[ParlTrack]

Petar VITANOV, Isabel GARCÍA MUÑOZ, Bogusław LIBERADZKI, Rovana PLUMB, Andreas SCHIEDER, Inma RODRÍGUEZ-PIÑERO, Ismail ERTUG, Maria GRAPINI, István UJHELYI, Giuseppe FERRANDINO

Proposal for a directive
Recital 43

(43) The Communication of the Commission on Stepping up Europe’s 2030 climate ambition57 , underlined the particular challenge to reduce the emissions in the sectors of road transport and buildings. Therefore, the Commission announced that a further expansion of emissions trading could include emissions from road transport and buildings. Emissions trading for these two new sectors would be established through separate but adjacent emissions trading. This would avoid any disturbance of the well-functioning emissions trading in the sectors of stationary installations and aviation. The new system is accompanied by complementary policies and measures safeguarding against undue price impacts, shaping expectations of market participants and aiming for a carbon price signal for the whole economy. Previous experience has shown that the development of the new market requires setting up an efficient monitoring, reporting and verification system. In view of ensuring synergies and coherence with the existing Union infrastructure for the EU ETS covering the emissions from stationary installations and aviation, it is appropriate to set up emissions trading for the road transport and buildings sectors via an amendment to Directive 2003/87/ЕC. __________________ 57 COM(2020)562 final.deleted

2022/02/08
Committee: TRAN

Petar VITANOV, Isabel GARCÍA MUÑOZ, Bogusław LIBERADZKI, Rovana PLUMB, Andreas SCHIEDER, Inma RODRÍGUEZ-PIÑERO, Ismail ERTUG, Maria GRAPINI, István UJHELYI, Giuseppe FERRANDINO

Proposal for a directive
Recital 44

(44) In order to establish the necessary implementation framework and to provide a reasonable timeframe for reaching the 2030 target, emissions trading in the two new sectors should start in 2025. During the first year, the regulated entities should be required to hold a greenhouse gas emissions permit and to report their emissions for the years 2024 and 2025. The issuance of allowances and compliance obligations for these entities should be applicable as from 2026. This sequencing will allow starting emissions trading in the sectors in an orderly and efficient manner. It would also allow the EU funding and Member State measures to be in place to ensure a socially fair introduction of the EU emissions trading into the two sectors so as to mitigate the impact of the carbon price on vulnerable households and transport users.deleted

2022/02/08
Committee: TRAN

Petar VITANOV, Isabel GARCÍA MUÑOZ, Bogusław LIBERADZKI, Rovana PLUMB, Andreas SCHIEDER, Inma RODRÍGUEZ-PIÑERO, Ismail ERTUG, Maria GRAPINI, István UJHELYI, Giuseppe FERRANDINO

Proposal for a directive
Recital 45

(45) Due to the very large number of small emitters in the sectors of buildings and road transport, it is not possible to establish the point of regulation at the level of entities directly emitting greenhouse gases, as is the case for stationary installations and aviation. Therefore, for reasons of technical feasibility and administrative efficiency, it is more appropriate to establish the point of regulation further upstream in the supply chain. The act that triggers the compliance obligation under the new emissions trading should be the release for consumption of fuels which are used for combustion in the sectors of buildings and road transport, including for combustion in road transport of greenhouse gases for geological storage. To avoid double coverage, the release for consumption of fuels which are used in other activities under Annex I to Directive 2003/87/EC should not be covered.deleted

2022/02/08
Committee: TRAN

Petar VITANOV, Isabel GARCÍA MUÑOZ, Bogusław LIBERADZKI, Rovana PLUMB, Andreas SCHIEDER, Inma RODRÍGUEZ-PIÑERO, Ismail ERTUG, Maria GRAPINI, István UJHELYI, Giuseppe FERRANDINO

Proposal for a directive
Recital 46

(46) The regulated entities in the two new sectors and the point of regulation should be defined in line with the system of excise duty established by Council Directive (EU) 2020/26258 , with the necessary adaptations, as that Directive already sets a robust control system for all quantities of fuels released for consumption for the purposes of paying excise duties. End-users of fuels in those sectors should not be subject to obligations under Directive 2003/87/EC. __________________ 58Council Directive (EU) 2020/262 of 19 December 2019 laying down the general arrangements for excise duty (OJ L 58 27.2.2020, p. 4).deleted

2022/02/08
Committee: TRAN

Petar VITANOV, Isabel GARCÍA MUÑOZ, Bogusław LIBERADZKI, Rovana PLUMB, Andreas SCHIEDER, Inma RODRÍGUEZ-PIÑERO, Ismail ERTUG, Maria GRAPINI, István UJHELYI, Giuseppe FERRANDINO

Proposal for a directive
Recital 47

(47) The regulated entities falling within the scope of the emissions trading in the sectors of buildings and road transport should be subject to similar greenhouse gas emissions permit requirements as the operators of stationary installations. It is necessary to establish rules on permit applications, conditions for permit issuance, content, and review, and any changes related to the regulated entity. In order for the new system to start in an orderly manner, Member States should ensure that regulated entities falling within the scope of the new emissions trading have a valid permit as of the start of the system in 2025.deleted

2022/02/08
Committee: TRAN

Petar VITANOV, Isabel GARCÍA MUÑOZ, Bogusław LIBERADZKI, Rovana PLUMB, Andreas SCHIEDER, Inma RODRÍGUEZ-PIÑERO, Ismail ERTUG, Maria GRAPINI, István UJHELYI, Giuseppe FERRANDINO

Proposal for a directive
Recital 48

(48) The total quantity of allowances for the new emissions trading should follow a linear trajectory to reach the 2030 emissions reduction target, taking into account the cost-efficient contribution of buildings and road transport of 43 % emission reductions by 2030 compared to 2005. The total quantity of allowances should be established for the first time in 2026, to follow a trajectory starting in 2024 from the value of the 2024 emissions limits (1 109 304 000 CO2t), calculated in accordance with Article 4(2) of Regulation (EU) 2018/842 of the European Parliament and of the Council59 on the basis of the reference emissions for these sectors for the period from 2016 to 2018. Accordingly, the linear reduction factor should be set at 5,15 %. From 2028, the total quantity of allowances should be set on the basis of the average reported emissions for the years 2024, 2025 and 2026, and should decrease by the same absolute annual reduction as set from 2024, which corresponds to a 5,43 % linear reduction factor compared to the comparable 2025 value of the above defined trajectory. If those emissions are significantly higher than this trajectory value and if this divergence is not due to small-scale differences in emission measurement methodologies, the linear reduction factor should be adjusted to reach the required emissions reduction in 2030. __________________ 59Regulation (EU) 2018/842 of the European Parliament and of the Council of 30 May 2018 on binding annual greenhouse gas emission reductions by Member States from 2021 to 2030 contributing to climate action to meet commitments under the Paris Agreement and amending Regulation (EU) No 525/2013 (OJ L 156, 19.6.2018, p. 26).deleted

2022/02/08
Committee: TRAN

Petar VITANOV, Isabel GARCÍA MUÑOZ, Bogusław LIBERADZKI, Rovana PLUMB, Andreas SCHIEDER, Inma RODRÍGUEZ-PIÑERO, Ismail ERTUG, Maria GRAPINI, István UJHELYI, Giuseppe FERRANDINO

Proposal for a directive
Recital 49

(49) The auctioning of allowances is the simplest and the most economically efficient method for allocating emission allowances, which also avoids windfall profits. Both the buildings and road transport sectors are under relatively small or non-existent competitive pressure from outside the Union and are not exposed to a risk of carbon leakage. Therefore, allowances for buildings and road transport should only be allocated via auctioning without there being any free allocation.deleted

2022/02/08
Committee: TRAN

Petar VITANOV, Isabel GARCÍA MUÑOZ, Bogusław LIBERADZKI, Rovana PLUMB, Andreas SCHIEDER, Inma RODRÍGUEZ-PIÑERO, Ismail ERTUG, Maria GRAPINI, István UJHELYI, Giuseppe FERRANDINO

Proposal for a directive
Recital 50

(50) In order to ensure a smooth start to emissions trading in the buildings and road transport sectors and taking into account the need of the regulated entities to hedge or buy ahead allowances to mitigate their price and liquidity risk, a higher amount of allowances should be auctioned early on. In 2026, the auction volumes should therefore be 30 % higher than the total quantity of allowances for 2026. This amount would be sufficient to provide liquidity, both if emissions decrease in line with reduction needs, and in the event emission reductions only materialise progressively. The detailed rules for this front-loading of auction volume are to be established in a delegated act related to auctioning, adopted pursuant to Article 10(4) of Directive 2003/87/EC.deleted

2022/02/08
Committee: TRAN

Petar VITANOV, Isabel GARCÍA MUÑOZ, Bogusław LIBERADZKI, Rovana PLUMB, Andreas SCHIEDER, Inma RODRÍGUEZ-PIÑERO, Ismail ERTUG, Maria GRAPINI, István UJHELYI, Giuseppe FERRANDINO

Proposal for a directive
Recital 51

(51) The distribution rules on auction shares are highly relevant for any auction revenues that would accrue to the Member States, especially in view of the need to strengthen the ability of the Member States to address the social impacts of a carbon price signal in the buildings and road transport sectors. Notwithstanding the fact that the two sectors have very different characteristics, it is appropriate to set a common distribution rule similar to the one applicable to stationary installations. The main part of allowances should be distributed among all Member States on the basis of the average distribution of the emissions in the sectors covered during the period from 2016 to 2018.deleted

2022/02/08
Committee: TRAN

Petar VITANOV, Isabel GARCÍA MUÑOZ, Bogusław LIBERADZKI, Rovana PLUMB, Andreas SCHIEDER, Inma RODRÍGUEZ-PIÑERO, Ismail ERTUG, Maria GRAPINI, István UJHELYI, Giuseppe FERRANDINO

Proposal for a directive
Recital 52

(52) The introduction of the carbon price in road transport and buildings should be accompanied by effective social compensation, especially in view of the already existing levels of energy poverty. About 34 million Europeans reported an inability to keep their homes adequately warm in 2018, and 6,9 % of the Union population have said that they cannot afford to heat their home sufficiently in a 2019 EU-wide survey60 . To achieve an effective social and distributional compensation, Member States should be required to spend the auction revenues on the climate and energy-related purposes already specified for the existing emissions trading, but also for measures added specifically to address related concerns for the new sectors of road transport and buildings, including related policy measures under Directive 2012/27/EU of the European Parliament and of the Council61 . Auction revenues should be used to address social aspects of the emission trading for the new sectors with a specific emphasis in vulnerable households, micro-enterprises and transport users. In this spirit, a new Social Climate Fund will provide dedicated funding to Member States to support the European citizens most affected or at risk of energy or mobility poverty. This Fund will promote fairness and solidarity between and within Member States while mitigating the risk of energy and mobility poverty during the transition. It will build on and complement existing solidarity mechanisms. The resources of the new Fund will in principle correspond to 25 % of the expected revenues from new emission trading in the period 2026-2032, and will be implemented on the basis of the Social Climate Plans that Member States should put forward under Regulation (EU) 20…/nn of the European Parliament and the Council62 . In addition, each Member State should use their auction revenues inter alia to finance a part of the costs of their Social Climate Plans. __________________ 60 Data from 2018. Eurostat, SILC [ilc_mdes01]. 61Directive 2012/27/EU of the European Parliament and of the Council of 25 October 2012 on energy efficiency, amending Directives 2009/125/EC and 2010/30/EU and repealing Directives 2004/8/EC and 2006/32/EC (OJ L 315, 14.11.2012, p. 1–56). 62[Add ref to the Regulation establishing the Social Climate Fund].deleted

2022/02/08
Committee: TRAN

Petar VITANOV, Isabel GARCÍA MUÑOZ, Bogusław LIBERADZKI, Rovana PLUMB, Andreas SCHIEDER, Inma RODRÍGUEZ-PIÑERO, Ismail ERTUG, Maria GRAPINI, István UJHELYI, Giuseppe FERRANDINO

Proposal for a directive
Recital 53

(53) Reporting on the use of auctioning revenues should be aligned with the current reporting established by Regulation (EU) 2018/1999 of the European Parliament and of the Council63 . __________________ 63 Regulation (EU) 2018/1999 of the European Parliament and of the Council of 11 December 2018 on the Governance of the Energy Union and Climate Action, amending Regulations (EC) No 663/2009 and (EC) No 715/2009 of the European Parliament and of the Council, Directives 94/22/EC, 98/70/EC, 2009/31/EC, 2009/73/EC, 2010/31/EU, 2012/27/EU and 2013/30/EU of the European Parliament and of the Council, Council Directives 2009/119/EC and (EU) 2015/652 and repealing Regulation (EU) No 525/2013 of the European Parliament and of the Council (OJ L 328, 21.12.2018, p. 1–77).deleted

2022/02/08
Committee: TRAN

Petar VITANOV, Isabel GARCÍA MUÑOZ, Bogusław LIBERADZKI, Rovana PLUMB, Andreas SCHIEDER, Inma RODRÍGUEZ-PIÑERO, Ismail ERTUG, Maria GRAPINI, István UJHELYI, Giuseppe FERRANDINO

Proposal for a directive
Recital 54

(54) Innovation and development of new low-carbon technologies in the sectors of buildings and road transport are crucial for ensuring the cost-efficient contribution of these sectors to the expected emission reductions. Therefore, 150 million allowances from emissions trading in the buildings and road transport sectors should also be made available to the Innovation Fund to stimulate the cost-efficient emission reductions.deleted

2022/02/08
Committee: TRAN

Petar VITANOV, Isabel GARCÍA MUÑOZ, Bogusław LIBERADZKI, Rovana PLUMB, Andreas SCHIEDER, Inma RODRÍGUEZ-PIÑERO, Ismail ERTUG, Maria GRAPINI, István UJHELYI, Giuseppe FERRANDINO

Proposal for a directive
Recital 55

(55) Regulated entities covered by the buildings and road transport emissions trading should surrender allowances for their verified emissions corresponding to the quantities of fuels they have released for consumption. They should surrender allowances for the first time for their verified emissions in 2026. In order to minimise the administrative burden, a number of rules applicable to the existing emissions trading system for stationary installations and aviation should be made applicable to emissions trading for buildings and road transport, with the necessary adaptations. This includes, in particular, rules on transfer, surrender and cancellation of allowances, as well as the rules on the validity of allowances, penalties, competent authorities and reporting obligations of Member States.deleted

2022/02/08
Committee: TRAN

Petar VITANOV, Isabel GARCÍA MUÑOZ, Bogusław LIBERADZKI, Rovana PLUMB, Andreas SCHIEDER, Inma RODRÍGUEZ-PIÑERO, Ismail ERTUG, Maria GRAPINI, István UJHELYI, Giuseppe FERRANDINO

Proposal for a directive
Recital 56

(56) For emissions trading in the buildings and road transport sectors to be effective, it should be possible to monitor emissions with high certainty and at reasonable cost. Emissions should be attributed to regulated entities on the basis of fuel quantities released for consumption and combined with an emission factor. Regulated entities should be able to reliably and accurately identify and differentiate the sectors in which the fuels are released for consumption, as well as the final users of the fuels, in order to avoid undesirable effects, such as double burden. To have sufficient data to establish the total number of allowances for the period from 2028 to 2030, the regulated entities holding a permit at the start of the system in 2025 should report their associated historical emissions for 2024.deleted

2022/02/08
Committee: TRAN

Petar VITANOV, Isabel GARCÍA MUÑOZ, Bogusław LIBERADZKI, Rovana PLUMB, Andreas SCHIEDER, Inma RODRÍGUEZ-PIÑERO, Ismail ERTUG, Maria GRAPINI, István UJHELYI

Proposal for a directive
Recital 57

(57) It is appropriate to introduce measures to address the potential risk of excessive price increases, which, if particularly high at the start of the buildings and road transport emissions trading, may undermine the readiness of households and individuals to invest in reducing their greenhouse gas emissions. These measures should complement the safeguards provided by the Market Stability Reserve established by Decision (EU) 2015/1814 of the European Parliament and of the Council64 and that became operational in 2019. While the market will continue to determine the carbon price, safeguard measures will be triggered by rules-based automatism, whereby allowances will be released from the Market Stability Reserve only if concrete triggering conditions based on the increase in the average allowance price are met. This additional mechanism should also be highly reactive, in order to address excessive volatility due to factors other than changed market fundamentals. The measures should be adapted to different levels of excessive price increase, which will result in different degrees of the intervention. The triggering conditions should be closely monitored by the Commission and the measures should be adopted by the Commission as a matter of urgency when the conditions are met. This is without prejudice to any accompanying measures that Member States may adopt to address adverse social impacts. __________________ 64Decision (EU) 2015/1814 of the European Parliament and of the Council of 6 October 2015 concerning the establishment and operation of a market stability reserve for the Union greenhouse gas emission trading scheme and amending Directive 2003/87/EC (OJ L 264, 9.10.2015, p. 1).deleted

2022/02/08
Committee: TRAN

Petar VITANOV, Isabel GARCÍA MUÑOZ, Bogusław LIBERADZKI, Rovana PLUMB, Andreas SCHIEDER, Inma RODRÍGUEZ-PIÑERO, Ismail ERTUG, Maria GRAPINI, István UJHELYI, Giuseppe FERRANDINO

Proposal for a directive
Recital 58

(58) The application of emissions trading in the buildings and road transport sectors should be monitored by the Commission, including the degree of price convergence with the existing ETS, and, if necessary, a review should be proposed to the European Parliament and the Council to improve the effectiveness, administration and practical application of emissions trading for those sectors on the basis of acquired knowledge as well as increased price convergence. The Commission should be required to submit the first report on those matters by 1 January 2028.deleted

2022/02/08
Committee: TRAN

Petar VITANOV, Isabel GARCÍA MUÑOZ, Bogusław LIBERADZKI, Rovana PLUMB, Andreas SCHIEDER, Inma RODRÍGUEZ-PIÑERO, Ismail ERTUG, Maria GRAPINI, István UJHELYI, Giuseppe FERRANDINO

Proposal for a directive
Recital 59

(59) In order to ensure uniform conditions for the implementation of Articles 3gd(3), 12(3b) and 14(1) of Directive 2003/87/EC, implementing powers should be conferred on the Commission. To ensure synergies with the existing regulatory framework, the conferral of implementing powers in Articles 14 and 15 of that Directive should be extended to cover the sectors of road transport and buildings. Those implementing powers should be exercised in accordance with Regulation (EU) No 182/2011 of the European Parliament and of the Council65 . __________________ 65Regulation (EU) No 182/2011 of 16 February 2011 laying down the rules and general principles concerning mechanisms for control by the Member States of the Commission's exercise of implementing powers (OJ L 55, 28.02.2011, p. 13).deleted

2022/02/08
Committee: TRAN

Petar VITANOV, Isabel GARCÍA MUÑOZ, Bogusław LIBERADZKI, Rovana PLUMB, Andreas SCHIEDER, Inma RODRÍGUEZ-PIÑERO, Ismail ERTUG, Maria GRAPINI, István UJHELYI, Giuseppe FERRANDINO

Proposal for a directive
Recital 60

(60) In order to adopt non-legislative acts of general application to supplement or amend certain non-essential elements of a legislative act, the power to adopt acts in accordance with Article 290 of the Treaty on the Functioning of the European Union should be delegated to the Commission in respect of Articles 10(4) and 10a(8) of that Directive. Moreover, to ensure synergies with the existing regulatory framework, the delegation in Articles 10(4) and 10a(8) of Directive 2003/87/EC should be extended to cover the sectors of road transport and buildings. It is of particular importance that the Commission carry out appropriate consultations during its preparatory work, including at expert 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 2016. 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. In accordance with the Joint Political Declaration of 28 September 2011 of Member States and the Commission on explanatory documents66 , Member States have undertaken to accompany, in justified cases, the notification of their transposition measures with one or more documents explaining the relationship between the components of a directive and the corresponding parts of national transposition instruments. With regard to this Directive, the legislator considers the transmission of such documents to be justified __________________ 66deleted OJ C 369, 17.12.2011, p. 14.

2022/02/08
Committee: TRAN

Petar VITANOV, Isabel GARCÍA MUÑOZ, Bogusław LIBERADZKI, Rovana PLUMB, Andreas SCHIEDER, Inma RODRÍGUEZ-PIÑERO, Ismail ERTUG, Maria GRAPINI, István UJHELYI, Giuseppe FERRANDINO