined with Directive 2003/87/EC, is primarily to prevent the risk of carbon leakageduce greenhouse gas emissions inside and outside the Union in the pursuit of the Paris Agreement targets. By contributing to ensuring effective and meaningful carbon pricing, as part of a broader regulatory environment, this Regulation wouldcan also encourage the use of more GHG emissions-efficient technologies by producers from third countries, so that less emissions per unit of output are generatedact as an economic incentive to spur investments in the decarbonisation of the economies of the Union and the world, and as an incentive for greater regulatory ambition in other world regions. While it is important that third countries do not implement practices of circumvention which would undermine the climate effect of the CBAM, the Union should also avoid introducing instruments to support the competitiveness of the domestic industry creating perverse climate effects. Export rebates have been excluded from this Regulation as they could have such perverse effects, incentivising less efficient production methods for European exporting industries, besides being incompatible with the principles of the WTO.
Amendment 305 #
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 initiallyreflect future revisions of the EU ETS in terms of regulated GHG emissions. The CBAM should 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 asss well to indirect emissions, mirroring the scope of the EU ETS. Coherence between the CBAM and the EU ETS are essment, as well to indirect emissions, mirroring the scopeial to respect the principles of the EU ETSWTO.
Amendment 344 #
Proposal for a regulation
Recital 24
Recital 24
(24) In terms of sanctions, Member States should apply penalties to infringements of this Regulation and ensure that they are implemented. The amount of those penaltiesCBAM should be carefully designed and supervised by the CBAM authority and customs authorities, among other things, to prevent, identify and sanction any type of abuse or fraud. Member States and the CBAM authority should apply administrative or criminal sanctions and penalties to infringements of this Regulation and ensure that they are implemented. The amount of the penalties for authorised declarants who fail to surrender, by 31 May of each year, a number of CBAM certificates corresponding to the emissions embedded in goods imported during the previous year or who submit to the authority false information related to embedded emissions with a view to obtain a favourable individual treatment should be identical to penalties currently applied within the Union in case of infringement of EU ETS according to Article 16(3) and (4) of Directive 2003/87/EC.
Amendment 354 #
Proposal for a regulation
Recital 28
Recital 28
(28) Whilst the ultimate objective of the CBAM is a broad product coverage, it would be prudent to start with a selected number of sectors with relatively homogeneous products where there is a risk of carbon leakage. Union sectors deemed at risk of carbon leakage are listed in Commission Delegated Decision 2019/70842 to cover those products that contribute significantly to climate change and face a genuine risk of carbon leakage, it would be prudent to start with a selected number of sectors with relatively homogeneous products. Before the end of the transition period, the Commission should propose to extend the scope of this Regulation to other sectors than those listed in Annex I, including but not limited to oil, gas, coal, pulp and paper, glass, and ceramics, as well as other inorganic chemicals, and to upstream products within the covered sectors. It should also make a legislative proposal to cover downstream goods within the covered sectors. __________________ 42Commission Delegated Decision (EU) 2019/708 of 15 February 2019 supplementing Directive 2003/87/EC of the European Parliament and of the Council concerning the determination of sectors and subsectors deemed at risk of carbon leakage for the period 2021 to 2030 (OJ L 120, 8.5.2019, p. 2).
Amendment 381 #
Proposal for a regulation
Recital 32
Recital 32
Amendment 386 #
Proposal for a regulation
Recital 33
Recital 33
(33) Similarome 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.
Amendment 389 #
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 toCBAM covers also indirect emissions in the future.
Amendment 396 #
Proposal for a regulation
Recital 36
Recital 36
Amendment 417 #
Proposal for a regulation
Recital 45
Recital 45
(45) The physical characteristics of electricity as a product, in particular the impossibility to follow the actual flow of electrons, justifies a slightly different design for the CBAM. Default values should be used as a standard approach and iIt should be possible for authorised declarants to claim the calculation of their CBAM obligations based on actual emissionsverified emissions. Default values should only be used if data on actual emissions is unavailable. Electricity trade is different from trade in other goods, notably because it is traded via interconnected electricity grids, using power exchanges and specific forms of trading. Market coupling is a densely regulated form of electricity trade which allows to aggregate bids and offers across the Union.
Amendment 427 #
Proposal for a regulation
Recital 48
Recital 48
(48) Integration of third countries into the Union electricity market is an important drive for those countries to accelerate their transition to energy systems with high shares of renewable energies. Market coupling for electricity, as set out in Commission Regulation (EU) 2015/122246 , enables third countries to better integrate electricity from renewable energies into the electricity market, to exchange such electricity in an efficient manner within a wider area, balancing supply and demand with the larger Union market, and reduce the carbon intensity of their electricity generation. Integration of third countries into the Union electricity market also contributes to the security of electricity supplies in those countries and in the neighbouring Member States. Electricity produced in third countries’ nuclear plants that do not meet the Union recognised nuclear safety levels and the standards of responsible and safe management of spent fuel and radioactive waste should be prevented from entering the Union electricity market. __________________ 46Commission Regulation (EU) 2015/1222 of 24 July 2015 establishing a guideline on capacity allocation and congestion management (OJ L 197, 25.7.2015, p. 24).
Amendment 430 #
Proposal for a regulation
Recital 49
Recital 49
(49) Once third countries will be closely integrated into the Union electricity market via market coupling, technical solutions should be found to ensure the application of the CBAM to electricity exported from such countries into the customs territory of the Union. If technical solutions cannot be found, third countries that are market coupled should benefit from a time limited exemption from the CBAM until at the latest 2030 with regard solely to the export of electricity, provided that certain conditions are satisfied, including the commitment to phase out coal-based electricity production for OECD members by 2030 at the latest, the adoption of effective mechanisms to enforce implementation of the Union electricity market legislation, and the fulfilment of Union recognised nuclear safety levels. However, those third countries should develop a roadmap and commit to implement a carbon pricing mechanism providing for an equivalent price as the EU ETS, and should commit to achieving carbon neutrality by 2050 [as well as?] to align with Union legislation in the areas of environment, climate, competition and energy. That exemption should be withdrawn at any time if there are reasons to believe that the country in question does not fulfil its commitments or it has not adopted by 2030 an ETS equivalent to the EU ETS.
Amendment 442 #
Proposal for a regulation
Recital 50
Recital 50
(50) A transitional period should apply during the period 2023 until 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 478 #
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 510 #
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 towards 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 regulation. The EU should work with low and middle-income countries towards the decarbonisation of their manufacturing industries, share with them GHG-abating technologies, and provide them with technical assistance in order to facilitate their adaptation to the new obligations established by this regulation. Least Developed Countries have limited capacity to decarbonise their industries, and compliance with CBAM obligations would be highly demanding for them; moreover, manufacturing capacities and associated emissions in these countries are negligible on a global scale; indeed, they are accountable for only 1.1% of the world CO2 emissions from fossil-fuels combustion and industrial processes1a; furthermore, these countries have a very limited historical responsibility for the ongoing climate crisis. In order not to place a disproportionate burden on these countries, and in line with the UNFCCC principle of "common but differentiated responsibilities and respective capabilities", authorised declarants and operators in these countries should be exempted from the payment of CBAM certificates. However, to prevent practises such as the relocation of production from countries covered by the CBAM to Least Developed Countries, the Commission will set up a system to monitor potential circumvention, in particular through market surveillance, and will take measures, where appropriate. Should an abnormal surge in exports coming from Least Developed Countries occur, the Commission should propose the removal of a country concerned from the list of exempt countries, if necessary, or impose a Tariff Rate Quota to correct the situation and end the attempt of circumvention. __________________ 1a“Smallest footprints, largest impacts: Lead Developed Countries need a just sustainable transition", UNCTAD, 2019
Amendment 514 #
Proposal for a regulation
Recital 55 a (new)
Recital 55 a (new)
(55a) To support Least Developed Countries' efforts towards the decarbonisation of their manufacturing industries, this Regulation establishes the European Fund for International Climate Action. Until the year 2030, all revenues from the sale of CBAM certificates should be transferred to the Union budget as own resources in view of the new budgetary expenditure for the repayment of the financing costs of the European Fund for International Climate Action. The fund should be endowed with annual appropriations authorised by the European Parliament and by the Council within the limits of the multiannual financial framework that would be equivalent to an estimation of the amounts raised by the CBAM own resources. The fund should be entirely used to support Least Developed Countries, except for a small portion of it, which should be used to cover CBAM administration costs.
Amendment 535 #
Proposal for a regulation
Article 1 – paragraph 1
Article 1 – paragraph 1
1. This Regulation establishes a carbon border adjustment mechanism (the ‘CBAM’) for addressing greenhouse gas emissions embedded in the goods referred to in Annex I, upon their importation into the customs territory of the Union, in order to prevent thereduce global carbon emissions and support the implementation of the goals of the Paris Agreement by preventing any potential risk of carbon leakage.
Amendment 569 #
Proposal for a regulation
Article 1 – paragraph 3
Article 1 – paragraph 3
3. The mechanism will progressively becomeis an alternative to the mechanisms established under Directive 2003/87/EC to prevent the risk of carbon leakage, notabamely the allocation of allowances free of charge and compensation of indirect costs in accordance with Articles 10a and10b of that Directive.
Amendment 588 #
Proposal for a regulation
Article 2 – paragraph 3 a (new)
Article 2 – paragraph 3 a (new)
3a. Article 8, Article 10 (5) b and Chapter IV of this Regulation do not apply to authorised declarants and operators in Least Developed Countries, as defined by the United Nations.
Amendment 597 #
Proposal for a regulation
Article 2 – paragraph 6
Article 2 – paragraph 6
6. The Commission is empowered to adopt implementdelegated acts ing acts in order to determine the conditions for applying the CBAM to goods referred to in paragraph 2. Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 29(2)cordance with Article 28 in order to supplement this Regulation by setting out the conditions for applying the CBAM to goods referred to in paragraph 2.
Amendment 600 #
Proposal for a regulation
Article 2 – paragraph 7 – introductory part
Article 2 – paragraph 7 – introductory part
7. If a third country or territory has an electricity market which is integrated with the Union internal market for electricity through market coupling, and it has not been possible to find a technical solution for the application of the CBAM to the importation of electricity into the Union, from that third country or territory, such the importation of electricity from the country or territory shall be exempt from the application of the CBAM, until 2030 at the latest, provided all of the following conditions are satisfied:
Amendment 601 #
Proposal for a regulation
Article 2 – paragraph 7 – point a
Article 2 – paragraph 7 – point a
(a) the third country or territory has concluded an agreement with the Union, setting out an obligation to apply the Union law in the field of electricitnergy, including the legislation on theelectricity, energy efficiency and development of renewable energy sources, as well as other rules in the field of energy, environvironment, notably on large combustion plants and/or industrial emission as well as water management and competition;
Amendment 603 #
Proposal for a regulation
Article 2 – paragraph 7 – point b
Article 2 – paragraph 7 – point b
(b) the national law in that third country or territory implements the main provisions of the Union electricity marketnergy legislation, including on energy efficiency and the development of renewable energy sources and, electricity, including the coupling of electricity markets, and implements the Union climate, environment and competition acquis, fully respecting agreed deadlines;
Amendment 604 #
Proposal for a regulation
Article 2 – paragraph 7 – point c
Article 2 – paragraph 7 – point c
(c) the third country or territory has submitted a roadmap to the Commission, containing a timetable for the adoption of measures to implement the conditions set out in points (d), (da), (db) and (e);
Amendment 606 #
Proposal for a regulation
Article 2 – paragraph 7 – point d a (new)
Article 2 – paragraph 7 – point d a (new)
(da) the third country or territory has committed to phase out coal-based electricity production, by 2030 at the latest if the country or territory is an OECD member;
Amendment 607 #
Proposal for a regulation
Article 2 – paragraph 7 – point d b (new)
Article 2 – paragraph 7 – point d b (new)
(db) the third country or territory meets Union recognised nuclear safety levels and applies the requirements of Union law on nuclear safety and responsible and safe management of spent fuel and radioactive waste;
Amendment 608 #
Proposal for a regulation
Article 2 – paragraph 7 – point e
Article 2 – paragraph 7 – point e
Amendment 613 #
Proposal for a regulation
Article 2 – paragraph 8
Article 2 – paragraph 8
8. A third country or territory satisfying the conditions set out in paragraph 7, points (a) to (f), shall be listed in Annex II, Section B, of this Regulation, and shall submit twohree comprehensive reports on the fulfilment of the conditions pursuant to paragraph 7, points (a) to (f), one before 1 July 20254, one before 1 July 2027 and another before 1 July 2029. By 31 December 20254, by 31 December 2027 and by 31 December 2029, the Commission shall assess, notably on the basis of the roadmap pursuant to paragraph 7, point (c), and the reports received from the third country or territory, whether that third country or territory continues to respect the conditions set out in paragraph 7.
Amendment 615 #
Proposal for a regulation
Article 2 – paragraph 9 – point b
Article 2 – paragraph 9 – point b
(b) if the third country or territory has taken steps contrary to its decarbonisation objectives, such as providing public support for the establishment of new generation capacity that emits more than 550 g of CO2 of fossil fuel origin per kWh of electricity.direct and indirect public support for generation capacity of fossil fuel origin;
Amendment 616 #
Proposal for a regulation
Article 2 – paragraph 9 – point b a (new)
Article 2 – paragraph 9 – point b a (new)
(ba) if the Commission has reasons to consider that, as a result of increased exports of electricity to the Union, the emissions from electricity production in the country or territory have increased.
Amendment 630 #
Proposal for a regulation
Article 2 – paragraph 12
Article 2 – paragraph 12
12. The Union, may conclude agreements with third countries with a view to take account of carbon pricing mechanisms in these countries in the application of Article 9. Such agreements shall not lead to undue preferential treatment of imports from the third countries as regards the CBAM certificates to be surrendered and cannot take into account any carbon pricing mechanisms that are considered to be practices of circumvention within the meaning of Article 27(2).
Amendment 636 #
Proposal for a regulation
Article 3 – paragraph 1 – point 3
Article 3 – paragraph 1 – point 3
(3) ‘emissions’ mean the release of greenhouse gases into the atmosphere from the production of goods and from the electricity consumed for the production of these goods;
Amendment 646 #
Proposal for a regulation
Article 3 – paragraph 1 – point 11
Article 3 – paragraph 1 – point 11
(11) ‘competent'CBAM authority’ means the authority, designated by each Member State appointed in accordance with Article 11 of this Regulation;
Amendment 650 #
Proposal for a regulation
Article 3 – paragraph 1 – point 13
Article 3 – paragraph 1 – point 13
(13) ‘declarant’ means a legal person lodging a customs declaration for release for free circulation in its own name or the legal person in whose name such a declaration is lodged in accordance with Regulation (EU) No 952/2013;
Amendment 651 #
Proposal for a regulation
Article 3 – paragraph 1 – point 14
Article 3 – paragraph 1 – point 14
(14) ‘pcersontifier’ means a natural person, a legal person and any association of persons which is not a legal person but whichlegal person tasked to certify the documentation to be submitted by the authorised declarant to the CBAM authority isn recognised under Union or national law as having the capacity to perform legal acts;lation to the carbon price paid in the country of origin on the declared embedded emissions of the goods in accordance with Article 9 of this Regulation.
Amendment 652 #
Proposal for a regulation
Article 3 – paragraph 1 – point 15
Article 3 – paragraph 1 – point 15
(15) ‘direct emissions’ mean emissions from the production processes of goods over which the producer has direct control, including emissions from the production of heating and cooling consumed during the production processes;
Amendment 653 #
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, calculated pursuant to the methods set out in Annex III, and indirect emissions released during the production of the electricity consumed by the producer of goods, pursuant to the methods to be defined in delegated acts adopted by the Commission under Article 7(7a);
Amendment 658 #
Proposal for a regulation
Article 3 – paragraph 1 – point 22
Article 3 – paragraph 1 – point 22
(22) ‘actual emissions’ mean the emissions calculated and verified based on primary data from the production processes of goods and from the production of electricity consumed during the production processes of goods;
Amendment 660 #
Proposal for a regulation
Article 3 – paragraph 1 – point 25
Article 3 – paragraph 1 – point 25
(25) ‘operator’ means any legal person who operates or controls an installation in a third country;
Amendment 663 #
Proposal for a regulation
Article 3 – paragraph 1 – point 28
Article 3 – paragraph 1 – point 28
(28) ‘indirect emissions’ mean emissions from the production of electricity, heating and cooling, which is consumed during the production processes of goods.
Amendment 671 #
Proposal for a regulation
Article 3 – paragraph 1 – point 28 a (new)
Article 3 – paragraph 1 – point 28 a (new)
(28a) 'Verifier' is a legal person accredited according to the criteria of Implementing Regulation (EU) No 2018/2067.
Amendment 693 #
Proposal for a regulation
Article 6 – paragraph 2 – point c
Article 6 – paragraph 2 – point c
(c) the total number of CBAM certificates corresponding to the total embedded emissions, to be surrendered, after the reduction due on the account of the carbon price paid in a country of origin in accordance with Article 9 and the adjustment necessary of the extent to which EU ETS allowances are allocated free of charge in accordance with Article 31.
Amendment 698 #
Proposal for a regulation
Article 7 – paragraph 1
Article 7 – paragraph 1
1. Embedded direct emissions in goods shall be calculated pursuant to the methods set out in Annex III.
Amendment 702 #
Proposal for a regulation
Article 7 – paragraph 2
Article 7 – paragraph 2
2. Embedded direct 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.
Amendment 704 #
Proposal for a regulation
Article 7 – paragraph 3
Article 7 – paragraph 3
3. Embedded emissions in imported electricity shall be determined by reference to default valueased on the actual emissions in accordance with the method set out in Annex III, point 4.2, unless the authorised declarant chooses to determine the embedded emissions based on the actual emissions in accordance with that a5, or, when data on actual emissions is not available, by reference to default values in accordance with the method set out in that Annex, point 54.2.
Amendment 720 #
Proposal for a regulation
Article 7 – paragraph 7
Article 7 – paragraph 7
7. The implementing acts referred to in paragraph 6 shall be adopted in accordance with the examination procedure referred to in Article 29(2). and only after the determined Union-wide ex-ante benchmarks are reviewed in view of modifying the definitions and system boundaries of existing product benchmarks as determined in Article 10a (12) of Directive 2003/87/EC.
Amendment 721 #
Proposal for a regulation
Article 7 – paragraph 7 a (new)
Article 7 – paragraph 7 a (new)
7a. The Commission is empowered to adopt delegated acts in accordance with Article 28 regarding the definition of a method of calculating embedded indirect emissions for simple and complex products and relevant default values, as well as a method of determining the CBAM price of indirect embedded emissions.
Amendment 722 #
Proposal for a regulation
Article 7 – paragraph 7 b (new)
Article 7 – paragraph 7 b (new)
7b. The Commission shall adopt the implementing acts and the delegated acts referred to in paragraphs 6 and 7a by 31 December 2023, with a view to ensuring their application from 1 January 2024.
Amendment 730 #
Proposal for a regulation
Article 8 – paragraph 2
Article 8 – paragraph 2
Amendment 732 #
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. The possibility to waive the obligation for the verifier to visit the installation where relevant goods are produced may only be used in duly justified circumstances where the installation has a well-known standard profile regarding production and technology, allowing for a reliable estimation of embedded emissions.
Amendment 750 #
Proposal for a regulation
Article 9 – paragraph 2
Article 9 – paragraph 2
2. The authorised declarant shall keep records of the documentation, certified by an independent persona certifier, required to demonstrate that the declared embedded emissions were subject to a carbon price in the country of origin of the goods and keep evidence of the proof of the actual payment for that carbon price which should not have been subject to an export rebate or any other form of compensation on exportation. The name and contact details of the certifier shall appear on the documentation. The authorised declarant shall transmit such documentation to the CBAM authority.
Amendment 765 #
Proposal for a regulation
Article 9 – paragraph 4
Article 9 – paragraph 4
4. The Commission is empowered to adopt implementing acts establishing the methodology for calculating the reduction in the number of CBAM certificates to be surrendered, regarding the conversion of the carbon price paid in foreign currency into euro at yearly average exchange rate in accordance with paragraph 1, and regarding the qualifications of the independent personcertifier certifying the information as well as elements of proof of the carbon price paid and the absence of export rebates or other forms of compensation on exportation being applied as referred to in paragraph 2. Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 29(2).
Amendment 783 #
Proposal for a regulation
Article 10 – paragraph 7
Article 10 – paragraph 7
Amendment 796 #
Proposal for a regulation
Chapter III – title
Chapter III – title
Amendment 799 #
Proposal for a regulation
Article 11 – title
Article 11 – title
Amendment 804 #
Proposal for a regulation
Article 11 – paragraph 1 – subparagraph 1
Article 11 – paragraph 1 – subparagraph 1
1. Each Member State shall designate the competent1. The Commission shall appoint the CBAM authority to carry outperform the obligations under this Regulation and inform the Commission thereof.
Amendment 806 #
Proposal for a regulation
Article 11 – paragraph 1 – subparagraph 2
Article 11 – paragraph 1 – subparagraph 2
Amendment 810 #
Proposal for a regulation
Article 11 – paragraph 2
Article 11 – paragraph 2
Amendment 815 #
Proposal for a regulation
Article 12
Article 12
Amendment 818 #
Proposal for a regulation
Article 12 – paragraph 1
Article 12 – paragraph 1
Amendment 825 #
Proposal for a regulation
Article 14 – title
Article 14 – title
Amendment 828 #
Proposal for a regulation
Article 14 – paragraph 1
Article 14 – paragraph 1
1. The competentCBAM authority of each Member State shall establish a national registry of declarants authorised in that Member Stateauthorised declarants in the form of a standardised electronic database containing the data regarding the CBAM certificates of those declarants, and to provide for confidentiality in accordance with the conditions set out in Article 13.
Amendment 847 #
Proposal for a regulation
Article 15
Article 15
Amendment 855 #
Proposal for a regulation
Article 16 – title
Article 16 – title
Accounts in the nationalCBAM registriesy
Amendment 871 #
Proposal for a regulation
Article 17 – paragraph 1 – point a a (new)
Article 17 – paragraph 1 – point a a (new)
(aa) the declarant has not been involved in repeated infringements of the Regulation which led to the revocation of an authorisation by the competent authorities of other Member States;
Amendment 879 #
Proposal for a regulation
Article 17 – paragraph 1 a (new)
Article 17 – paragraph 1 a (new)
1a. An authorisation is valid for a period of five years.
Amendment 903 #
Proposal for a regulation
Article 18 – paragraph 1
Article 18 – paragraph 1
1. Any legal person accredited pursuant to Implementing Regulation (EU) No 2018/2067 shall be regarded as an accredited verifier under this Regulation.
Amendment 907 #
Proposal for a regulation
Article 18 – paragraph 2
Article 18 – paragraph 2
Amendment 911 #
Proposal for a regulation
Article 18 – paragraph 3
Article 18 – paragraph 3
Amendment 914 #
Proposal for a regulation
Article 18 – paragraph 3
Article 18 – paragraph 3
3. The Commission is empowered to adopt delegated acts in accordance with Article 28 for the accreditation referred to in paragraph 21, specifying conditions for the control and oversight of accredited verifiers, for the withdrawal of accreditation and for mutual recognition and peer evaluation of the accreditation bodies.
Amendment 939 #
Proposal for a regulation
Article 21 – paragraph 1 – subparagraph 1
Article 21 – paragraph 1 – subparagraph 1
The Commission shall calculate the price of CBAM certificates as the sum of the price of direct and indirect emissions. The price of direct emissions shall correspond to the average price of the closing prices of EU ETS allowances on the common auction platform in accordance with the procedures laid down in Commission Regulation (EU) No 1031/201054 for each calendar week. __________________ 54 Commission Regulation (EU) No 1031/2010 of 12 November 2010 on the timing, administration and other aspects of auctioning of greenhouse gas emission allowances pursuant to Directive 2003/87/EC (OJ L 302, 18.11.2010, p. 1).
Amendment 940 #
Proposal for a regulation
Article 21 – paragraph 1 – subparagraph 2
Article 21 – paragraph 1 – subparagraph 2
For those calendar weeks in which there are no auctions scheduled on the common auction platform, the price of CBAM certificatedirect emissions shall be the average price of the closing prices of EU ETS allowances of the last week in which auctions on the common auction platform took place.
Amendment 943 #
Proposal for a regulation
Article 21 – paragraph 3
Article 21 – paragraph 3
3. The price of indirect emissions shall be determined in the delegated acts referred to in Article 7 (7a). The Commission is also empowered to adopt implementing acts to further define the methodology to calculate the average price of CBAM certificates and practical arrangements for the publication of the price. Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 29(2).
Amendment 959 #
Proposal for a regulation
Article 24 a (new)
Article 24 a (new)
Amendment 971 #
Proposal for a regulation
Article 26 – paragraph 1
Article 26 – paragraph 1
1. An authorised declarant who fails to surrender, by 31 May of each year, a number of CBAM certificates corresponding to the emissions embedded in goods imported during the previous year or submits to the CBAM authority false information related to embedded emissions with a view to obtain a favourable individual treatment shall be liable to a penalty identical to the excess emissions penalty set out in Article 16(3) of Directive 2003/87/EC, increased pursuant to Article 16(4) of that Directive, in the year of importation of the goods, for each CBAM certificate that the authorised declarant should have surrendered.
Amendment 973 #
Proposal for a regulation
Article 26 – paragraph 2
Article 26 – paragraph 2
2. Any person other than an authorised declarant, introducing goods into the customs territory of the Union without surrendering CBAM certificates according to this Regulation shall be liable to administrative or criminal sanctions set by the Member State into which the goods have been introduced, as well as to the penalty referred to in paragraph 1 in the year of introduction of the goods, for each CBAM certificate that the person authorised declarant should have surrendered.
Amendment 980 #
Proposal for a regulation
Article 26 – paragraph 5
Article 26 – paragraph 5
5. The 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 penaltie' sanctions referred to in paragraph 2. Such sanctions shall be effective, proportionate and dissuasive.
Amendment 995 #
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 Regulation has are any measures that have the objective of avoiding the obligations laid down in this Regulation. These are situations which stem from a practice, process or work within sufficient due cause or economic justification other than avoiding or mitigating obligations 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 Regulation.of, but are not limited to:
Amendment 1001 #
Proposal for a regulation
Article 27 – paragraph 2 – point a (new)
Article 27 – paragraph 2 – point a (new)
(a) direct or indirect subsidies, such as favourable tax arrangements, or energy pricing, or export rebates or other form of compensation on exportation, for goods covered by the CBAM, to absorb parts or the entirety of the costs linked to a CO2 price paid in the third country or to absorb parts or the entirety if the CBAM price;
Amendment 1007 #
Proposal for a regulation
Article 27 – paragraph 2 – point b (new)
Article 27 – paragraph 2 – point b (new)
(b) a CO2 price paid in a third country placed only on goods to be exported to the Union;
Amendment 1009 #
Proposal for a regulation
Article 27 – paragraph 2 – point c (new)
Article 27 – paragraph 2 – point c (new)
(c) replacing 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 Regulation, provided that the modification does not alter the essential characteristics of the good;
Amendment 1011 #
Proposal for a regulation
Article 27 – paragraph 2 – point d (new)
Article 27 – paragraph 2 – point d (new)
(d) declaring the origin of goods from a country referred to under Article 2(3) or from any other intermediary third country or region where the goods have been transhipped before export to the Union, or shifting production or assembly of goods to those countries or regions, or, in the case of assembly, to the Union, in order to avoid or mitigate the obligations laid down in this Regulation.
Amendment 1035 #
Proposal for a regulation
Article 27 – paragraph 3
Article 27 – paragraph 3
3. A Member State or any party affected or benefitted by any of the situations described in paragraph 2 mayshall 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. Interested parties other than directly affected parties, such as environmental organisations and non- governmental organisations, which find concrete evidence of circumvention of this Regulation, may also notify the Commission of their findings. The Commission shall continually monitor the occurrence of the situations described in paragraph 2, including based on market surveillance and on any relevant source of information, including submissions by and reporting from civil society organisations.
Amendment 1053 #
Proposal for a regulation
Article 27 – paragraph 5
Article 27 – paragraph 5
5. Where the Commission, taking into account the relevant data, reports and statistics, including when provided by the customs authorities of Member States, has sufficient reasons to believe that the circumstances referred to in paragraph 32 are occurring in one or more Member States, it is empowered to adopt delegated acts in accordance with Article 28 to supplement the scope of this Regulation in order to include slightly modified products for anti-circumvention purposes.may proceed according to the following options:
Amendment 1055 #
Proposal for a regulation
Article 27 – paragraph 5 – point a (new)
Article 27 – paragraph 5 – point a (new)
(a) it is empowered to adopt delegated acts in accordance with Article 28 to supplement the scope of this Regulation as necessary in order to include slightly modified additional products for anti- circumvention purposes and, if necessary, it may adopt a new legislative proposal;
Amendment 1056 #
Proposal for a regulation
Article 27 – paragraph 5 – point b (new)
Article 27 – paragraph 5 – point b (new)
(b) if in particular the practices of circumvention referred to in point (d) of paragraph 2 materialise in a country referred to under paragraph 3 a of Article 2, the Commission may temporarily remove the relevant exemption from CBAM referred to in paragraph 3 a of Article 2, and may introduce a tariff-rate quota based on export levels during the three preceding years. Beyond the level set by the tariff- rate quota, the exemption for the country in question shall cease to apply.
Amendment 1118 #
Proposal for a regulation
Article 30 – paragraph 1
Article 30 – paragraph 1
1. The Commission shall collect the information necessary with a view to extending the scope of this Regulation to indirect emissions and goods other than those listed in Annex I, and develop methods of calculating embedded emissions based on environmental footprint methods.
Amendment 1132 #
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 legislative proposal to extend the scope of this Regulation to other sectors thand the Council on the application of this Regulation. The report shall contain, in particular, the assessment of the possibilities to further exose listed in Annex I, including but not limited to oil, gas and coal, pulp and paper, glass, and ceramics, as well as other inorganic chemicals, and to upstream products within the covered sectors. It shall also make a legislative proposal to cover downstream goods within the covered sectors. If the assessment related to the inclusion of oil, gas and coal concludes that the relatend the scope of embedded emissions to indirect emissions and to other goods at risk of carbon leakage thasocial impacts may be negative, the proposal shall be accompanied with measures to mitigate such effects. The Commission shall also present a report to the European Parliament and the Council on those already covered by this Regulation, as well aspplication of this Regulation. The report shall contain, in particular an assessment of the governance system. It shall also contain the and an 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 1163 #
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 monitor the functioning of the CBAM. Each year, it shall submit a report to the European Parliament and to the Council on the functioning of the CBAM and its ability to reduce the Union's imported emissions.
Amendment 1193 #
Proposal for a regulation
Chapter IX – title
Chapter IX – title
Amendment 1195 #
Proposal for a regulation
Article 31 – title
Article 31 – title
Amendment 1197 #
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 installationsNo free allocation shall be given in relation to the producing,tion within the Union, the of goods listed in Annex I as from the date of application of the CBAM.
Amendment 1206 #
Proposal for a regulation
Article 31 – paragraph 2
Article 31 – paragraph 2
Amendment 1226 #
Proposal for a regulation
Article 35 – paragraph 2 – point b
Article 35 – paragraph 2 – point b
(b) the actual total embedded direct emissions, expressed in tonnes of CO2e emissions per megawatt-hour of electricity or for other goods in tonne of CO2e emissions per tonne of each type of goods, calculated in accordance with the method set out in Annex III;
Amendment 1227 #
Proposal for a regulation
Article 35 – paragraph 2 – point c
Article 35 – paragraph 2 – point c
(c) the actual total embedded indirect emissions, expressed in tonnes of CO2e emissions per tonne of each type of other goods than electricity, calculated in accordance with a method set out in an implementingdelegated acts referred to in paragraph 67a of Article 7;
Amendment 1228 #
Proposal for a regulation
Article 35 – paragraph 6
Article 35 – paragraph 6
6. The Commission is empowered to adopt implementing acts concerning the information to be reported, the procedures for communicating the information referred to in paragraph 3 and the conversion of the carbon price paid in foreign currency into euro at yearly average exchange rate. The Commission is also empowered to adopt implementing acts to further define the necessary elements of the calculation method set out in Annex III, including determining system boundaries of production processes, emission factors, installation-specific values of actual emissions and their respective application to individual goods as well as laying down methods to ensure the reliability of data, including the level of detail and the verification of this data. The Commission is further empowered to adopt implementing acts to develop a calculation method for indirect emissions embedded in imported goods.
Amendment 1233 #
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 1234 #
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 1237 #
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 1240 #
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, 25, 26, 27 and 31 shall apply from 1 January 20265.
Amendment 1255 #
Proposal for a regulation
Annex I
Annex I
Amendment 1292 #
Proposal for a regulation
Annex III – point 4 – point 4.1 – paragraph 1
Annex III – point 4 – point 4.1 – paragraph 1
When actual emissions cannot be adequately determined by the authorised declarant, default values shall be used. These values shall be set at the average emission intensity of the 10 per cent worst performing installations in each exporting country and for each of the goods listed in Annex I other than electricity, increased by a mark-up, the latter to be determined in the implementing acts of this Regulation. When reliable data for the exporting country cannot be applied for a type of goods, the default values shall be based on the average emission intensity of the 10 per cent worst performing EU installations for that type of goods.
Amendment 1295 #
Proposal for a regulation
Annex III – point 4 – point 4.2 – paragraph 1
Annex III – point 4 – point 4.2 – paragraph 1
Amendment 1297 #
Proposal for a regulation
Annex III – point 4 – point 4.2 – paragraph 1
Annex III – point 4 – point 4.2 – paragraph 1
Amendment 1299 #
Proposal for a regulation
Annex III – point 4 – point 4.2 – point 4.2.1 – paragraph 1
Annex III – point 4 – point 4.2 – point 4.2.1 – paragraph 1
Specific default values shall be based on the best data available to the Commission determining the average CO2 emission factor in tonnes of CO2 per megawatt- hour of price-setting sources10 per cent worst performing installations producing electricity in the third country, group of third countries or region within a third country.
Amendment 1301 #
Proposal for a regulation
Annex III – point 4 – point 4.2 – point 4.2.2 – paragraph 1
Annex III – point 4 – point 4.2 – point 4.2.2 – paragraph 1
Amendment 1302 #
Proposal for a regulation
Annex III – point 4 – point 4.2 – point 4.2.2 – paragraph 2
Annex III – point 4 – point 4.2 – point 4.2.2 – paragraph 2
Where authorised declarants of goods originating in a third country, or for a group of third countries having a significant exchange of electricity with the EU, it can be demonstrated, on the basis of reliable data, that the average CO2 emission factor of price-setting sources inelectricity exported from that third country or that group of third countries is lower than the oneworst performing installation producing in the EU or lower than the specific default value, an alternative default value based on that average CO2e emission factor shall be established for that country or group of countries.
Amendment 1303 #
Proposal for a regulation
Annex III – point 5 – paragraph 1 – point c a (new)
Annex III – point 5 – paragraph 1 – point c a (new)
(c a) if the installation producing electricity is a nuclear power plant, it must meet EU recognised nuclear safety levels and apply the requirements of EU legislation on safety of nuclear installations and on safe management of spent fuel and radioactive waste;
Amendment 1315 #
Proposal for a regulation
Annex V – Part 1 – paragraph 1 – point c
Annex V – Part 1 – paragraph 1 – point c
(c) installation visits by the verifier shall be mandatory except where specific criteria for waiving the installation visit as described in Article 8(3) are met;