REPORT on the proposal for a regulation of the European Parliament and of the Council on the inclusion of greenhouse gas emissions and removals from land use, land use change and forestry into the 2030 climate and energy framework and amending Regulation No 525/2013 of the European Parliament and the Council on a mechanism for monitoring and reporting greenhouse gas emissions and other information relevant to climate change

17.7.2017 - (COM(2016)0479 – C8‑0330/2016 – 2016/0230(COD)) - ***I

Committee on the Environment, Public Health and Food Safety
Rapporteur: Norbert Lins

DRAFT EUROPEAN PARLIAMENT LEGISLATIVE RESOLUTION

on the proposal for a regulation of the European Parliament and of the Council on the inclusion of greenhouse gas emissions and removals from land use, land use change and forestry into the 2030 climate and energy framework and amending Regulation No 525/2013 of the European Parliament and the Council on a mechanism for monitoring and reporting greenhouse gas emissions and other information relevant to climate change

(COM(2016)0479 – C8‑0330/2016 – 2016/0230(COD))

(Ordinary legislative procedure: first reading)

The European Parliament,

–  having regard to the Commission proposal to Parliament and the Council (COM(2016)0479),

–  having regard to Article 294(2) and Article 192(1) of the Treaty on the Functioning of the European Union, pursuant to which the Commission submitted the proposal to Parliament (C8‑0330/2016),

–  having regard to Article 294(3) of the Treaty on the Functioning of the European Union,

–  having regard to the opinion of the European Economic and Social Committee of 14 December 2016[1],

–  having regard to the opinion of the Committee of the Regions of 22 March 2017[2],

–  having regard to Rule 59 of its Rules of Procedure,

–  having regard to the report of the Committee on the Environment, Public Health and Food Safety and the opinions of the Committee on Development, the Committee on Industry, Research and Energy and the Committee on Agriculture and Rural Development (A8-0262/2017),

1.  Adopts its position at first reading hereinafter set out;

2.  Calls on the Commission to refer the matter to Parliament again if it replaces, substantially amends or intends to substantially amend its proposal;

3.  Instructs its President to forward its position to the Council, the Commission and the national parliaments.

Amendment     1 Proposal for a regulation Recital -1 (new)
Text proposed by the Commission	Amendment
	(-1)   The Protocol No 1 of the Treaty on the Functioning of the European Union on the role of national parliaments in the European Union needs to be taken into account.
Amendment     2 Proposal for a regulation Recital -1 a (new)
Text proposed by the Commission	Amendment
	(-1a)   The Protocol No 2 of the Treaty on the Functioning of the European Union on the application of the principles of subsidiarity and proportionality needs to be taken into account.
Amendment    3 Proposal for a regulation Recital 3
Text proposed by the Commission	Amendment
(3)  On 10 June 2016 the Commission presented the proposal for the EU to ratify the Paris agreement. This legislative proposal forms part of the implementation of the Union's commitment to economy-wide emission reductions as confirmed in the intended nationally determined reduction commitment of the Union and its Member States submitted to the Secretariat of the United Nations Framework Convention on Climate Change ('UNFCCC') on 6 March 2015.10	(3)  On 5 October 2016, the Council ratified the Paris Agreement on behalf of the Union, following the consent given by the European Parliament on 4 October 2016. The Paris Agreement entered into force on 4 November 2016. This Regulation forms, in that regard, part of the implementation of the Union's commitment to economy-wide emission reductions as set out in the intended nationally determined reduction commitment of the Union and its Member States submitted to the Secretariat of the United Nations Framework Convention on Climate Change ('UNFCCC') on 6 March 2015.10 The Union needs to continue to lead by example and increase its climate efforts to levels in line with the Paris Agreement's objective.
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10 http://www4.unfccc.int/submissions/indc/Submission%20Pages/submissions.aspx	10 http://www4.unfccc.int/ndcregistry/pages/Party.aspx?party=EUU
Amendment    4 Proposal for a regulation Recital 4
Text proposed by the Commission	Amendment
(4)  The Paris Agreement, inter alia, sets out a long-term goal in line with the objective to keep the global temperature increase well below 2°C above pre-industrial levels and to pursue efforts to keep it to 1.5°C above pre-industrial levels. In order to achieve this goal, the Parties should prepare, communicate and maintain successive nationally determined contributions. The Paris Agreement replaces the approach taken under the 1997 Kyoto Protocol which will not be continued beyond 2020. The Paris Agreement also calls for a balance between anthropogenic emissions by sources and removals by sinks of greenhouse gases in the second half of this century, and invites Parties to take action to conserve and enhance, as appropriate, sinks and reservoirs of greenhouse gases, including forests.	(4)  The Paris Agreement, inter alia, sets out a long-term goal in line with the objective to keep the global temperature increase well below 2°C above pre-industrial levels and to pursue efforts to keep it to 1.5°C above pre-industrial levels which requires the world to enter into a period of negative levels of emissions, during which forests, agricultural land and wetland, including peatland, will play a central role. The Paris Agreement also aims to strengthen the global response to the threat of climate change, in the context of sustainable development and efforts to eradicate poverty, including by increasing the ability to adapt to the adverse impacts of climate change and foster climate resilience and low greenhouse gas emissions development, in a manner that does not threaten food production. In the Paris Agreement, the Parties also recognise the fundamental priority of safeguarding food security and ending hunger, and the particular vulnerabilities of food production systems to the adverse impacts of climate change. In order to achieve the purpose of the Paris Agreement, it is necessary that the Parties increase their collective efforts to mitigate climate change and limit global warming. The Parties should prepare, communicate and maintain successive nationally determined contributions. The Paris Agreement replaces the approach taken under the 1997 Kyoto Protocol which will not be continued beyond 2020. The Paris Agreement also calls for a balance between anthropogenic emissions by sources and removals by sinks of greenhouse gases in the second half of this century, and invites Parties to take action to conserve and enhance, as appropriate, sinks and reservoirs of greenhouse gases, including forests. In the Paris Agreement, the Parties also acknowledge that adaptation action should follow a fully transparent approach, taking into account ecosystems and should be based on and guided by the best available science.
Amendment    5 Proposal for a regulation Recital 4 a (new)
Text proposed by the Commission	Amendment
	(4a)  It is essential that forests are managed in a sustainable manner, in accordance with the principles of sustainable forest management developed under the Forest Europe process. That process defines sustainable forest management as the stewardship and use of forests and forest lands in a way, and at a rate, that maintains their biodiversity, productivity, regeneration capacity, vitality and their potential to fulfil, now and in the future, relevant ecological, economic and social functions, at local, national, and global levels, and in a manner that does not cause damage to other ecosystems. Such management also necessitates that the role of afforestation in this context be recognised.
Amendment    6 Proposal for a regulation Recital 4 b (new)
Text proposed by the Commission	Amendment
	(4b)  To achieve the negative levels of emissions required to meet the Paris Agreement goals, the system for accounting in relation to land use, land use change and forestry ('LULUCF') needs to be robust. As removals through LULUCF are reversible, they should be treated as a separate pillar in the Union climate policy framework.
Amendment    7 Proposal for a regulation Recital 5
Text proposed by the Commission	Amendment
(5)  The European Council of 23-24 October 2014 also acknowledged the multiple objectives of the agriculture and land use sector, with their lower mitigation potential as well as the need to ensure coherence between the Union food security and climate change objectives. The European Council invited the Commission to examine the best means of encouraging the sustainable intensification of food production, while optimising the sector's contribution to greenhouse gas mitigation and sequestration, including through afforestation, and to establish policy on how to include land use, land use change and forestry ('LULUCF') into the 2030 greenhouse gas mitigation framework as soon as technical conditions allow and in any case before 2020.	(5)  The European Council of 23-24 October 2014 also acknowledged the multiple objectives of the agriculture and land use sector, with their lower mitigation potential as well as the need to ensure coherence between the Union food security and climate change objectives. In addition, the implementation of technology solutions in agriculture and forestry sectors contribute to enhancing production and reducing the environmental footprint. The European Council invited the Commission to examine the best means of encouraging the sustainable intensification of food production, while optimising the sector's contribution to greenhouse gas mitigation and sequestration, including through afforestation, and to establish policy on how to include land use, land use change and forestry ('LULUCF') into the 2030 greenhouse gas mitigation framework as soon as technical conditions allow and in any case before 2020.
Amendment    8 Proposal for a regulation Recital 6
Text proposed by the Commission	Amendment
(6)  The LULUCF sector can contribute to climate change mitigation in several ways, in particular by reducing emissions, and maintaining and enhancing sinks and carbon stocks. In order for measures aiming in particular at increasing carbon sequestration to be effective, the long-term stability and adaptability of carbon pools is essential.	(6)  The LULUCF sector is highly exposed and very vulnerable to climate change. At the same time, the sector has huge potential to provide long-term climate benefits and to contribute significantly to the achievement of Union and international long-term climate goals. The LULUCF sector contributes to climate change mitigation in several ways, in particular by reducing emissions, maintaining and enhancing sinks and carbon stocks. The sector also provides bio-materials that can, to a degree, substitute fossil- or carbon-intensive materials with renewable low-carbon biomass from forests. Regarding such substitution, the entire life cycle of those materials, from the production of the raw material to the processing and manufacturing stages should be taken into account. The bioeconomy, including material substitution such as in construction, and including bioenergy, plays an important role in the transition to a fossil-free economy. In order for measures aiming in particular at increasing carbon sequestration to be effective and in line with the Paris Agreement, sustainable forest and resource management and the long-term stability and adaptability of carbon pools are essential. As the LULUCF sector is characterised by long timeframes, long-term strategies are needed to make sustainable investments possible in the long run.
Amendment     9 Proposal for a regulation Recital 6 a (new)
Text proposed by the Commission	Amendment
	(6a)  The Union should become a global leader in promoting and exporting research and investment in sustainable, advanced and innovative practices, techniques and ideas in the LULUCF sector, as well as in the dissemination of green technologies, in order to lower greenhouse gas emissions while preserving food production, thereby setting an example for its international partners, including developing countries. In this context, effective cooperation and partnership with private sector actors, especially with small and medium-sized enterprises, should be enhanced.
Amendment     10 Proposal for a regulation Recital 6 b (new)
Text proposed by the Commission	Amendment
	(6b)  Prioritising funding for climate change research would enhance the role of the LULUCF sector in relation to climate change mitigation and adaptation. Particularly, boosting the Union's research and innovation programme anticipated for the period 2021 - 2028 in the LULUCF sector would, inter alia, contribute to deepening and spreading the scientific and local communities’ knowledge on the performance of the sector, accelerating sustainable innovations, fostering transition to the digital era, modernising training and education, strengthening the resilience of that sector and monitoring biodiversity and human action.
Amendment    11 Proposal for a regulation Recital 6 c (new)
Text proposed by the Commission	Amendment
	(6c)  The research into the role of dead wood, in particular above ground coarse woody debris and dead buried wood both in unmanaged and managed forests, should be strengthened to improve the accuracy of forest carbon accounting and in the calculation of the net ecosystem carbon balance. There is limited evidence available, but such evidence indicates that dead wood can constitute a large carbon pool and leaving deadwood on site could, inter alia, play a significant role in terms of biodiversity and be recognised as playing an important part in a greenhouse gas mitigation strategy. That indication is relevant considering that forest management can favour the removal of deadwood for example for energy purposes, and any decision over the correct mitigation and adaptation should be informed and scientifically underpinned. Dedicated resources should be allocated to that research over the period 2017-2020.
Amendment     12 Proposal for a regulation Recital 6 d (new)
Text proposed by the Commission	Amendment
	(6d)  The Union has made commitments to the United Nations' Sustainable Development Goals, which can only be met with proper forest management and a commitment to stall and reverse deforestation and drive forward reforestation.
Amendment     13 Proposal for a regulation Recital 6 e (new)
Text proposed by the Commission	Amendment
	(6e)  A holistic approach to tropical deforestation should be ensured, taking into account all deforestation drivers, as well as the objective included in a declaration by the Commission in the UNFCCC negotiations to halt global forest cover loss by 2030 at the latest and to reduce gross tropical deforestation by at least 50 % by 2020 compared to current levels.
Amendment     14 Proposal for a regulation Recital 6 f (new)
Text proposed by the Commission	Amendment
	(6f)  Forestry and forests should be managed responsibly and should make a real contribution to the economic development of a country, offering viable economic opportunities to farmers, provided that no deforestation of sensitive ecosystems occurs, that no plantations are established on peatland, that plantations are managed using modern agro-ecological techniques to minimise adverse environmental and social outcomes, and that land rights, the rights of indigenous communities as well as human rights and workers' rights are respected.
Amendment    15 Proposal for a regulation Recital 6 g (new)
Text proposed by the Commission	Amendment
	(6g)  Advanced and sustainable management practices can contribute significantly to reducing greenhouse gas emissions in the LULUCF sector. The development of innovative practices and the use by landowners of advanced management practices, such as precision agriculture, precision forestry and agri-digitalisation should be promoted. Monitoring via geoinformation and earth observation, as well as sharing best practice are potential means of helping Member States to reach their targets and should therefore be encouraged.
Amendment    16 Proposal for a regulation Recital 6 h (new)
Text proposed by the Commission	Amendment
	(6h)  Agro-ecology facilitates a shift from linear food systems to circular systems that mimic natural cycles and could reduce the carbon and ecological footprints of food and agriculture. It is important that agro-ecology as well as agro-forestry be promoted given their contribution to climate change mitigation.
Amendment    17 Proposal for a regulation Recital 7
Text proposed by the Commission	Amendment
(7)  Decision No 529/2013/EC of the European Parliament and of the Council,11 as a first step, set out accounting rules applicable to greenhouse gas emissions and removals from the LULUCF sector and thereby contributed to policy development towards the inclusion of the LULUCF sector in the Union’s emission reduction commitment. This Regulation should build on the existing accounting rules, updating and improving them for the period 2021-2030. It should lay down the obligations of Member States in implementing those accounting rules and the obligation to ensure that the overall LULUCF sector would not generate net emissions. It should not lay down any accounting or reporting obligations for private parties.	(7)  Decision No 529/2013/EC of the European Parliament and of the Council,11 as a first step, set out accounting rules applicable to greenhouse gas emissions and removals from the LULUCF sector and thereby contributed to policy development towards the inclusion of the LULUCF sector in the Union’s emission reduction commitment. This Regulation should build on the existing accounting rules, updating and improving them for the period 2021-2030. It should under any circumstances lay down the obligations of Member States in implementing those accounting rules and the obligation to ensure that the overall LULUCF sector would not generate net emissions. It should not lay down any accounting or reporting obligations for private parties including farmers and foresters and it is necessary that such obligations are avoided by Member States during implementation of this Regulation.
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11 Decision No 529/2013/EU of the European Parliament and of the Council of 21 May 2013 on accounting rules on greenhouse gas emissions and removals resulting from activities relating to land use, land-use change and forestry and on information concerning actions relating to those activities (OJ L 165, 18.6.2013, p. 80)	11 Decision No 529/2013/EU of the European Parliament and of the Council of 21 May 2013 on accounting rules on greenhouse gas emissions and removals resulting from activities relating to land use, land-use change and forestry and on information concerning actions relating to those activities (OJ L 165, 18.6.2013, p. 80)
Amendment    18 Proposal for a regulation Recital 7 a (new)
Text proposed by the Commission	Amendment
	(7a)  Agriculture and land use are sectors that have a direct and significant impact on the Union’s biodiversity and ecosystems services. For this reason, an important objective of policies affecting those sectors is to ensure that there is coherence with the Union’s biodiversity strategy objectives. In addition, other Union policies exist which can incentivise practices that go beyond the minimum legal requirements, surpass good standard practice and contribute to genuine adaptation to and mitigation of climate change, and maintenance of the carbon sink, as provision of public goods. Actions should be taken to implement and support activities relating to mitigation and adaptation approaches for the integral and sustainable management of forests and agricultural land. In spite of the recognised limited reduction potential of its non-CO2 emissions, agriculture needs to deliver its fair share of contribution towards climate change mitigation. That can be achieved by encouraging, inter alia, improved cropping in order to increase the organic carbon content of soil. Member States and the Commission should ensure that there is coherence between the CAP and this Regulation.
Amendment    19 Proposal for a regulation Recital 7 b (new)
Text proposed by the Commission	Amendment
	(7b)  Wetlands are the most effective ecosystems for storing CO2. The degradation of wetlands in the Union is therefore not only a problem for biodiversity, but is also a major climate problem. Conversely protecting and restoring wetlands could both enhance conservation efforts and reduce GHG emissions in the LULUCF sector. The IPCC Refinement of the 2006 Guidelines, coming up in 2019, should also be considered in that context.
Amendment    20 Proposal for a regulation Recital 8
Text proposed by the Commission	Amendment
(8)  In order to determine accurate accounts of emissions and removals in accordance with the 2006 Intergovernmental Panel on Climate Change ('IPCC') Guidelines for National Greenhouse Gas Inventories ('IPCC Guidelines'), the annually reported values under Regulation (EU) No. 525/2013 for land use categories and the conversion between land use categories should be utilised, thereby streamlining the approaches used under the UNFCCC and the Kyoto Protocol. Land that is converted to another land use category should be considered in transition to that category for the default value of 20 years in the IPCC Guidelines.	(8)  In order to determine accurate accounts of emissions and removals in accordance with the 2006 Intergovernmental Panel on Climate Change ('IPCC') Guidelines for National Greenhouse Gas Inventories ('IPCC Guidelines'), the annually reported values under Regulation (EU) No. 525/2013 for land use categories and the conversion between land use categories should be utilised, thereby streamlining the approaches used under the UNFCCC and the Kyoto Protocol. Land that is converted to another land use category should be considered in transition to that category for the default value of 20 years in the IPCC Guidelines. Given the Union's position as a climate leader, Member States should derogate from that default value only for afforested land and only in very limited circumstances justified under the IPCC Guidelines. The possibility for derogation takes into account the diverging natural and ecological circumstances between Member States and hence the differing characteristics of their forest land.
Amendment    21 Proposal for a regulation Recital 9
Text proposed by the Commission	Amendment
(9)  Emissions and removals from forest land depend on a number of natural circumstances, age-class structure, as well as past and present management practices. The use of a base year would not make it possible to reflect those factors and resulting cyclical impacts on emissions and removals or their interannual variation. The relevant accounting rules should instead provide for the use of reference levels to exclude the effects of natural and country-specific characteristics. In the absence of the international review under the UNFCCC and the Kyoto Protocol, a review procedure should be established to ensure transparency and improve the quality of accounting in this category.	(9)  Emissions and removals from forest land depend on a number of natural circumstances, age-class structure, as well as past and present management practices that differ substantially between the Member States. The use of a base year would not make it possible to reflect those factors and resulting cyclical impacts on emissions and removals or their interannual variation. The relevant accounting rules should instead provide for the use of reference levels to address the effects of natural and country-specific characteristics, such as the inability to manage forests in Croatia due to the occupation of its territory, the Croatian War of Independence, and wartime and post-war circumstances. The relevant accounting rules should also provide for coherence and requirements for sustainable forest management of Forest Europe (Ministerial Conference on the Protection of Forests in Europe). In the absence of the international review under the UNFCCC and the Kyoto Protocol, a transparent procedure should be established for the Member States to improve auditability and the quality of accounting in this category.
Amendment    22 Proposal for a regulation Recital 9 a (new)
Text proposed by the Commission	Amendment
	(9a)  Emissions from harvested wood in the LULUCF sector have the potential to replace emissions in the ETS and effort sharing sectors and this Regulation can both highlight and account for it.
Amendment    23 Proposal for a regulation Recital 10
Text proposed by the Commission	Amendment
(10)  When the Commission chooses to be assisted by an expert review team in accordance with Commission Decision (C(2016)3301) in the review of national forestry accounting plans, it should build on the good practice and experience of the expert reviews under the UNFCCC, including as regards participation of national experts and recommendations, and select a sufficient number of experts from the Member States.	(10)  For the review of the national forestry accounting plans, an expert review team should be set up in accordance with Commission Decision (C(2016)3301). The expert review team should build on the good practice and experience of the expert reviews under the UNFCCC, including as regards participation of national experts and recommendations, and a sufficient number of experts from the Member States should be selected. The expert review team should consult the Standing Forestry Committee established by Council Decision 89/367/EEC as well as stakeholders and civil society on the review of the national forestry accounting plans.
Amendment    24 Proposal for a regulation Recital 12
Text proposed by the Commission	Amendment
(12)  The increased sustainable use of harvested wood products can substantially limit emissions into and enhance removals of greenhouse gases from the atmosphere. The accounting rules should ensure that Member States accurately reflect in accounts the changes in the harvested wood products pool when they take place, to provide incentives for enhanced use of harvested wood products with long life cycles. The Commission should provide guidance on methodological issues related to the accounting for harvested wood products.	(12)  The increased sustainable use of harvested wood products can substantially limit emissions by the substitution effect (considering the energy and CO2 intensity of other sectors, e.g. cement production accounts for roughly 8% of global CO2 emissions), and enhance removals of greenhouse gases from the atmosphere. The accounting rules should ensure that Member States accurately reflect in accounts the changes in the harvested wood products pool when they take place, in order to recognise and incentivise the enhanced use of harvested wood products with long life cycles rather than the use of harvested wood products for energy purposes. In order to further promote and include the positive substitution effect the Commission should, by means of a delegated act, include more products under the harvested wood product calculations. The Commission should provide guidance on methodological issues related to the accounting for harvested wood products.
Amendment    25 Proposal for a regulation Recital 13
Text proposed by the Commission	Amendment
(13)  Natural disturbances, such as wildfires, insect and disease infestations, extreme weather events and geological disturbances that are beyond the control of, and not materially influenced by, a Member State, may result in greenhouse gas emissions of a temporary nature in the LULUCF sector, or may cause the reversal of previous removals. As reversal can also be the result of management decisions, such as decisions to harvest or plant trees, this Regulation should ensure that human-induced reversals of removals are always accurately reflected in LULUCF accounts. Moreover, this Regulation should provide Member States with a limited possibility to exclude emissions resulting from disturbances that are beyond their control from their LULUCF accounts. However, the manner in which Member States apply those provisions should not lead to undue under-accounting.	(13)  Natural disturbances, such as wildfires, insect and disease infestations, extreme weather events and geological disturbances that are beyond the control of, and not materially influenced by, a Member State, may result in greenhouse gas emissions of a temporary nature in the LULUCF sector, or may cause the reversal of previous removals. As reversal can also be the result of management decisions, such as decisions to harvest or plant trees, this Regulation should ensure that human-induced reversals of removals are always accurately reflected in LULUCF accounts. Member States should be encouraged to invest in preventative actions, such as sustainable management practices, to reduce the risks associated with natural disturbances, thereby avoiding negative impacts on the forest carbon sink. Moreover, this Regulation should provide Member States with a limited possibility to exclude emissions resulting from disturbances that are beyond their control from their LULUCF accounts. However, the manner in which Member States apply those provisions should not lead to undue under-accounting;
Amendment    26 Proposal for a regulation Recital 14
Text proposed by the Commission	Amendment
(14)  Depending on national preferences, Member States should be able to choose adequate national policies for achieving their commitments in LULUCF, including the possibility of compensating emissions from one land category by removals from another land category. They should also be able to cumulate net removals over the period 2021-2030. Trading among Member States should continue as an additional option to help compliance. Following the practice in the second commitment period of the Kyoto Protocol, there should also be a possibility for a Member State to use its overachievement under Regulation [] on binding annual greenhouse gas emission reductions by Member States from 2021 to 2030 for a resilient Energy Union and to meet commitments under the Paris Agreement and amending Regulation No 525/2013 of the European Parliament and the Council on a mechanism for monitoring and reporting greenhouse gas emissions and other information relevant to climate change in order to ensure its compliance with its commitment under this Regulation.	(14)  Depending on national preferences, Member States should be able to choose adequate national policies for achieving their commitments in LULUCF, including the possibility of compensating emissions from one land category by removals from another land category. They should also be able to cumulate net removals over the period 2021-2030. Trading among Member States should continue as an additional option to help compliance. Following the practice in the second commitment period of the Kyoto Protocol, there should also be a possibility for a Member State to use its overachievement under Regulation [] on binding annual greenhouse gas emission reductions by Member States from 2021 to 2030 for a resilient Energy Union and to meet commitments under the Paris Agreement and amending Regulation No 525/2013 of the European Parliament and the Council on a mechanism for monitoring and reporting greenhouse gas emissions and other information relevant to climate change in order to ensure its compliance with its commitment under this Regulation without compromising the overall ambition level of Union greenhouse gas reduction targets. Member States should also be able to use up to 280 million tonnes of total net removals resulting from the combined accounting categories of deforested land, afforested land, managed cropland, managed grassland, managed wetland where applicable, and, subject to the delegated act adopted pursuant to Article 7 (2) of Regulation (EU) [2017/... ] on binding annual greenhouse gas emission reductions by Member States from 2021 to 2030, managed forest land in order to ensure their compliance with their commitments under Regulation (EU) [2017/... ] on binding annual greenhouse gas emission reductions by Member States from 2021 to 2030.
Amendment    27 Proposal for a regulation Recital 15
Text proposed by the Commission	Amendment
(15)  In order to ensure efficient, transparent and cost-effective reporting and verification of greenhouse gas emissions and removals and of other information necessary to assess compliance with Member States' commitments, reporting requirements should be included in Regulation (EU) No. 525/2013 by this Regulation, and compliance checks under this Regulation should take these reports into account. Regulation (EU) No. 525/2013 should therefore be amended accordingly. These provisions may further be streamlined to take into consideration any relevant changes in respect of the integrated governance of the Energy Union for which a proposal is foreseen by the end of 2016 in the Commission’s work programme.	(15)  In order to ensure efficient, transparent and cost-effective reporting and verification of greenhouse gas emissions and removals and of other information necessary to assess compliance with Member States' commitments, reporting requirements should be included in Regulation (EU) No. 525/2013 by this Regulation, and compliance checks under this Regulation should take these reports into account. Regulation (EU) No 525/2013 should therefore be amended accordingly. These provisions may further be streamlined to take into consideration any relevant changes in respect of the proposal for a regulation on the governance of the Energy Union which the Commission submitted on 30 November 2016.
Amendment    28 Proposal for a regulation Recital 15 a (new)
Text proposed by the Commission	Amendment
	(15a)  Under the UNFCCC, the Union and its Member States are required to develop, regularly update, publish and report to the Conference of the Parties national inventories of anthropogenic emissions by sources and removals by sinks of all greenhouse gases using comparable methodologies agreed by the Conference of the Parties. Greenhouse gas inventories are essential for monitoring the implementation of the decarbonisation dimension and for assessing compliance with climate-related legislation. The obligations of Member States to compile and administer national inventories are set out in the Commission proposal for a regulation on the governance of the Energy Union.
Amendment     29 Proposal for a regulation Recital 17
Text proposed by the Commission	Amendment
(17)  To facilitate data collection and methodology improvement, land use should be inventoried and reported using geographical tracking of each land area, corresponding to national and EU data collection systems. The best use shall be made of existing Union and Member State programmes and surveys including the LUCAS Land Use Cover Area frame Survey and the European Earth observation programme Copernicus for data collection. Data management, including sharing for the reporting reuse and dissemination should conform to Directive 2007/2/EC of the European Parliament and of the Council of 14 March 2007 establishing an Infrastructure for Spatial Information in the European Community.	(17)  To facilitate data collection and methodology improvement, land use should be expressly inventoried and reported using geographical tracking of each land area, corresponding to national and EU data collection systems. The best use shall be made of existing Union and Member State programmes and surveys including the LUCAS Land Use Cover Area frame Survey, the European Earth observation programme Copernicus, in particular through Sentinel-2, for data collection and the European satellite navigation systems Galileo and EGNOS, which can be used in support of land-use surveying. Data management, including sharing for the reporting reuse and dissemination should conform to Directive 2007/2/EC of the European Parliament and of the Council of 14 March 2007 establishing an Infrastructure for Spatial Information in the European Community.
Amendment    30 Proposal for a regulation Recital 18
Text proposed by the Commission	Amendment
(18)  In order to provide for the appropriate accounting of transactions under this Regulation, including the use of flexibilities and tracking compliance, 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 the technical adaptation of definitions, values, lists of greenhouse gases and carbon pools, the update of reference levels, the accounting of transactions and the revision of methodology and information requirements. These measures shall take into account the provisions in Commission Regulation No 389/2013 establishing a Union Registry. The necessary provisions should be contained in a single legal instrument combining the accounting provisions pursuant to Directive 2003/87/EC, Regulation (EU) No 525/2013, Regulation [] on binding annual greenhouse gas emission reductions by Member States from 2021 to 2030 for a resilient Energy Union and this Regulation. It is of particular importance that the Commission carry out appropriate consultations during its preparatory work, including at expert level conducted in accordance with the principles laid down in the Inter-institutional 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 Council receive all documents at the same time as Member States' experts, and their experts have systematic access to meetings of Commission expert groups dealing with the preparation of delegated acts.	(18)  In order to provide for the appropriate accounting of transactions under this Regulation, including the use of flexibilities and tracking compliance, 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 the technical adaptation of definitions, values, lists of greenhouse gases and carbon pools, the update of reference levels, the accounting of transactions and the revision of methodology on the basis of the most recently adopted IPCC guidelines, including the 2013 IPCC Wetlands Supplementary Guidelines for National Greenhouse Gas Inventories, and UNFCCC guidance and information requirements. These measures shall take into account the provisions in Commission Regulation No 389/2013 establishing a Union Registry. The necessary provisions should be contained in a single legal instrument combining the accounting provisions pursuant to Directive 2003/87/EC, Regulation (EU) No 525/2013, Regulation (EU) No.../... on binding annual greenhouse gas emission reductions by Member States from 2021 to 2030 for a resilient Energy Union and this Regulation. It is of particular importance that the Commission carry out appropriate consultations during its preparatory work, including at expert level conducted in accordance with the principles laid down in the Inter-institutional 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 Council receive all documents at the same time as Member States' experts, and their experts have systematic access to meetings of Commission expert groups dealing with the preparation of delegated acts.
Amendment    31 Proposal for a regulation Recital 19
Text proposed by the Commission	Amendment
(19)  This Regulation should be reviewed as of 2024 and every 5 years thereafter in order to assess its overall functioning. This review can also be informed by the results of the global stocktake of the Paris Agreement.	(19)  Within six months of the 2018 Facilitative Dialogue under the UNFCCC the Commission should publish a communication assessing the consistency of the Union’s climate and energy legislative acts with the goals of the Paris Agreement. This Regulation should be reviewed as of 2024 and every 5 years thereafter in order to assess its overall functioning. This review can also be informed by the results of the global stocktake of the Paris Agreement.
Amendment    32 Proposal for a regulation Article 1 – paragraph 1 a (new)
Text proposed by the Commission	Amendment
	This Regulation does not lay down accounting or reporting obligations for private parties including farmers and foresters.
Amendment    33 Proposal for a regulation Article 1 – paragraph 1 b (new)
Text proposed by the Commission	Amendment
	This Regulation contributes to the achievement by the Union of the objectives of the Paris Agreement.
Amendment    34 Proposal for a regulation Article 2 – paragraph 1 – point e a (new)
Text proposed by the Commission	Amendment
	(ea)  as of 2026, managed wetland: land use reported as wetland remaining wetland, and settlement, other land converted to wetland and wetland converted to settlement and other land.
Amendment    35 Proposal for a regulation Article 2 – paragraph 2
Text proposed by the Commission	Amendment
2.  A Member State may choose to include managed wetland, defined as land use reported as wetland remaining wetland, and settlement, other land converted to wetland and wetland converted to settlement and other land, in the scope of its commitment pursuant to Article 4. Where a Member State chooses to do so, it shall account for emissions and removals from managed wetland in accordance with this Regulation.	2.  During the period from 2021 to 2025, a Member State may choose to include managed wetland in the scope of its commitment pursuant to Article 4. Where a Member State chooses to do so, it shall account for emissions and removals from managed wetland in accordance with this Regulation.
Amendment    36 Proposal for a regulation Article 3 – paragraph 1 – point f a (new)
Text proposed by the Commission	Amendment
	(fa)  'forest reference level' means an estimate of the average annual net emissions or removals resulting from managed forest land within the territory of the Member State in the periods from 2021 to 2025 and from 2026 to 2030;
Amendment    37 Proposal for a regulation Article 4 – paragraph 1 a (new)
Text proposed by the Commission	Amendment
	For the period after 2030, Member States shall endeavour to increase their removals so that they exceed their emissions. The Commission shall propose a framework for targets after 2030 which includes such increased removals, in line with the Union’s long-term climate objectives and the commitments made under the Paris Agreement.
Amendment    38 Proposal for a regulation Article 5 – paragraph 1
Text proposed by the Commission	Amendment
1.  Each Member State shall prepare and maintain accounts that accurately reflect the emissions and removals resulting from the land accounting categories referred to in Article 2. Member States shall ensure the accuracy, completeness, consistency, comparability and transparency of their accounts and of other data provided under this Regulation. Member States shall denote emissions by a positive sign (+) and removals by a negative sign (-).	1.  Each Member State shall prepare and maintain accounts that accurately reflect the emissions and removals resulting from the land accounting categories referred to in Article 2 in accordance with the reporting guidance adopted by bodies of the UNFCCC or of the Paris Agreement for the period 2021-2030. Member States shall ensure the accuracy, completeness, consistency, comparability and transparency of their accounts and of other data provided under this Regulation. Member States shall denote emissions by a positive sign (+) and removals by a negative sign (-).
Amendment    39 Proposal for a regulation Article 5 – paragraph 4
Text proposed by the Commission	Amendment
4.  Member States shall include in their accounts for each land accounting category any change in the carbon stock of the carbon pools listed in Annex I, section B. Member States may choose not to include in their accounts changes in carbon stocks for carbon pools where the carbon pool is not a source, except for above-ground biomass and harvested wood products on managed forest land.	4.  Member States shall include in their accounts for each land accounting category any change in the carbon stock of the carbon pools listed in Annex I, section B. Member States may choose not to include in their accounts changes in carbon stocks for carbon pools where the carbon pool is not a source, except for above-ground biomass, deadwood (above-ground and buried deadwood) on managed forest land and harvested wood products on managed forest land.
Amendment    40 Proposal for a regulation Article 6 – paragraph 2
Text proposed by the Commission	Amendment
2.  By derogation from the requirement to apply the default value established in Article 5(3), a Member State may transition cropland, grassland, wetland, settlements and other land from the category of such land converted to forest land to the category of forest land remaining forest land after 30 years from the date of conversion.	2.  By derogation from the requirement to apply the default value established in Article 5(3), a Member State may transition cropland, grassland, wetland, settlements and other land from the category of such land converted to forest land to the category of forest land remaining forest land after 30 years from the date of conversion, if duly justified based on the IPCC Guidelines.
Amendment    41 Proposal for a regulation Article 6 – paragraph 3 a (new)
Text proposed by the Commission	Amendment
	3a.  Afforestation actions taking place in 2017-2030 on wetland, including peatland, Natura 2000 network and habitats listed in Annex I to Directive 92/43/EEC, in particular natural and semi-natural grassland formations and raised bogs and mires and fens, and other wetland, including peatland, under applied gross-net accounting rules shall not appear in the national accounting. Such areas shall only count, if applicable, for removals or emissions in the category of forested land after its transition to managed forest land in accordance with Article 5(3).
Justification
Afforestation of grasslands and wetlands may enhance decomposition of soil organic matter, rather than sequestering more C in the soil. The contentious climate reasoning of afforestation being always climate-smart could additionally threaten valuable ecosystems.
Amendment    42 Proposal for a regulation Article 7 – paragraph 3
Text proposed by the Commission	Amendment
3.  Where a Member State chooses to include managed wetland in the scope of its commitment in accordance with Article 2, it shall notify that choice to the Commission by 31 December 2020 for the period 2021-2025 and by 31 December 2025 for the period 2026-2030.	3.  Where a Member State chooses to include managed wetland in the scope of its commitment in accordance with Article 2 during the period from 2021 to 2025, it shall notify that choice to the Commission by 31 December 2020.
Amendment    43 Proposal for a regulation Article 7 – paragraph 4
Text proposed by the Commission	Amendment
4.  Member States that have chosen to include managed wetland in the scope of their commitments in accordance with Article 2 shall account for emissions and removals resulting from managed wetland, calculated as emissions and removals in the periods from 2021 to 2025 and/or from 2026 to 2030 minus the value obtained by multiplying by five the Member State’s average annual emissions and removals resulting from managed wetland in its base period 2005-2007.	4.  Member States shall account for emissions and removals resulting from managed wetland, calculated as emissions and removals in the periods from 2026 to 2030 minus the value obtained by multiplying by five the Member State's average annual emissions and removals resulting from managed wetland in its base period 2005-2007.
Amendment    44 Proposal for a regulation Article 7 – paragraph 4 – subparagraph 1 a (new)
Text proposed by the Commission	Amendment
	Member States that have chosen to include managed wetland in the scope of their commitments in accordance with Article 2 during the period from 2021 to 2025 shall account for emissions and removals resulting from managed wetland, calculated as emissions and removals in the period from 2021 to 2025 minus the value obtained by multiplying by five the Member State’s average annual emissions and removals resulting from managed wetland in its base period 2005-2007.
Amendment    45 Proposal for a regulation Article 7 – paragraph 4 a (new)
Text proposed by the Commission	Amendment
	4a.  During the period from 2021 to 2025, Member States that have not chosen to include managed wetland in the scope of their commitments in accordance with Article 2 shall nevertheless report the emissions and removals from managed wetland to the Commission.
Amendment    46 Proposal for a regulation Article 8 – paragraph 1
Text proposed by the Commission	Amendment
1.  Member States shall account for emissions and removals resulting from managed forest land, calculated as emissions and removals in the periods from 2021 to 2025 and from 2026 to 2030 minus the value obtained by multiplying by five its forest reference level. A forest reference level is an estimate of the average annual net emissions or removals resulting from managed forest land within the territory of the Member State in the periods from 2021 to 2025 and from 2026 to 2030.	1.  Member States shall account for emissions and removals resulting from managed forest land, calculated as emissions and removals in the periods from 2021 to 2025 and from 2026 to 2030 minus the value obtained by multiplying by five its forest reference level.
Amendment    47 Proposal for a regulation Article 8 – paragraph 2
Text proposed by the Commission	Amendment
2.  Where the result of the calculation referred to in paragraph 1 is negative in relation to its forest reference level, a Member State shall include in its managed forest land accounts total net removals of no more than the equivalent of 3,5 per cent of the Member State’s emissions in its base year or period as specified in Annex III, multiplied by five.	2.  Where the result of the calculation referred to in paragraph 1 is negative in relation to its forest reference level, a Member State shall include in its managed forest land accounts total net removals of no more than the equivalent of 3,5 per cent of the Member State's emissions in its base year or period as specified in Annex III, multiplied by five. Member States may add to that figure of 3,5 % the amount of net removals for managed forest land accounts from wood panels, sawn wood and deadwood under the conditions set out in the second, third and fourth subparagraphs.
Amendment    48 Proposal for a regulation Article 8 – paragraph 2 – subparagraph 1 a (new)
Text proposed by the Commission	Amendment
	Net removals from wood panels, as referred to in point (b) of Article 9, and sawn wood, as referred to in point (c) of that Article, may be separately accounted for outside of, and in addition to, the net removals figure for managed forest land accounts up to the level of 3 % of the Member State's emissions in its base year or period as specified in Annex III, multiplied by five.
Amendment    49 Proposal for a regulation Article 8 – paragraph 2 – subparagraph 1 b (new)
Text proposed by the Commission	Amendment
	Net removals from the carbon pool category of deadwood may be separately accounted for outside of, and in addition to, the net removals figure for managed forest land accounts up to the level of 3 % of the Member State's emissions in its base year or period as specified in Annex III, multiplied by five.
Amendment    50 Proposal for a regulation Article 8 – paragraph 2 – subparagraph 1 c (new)
Text proposed by the Commission	Amendment
	The combined figure of the net removals of 3,5 % in the first sub-paragraph, plus net removals for managed forest land accounts from wood panels, sawn wood and deadwood shall not together exceed 7 % of the Member State's emissions in its base year or period as specified in Annex III, multiplied by five.
Amendment    51 Proposal for a regulation Article 8 – paragraph 3 – subparagraph 2
Text proposed by the Commission	Amendment
The national forestry accounting plan shall contain all the elements listed in Annex IV, section B and include a proposed new forest reference level based on the continuation of current forest management practice and intensity, as documented between 1990-2009 per forest type and per age class in national forests, expressed in tonnes of CO2 equivalent per year.	The national forestry accounting plan shall contain all the elements listed in Annex IV, section B and include a new forest reference level based on the continuation of current forest management practice and intensity, as documented between 2000-2012 per forest type and per age class in national forests, expressed in tonnes of CO2 equivalent per year. The Commission may grant a derogation from the base period 2000-2012 upon submission of a reasoned request by a Member State, justifying that such a derogation is absolutely necessary for reasons of data availability, such as the timing of forest inventories.
Amendment    52 Proposal for a regulation Article 8 – paragraph 3 – subparagraph 2 a (new)
Text proposed by the Commission	Amendment
	By way of derogation from subparagraph 2, the forest reference level for Croatia may be calculated to take account of the occupation of part of its territory from 1991 to 1998 and the effects of the war and its aftermath on forest management practices on its territory while excluding the impact of policies on the development of the forest sink.
Amendment     53 Proposal for a regulation Article 8 – paragraph 3 – subparagraph 3
Text proposed by the Commission	Amendment
The national forestry accounting plan shall be made public and shall be subject to public consultation.	The national forestry accounting plan shall be made public, including by way of publication via the internet, and shall be subject to public consultation.
Amendment     54 Proposal for a regulation Article 8 – paragraph 4
Text proposed by the Commission	Amendment
4.  Member States shall demonstrate consistency between the methods and data used to establish the forest reference level in the national forestry accounting plan and those used in the reporting for managed forest land. At the latest at the end of the period from 2021 to 2025 or from 2026 to 2030, a Member State shall submit to the Commission a technical correction of its reference level if necessary to ensure consistency.	4.  Member States shall demonstrate consistency between the methods and data used to establish the forest reference level in the national forestry accounting plan and those used in the reporting for managed forest land. The data used shall be the most recent verified accounts of the land use and forest conditions. At the latest at the end of the period from 2021 to 2025 or from 2026 to 2030, a Member State shall submit to the Commission a technical correction of its reference level if necessary to ensure consistency, as well as to report positive inputs as a consequence of a sustainable forest management policy in force at the time it is determined.
Amendment    55 Proposal for a regulation Article 8 – paragraph 5
Text proposed by the Commission	Amendment
5.  The Commission shall review the national forestry accounting plans and technical corrections and assess the extent to which the proposed new or corrected forest reference levels have been determined in accordance with the principles and requirements set out in paragraphs (3) and (4) as well as Article 5(1). To the extent that this is required in order to ensure compliance with the principles and requirements set out in paragraphs (3) and (4) as well as Article 5(1), the Commission may recalculate the proposed new or corrected forest reference levels.	5.  An expert review team, set up in accordance with Commission Decision (C(2016)3301, including Commission and Member States representatives, shall, in consultation with the Standing Forestry Committee and the Civil Dialogue Group on Forestry and Cork, review the national forestry accounting plans and technical corrections and assess the extent to which the new or corrected forest reference levels set by the Member States have been determined in accordance with the principles and requirements set out in paragraphs (3) and (4) of this Article as well as Article 5(1). The Commission may only recalculate the new or corrected forest reference levels in the event that the principles and requirements set out in paragraphs (3) and (4) of this Article as well as Article 5(1) have not been complied with. The Commission shall compile a synthesis report and shall make it publicly available.
Amendment    56 Proposal for a regulation Article 8 – paragraph 5 – subparagraph 1 a (new)
Text proposed by the Commission	Amendment
	Member States shall provide to the Commission all data and information requested for carrying out the review and the assessment referred to in the first subparagraph.
Amendment    57 Proposal for a regulation Article 8 – paragraph 6
Text proposed by the Commission	Amendment
6.  The Commission shall adopt delegated acts in accordance with Article 14 to amend Annex II in the light of the review carried out pursuant to paragraph (5) to update Member State forest reference levels based on the national forestry accounting plans or the technical corrections submitted, and any recalculations made in the context of the review. Until the entry into force of the delegated act, Member State forest reference levels as specified in Annex II shall continue to apply for the period 2021-2025 and/or 2026-2030.	6.  The Commission shall adopt delegated acts in accordance with Article 14 to amend Annex II in the light of the review and the assessment carried out by the expert review team pursuant to paragraph 5 of this Article to update Member State forest reference levels based on the national forestry accounting plans or the technical corrections submitted, and any recalculations made in the context of the review.
	Until the entry into force of the delegated acts, Member State forest reference levels as specified in Annex II shall continue to apply for the period 2021-2025 and/or 2026-2030.
Amendment    58 Proposal for a regulation Article 9 – paragraph 1 a (new)
Text proposed by the Commission	Amendment
	The Commission shall adopt delegated acts in accordance with Article 14 in order to amend this Regulation by updating the categories of harvested wood products with additional products that have a carbon sequestration effect, based on IPCC Guidelines and ensuring environmental integrity, and by updating the default half-life values specified in Annex V for the purpose of adapting them to technical progress.
Amendment    59 Proposal for a regulation Article 10 – paragraph 1
Text proposed by the Commission	Amendment
1.   At the end of the periods from 2021 to 2025 and from 2026 to 2030, Member States may exclude from their accounts for afforested land and managed forest land greenhouse gas emissions resulting from natural disturbances exceeding the average emissions caused by natural disturbances in the period 2001-2020, excluding statistical outliers ('background level') calculated in accordance with this Article and Annex VI.	1.   At the end of the periods from 2021 to 2025 and from 2026 to 2030, Member States may exclude from their accounts for managed forest land greenhouse gas emissions resulting from natural disturbances exceeding the average emissions caused by natural disturbances in the period 2001-2020, excluding statistical outliers ('background level') calculated in accordance with this Article and Annex VI.
Amendment     60 Proposal for a regulation Article 11 – paragraph 5 a (new)
Text proposed by the Commission	Amendment
	5a.  An assessment on the impacts of the flexibility mechanism set out in this Article shall be included in the report referred to in Article 15.
Amendment    61 Proposal for a regulation Article 12 a (new)
Text proposed by the Commission	Amendment
	Article 12a
	The Commission shall report in 2027 and 2032 on the cumulative balance of emissions and removals from managed forest land in the Union in reference to average emissions and removals in the period from 1990 to 2009. If the cumulative balance is negative, the Commission shall make a proposal to compensate and remove the corresponding amount from Member States emission allocations under Regulation .../... of the European Parliament and of the Council1a.
	__________________
	1a   Regulation .../... of the European Parliament and of the Council of ... on binding annual greenhouse gas emission reductions by Member States from 2021 to 2030 for a resilient Energy Union and to meet commitments under the Paris Agreement and amending Regulation No 525/2013 of the European Parliament and the Council on a mechanism for monitoring and reporting greenhouse gas emissions and other information relevant to climate change (OJ L ..., ..., p. ...).
Amendment    62 Proposal for a regulation Article 14 – paragraph 2
Text proposed by the Commission	Amendment
2.  The power to adopt delegated acts referred to in Article 3, 5, 8, 10 and 13 shall be conferred on the Commission for an indeterminate period of time from the [date of entry into force].	2.  The power to adopt delegated acts referred to in Article 3, 5, 8, 9, 10 and 13 shall be conferred on the Commission for an indeterminate period of time from the [date of entry into force].
Amendment    63 Proposal for a regulation Article 15 – paragraph -1 (new)
Text proposed by the Commission	Amendment
	Within six months of the 2018 Facilitative Dialogue under the UNFCCC the Commission shall publish a communication assessing the consistency of the Union’s climate and energy legislative acts with the goals of the Paris Agreement.
Amendment    64 Proposal for a regulation Article 15 – paragraph 1
Text proposed by the Commission	Amendment
The Commission shall report to the European Parliament and to the Council by 28 February 2024 and every five years thereafter on the operation of this Regulation, its contribution to the EU's overall 2030 greenhouse gas emission reduction target and its contribution to the goals of the Paris Agreement, and may make proposals if appropriate.	The Commission shall report to the European Parliament and to the Council by 28 February 2024 and every five years thereafter on the operation of this Regulation, its contribution to the EU's overall 2030 greenhouse gas emission reduction target and its contribution to the goals of the Paris Agreement. The reports shall, if appropriate, be accompanied by legislative proposals.

• [1]  OJ C 75, 10.3.2017, p. 103.
• [2]  Not yet published in the Official Journal.

EXPLANATORY STATEMENT

Context

In December 2015, a historic legally binding climate agreement was reached in Paris. This agreement applies to 195 countries globally and aims to limit global warming to well below 2 degrees Celsius, and make efforts to limit the temperature increase to 1.5 degrees above pre-industrial levels.

The importance of the fight against climate change at international level has been further exemplified by the prominence of climate change actions in the 17 Sustainable Development Goals (SDGs) of the 2030 Agenda for Sustainable Development, which officially came into force on 1 January 2016. These new Goals will apply universally to all, and aim to fight poverty, inequalities and tackle climate change, over the next fifteen years.

In view of these international commitments, in October 2014, the European Council decided the EU climate and energy targets for the period up to 2030, which included notably an at least 40% reduction in emissions of greenhouse gases (GHG), compared to 1990 levels. This target also serves as the EU's international commitment under the Paris Agreement on climate change. It is to be achieved by reducing greenhouse gases emissions in the ETS sector by 43% below 2005 levels, and emissions in the non-ETS sector by 30% below 2005 levels.

LULUCF

Land use, land-use change and forestry (LULUCF) is a category within the UNFCCC accounting framework for GHG emissions. It includes the carbon pools of living biomass (above and below ground), dead organic matter (dead wood and litter) and organic soil carbon. Emissions result from land-use change (such as the conversion of permanent pasture to arable land) and from deforestation. Removals are dominated by CO₂ absorbed by existing and new forests. In 2012, the LULUCF sector accounted for a net removal of about 303 million tonnes CO₂e in the whole EU[1] equivalent to about 9% of emissions from the other sectors.

Current situation

Emissions and removals of greenhouse gases in LULUCF are currently covered by international obligations under the Kyoto Protocol only, up to 2020.

The proposed regulation would establish a legal framework for GHG emissions and removals from the LULUCF sector from 2021 onwards, including it in the EU climate policy framework. LULUCF would be maintained as a separate pillar, but with certain links to the Effort Sharing System (the so-called flexibility clause). The actions of forest owners and farmers to secure carbon stored in forests and soils would thus contribute to achieving the EU's commitments on climate change.

The challenge for EU agriculture and forestry

For the rapporteur, the relationship of agriculture and forestry to climate change is multi-dimensional. Forests currently cover more than 42% of the EU land surface and have a huge potential for climate change mitigation through sequestration and storage of CO₂. On the other hand, the forestry sector needs to meet an increasing demand for timber, which is often used as feedstock for bioeconomy. Agriculture is confronted with a growing demand for food and feed and a limited mitigation potential. Both are highly exposed to climate change, as these activities directly depend on climatic conditions such as average temperatures, rainfall, and climate extremes, and are subject to changes in pests and diseases. The Paris Agreement in particular recognised “the fundamental priority of safeguarding food security and ending hunger, and the particular vulnerabilities of food production systems to the adverse impacts of climate change” and aims to “foster low GHG emissions development in a manner that does not threaten food production”. The need to ensure coherence between food security and climate change objectives is also enshrined in the European Council Conclusion of 23-24 October 2014.

This complex relationship raises challenges, expectations and opportunities for the LULUCF sector to play a key role in climate change. In his report, the rapporteur aims to highlight these different elements.

Removals result from the capacity of plants and soils to absorb and retain greenhouses gases from the atmosphere through the process of photosynthesis. EU forests, for example, absorb the equivalent of nearly 10% of total EU greenhouse gas emissions each year and present a significant carbon stock. Additionally, harvested wood products can have very positive substitutional effects when used as building material (replacing energy-intensive products and storing carbon) or as burned biomass for energy (replacing fossil fuels but causing GHG emissions).

The EU has many different types of forests, reflecting its geoclimatic diversity (boreal forests, alpine forests with conifers, etc.). Their distribution is mainly determined by climate, soil type, altitude and topography. Moreover, unlike in many parts of the world where deforestation is still a major problem, in the EU the area of land covered by forests is growing; by 2010 forest coverage had increased by approximately 11 million hectares since 1990, as a result of both afforestation work and natural growth, impacted positively by sustainable forest management. From a socioeconomic point of view, working forests generate resources, in particular timber. The primary use is for energy generation (42% of volume), as against 24% for sawmills, 17% for the paper industry and 12% for the panel industry. Approximately half of the renewable energy consumed in the EU comes from wood.

Position of the rapporteur

The rapporteur recognises the huge potential of the sector in terms of climate change mitigation. However, this can only be achieved with robust and credible accounting at EU level for the period 2021-2030 and if the no-debit target and possible credits are reached in a comparable and rigorous manner. Our long-term climate objectives also rely on net removals from the LULUCF sector, but this should not lead to a reduction in the ambition level of other sectors. The distinction between “green” CO₂ emissions from the LULUCF sector and CO₂ emissions from the burning of fossil fuels should also be made and strong coherence between the various EU policies is essential is this respect. In addition, the principle of subsidiarity should under no circumstances be called into question.

Flexibility

The proposed flexibility between the LULUCF Regulation and the Effort Sharing Regulation is a beneficial instrument to value, reward and incentivise forestry and agriculture for their climate-smart actions. Therefore the rapporteur considers that the 280 million tonnes of net removals proposed by the Commission should not be reduced.

Afforestation

Bearing in mind the great variety of forests across the EU in terms of growth and coverage, the approaches to afforestation and forest management are extremely diverse. Sustainable afforestation should be incentivised but its contribution potential should not be overestimated in light of the significant contributions of the other land use categories. Hence the rapporteur supports the default value of 20 years for the afforestation period, with the possible derogation of up to 30 years. However, countries wishing to use this derogation should have to justify their request by following, as a minimum, international procedures and guidelines. A further extension of this period should not be possible as it would lead to a lowering of the EU’s ambition level.

Forest reference level

In order for the principle of subsidiarity to be fully respected, it should not be possible for the Commission to decide alone on the establishment of the forest reference levels. The rapporteur supports the improvement of the Kyoto rules and proposes a three-step process:

1.  The Member States calculate a new forest reference level updating the current values under the second commitment period of the Kyoto Protocol (Annex II). The criteria to be respected are set in Annex IV.

2.  An expert review team is to be set up in accordance with the provisions of COM Decision (C(2016)3301) comprising Commission representatives and an important number of national experts. This expert review should be modelled following current Kyoto rules and enable a “peer review” like process amongst the Member States.

3.  The Commission may only recalculate the new forest reference levels if the criteria of Annex IV are not respected.

This process should be finalised, including the adoption of the delegated acts updating the current Kyoto reference levels, by the end of 2020, hence before the start of the first accounting period under this regulation. Following the adoption of these acts, a Member State would have the possibility to integrate its credits generated from managed forest land into the flexibility of 280 million tonnes CO₂e granted under the Effort Sharing Regulation.

Furthermore, the rapporteur proposes adjusting the reference period and change it from 1990-2009 to 2000-2012. This would take better account of the fact that not all Member States are able to provide reliable data for their forest (inventories) for the 1990s. In addition, by extending the period to 2012, the most recently finished commitment period of the Kyoto Protocol could also be completely integrated.

Cap on forest management credits

The rapporteur proposes changing the cap for forest management credits from 3.5 % of Member States emissions to 7 %. Since the LULUCF-proposal by the Commission as modified by the rapporteur will provide for robust and credible accounting in the category of managed forest land, even an increased ceiling will still ensure environmental integrity while giving more flexibility to Member States.

• [1]  CO₂-equivalent (CO₂e) – the amount of greenhouse gas emissions that makes the same contribution to global warming over a 100-year timescale as the emission of a tonne of carbon dioxide (CO₂).

OPINION of the Committee on Development (3.5.2017)

for the Committee on the Environment, Public Health and Food Safety

on the proposal for a regulation of the European Parliament and of the Council on the inclusion of greenhouse gas emissions and removals from land use, land use change and forestry into the 2030 climate and energy framework and amending Regulation No 525/2013 of the European Parliament and the Council on a mechanism for monitoring and reporting greenhouse gas emissions and other information relevant to climate change
(COM(2016)0479 – C8‑0330/2016 – 2016/0230(COD))

Rapporteur: Florent Marcellesi

SHORT JUSTIFICATION

From a development perspective, it is crucial that this Regulation be as ambitious as possible. The 1.5 degree target referred to in the Commission’s proposal is based on findings by the Intergovernmental Panel on Climate Change (IPCC), which show that climate-vulnerable regions like small-island developing states, coastal South Asia, and drought-prone areas of Africa face dangerous impacts if global temperature rise goes beyond this level. According to IPCC findings, achieving 1.5 degrees and protecting the world’s poorest requires generating “negative emissions” from land use, not simply using them as offsets.

If the world needs to generate negative emissions from forests, global equity considerations require the EU to take a leading role in this. To respect the “right to develop” of poorer countries, the EU should assume as much responsibility as possible for the forest protection that needs to happen globally, especially in a context where this Regulation will be the world’s first attempt to define how emissions and removals from land use are integrated into global carbon accounting. As such, it will set an important precedent for the rest of the world, and will almost certainly be used as a template in international negotiations. As noted in the Commission proposal, land has “multiple objectives” – such as food production – that must be weighed against their potential as carbon sinks. This is even more vital in developing countries with large rural populations, who depend on the land for their survival. By the same token, the Regulation should also integrate international tenure rights standards, to ensure these protections are enshrined in international land use accounting rules. These standards will be even more important in countries where customary rights are not clearly recognised in statutory law, and where rural indigenous populations have a history of being displaced by conservation projects. The Regulation should finally promote restoration of existing landscapes rather than afforesting new areas of land. This minimises the risk that climate activities in the LULUCF sector will take land away from important uses like food production, which again is even more important in developing countries.

For these reasons, the Rapporteur proposes the following amendments to the Commission’s proposal:

•  Increasing the climate ambition of the proposal by the following measures:

-  Increase the internal target of the LULUCF sector;

-  Tightening accounting rules;

-  Incentivising restoration of wetlands;

-  Providing for a review of the ambition of the Regulation.

•  Wherever possible, the Regulation should incentivise activities that increase the carbon sink function of existing land uses (via agroecology or restoration of managed croplands and grazing lands), rather than afforestation of new areas of land.

•  Activities carried out to implement this Regulation should comply with international standards on land rights protection.

•  Activities carried out to implement this Regulation should also comply with the EU’s own biodiversity standards, which has important development implications since billions of people on the planet rely on the biodiversity of ecosystems for survival.

AMENDMENTS

The Committee on Development calls on the Committee on the Environment, Public Health and Food Safety, as the committee responsible, to take into account the following amendments:

Amendment     1 Proposal for a regulation Recital 3
Text proposed by the Commission	Amendment
(3)  On 10 June 2016 the Commission presented the proposal for the EU to ratify the Paris agreement. This legislative proposal forms part of the implementation of the Union's commitment to economy-wide emission reductions as confirmed in the intended nationally determined reduction commitment of the Union and its Member States submitted to the Secretariat of the United Nations Framework Convention on Climate Change ('UNFCCC') on 6 March 2015.10	(3)  On 5 October 2016, the Union formally ratified the Paris Agreement, thus allowing it to enter into force on 4 November 2016. This legislative proposal forms part of the implementation of the Union's commitment to economy-wide emission reductions as confirmed in the intended nationally determined reduction commitment of the Union and its Member States submitted to the Secretariat of the United Nations Framework Convention on Climate Change ('UNFCCC') on 6 March 2015.10 The Union's targets to reduce greenhouse gas emissions are also in line with the commitment made by the Union and its Member States to achieve the internationally agreed Sustainable Development Goals by 2030, in particular goal No 13 on urgently addressing climate change as a global challenge, including reducing emissions and building climate resilience.
_________________	_________________
10 http://www4.unfccc.int/submissions/indc/Submission%20Pages/submissions.aspx	10 http://www4.unfccc.int/submissions/indc/Submission%20Pages/submissions.aspx
Amendment     2 Proposal for a regulation Recital 3 a (new)
Text proposed by the Commission	Amendment
	(3a)  The land use, land-use change and forestry (LULUCF) sector has huge potential to contribute to the Union's international climate commitments. Management of land should meet the need for policy coherence and for sustainable development, in particular as regards its impact on local communities and food security. Against this background, the Union's policy in the LULUCF sector should go hand in hand with Policy Coherence for Development (PCD), in particular with regard to its environmental and economic dimensions, so as to enhance synergies and ensure that internal climate policies have a positive impact on third countries.
Amendment    3 Proposal for a regulation Recital 4
Text proposed by the Commission Amendment (4)  The Paris Agreement, inter alia, sets out a long-term goal in line with the objective to keep the global temperature increase well below 2°C above pre-industrial levels and to pursue efforts to keep it to 1.5°C above pre-industrial levels. In order to achieve this goal, the Parties should prepare, communicate and maintain successive nationally determined contributions. The Paris Agreement replaces the approach taken under the 1997 Kyoto Protocol which will not be continued beyond 2020. The Paris Agreement also calls for a balance between anthropogenic emissions by sources and removals by sinks of greenhouse gases in the second half of this century, and invites Parties to take action to conserve and enhance, as appropriate, sinks and reservoirs of greenhouse gases, including forests. (4)  The Paris Agreement, inter alia, sets out a long-term goal in line with the objective to keep the global temperature increase well below 2°C above pre-industrial levels and to pursue efforts to keep it to 1.5°C above pre-industrial levels which requires the world to enter into a period of negative emissions levels, during which forests will play a central role. In order to achieve this goal, the Parties should prepare, communicate and maintain successive nationally determined contributions. The Paris Agreement replaces the approach taken under the 1997 Kyoto Protocol which will not be continued beyond 2020. The Paris Agreement also calls for a balance between anthropogenic emissions by sources and removals by sinks of greenhouse gases in the second half of this century, and invites Parties to take action to conserve and enhance, as appropriate, sinks and reservoirs of greenhouse gases, including forests.
Justification
To keep warming below 1.5 degrees and, unless radical changes are achieved in emission pathways beyond the announced nationally determined contributions, also to stay below 2 degrees, it will be necessary to find ways of removing carbon dioxide from the atmosphere, referred to as “negative emissions”. The most straightforward way of doing this in the EU is to increase removals from LULUCF. This Regulation is therefore a crucial pillar for the EU to implement its commitment under the Paris Agreement.
Amendment     4 Proposal for a regulation Recital 4 a (new)
Text proposed by the Commission	Amendment
	(4a)  To achieve negative emissions as required to meet the Paris Agreement goals, removals of CO2 from the atmosphere through LULUCF should be dealt with as a separate pillar under the Union's climate policy.
Amendment    5 Proposal for a regulation Recital 4 b (new)
Text proposed by the Commission Amendment   (4b)  This Regulation sets an important global precedent for integration of land-related emissions and removals into nationally determined contributions under the Paris Agreement. It is therefore important that the principles of equity, sustainable development and efforts to eradicate poverty are adhered to, and that international human rights commitments and indigenous rights are respected and promoted, as required by the Paris Agreement.
Justification
This Regulation is the first attempt in the world to set accounting rules for the land use sector, and integrate them into nationally determined contributions. It is likely to be used as a departure point for land use accounting rules outside the EU as well. Consequently, it is important that it include principles such as respect for land rights, and treating land use emissions as a separate pillar, as these are likely to be even more important in countries of the Global South where poverty-affected communities are even more vulnerable to being displaced by carbon sink projects.
Amendment     6 Proposal for a regulation Recital 6 a (new)
Text proposed by the Commission	Amendment
	(6a)  The Union should become a global leader in promoting and exporting research and investment in sustainable, advanced and innovative practices, techniques and ideas in the LULUCF sector, as well as in the dissemination of green technologies, in order to lower greenhouse gas emissions while preserving food production, thereby setting an example for its international partners, including developing countries. In this context, effective cooperation and partnership with private sector actors, especially with small and medium-sized enterprises, should be enhanced.
Amendment     7 Proposal for a regulation Recital 20 a (new)
Text proposed by the Commission	Amendment
	(20a)  This Regulation should be implemented within the scope of the Paris Agreement, in particular by observing the importance of ensuring that the integrity of all ecosystems is preserved and that the livelihoods and resilience of communities living in forested areas are protected.
Amendment     8 Proposal for a regulation Recital 20 b (new)
Text proposed by the Commission	Amendment
	(20b)  Climate change has a profound effect on the development of communities around the world. By virtue of the Paris Agreement the Union has made commitments, when taking action to address climate change, to respect, promote and consider its obligations with regard to human rights, the right to health, the rights of indigenous peoples, local communities, migrants, children, persons with disabilities and people in vulnerable situations. In addition, it will respect, promote and consider its obligations with regard to the right to development, as well as gender equality, empowerment of women and intergenerational equity.
Amendment     9 Proposal for a regulation Recital 20 c (new)
Text proposed by the Commission	Amendment
	(20c)  A holistic approach to tropical deforestation should be ensured, taking into account all deforestation drivers, as well as the objective included in a declaration by the Commission in the UNFCCC negotiations to halt global forest cover loss by 2030 at the latest and to reduce gross tropical deforestation by at least 50 percent by 2020 compared to current levels.
Amendment     10 Proposal for a regulation Recital 20 d (new)
Text proposed by the Commission	Amendment
	(20d)  The Union has made commitments to the United Nations' Sustainable Development Goals, which can only be met with proper forest management and a commitment to stall and reverse deforestation and drive forward reforestation.
Amendment     11 Proposal for a regulation Recital 20 e (new)
Text proposed by the Commission	Amendment
	(20e)  This Regulation, in accordance with the UNFCCC, should follow a country-driven, gender-responsive, participatory and fully transparent approach, taking into consideration vulnerable groups, communities and ecosystems. Furthermore, it should be based on and guided by the best available science and, as appropriate, traditional knowledge, knowledge of indigenous peoples and local knowledge systems, with a view to integrating adaptation into relevant socio-economic and environmental policies and actions.
Amendment     12 Proposal for a regulation Recital 20 f (new)
Text proposed by the Commission	Amendment
	(20f)  Forestry and forests should be managed responsibly and should make a real contribution to the economic development of a country, offering viable economic opportunities to farmers, provided that no deforestation of sensitive ecosystems occurs, that no plantations are established on peat lands, that plantations are managed using modern agro-ecological techniques to minimise adverse environmental and social outcomes, and that land rights, the rights of indigenous communities as well as human rights and workers' rights are respected,
Amendment    13 Proposal for a regulation Article 1 – subparagraph 1 a (new)
Text proposed by the Commission Amendment   This Regulation contributes to the Union’s compliance with the Paris Agreement commitments and objectives.
Justification
The LULUCF Regulation is one of the pillars implementing Union commitments under the Paris Agreement. The Union has committed to limiting global temperature rise to well below 2 degrees, and pursuing efforts to stay below 1.5 degrees. Fulfilling the Paris Agreement commitments is vital to avoiding dangerous impacts in regions most vulnerable to climate change, including small-island developing states, coastal regions of South Asia, and drought-prone regions of Africa.
Amendment    14 Proposal for a regulation Article 2 – paragraph 1 – point e a (new)
Text proposed by the Commission Amendment   (ea)  managed wetlands: land use reported as wetland remaining wetland, and settlement, other land converted to wetland and wetland converted to settlement and other land.
Justification
Peatlands and wetlands represent habitats of high conservation value hosting some of the most important carbon stores in the EU and on earth. However, when degraded, they emit vast amounts of greenhouse gases. In order to ensure that the Regulation provides the right incentives to maintain and restore such carbon stores, the accounting for wetlands and peatlands should be made mandatory.
Amendment    15 Proposal for a regulation Article 3 – paragraph 2
Text proposed by the Commission Amendment 2.  The Commission shall be empowered to adopt delegated acts in accordance with Article 14 to adapt the definitions in paragraph 1 to scientific developments or technical progress and to ensure consistency between those definitions and any changes to relevant definitions in the 2006 IPCC Guidelines for National Greenhouse Gas Inventories ('IPCC Guidelines'). 2.  The Commission shall be empowered to adopt delegated acts in accordance with Article 14 to adapt the definitions in paragraph 1 to scientific developments or technical progress and to ensure consistency between those definitions and any changes to relevant definitions in the 2006 IPCC Guidelines for National Greenhouse Gas Inventories ('IPCC Guidelines') and the 2013 Supplement to the 2006 IPCC Guidelines for National Greenhouse Gas Inventories: Wetlands.
Justification
All of the latest IPCC land use accounting methodologies should be taken into consideration.
Amendment    16 Proposal for a regulation Article 4 – paragraph 1 a (new)
Text proposed by the Commission Amendment   Member States shall endeavour to increase their removals for the periods from 2021 to 2025 and from 2026 to 2030. For subsequent periods the total removals from each Member State as accounted in accordance with this Regulation shall increase, in line with Union long term climate objectives and the commitments under Paris Agreement.
Justification
To keep warming below 1.5 degrees, and also to well below 2 degrees, according to science we will have to implement means for removing carbon dioxide from the atmosphere, “negative emissions”. To achieve negative emissions, it is not sufficient for LULUCF removals simply to equal emissions they must exceed them.
Amendment     17 Proposal for a regulation Article 6 – paragraph 1
Text proposed by the Commission	Amendment
1.  Member States shall account for emissions and removals resulting from afforested land and deforested land, as the total emissions and removals for each of the years in the periods from 2021 to 2025 and from 2026 to 2030.	1.  Member States shall account for emissions from deforestation and removals from afforestation of the land, as the total emissions and removals for each of the years in the periods from 2021 to 2025 and from 2026 to 2030.
Amendment    18 Proposal for a regulation Article 8 – paragraph 3 – subparagraph 2
Text proposed by the Commission Amendment The national forestry accounting plan shall contain all the elements listed in Annex IV, section B and include a proposed new forest reference level based on the continuation of current forest management practice and intensity, as documented between 1990-2009 per forest type and per age class in national forests, expressed in tonnes of CO2 equivalent per year. The national forestry accounting plan shall contain all the elements listed in Annex IV, section B and include a proposed new forest reference period based on the continuation of current forest management practice and intensity, as documented between 1990-2009 per forest type and per age class in national forests, expressed in tonnes of CO2 equivalent per year, as well as ensure that the same ratio of biomass used for energetic purposes and solid biomass purposes is maintained.
Justification
Using biomass for solid purposes (long-lived products) is a better use of the resource from a climate perspective than using biomass directly from the forest for energetic purposes (instantaneous oxidation). If harvesting intensity is maintained, but the ratio of wood used for energy increases, this will mean that more co2 is released, and should be counted against the reference level.

PROCEDURE – COMMITTEE ASKED FOR OPINION

Title	Inclusion of greenhouse gas emissions and removals from land use, land use change and forestry into the 2030 climate and energy framework and amending Regulation No 525/2013 of the European Parliament and the Council on a mechanism for monitoring and reporting greenhouse gas emissions and other information relevant to climate change
References	COM(2016)0479 – C8-0330/2016 – 2016/0230(COD)
Committee responsible        Date announced in plenary	ENVI 12.9.2016
Opinion by        Date announced in plenary	DEVE 12.9.2016
Rapporteur        Date appointed	Florent Marcellesi 30.11.2016
Discussed in committee	28.2.2017
Date adopted	25.4.2017
Result of final vote	+: –: 0:	20 0 2
Members present for the final vote	Nirj Deva, Doru-Claudian Frunzulică, Enrique Guerrero Salom, Heidi Hautala, György Hölvényi, Teresa Jiménez-Becerril Barrio, Arne Lietz, Linda McAvan, Norbert Neuser, Vincent Peillon, Cristian Dan Preda, Elly Schlein, Eleftherios Synadinos, Eleni Theocharous, Paavo Väyrynen, Bogdan Brunon Wenta, Anna Záborská, Željana Zovko
Substitutes present for the final vote	Paul Rübig, Judith Sargentini
Substitutes under Rule 200(2) present for the final vote	Xabier Benito Ziluaga, Dariusz Rosati

FINAL VOTE BY ROLL CALL IN COMMITTEE ASKED FOR OPINION

20	+
ALDE	Paavo Väyrynen
GUE/NGL	Xabier Benito Ziluaga
NI	Eleftherios Synadinos
PPE	György Hölvényi, Teresa Jiménez-Becerril Barrio, Cristian Dan Preda, Dariusz Rosati, Paul Rübig, Bogdan Brunon Wenta, Željana Zovko, Anna Záborská
S&D	Doru-Claudian Frunzulică, Enrique Guerrero Salom, Arne Lietz, Linda McAvan, Norbert Neuser, Vincent Peillon, Elly Schlein
VERTS/ALE	Heidi Hautala, Judith Sargentini

0	-

2	0
ECR	Nirj Deva, Eleni Theocharous

Key to symbols:

+  :  in favour

-  :  against

0  :  abstention

OPINION of the Committee on Industry, Research and Energy (1.6.2017)

for the Committee on the Environment, Public Health and Food Safety

on the proposal for a regulation of the European Parliament and of the Council on the inclusion of greenhouse gas emissions and removals from land use, land use change and forestry into the 2030 climate and energy framework and amending Regulation No 525/2013 of the European Parliament and the Council on a mechanism for monitoring and reporting greenhouse gas emissions and other information relevant to climate change
(COM(2016)0479 – C8‑0330/2016 – 2016/0230(COD))

Rapporteur: Marisa Matias

SHORT JUSTIFICATION

The Paris Agreement was adopted in December 2015 at the 21st Conference of the Parties of the United Nations Framework Convention on Climate Change (UNFCCC). This agreement is a global milestone for enhancing collective action and accelerating the global transformation to a low-carbon and climate resilient society and it will replace the approach taken under the 1997 Kyoto Protocol. Policies are put in place so that the EU binding target at least a 40 % domestic reduction in greenhouse gas emissions by 2030 compared to 1990. The Agreement includes a long-term goal and spells out that the contribution from land use and forests in reaching the long term climate mitigation objectives will be critical.

The objective of this proposal is to determine how the land use, land use change and forestry (LULUCF) sector will be included into the EU climate policy framework, as of 2021. Up to this date, the Kyoto Protocol (to expire at the end of 2020) places constraints on the EU and each of its Member States, as they need to ensure that the LULUCF sector does not yield extra emissions. Consequently, governance for the LULUCF sector needs to be further developed within the EU.

The Rapporteur welcomes the Commission's proposal. She believes that it is an ambitious proposal which supports the need for a more robust accounting regime which aiming to contribute to the 2030 GHG 40% reduction target.

The Rapporteur is concerned by the power conferred to the Commission to adopt delegated acts referred to in Article 3, 5, 8, 10 and 13 for an indeterminate period of time. The Rapporteur would like to recommend to shorten to 5 years in line with the reporting period 2021-2025 and 2026-2030.

Land use and forestry are in a unique position to contribute to an effective climate policy. This is because the sector not only emits greenhouse gases but can also remove CO₂ from the atmosphere. The contribution and the opportunities offered by the forest sector is essential for the implementation of a circular economy.

In this proposal the Rapporteur deals with key domains in this field according to ITRE Committee competences, including:

a)  increase of funding for research and development in forestry management taking into account geographic diversity;

b)  use of EU space programmes such as Copernicus earth observation satellite system, which provide valuable support for the monitoring of LULUCF activities.

c)  food security and biodiversity;

d)  international agreements and EU law compliance;

e)  impact on Member States and EU accounting systems;

f)  flexibilities;

g)  wood and non-wood forest long life products;

h)  forest reference levels.

AMENDMENTS

The Committee on Industry, Research and Energy calls on the Committee on the Environment, Public Health and Food Safety, as the committee responsible, to take into account the following amendments:

Amendment     1 Proposal for a regulation Citation 1 a (new)
Text proposed by the Commission	Amendment
	Having regard to the Protocol (No 1) of the Treaty on the Functioning of the European Union on the role of national parliaments in the European Union,
Amendment     2 Proposal for a regulation Citation 1 b (new)
Text proposed by the Commission	Amendment
	Having regard to the Protocol (No 2) of the Treaty on the Functioning of the European Union on the application of the principles of subsidiarity and proportionality,
Amendment     3 Proposal for a regulation Recitals 3
Text proposed by the Commission	Amendment
(3)  On 10 June 2016 the Commission presented the proposal for the EU to ratify the Paris agreement. This legislative proposal forms part of the implementation of the Union's commitment to economy-wide emission reductions as confirmed in the intended nationally determined reduction commitment of the Union and its Member States submitted to the Secretariat of the United Nations Framework Convention on Climate Change ('UNFCCC') on 6 March 2015.10	(3)  The Paris Agreement was ratified by the Council on 5 October 2016 after the consent of the European Parliament on 4 October 2016 and entered in to force on 4 November 2016. This legislative proposal forms part of the implementation of the Union's commitment to economy-wide emission reductions as confirmed in the intended nationally determined reduction commitment of the Union and its Member States submitted to the Secretariat of the United Nations Framework Convention on Climate Change ('UNFCCC') on 6 March 2015.10
__________________	__________________
10 http://www4.unfccc.int/submissions/indc/Submission%20Pages/submissions.aspx	10 http://www4.unfccc.int/submissions/indc/Submission%20Pages/submissions.aspx
Amendment     4 Proposal for a regulation Recitals 4
Text proposed by the Commission	Amendment
(4)  The Paris Agreement, inter alia, sets out a long-term goal in line with the objective to keep the global temperature increase well below 2°C above pre-industrial levels and to pursue efforts to keep it to 1.5°C above pre-industrial levels. In order to achieve this goal, the Parties should prepare, communicate and maintain successive nationally determined contributions. The Paris Agreement replaces the approach taken under the 1997 Kyoto Protocol which will not be continued beyond 2020. The Paris Agreement also calls for a balance between anthropogenic emissions by sources and removals by sinks of greenhouse gases in the second half of this century, and invites Parties to take action to conserve and enhance, as appropriate, sinks and reservoirs of greenhouse gases, including forests.	(4)  The Paris Agreement, inter alia, sets out a long-term goal in line with the objective to keep the global temperature increase well below 2°C above pre-industrial levels and to pursue efforts to keep it to 1.5°C above pre-industrial levels which scientists agree requires the world to enter into a period of emissions reduction and negative emissions. In order to achieve this goal, it is necessary that the Parties increase their collective efforts to mitigate climate change and limit global warming. The Union needs to continue to lead by example and increase its climate efforts to levels that are in line with the Paris Agreement's objective. The Parties should prepare, communicate and maintain successive nationally determined contributions. The Paris Agreement replaces the approach taken under the 1997 Kyoto Protocol which will not be continued beyond 2020. The Paris Agreement also calls for a balance between anthropogenic emissions by sources and removals by sinks of greenhouse gases in the second half of this century, and invites Parties to take action to conserve and enhance, as appropriate, sinks and reservoirs of greenhouse gases, including forests. The Paris Agreement emphasises the role of sustainable forest management in reaching the target of balancing emissions and removals and enhancing climate change adaptation.
Amendment     5 Proposal for a regulation Recital 4 a (new)
Text proposed by the Commission	Amendment
	(4 a)  This Regulation should contribute to the transformation towards a low-carbon economy and to achieving the goals set in the Paris Agreement while ensuring an adequate protection of Union biodiversity and ecosystems, also through adaptation measures. In that sense, coherence with the EU Emissions Trading System, the Effort Sharing Decision, Union biodiversity and forest strategies, the Birds Directive and the Habitats Directive should be respected.
Amendment     6 Proposal for a regulation Recital 6
Text proposed by the Commission	Amendment
(6)  The LULUCF sector can contribute to climate change mitigation in several ways, in particular by reducing emissions, and maintaining and enhancing sinks and carbon stocks. In order for measures aiming in particular at increasing carbon sequestration to be effective, the long-term stability and adaptability of carbon pools is essential.	(6)  The LULUCF sector can contribute to climate change mitigation in several ways, in particular by reducing emissions, maintaining and enhancing sinks and carbon stocks and providing long-lasting bio-materials that can act as temporary carbon stores and carbon substitutes. In order for measures aiming in particular at increasing carbon sequestration to be effective, the long-term stability and adaptability of carbon pools is essential. In the long run, a sustainable forest management strategy aimed at maintaining or increasing forest carbon stocks, while producing an annual sustained yield of materials from the forest, will generate the largest sustained mitigation benefit.
Amendment     7 Proposal for a regulation Recital 6 a (new)
Text proposed by the Commission	Amendment
	(6 a)  Prioritising funding for climate change research would enhance the role of the LULUF sector in relation to climate change mitigation and adaptation. Particularly, boosting the Unions's research and innovation programme anticipated for 2021 to 2028 in the LULUCF sector would, inter alia, contribute to deepening and spreading the scientific and local communities’ knowledge on the performance of the sector, accelerating sustainable innovations, fostering transition to the digital era, modernising training and education, strengthening the resilience of the LULUCF sector and monitoring biodiversity and human action.
Amendment     8 Proposal for a regulation Recital 7
Text proposed by the Commission	Amendment
(7)  Decision No 529/2013/EC of the European Parliament and of the Council,11 as a first step, set out accounting rules applicable to greenhouse gas emissions and removals from the LULUCF sector and thereby contributed to policy development towards the inclusion of the LULUCF sector in the Union’s emission reduction commitment. This Regulation should build on the existing accounting rules, updating and improving them for the period 2021-2030. It should lay down the obligations of Member States in implementing those accounting rules and the obligation to ensure that the overall LULUCF sector would not generate net emissions. It should not lay down any accounting or reporting obligations for private parties.	(7)  Decision No 529/2013/EC of the European Parliament and of the Council,11 as a first step, set out accounting rules applicable to greenhouse gas emissions and removals from the LULUCF sector and thereby contributed to policy development towards the inclusion of the LULUCF sector in the Union’s emission reduction commitment. This Regulation should build on the existing accounting rules, updating and improving them for the period 2021-2030. It should under any circumstances lay down the obligations of Member States in implementing those accounting rules and the obligation to ensure that the overall LULUCF sector would not generate net emissions. It should not lay down any accounting or reporting obligations for private parties and it is necessary that such obligations are avoided by Member States during implementation of this Regulation.
_________________	_________________
11 Decision No 529/2013/EU of the European Parliament and of the Council of 21 May 2013 on accounting rules on greenhouse gas emissions and removals resulting from activities relating to land use, land-use change and forestry and on information concerning actions relating to those activities (OJ L 165, 18.6.2013, p. 80)	11 Decision No 529/2013/EU of the European Parliament and of the Council of 21 May 2013 on accounting rules on greenhouse gas emissions and removals resulting from activities relating to land use, land-use change and forestry and on information concerning actions relating to those activities (OJ L 165, 18.6.2013, p. 80)
Justification
This is the first time that the LULUCF rules are incorporated with legal obligations in the EU climate framework. It is important to provide reassurance to private parties that they will not be administratively affected by the proposal. Therefore, it is also important that Member States do what they can to avoid putting extra burden on private parties.
Amendment     9 Proposal for a regulation Recital 8
Text proposed by the Commission	Amendment
(8)  In order to determine accurate accounts of emissions and removals in accordance with the 2006 Intergovernmental Panel on Climate Change ('IPCC') Guidelines for National Greenhouse Gas Inventories ('IPCC Guidelines'), the annually reported values under Regulation (EU) No. 525/2013 for land use categories and the conversion between land use categories should be utilised, thereby streamlining the approaches used under the UNFCCC and the Kyoto Protocol. Land that is converted to another land use category should be considered in transition to that category for the default value of 20 years in the IPCC Guidelines.	(8)  In order to determine accurate accounts of emissions and removals in accordance with the 2006 Intergovernmental Panel on Climate Change ('IPCC') Guidelines for National Greenhouse Gas Inventories ('IPCC Guidelines'), the annually reported values under Regulation (EU) No. 525/2013 for land use categories and the conversion between land use categories should be utilised, thereby streamlining the approaches used under the UNFCCC and the Kyoto Protocol. Land that is converted to another land use category should be considered in transition to that category for the default value of 20 years in the IPCC Guidelines. However, considering the diverging natural and ecological circumstances among Member States, not least due to varying geographical and climate conditions which have an impact on the actual lengths of the transition periods for carbon stock changes, derogations from that default value should be granted as being justified under the IPCC Guidelines.
Amendment     10 Proposal for a regulation Recital 9
Text proposed by the Commission	Amendment
(9)  Emissions and removals from forest land depend on a number of natural circumstances, age-class structure, as well as past and present management practices. The use of a base year would not make it possible to reflect those factors and resulting cyclical impacts on emissions and removals or their interannual variation. The relevant accounting rules should instead provide for the use of reference levels to exclude the effects of natural and country-specific characteristics. In the absence of the international review under the UNFCCC and the Kyoto Protocol, a review procedure should be established to ensure transparency and improve the quality of accounting in this category.	(9)  Emissions and removals from forest land depend on a number of natural circumstances, age-class structure, as well as past and present management practices and thoese differences between Member States should be respected. The use of a base year would not make it possible to reflect those factors and resulting cyclical impacts on emissions and removals or their interannual variation. The relevant accounting rules should instead provide for the use of reference levels to exclude the effects of natural and country-specific characteristics. In the absence of the international review under the UNFCCC and the Kyoto Protocol, a review procedure should be established to ensure transparency and improve the quality of accounting in this category.
Amendment     11 Proposal for a regulation Recital 10
Text proposed by the Commission	Amendment
(10)  When the Commission chooses to be assisted by an expert review team in accordance with Commission Decision (C(2016)3301) in the review of national forestry accounting plans, it should build on the good practice and experience of the expert reviews under the UNFCCC, including as regards participation of national experts and recommendations, and select a sufficient number of experts from the Member States.	(10)  If and as long as the Commission chooses to be assisted by an expert review team in accordance with Commission Decision (C(2016)3301) in the review of national forestry accounting plans, it should build on the good practice and experience of the expert reviews under the UNFCCC, including as regards participation of national experts and recommendations, and select a sufficient number of experts from the Member States.
Amendment     12 Proposal for a regulation Recital 11
Text proposed by the Commission	Amendment
(11)  The internationally agreed IPCC Guidelines state that emissions from the combustion of biomass can be accounted as zero in the energy sector with the condition that these emissions are accounted for in the LULUCF sector. In the EU, emissions from biomass combustion are accounted as zero pursuant to Article 38 of Regulation (EU) No. 601/2012 and the provisions set out in Regulation (EU) No. 525/2013, hence consistency with the IPCC Guidelines would only be ensured if these emissions should be covered accurately under this Regulation.	(11)  The internationally agreed IPCC Guidelines state that emissions from the combustion of biomass can be accounted as zero in the energy sector with the condition that these emissions are accounted for in the LULUCF sector. Within the framework of the EU, emissions from biomass combustion are accounted as zero pursuant to Article 38 of Regulation (EU) No. 601/2012 and the provisions set out in Regulation (EU) No. 525/2013, hence consistency with the IPCC Guidelines would only be ensured if these emissions should be covered accurately under this Regulation. Accounting rules laid down in this Regulation should not impede the use of sustainable biomass in the energy sector through generation of emissions in the LULUCF sector.
Amendment     13 Proposal for a regulation Recital 12
Text proposed by the Commission	Amendment
(12)  The increased sustainable use of harvested wood products can substantially limit emissions into and enhance removals of greenhouse gases from the atmosphere. The accounting rules should ensure that Member States accurately reflect in accounts the changes in the harvested wood products pool when they take place, to provide incentives for enhanced use of harvested wood products with long life cycles. The Commission should provide guidance on methodological issues related to the accounting for harvested wood products.	(12)  The increased sustainable use of harvested wood products can substantially limit emissions into and enhance removals of greenhouse gases from the atmosphere. The accounting rules should ensure that Member States accurately reflect in accounts the changes in the harvested wood products pool when they take place, to provide incentives for enhanced use of harvested wood products with long life cycles. In order to further promote and include the positive substitution effect the Commission should by means of a delegated act include more products under the harvested wood product calculations. The Commission should provide guidance on methodological issues related to the accounting for harvested wood products.
Amendment     14 Proposal for a regulation Recital 13
Text proposed by the Commission	Amendment
(13)  Natural disturbances, such as wildfires, insect and disease infestations, extreme weather events and geological disturbances that are beyond the control of, and not materially influenced by, a Member State, may result in greenhouse gas emissions of a temporary nature in the LULUCF sector, or may cause the reversal of previous removals. As reversal can also be the result of management decisions, such as decisions to harvest or plant trees, this Regulation should ensure that human-induced reversals of removals are always accurately reflected in LULUCF accounts. Moreover, this Regulation should provide Member States with a limited possibility to exclude emissions resulting from disturbances that are beyond their control from their LULUCF accounts. However, the manner in which Member States apply those provisions should not lead to undue under-accounting.	(13)  Natural disturbances, such as wildfires, insect and disease infestations, extreme weather events and geological disturbances that are beyond the control of, and not materially influenced by, a Member State, may result in greenhouse gas emissions of a temporary nature in the LULUCF sector, or may cause the reversal of previous removals. Given that reversal can also be the result of management decisions, such as decisions to harvest or plant trees, this Regulation should ensure that human-induced reversals of removals are always accurately reflected in LULUCF accounts. Moreover, this Regulation should provide Member States with a limited possibility to exclude emissions resulting from disturbances that are beyond their control from their LULUCF accounts. However, the manner in which Member States apply those provisions should not lead to undue under-accounting or discourage Member States from taking preventive actions such as investments made in order to reduce the risk of the occurrence of natural disturbances.
Amendment     15 Proposal for a regulation Recital 15
Text proposed by the Commission	Amendment
(15)  In order to ensure efficient, transparent and cost-effective reporting and verification of greenhouse gas emissions and removals and of other information necessary to assess compliance with Member States' commitments, reporting requirements should be included in Regulation (EU) No. 525/2013 by this Regulation, and compliance checks under this Regulation should take these reports into account. Regulation (EU) No. 525/2013 should therefore be amended accordingly. These provisions may further be streamlined to take into consideration any relevant changes in respect of the integrated governance of the Energy Union for which a proposal is foreseen by the end of 2016 in the Commission’s work programme.	(15)  In order to ensure and secure efficient, transparent and cost-effective reporting and verification of greenhouse gas emissions and removals and of other information necessary to assess compliance with Member States' commitments, reporting requirements should be included in Regulation (EU) No. 525/2013 by this Regulation, and compliance checks under this Regulation should take these reports into account. Regulation (EU) No. 525/2013 should therefore be amended accordingly. These provisions may further be streamlined to take into consideration any relevant changes in respect of the integrated governance of the Energy Union for which a proposal is foreseen by the end of 2016 in the Commission’s work programme.
Amendment     16 Proposal for a regulation Recital 15 a (new)
Text proposed by the Commission	Amendment
	(15a)  Under the UNFCCC, the Union and its Member States are required to develop, regularly update, publish and report to the Conference of the Parties national inventories of anthropogenic emissions by sources and removals by sinks of all greenhouse gases using comparable methodologies agreed by the Conference of the Parties. Greenhouse gas inventories are essential for monitoring the implementation of the decarbonisation dimension and for assessing compliance with climate-related legislation. The obligations of Member States regarding the establishment and management of national inventories are set out in the Regulation (on Energy Governance, COM (2016) 759).
Amendment     17 Proposal for a regulation Recital 16
Text proposed by the Commission	Amendment
(16)  The European Environment Agency should assist the Commission, as appropriate in accordance with its annual work programme, with the system of annual reporting of greenhouse gas emissions and removals, the assessment of information on policies and measures and national projections, the evaluation of planned additional policies and measures, and the compliance checks carried out by the Commission under this Regulation.	(16)  The European Environment Agency (EEA) ought to assist the Commission, as appropriate in accordance with its annual work programme, with the system of annual reporting of greenhouse gas emissions and removals, the assessment of information on policies and measures and national projections, the evaluation of planned additional policies and measures, and the compliance checks carried out by the Commission under this Regulation.
Amendment     18 Proposal for a regulation Recital 17
Text proposed by the Commission	Amendment
(17)  To facilitate data collection and methodology improvement, land use should be inventoried and reported using geographical tracking of each land area, corresponding to national and EU data collection systems. The best use shall be made of existing Union and Member State programmes and surveys including the LUCAS Land Use Cover Area frame Survey and the European Earth observation programme Copernicus for data collection. Data management, including sharing for the reporting reuse and dissemination should conform to Directive 2007/2/EC of the European Parliament and of the Council of 14 March 2007 establishing an Infrastructure for Spatial Information in the European Community.	(17)  To facilitate data collection and methodology improvement, land use should be expressly inventoried and reported using geographical tracking of each land area, corresponding to national and EU data collection systems. The best use shall be made of existing Union and Member State programmes and surveys including the LUCAS Land Use Cover Area frame Survey, the European Earth observation programme Copernicus, in particular through Sentinel-2, for data collection and the European satellite navigation systems Galileo and EGNOS, which can be used in support of land-use surveying. Data management, including sharing for the reporting reuse and dissemination should conform to Directive 2007/2/EC of the European Parliament and of the Council of 14 March 2007 establishing an Infrastructure for Spatial Information in the European Community.
Amendment     19 Proposal for a regulation Recital 18
Text proposed by the Commission	Amendment
(18)  In order to provide for the appropriate accounting of transactions under this Regulation, including the use of flexibilities and tracking compliance, 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 the technical adaptation of definitions, values, lists of greenhouse gases and carbon pools, the update of reference levels, the accounting of transactions and the revision of methodology and information requirements. These measures shall take into account the provisions in Commission Regulation No 389/2013 establishing a Union Registry. The necessary provisions should be contained in a single legal instrument combining the accounting provisions pursuant to Directive 2003/87/EC, Regulation (EU) No 525/2013, Regulation [] on binding annual greenhouse gas emission reductions by Member States from 2021 to 2030 for a resilient Energy Union and this Regulation. It is of particular importance that the Commission carry out appropriate consultations during its preparatory work, including at expert level conducted in accordance with the principles laid down in the Inter-institutional 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 Council receive all documents at the same time as Member States' experts, and their experts have systematic access to meetings of Commission expert groups dealing with the preparation of delegated acts.	(18)  In order to provide for the appropriate accounting of transactions under this Regulation, including the use of flexibilities and tracking compliance, the power to adopt acts in accordance with Article 290 of the Treaty on the Functioning of the European Union (TFEU) should be delegated to the Commission in respect of the technical adaptation of definitions, values, lists of greenhouse gases and carbon pools, the update of reference levels, the accounting of transactions and the revision of methodology and information requirements. These measures shall take into account the provisions in Commission Regulation No 389/2013 establishing a Union Registry. The necessary provisions should be contained in a single legal instrument combining the accounting provisions pursuant to Directive 2003/87/EC, Regulation (EU) No 525/2013, Regulation [] on binding annual greenhouse gas emission reductions by Member States from 2021 to 2030 for a resilient Energy Union and this Regulation. It is of particular importance that the Commission carry out appropriate consultations during its preparatory work, including at expert level conducted in accordance with the principles laid down in the Inter-institutional 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 Council receive all documents at the same time as Member States' experts, and their experts have systematic access to meetings of Commission expert groups dealing with the preparation of delegated acts.
Amendment     20 Proposal for a regulation Article 1 – paragraph 1 a (new)
Text proposed by the Commission	Amendment
	The ultimate objective of this Regulation is to contribute to the global commitment of keeping temperatures below 2 degrees above pre-industrial level and pursuing efforts to limit global warming to 1,5 degrees.
Amendment     21 Proposal for a regulation Article 2 – paragraph 1 – point e a (new)
Text proposed by the Commission	Amendment
	(e a)  managed wetlands: land use reported as wetland remaining wetland, and settlement, other land converted to wetland and wetland converted to settlement and other land;
Amendment     22 Proposal for a regulation Article 2 – paragraph 2
Text proposed by the Commission	Amendment
2.  A Member State may choose to include managed wetland, defined as land use reported as wetland remaining wetland, and settlement, other land converted to wetland and wetland converted to settlement and other land, in the scope of its commitment pursuant to Article 4. Where a Member State chooses to do so, it shall account for emissions and removals from managed wetland in accordance with this Regulation.	2.  Member States which do not have a specific accounting category for managed wetlands on [date of entry into force] may benefit from a transitional period of five years from [date of entry into force] to collect reliable and transparent data on managed wetlands and put in place a reporting system in accordance with this Regulation. The the appropriateness of the data and of the reporting system shall be assessed as part of the compliance check referred to in Article 12.
Amendment     23 Proposal for a regulation Article 2 – paragraph 2 a (new)
Text proposed by the Commission	Amendment
	2 a.  When accounting for afforested land, deforested land and managed forest land, Member States shall include an accounting category related to harvested wood products in accordance with Article 9.
Amendment     24 Proposal for a regulation Article 3 – paragraph 2
Text proposed by the Commission	Amendment
2.  The Commission shall be empowered to adopt delegated acts in accordance with Article 14 to adapt the definitions in paragraph 1 to scientific developments or technical progress and to ensure consistency between those definitions and any changes to relevant definitions in the 2006 IPCC Guidelines for National Greenhouse Gas Inventories ('IPCC Guidelines').	2.  The Commission shall be empowered to adopt delegated acts in accordance with Article 14 to adapt the definitions in paragraph 1 to scientific developments or technical progress and to ensure consistency between those definitions and any changes to relevant definitions in the 2006 IPCC Guidelines for National Greenhouse Gas Inventories and all relevant IPCC complementary guidelines ('IPCC Guidelines').
Amendment     25 Proposal for a regulation Article 4 – paragraph 1
Text proposed by the Commission	Amendment
For the period from 2021 to 2025 and from 2026 to 2030, taking into account the flexibilities provided for in Article 11, each Member State shall ensure that emissions do not exceed removals, calculated as the sum of total emissions and removals on their territory in the land accounting categories referred to in Article 2 combined, as accounted in accordance with this Regulation.	For the period from 2021 to 2025 and from 2026 to 2030 Member States shall ensure, as a minimum standard, that emissions do not exceed removals calculated as the sum of total emissions and removals on their territory in the land accounting categories referred to in Article 2 combined, as accounted in accordance with this Regulation.
Amendment     26 Proposal for a regulation Article 4 – paragraph 1 a (new)
Text proposed by the Commission	Amendment
	In order to fulfil the Union long term commitments under the Paris Agreement, Member States shall, submit to the Commission an action plan consistent with the procedure set out in Regulation [on Energy Governance, COM (2016) 759] setting out long term targets to increase removals, carbon stocks and sustainable forest management practices.
Amendment     27 Proposal for a regulation Article 5 – paragraph 1 a (new)
Text proposed by the Commission	Amendment
	1 a.  When preparing their national accounts, Member States shall ensure that land use activities are coherent with the Union’s biodiversity and forest strategies.
Amendment     28 Proposal for a regulation Article 6 – paragraph 2
Text proposed by the Commission	Amendment
2.  By derogation from the requirement to apply the default value established in Article 5(3), a Member State may transition cropland, grassland, wetland, settlements and other land from the category of such land converted to forest land to the category of forest land remaining forest land after 30 years from the date of conversion.	2.  By derogation from the requirement to apply the default value established in Article 5(3), a Member State may transition cropland, grassland, wetland, settlements and other land from the category of such land converted to forest land to the category of forest land remaining forest land after 30 years from the date of conversion. Any decision to grant such a derogation shall be based on the IPCC Guidelines and shall be approved by the review team established under in Article 8(5).
Amendment     29 Proposal for a regulation Article 7 – paragraph 4
Text proposed by the Commission	Amendment
4.  Member States that have chosen to include managed wetland in the scope of their commitments in accordance with Article 2 shall account for emissions and removals resulting from managed wetland, calculated as emissions and removals in the periods from 2021 to 2025 and/or from 2026 to 2030 minus the value obtained by multiplying by five the Member State’s average annual emissions and removals resulting from managed wetland in its base period 2005-2007.	4.  Member States shall account for emissions and removals resulting from managed wetland, calculated as emissions and removals in the periods from 2021 to 2025 and/or from 2026 to 2030 minus the value obtained by multiplying by five the Member State's average annual emissions and removals resulting from managed wetland in its base period 2005-2007.
Amendment     30 Proposal for a regulation Article 8 – paragraph 3 – subparagraph 1
Text proposed by the Commission	Amendment
Member States shall determine the new forest reference level based on the criteria set out in Annex IV, section A. They shall submit to the Commission a national forestry accounting plan including a new forest reference level, by 31 December 2018 for the period from 2021 to 2025 and by 30 June 2023 for the period 2026-2030.	Member States shall determine the new forest reference level based on the criteria set out in Annex IV, section A. They shall submit to the Commission a national forestry accounting plan including a new forest reference level, by 31 December 2018 for the period from 2021 to 2025 and by 30 June 2023 for the period 2026-2030. At the request of Member States, the Commission shall provide guidance and technical assistance.
Amendment     31 Proposal for a regulation Article 8 – paragraph 3 – subparagraph 2
Text proposed by the Commission	Amendment
The national forestry accounting plan shall contain all the elements listed in Annex IV, section B and include a proposed new forest reference level based on the continuation of current forest management practice and intensity, as documented between 1990-2009 per forest type and per age class in national forests, expressed in tonnes of CO2 equivalent per year.	The national forestry accounting plan shall contain all the elements listed in Annex IV, section B and include a proposed new forest reference level based on current forest management practice, as documented up to 2017 for the period 2021-2025 and up to 2022 for the period 2026-2030 per forest type and per age class in national forests, expressed in tonnes of CO2 equivalent per year.
Amendment     32 Proposal for a regulation Article 8 – paragraph 3 – subparagraph 3
Text proposed by the Commission	Amendment
The national forestry accounting plan shall be made public and shall be subject to public consultation.	The national forestry accounting plan shall be made public, including online publication, and shall be subject to public consultation.
Amendment     33 Proposal for a regulation Article 8 – paragraph 4
Text proposed by the Commission	Amendment
4.  Member States shall demonstrate consistency between the methods and data used to establish the forest reference level in the national forestry accounting plan and those used in the reporting for managed forest land. At the latest at the end of the period from 2021 to 2025 or from 2026 to 2030, a Member State shall submit to the Commission a technical correction of its reference level if necessary to ensure consistency.	4.  Member States shall demonstrate consistency between the methods and data used to establish the forest reference level in the national forestry accounting plan and those used in the reporting for managed forest land. The data used shall be the most recent verified accounts of the land use and forest conditions. At the latest at the end of the period from 2021 to 2025 or from 2026 to 2030, a Member State shall submit to the Commission a technical correction of its reference level if necessary to ensure consistency, as well as to report positive inputs as a consequence of a sustainable forest management policy in force at the time it is determined.
Amendment     34 Proposal for a regulation Article 8 – paragraph 5
Text proposed by the Commission	Amendment
5.  The Commission shall review the national forestry accounting plans and technical corrections and assess the extent to which the proposed new or corrected forest reference levels have been determined in accordance with the principles and requirements set out in paragraphs (3) and (4) as well as Article 5(1). To the extent that this is required in order to ensure compliance with the principles and requirements set out in paragraphs (3) and (4) as well as Article 5(1), the Commission may recalculate the proposed new or corrected forest reference levels.	5.  A review team consisting of selected experts from the Commission and Member States shall review the national forestry accounting plans and technical corrections and assess the extent to which the proposed new or corrected forest reference levels have been determined in accordance with the principles and requirements set out in paragraphs (3) and (4) as well as Article 5(1). Member States shall provide to the review team all data and information requested for carrying out the review and the assessment. To the extent that this is required in order to ensure compliance with the principles and requirements set out in paragraphs (3) and (4) as well as Article 5(1), the Member State concerned shall recalculate the proposed new or corrected forest reference levels. In order to improve transparency, the Commission shall compile a synthesis report with recommendations and make it publicly available, including by publication via the internet.
Amendment     35 Proposal for a regulation Article 8 – paragraph 6
Text proposed by the Commission	Amendment
6.  The Commission shall adopt delegated acts in accordance with Article 14 to amend Annex II in the light of the review carried out pursuant to paragraph (5) to update Member State forest reference levels based on the national forestry accounting plans or the technical corrections submitted, and any recalculations made in the context of the review. Until the entry into force of the delegated act, Member State forest reference levels as specified in Annex II shall continue to apply for the period 2021-2025 and/or 2026-2030.	6.  The Commission shall adopt delegated acts in accordance with Article 14 to amend Annex II in the light of the review carried out pursuant to paragraph (5) to update Member State forest reference levels based on the national forestry accounting plans or the technical corrections submitted, and any recalculations made in the context of the review. The first of those delegated acts, to be based on the submissions from Member States under paragraph 3, shall be adopted no later than 31 December 2019. Until the entry into force of the delegated act, Member State forest reference levels as specified in Annex II shall continue to apply for the period 2021-2025 and/or 2026-2030.
Amendment     36 Proposal for a regulation Article 9 – paragraph 1 – introductory part
Text proposed by the Commission	Amendment
In accounts pursuant to Article 6(1) and 8(1) relating to harvested wood products, Member States shall reflect emissions and removals resulting from changes in the pool of harvested wood products falling within the following categories using the first order decay function, the methodologies and the default half-life values specified in Annex V:	Member States shall account for emissions and removals resulting from the changes in the pool of harvested wood products, falling within the following categories using the first order decay function, the methodologies and the default half-life values specified in Annex V:
Amendment     37 Proposal for a regulation Article 9 – paragraph 1 a (new)
Text proposed by the Commission	Amendment
	The Commission shall, by 31 December 2019, adopt a delegated act in accordance with Article 14 in order to update the categories in the pool of harvested wood products with additional products that have a positive substitution effect, taking into account the input by Member States about country-specific sub-categories. That update shall be done on the basis of IPCC Guidelines and ensure the environmental integrity of the Union LULUCF accounting.
Amendment     38 Proposal for a regulation Article 11 – paragraph 5 a (new)
Text proposed by the Commission	Amendment
	5 a.  An assessment on the impacts of the flexibility mechanism set out in this Article shall be included in the report referred to in Article 15.
Amendment     39 Proposal for a regulation Article 12 – paragraph 2
Text proposed by the Commission	Amendment
2.  The Commission shall carry out a comprehensive review of the compliance reports for the purpose of assessing compliance with Article 4.	2.  The Commission shall carry out a comprehensive review of the compliance reports for the purpose of assessing compliance with Article 4 and provide justification of any difference.
Amendment     40 Proposal for a regulation Article 13 – paragraph 1
Text proposed by the Commission	Amendment
1.  The Commission shall record the quantity of emissions and removals for each land accounting category in each Member State and ensure the accurate accounting in the exercise of the flexibilities pursuant to Article 11 in the Union Registry established pursuant to Article 10 of Regulation (EU) No 525/2013. The Central Administrator shall conduct an automated check on each transaction under this Regulation and, where necessary, block transactions to ensure there are no irregularities. This information shall be accessible to the public.	1.  The Commission shall record the quantity of emissions and removals for each land accounting category in each Member State and ensure the accurate accounting in the exercise of the flexibilities pursuant to Article 11 in the Union Registry established pursuant to Article 10 of Regulation (EU) No 525/2013. The Central Administrator shall conduct an automated and exhaustive check on each transaction under this Regulation and, where necessary, block transactions to ensure there are no irregularities. Feedback shall be given to the Member State and shall include a right of reply. Any request by a Member State for a correction shall be submitted within a reasonable timeframe. The Commission shall record the traceability of these events and shall make that information accessible to the public via the internet.
Amendment     41 Proposal for a regulation Article 14 – paragraph 2
Text proposed by the Commission	Amendment
2.  The power to adopt delegated acts referred to in Article 3, 5, 8, 10 and 13 shall be conferred on the Commission for an indeterminate period of time from the [date of entry into force].	2.  The power to adopt delegated acts referred to in Article 3, 5, 8, 9, 10 and 13 shall be conferred on the Commission for a period of 5 years from the [date of entry into force].
Amendment     42 Proposal for a regulation Article 14 – paragraph 4
Text proposed by the Commission	Amendment
4.  Before the adoption of a delegated act, the Commission shall consult experts designated by each Member State in accordance with the principles laid down in the Inter-institutional Agreement on Better Law-Making of 13 April 2016.	4.  Before the adoption of a delegated act, the Commission shall consult and work towards a common position with experts designated by each Member State in accordance with the principles laid down in the Inter-institutional Agreement on Better Law-Making of 13 April 2016.
Amendment     43 Proposal for a regulation Article 15 – paragraph 1
Text proposed by the Commission	Amendment
The Commission shall report to the European Parliament and to the Council by 28 February 2024 and every five years thereafter on the operation of this Regulation,its contribution to the EU's overall 2030 greenhouse gas emission reduction target and its contribution to the goals of the Paris Agreement, and may make proposals if appropriate.	Within six months of the facilitative dialogue to be convened under the UNFCCC in 2018, in 2024 and every five years thereafter, the Commission shall submit a report to the European Parliament and to the Council on the operation of this Regulation, its contribution to the EU's overall 2030 greenhouse gas emission reduction target and its contribution to the long-term goals of the Paris Agreement, and may make proposals if appropriate to update this Regulation and its ambition in line with developments that emerge from the facilitative dialogue under UNFCCC and the latest scientific findings.
Amendment     44 Proposal for a regulation Annex IV – part A – paragraph 1 – point a a (new)
Text proposed by the Commission	Amendment
	(a a)  reference levels shall contribute to maintaining or increasing forest carbon stocks, while producing an annual sustained yield of timber, fiber or energy from the forest;
Amendment     45 Proposal for a regulation Annex IV – part A – paragraph 1 – point c
Text proposed by the Commission	Amendment
(c)  Reference levels should ensure a robust and credible accounting, to guarantee that emissions and removals resulting from biomass use are properly accounted for;	(c)  Reference levels should ensure a robust and credible accounting of managed forest land, to guarantee that emissions and removals resulting from biomass use are properly accounted for;
Amendment     46 Proposal for a regulation Annex IV – part A – paragraph 1 – point d
Text proposed by the Commission	Amendment
(d)  Reference levels shall include the carbon pool of harvested wood products, providing a comparison between assuming instantaneous oxidation and applying the first-order decay function and half-life values;	deleted
Amendment     47 Proposal for a regulation Annex IV – part A – paragraph 1 – point e
Text proposed by the Commission	Amendment
(e)  Reference levels should take into account the objective of contributing to the conservation of biodiversity and the sustainable use of natural resources, as set out in the EU Forest Strategy, Member States' national forest policies, and the EU Biodiversity Strategy;	(e)  Reference levels should take into account the objective of contributing to the conservation of biodiversity and the sustainable use of natural resources, as set out in the EU Forest Strategy, Member States' national forest programmes and policies, the Union biodiversity btrategy and the Union bioeconomy strategy
Amendment     48 Proposal for a regulation Annex IV – part A – paragraph 1 – point g a (new)
Text proposed by the Commission	Amendment
	(g a)  Reference levels shall provide confirmation that the construction has not directly included assumptions or estimations based on Member State or Union policies or assumptions or on estimates based on assumed future changes to Member State or Union policies.

PROCEDURE – COMMITTEE ASKED FOR OPINION

Title	Inclusion of greenhouse gas emissions and removals from land use, land use change and forestry into the 2030 climate and energy framework and amending Regulation No 525/2013 of the European Parliament and the Council on a mechanism for monitoring and reporting greenhouse gas emissions and other information relevant to climate change
References	COM(2016)0479 – C8-0330/2016 – 2016/0230(COD)
Committee responsible        Date announced in plenary	ENVI 12.9.2016
Opinion by        Date announced in plenary	ITRE 12.9.2016
Rapporteur        Date appointed	Marisa Matias 5.10.2016
Discussed in committee	28.11.2016	22.3.2017
Date adopted	30.5.2017
Result of final vote	+: –: 0:	44 13 1
Members present for the final vote	Bendt Bendtsen, Xabier Benito Ziluaga, José Blanco López, Reinhard Bütikofer, Jerzy Buzek, Angelo Ciocca, Edward Czesak, Jakop Dalunde, Pilar del Castillo Vera, Christian Ehler, Ashley Fox, Adam Gierek, Theresa Griffin, Hans-Olaf Henkel, Kaja Kallas, Krišjānis Kariņš, Seán Kelly, Jaromír Kohlíček, Peter Kouroumbashev, Miapetra Kumpula-Natri, Janusz Lewandowski, Paloma López Bermejo, Edouard Martin, Angelika Mlinar, Nadine Morano, Dan Nica, Angelika Niebler, Morten Helveg Petersen, Miroslav Poche, Michel Reimon, Herbert Reul, Paul Rübig, Massimiliano Salini, Algirdas Saudargas, Jean-Luc Schaffhauser, Evžen Tošenovský, Claude Turmes, Vladimir Urutchev, Kathleen Van Brempt, Henna Virkkunen, Lieve Wierinck, Anna Záborská, Flavio Zanonato, Carlos Zorrinho
Substitutes present for the final vote	Soledad Cabezón Ruiz, Jude Kirton-Darling, Constanze Krehl, Barbara Kudrycka, Olle Ludvigsson, Florent Marcellesi, Marian-Jean Marinescu, Marisa Matias, Markus Pieper, Anne Sander, Pavel Telička, Anneleen Van Bossuyt
Substitutes under Rule 200(2) present for the final vote	Fabio Massimo Castaldo, Nicola Danti, Gabriele Preuß

FINAL VOTE BY ROLL CALL IN COMMITTEE ASKED FOR OPINION

44	+
ALDE	Kaja Kallas, Angelika Mlinar, Morten Helveg Petersen, Pavel Telicka, Lieve Wierinck
ECR	Edward Czesak, Ashley Fox, Hans-Olaf Henkel, Evžen Tošenovský, Anneleen van Bossuyt
PPE	Bendt Bendtsen, Jerzy Buzek, Christian Ehler, Krišjānis Kariņš, Seán Kelly, Barbara Kudrycka, Janusz Lewandowski, Marian-Jean Marinescu, Nadine Morano, Angelika Niebler, Markus Pieper, Herbert Reul, Paul Rübig, Massimiliano Salini, Anne Sander, Algirdas Saudargas, Vladimir Urutchev, Henna Virkkunen, Anna Záborská, Pilar del Castillo Vera
S&D	José Blanco López, Soledad Cabezón Ruiz, Adam Gierek, Theresa Griffin, Jude Kirton-Darling, Peter Kouroumbashev, Constanze Krehl, Miapetra Kumpula-Natri, Olle Ludvigsson, Edouard Martin, Dan Nica, Miroslav Poche, Gabriele Preuβ, Flavio Zanonato

13	-
EFDD	Fabio Massimo Castaldo
ENF	Angelo Ciocca, Jean-Luc Schaffhauser
GUE/NGL	Xabier Benito Ziluaga, Jaromír Kohlícek, Paloma López Bermejo, Marisa Matias
S&D	Carlos Zorrinho
Verts/ALE	Reinhard Bütikofer, Jakop Dalunde, Florent Marcellesi, Michel Reimon, Claude Turmes

1	0
S&D	Kathleen Van Brempt

Key to symbols:

+  :  in favour

-  :  against

0  :  abstention

OPINION of the Committee on Agriculture and Rural Development (1.6.2017)

for the Committee on the Environment, Public Health and Food Safety

on the proposal for a regulation of the European Parliament and of the Council on the inclusion of greenhouse gas emissions and removals from land use, land use change and forestry into the 2030 climate and energy framework and amending Regulation No 525/2013 of the European Parliament and the Council on a mechanism for monitoring and reporting greenhouse gas emissions and other information relevant to climate change
(COM(2016)0479 – C8-0330/2016 – 2016/0230(COD))

Rapporteur: Elisabeth Köstinger

SHORT JUSTIFICATION

For a successful transition to a low-carbon economy, a stable climate policy framework is needed. In order to launch the process of decarbonisation and to implement it sustainably, all sectors must make a corresponding contribution. The inclusion of the LULUCF sector in the climate protection policy of the European Union from 2021 onwards is therefore an important component of a forward-looking climate policy.

Agriculture and forestry fulfil an environmental, economic and social function for society. This multifunctional role of sustainable agriculture and forest management must be recognised in European climate policy. Incentives to reduce greenhouse gases must therefore be consistent with ensuring security of supply and a clear commitment to maintaining Europe as a location for the production of sustainable food and biomass. Agriculture and the sustainable use of biomass are not at odds with climate ambitions, but should be considered as part of the solution.

In order to create a fair starting position, the sector's inputs must in any case be taken into account. European agriculture has already reduced its emissions by 24% since 1990.

At the same time, it is vital to make a clear distinction between fossil and biogenic greenhouse gases. Agriculture and forestry must not be degraded to CO2 sinks for other emitters. The substitution effect of bioenergy, bioeconomy and the use of wood products must be acknowledged. The revival of the ‘Green Economy’ is a very important component in achieving climate change targets.

The following amendments to the Commission proposal should therefore be emphasised:

1) Pioneers of sustainable agriculture must not be penalised.

Member States which have already adopted environmental and climate measures in recent years must be able to offset them when calculating the base year for agriculture.

2) There are significant differences between Member States as regards forest areas and sustainable forest management.

It is therefore necessary not only to focus on positive climate protection effects through afforestation measures, but also to recognise in particular the potential for climate protection through sustainable forest management and the use of biomass.

3) When setting the forest reference level, a system should be developed which respects the subsidiarity principle.

The criteria to be taken into account by the Member States in determining the forest reference level must respect the sustainable use of biomass, the implementation of an EU bioeconomic strategy and security of energy supply. As requested in the European Parliament's report on the New EU Forestry Strategy[1], the Standing Forestry Committee should be strengthened and consulted by the Commission on technical assistance.

4) Delegated acts should be used exclusively to amend non-essential elements of the basic act.

AMENDMENTS

The Committee on Agriculture and Rural Development calls on the Committee on the Environment, Public Health and Food Safety, as the committee responsible, to take into account the following amendments:

Amendment    1 Proposal for a regulation Recital 3
Text proposed by the Commission	Amendment
(3)  On 10 June 2016 the Commission presented the proposal for the EU to ratify the Paris agreement. This legislative proposal forms part of the implementation of the Union's commitment to economy-wide emission reductions as confirmed in the intended nationally determined reduction commitment of the Union and its Member States submitted to the Secretariat of the United Nations Framework Convention on Climate Change ('UNFCCC') on 6 March 2015.10	(3)  The Council ratified the Paris Agreement on 5 October 2016, following the consent given by the European Parliament on 4 October 2016. The Paris agreement entered into force on 4 November 2016 and aims at keeping the increase in global temperature to well below 2°C above pre-industrial levels and to pursue efforts to limit the temperature increase to 1,5°C above pre-industrial levels, in a manner that does not threaten food production and food security. The agreement also emphasises the role of sustainable forest management in reaching the target of balancing emissions and removals. This legislative proposal forms part of the implementation of the Union's commitment to economy-wide emission reductions as confirmed in the intended nationally determined reduction commitment of the Union and its Member States submitted to the Secretariat of the United Nations Framework Convention on Climate Change ('UNFCCC') on 6 March 2015.10
__________________	__________________
10 http://www4.unfccc.int/submissions/indc/Submission%20Pages/submissions.aspx	10 http://www4.unfccc.int/submissions/indc/Submission%20Pages/submissions.aspx
Justification
An update of the text further to ratification of Paris Agreement is essential. Recital 3 also needs to be complemented with a reference to art. 2.1b of the Paris Agreement regarding food production and art. 5 on the role of sustainable management of forests for reaching the target of balancing emissions and removals.
Amendment    2 Proposal for a regulation Recital 4
Text proposed by the Commission	Amendment
(4)  The Paris Agreement, inter alia, sets out a long-term goal in line with the objective to keep the global temperature increase well below 2°C above pre-industrial levels and to pursue efforts to keep it to 1.5°C above pre-industrial levels. In order to achieve this goal, the Parties should prepare, communicate and maintain successive nationally determined contributions. The Paris Agreement replaces the approach taken under the 1997 Kyoto Protocol which will not be continued beyond 2020. The Paris Agreement also calls for a balance between anthropogenic emissions by sources and removals by sinks of greenhouse gases in the second half of this century, and invites Parties to take action to conserve and enhance, as appropriate, sinks and reservoirs of greenhouse gases, including forests.	(4)  The Paris Agreement, inter alia, sets out a long-term goal in line with the objective to keep the global temperature increase well below 2°C above pre-industrial levels and to pursue efforts to keep it to 1.5°C above pre-industrial levels. It also aims to increase the ability to adapt to the adverse impacts of climate change and foster climate resilience and low greenhouse gas emissions development, in a manner that does not threaten food production. In order to achieve the purpose of the Paris Agreement, the Parties should prepare, communicate and maintain successive nationally determined contributions. The Paris Agreement replaces the approach taken under the 1997 Kyoto Protocol which will not be continued beyond 2020. The Paris Agreement also calls for a balance between anthropogenic emissions by sources and removals by sinks of greenhouse gases in the second half of this century, and invites Parties to take action to conserve and enhance, as appropriate, sinks and reservoirs of greenhouse gases, including forests. Parties acknowledge that mitigation and adaptation action should follow a fully transparent approach, taking into account ecosystems, and should be based on and guided by the best available science.
Justification
The recital concerning the Paris Agreement should be supplemented by a reference to its Article 2(1)(b) to highlight that the sector has multiple objectives and challenges, as well as to its Article 7.
Amendment    3 Proposal for a regulation Recital 4 a (new)
Text proposed by the Commission	Amendment
	(4a)  To achieve the negative emissions required to meet the Paris Agreement goals, removals of greenhouse gases from the atmosphere through land use, land use change and forestry (LULUCF) must be robust, and should not only be used to offset emissions reductions from other sources. As removals through LULUCF are reversible, they should not be used to compensate for emissions and should be treated as a separate pillar in the Union climate policy framework.
Amendment    4 Proposal for a regulation Recital 5
Text proposed by the Commission	Amendment
(5)  The European Council of 23-24 October 2014 also acknowledged the multiple objectives of the agriculture and land use sector, with their lower mitigation potential as well as the need to ensure coherence between the Union food security and climate change objectives. The European Council invited the Commission to examine the best means of encouraging the sustainable intensification of food production, while optimising the sector's contribution to greenhouse gas mitigation and sequestration, including through afforestation, and to establish policy on how to include land use, land use change and forestry ('LULUCF') into the 2030 greenhouse gas mitigation framework as soon as technical conditions allow and in any case before 2020.	(5)  The European Council of 23-24 October 2014 also acknowledged the multiple objectives of the agriculture and land use sector, with their lower mitigation potential as well as the need to ensure coherence between the Union food security and climate change objectives. In addition, the implementation of technology solutions in agriculture and forestry sectors contribute to enhancing production and reducing the environmental footprint. The European Council invited the Commission to examine the best means of encouraging the sustainable intensification of food production, while optimising the sector's contribution to greenhouse gas mitigation and sequestration, including through afforestation, and to establish policy on how to include land use, land use change and forestry ('LULUCF') into the 2030 greenhouse gas mitigation framework as soon as technical conditions allow and in any case before 2020.
Amendment    5 Proposal for a regulation Recital 6
Text proposed by the Commission	Amendment
(6)  The LULUCF sector can contribute to climate change mitigation in several ways, in particular by reducing emissions, and maintaining and enhancing sinks and carbon stocks. In order for measures aiming in particular at increasing carbon sequestration to be effective, the long-term stability and adaptability of carbon pools is essential.	(6)  In combating climate change, the challenge is to reduce current CO2 levels in the atmosphere and to reduce emissions. The LULUCF sector can contribute to climate change mitigation in several ways, in particular by reducing emissions, and maintaining and enhancing sinks and carbon stocks, by replacing fossil fuels with renewable energy from forest biomass and by harnessing the removal potential of organic materials from sustainable forestry management and their potential as a substitute for fossil fuels, taking into account the entire life cycle of these materials, from the production of the raw material to the processing and manufacturing stages. The bioeconomy and bioenergy are anindispensable path towards a fossil-free and green economy. In order for measures aiming in particular at increasing carbon sequestration to be effective, the long-term stability and adaptability of carbon pools is essential.
Amendment    6 Proposal for a regulation Recital 6 a (new)
Text proposed by the Commission	Amendment
	(6a)  Advanced management practices can contribute significantly to reducing greenhouse gas emissions in the LULUCF sector. Promoting the development of innovative practices and encouraging landowners to make use of advanced management practices, such as precision agriculture, precision forestry and smart farming are potential means of helping Member States to reach their targets.
Justification
Precision agriculture and forestry can reduce emissions by optimising the use of, for instance, fuels, fertilisers and pesticides. This way of smart farming is beneficial for farmers, forestry managers and the environment.
Amendment    7 Proposal for a regulation Recital 8 a (new)
Text proposed by the Commission	Amendment
	(8a)  Common agricultural policy measures and national policies have an impact on the emissions profile of cropland, grassland and wetlands. With regard to the base period for the land accounting categories provided for in this Regulation, the calculation should take into account the agri-environmental measures implemented by the Member States during this period.
Justification
The importance of recognizing agri-environmental measures is that the early movers would not be penalized.
Amendment    8 Proposal for a regulation Recital 9
Text proposed by the Commission	Amendment
(9)  Emissions and removals from forest land depend on a number of natural circumstances, age-class structure, as well as past and present management practices. The use of a base year would not make it possible to reflect those factors and resulting cyclical impacts on emissions and removals or their interannual variation. The relevant accounting rules should instead provide for the use of reference levels to exclude the effects of natural and country-specific characteristics. In the absence of the international review under the UNFCCC and the Kyoto Protocol, a review procedure should be established to ensure transparency and improve the quality of accounting in this category.	(9)  Emissions and removals from forest land depend on a number of natural circumstances, age-class structure, as well as past and present management practices that differ substantially between the Member States. The use of a base year would not make it possible to reflect those factors and resulting cyclical impacts on emissions and removals or their interannual variation. The relevant accounting rules should instead provide for the use of reference levels to address the effects of natural and country-specific characteristics, such as the inability to manage forests in Croatia due to the occupation of its territory, the Croatian War of Independence, and wartime and post-war circumstances. The relevant accounting rules should also provide for coherence and requirements for sustainable forest management of Forest Europe (Ministerial Conference on the Protection of Forests in Europe). In the absence of the international review under the UNFCCC and the Kyoto Protocol, a transparent procedure should be established for the Member States to improve auditability and the quality of accounting in this category.
Amendment    9 Proposal for a regulation Recital 10
Text proposed by the Commission	Amendment
(10)  When the Commission chooses to be assisted by an expert review team in accordance with Commission Decision (C(2016)3301) in the review of national forestry accounting plans, it should build on the good practice and experience of the expert reviews under the UNFCCC, including as regards participation of national experts and recommendations, and select a sufficient number of experts from the Member States.	(10)  The procedure for setting the forest reference level by the Member States should be transparent and aligned with the requirements for sustainable forest management of Forest Europe (Ministerial Conference on the Protection of Forests in Europe)1a . The Commission should assist the Member States by building on the good practice and experience of the expert reviews under the UNFCCC. In this context, it is appropriate for the Commission to provide technical assistance on the verification of compliance with the criteria set out in Annex IV, following the consultation of the Standing Forestry Committee established by Council Decision 89/367/EEC1b.
	__________________
	1a Forest Europe - Ministerial Conference on the Protection of Forests in Europe, Intergovernmental Negotiating Committee for a Legally Binding Agreement on Forests in Europe: http://www.foresteurope.org/.
	1b Council Decision 89/367/EEC of 29 May 1989 setting up a Standing Forestry Committee (OJ L 165, 15.6.1989, p. 14).
Amendment    10 Proposal for a regulation Recital 11
Text proposed by the Commission	Amendment
(11)  The internationally agreed IPCC Guidelines state that emissions from the combustion of biomass can be accounted as zero in the energy sector with the condition that these emissions are accounted for in the LULUCF sector. In the EU, emissions from biomass combustion are accounted as zero pursuant to Article 38 of Regulation (EU) No. 601/2012 and the provisions set out in Regulation (EU) No. 525/2013, hence consistency with the IPCC Guidelines would only be ensured if these emissions should be covered accurately under this Regulation.	(11)  The internationally agreed IPCC Guidelines state that emissions from the combustion of biomass can be accounted as zero in the energy sector with the condition that these emissions are accounted for in the LULUCF sector. In the Union, emissions from biomass combustion are accounted as zero pursuant to Article 38 of Regulation (EU) No. 601/2012 and the provisions set out in Regulation (EU) No. 525/2013, hence consistency with the IPCC Guidelines would only be ensured if these emissions should be covered accurately under this Regulation. Accounting rules for bioenergy laid down in this Regulation should not impede the use of sustainable biomass in the energy sector through generation of emissions in the LULUCF sector.
Justification
The potential of Bioenergy for the replacement of fossil fuels needs to be reflected in a correct way.
Amendment    11 Proposal for a regulation Recital 12
Text proposed by the Commission	Amendment
(12)  The increased sustainable use of harvested wood products can substantially limit emissions into and enhance removals of greenhouse gases from the atmosphere. The accounting rules should ensure that Member States accurately reflect in accounts the changes in the harvested wood products pool when they take place, to provide incentives for enhanced use of harvested wood products with long life cycles. The Commission should provide guidance on methodological issues related to the accounting for harvested wood products.	(12)  The increased sustainable use of harvested wood products can substantially limit emissions by the substitution effect (considering the energy and CO2 intensity of other sectors, e.g. cement production accounts for roughly 8% of global CO2 emissions), and enhance removals of greenhouse gases from the atmosphere. The accounting rules should ensure that Member States accurately reflect in accounts the changes in the harvested wood products pool when they take place, and to recognise, welcome and incentivise enhanced use of harvested wood products with long life cycles, thus reducing the use of other, non-biodegradable materials, such as plastic. The Commission should provide guidance on methodological issues related to the accounting for harvested wood products.
Amendment    12 Proposal for a regulation Recital 13
Text proposed by the Commission	Amendment
(13)  Natural disturbances, such as wildfires, insect and disease infestations, extreme weather events and geological disturbances that are beyond the control of, and not materially influenced by, a Member State, may result in greenhouse gas emissions of a temporary nature in the LULUCF sector, or may cause the reversal of previous removals. As reversal can also be the result of management decisions, such as decisions to harvest or plant trees, this Regulation should ensure that human-induced reversals of removals are always accurately reflected in LULUCF accounts. Moreover, this Regulation should provide Member States with a limited possibility to exclude emissions resulting from disturbances that are beyond their control from their LULUCF accounts. However, the manner in which Member States apply those provisions should not lead to undue under-accounting.	(13)  Natural disturbances, such as wildfires, insect and disease infestations, extreme weather events and geological disturbances that are beyond the control of, and not materially influenced by, a Member State, may result in greenhouse gas emissions of a temporary nature in the LULUCF sector, or may cause the reversal of previous removals. As reversal can also be the result of management decisions, such as decisions to harvest or plant trees, this Regulation should ensure that human-induced reversals of removals are always accurately reflected in LULUCF accounts. Moreover, this Regulation should provide Member States with a possibility to exclude emissions resulting from disturbances that are beyond their control from their LULUCF accounts. However, the manner in which Member States apply those provisions should not lead to undue under-accounting and should not discourage Member States from taking preventative measures to reduce the risk of natural disturbances.
Amendment    13 Proposal for a regulation Recital 14
Text proposed by the Commission	Amendment
(14)  Depending on national preferences, Member States should be able to choose adequate national policies for achieving their commitments in LULUCF, including the possibility of compensating emissions from one land category by removals from another land category. They should also be able to cumulate net removals over the period 2021-2030. Trading among Member States should continue as an additional option to help compliance. Following the practice in the second commitment period of the Kyoto Protocol, there should also be a possibility for a Member State to use its overachievement under Regulation [] on binding annual greenhouse gas emission reductions by Member States from 2021 to 2030 for a resilient Energy Union and to meet commitments under the Paris Agreement and amending Regulation No 525/2013 of the European Parliament and the Council on a mechanism for monitoring and reporting greenhouse gas emissions and other information relevant to climate change in order to ensure its compliance with its commitment under this Regulation.	(14)  Depending on national preferences, Member States should be able to choose adequate national policies for achieving their commitments in LULUCF, including the possibility of compensating emissions from one land category by removals from another land category. They should also be able to cumulate net removals over the period 2021-2030. Trading among Member States should continue as an additional option to help compliance. Following the practice in the second commitment period of the Kyoto Protocol, there should also be a possibility for a Member State to use its overachievement under Regulation No (EU) .../... on binding annual greenhouse gas emission reductions by Member States from 2021 to 2030 for a resilient Energy Union and to meet commitments under the Paris Agreement and amending Regulation No 525/2013 of the European Parliament and the Council on a mechanism for monitoring and reporting greenhouse gas emissions and other information relevant to climate change while guaranteeing a clear distinction between emissions and removals of fossil and biogenic greenhouse gases. Therefore the annual net removals from deforested land, afforested land, managed forest land, managed cropland and managed grassland should be limited to agriculture. Member States should be able to use up to 425 million tonnes of any net removals resulting from the provisions of this Regulation, with a view to fulfilling their obligations under the Effort Sharing Regulation.
Amendment    14 Proposal for a regulation Recital 18
Text proposed by the Commission	Amendment
(18)  In order to provide for the appropriate accounting of transactions under this Regulation, including the use of flexibilities and tracking compliance, 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 the technical adaptation of definitions, values, lists of greenhouse gases and carbon pools, the update of reference levels, the accounting of transactions and the revision of methodology and information requirements. These measures shall take into account the provisions in Commission Regulation No 389/2013 establishing a Union Registry. The necessary provisions should be contained in a single legal instrument combining the accounting provisions pursuant to Directive 2003/87/EC, Regulation (EU) No 525/2013, Regulation [] on binding annual greenhouse gas emission reductions by Member States from 2021 to 2030 for a resilient Energy Union and this Regulation. It is of particular importance that the Commission carry out appropriate consultations during its preparatory work, including at expert level conducted in accordance with the principles laid down in the Inter-institutional 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 Council receive all documents at the same time as Member States' experts, and their experts have systematic access to meetings of Commission expert groups dealing with the preparation of delegated acts.	(18)  In order to provide for the appropriate accounting of transactions under this Regulation, including the use of flexibilities and tracking compliance, 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 the technical adaptation of definitions, values, lists of greenhouse gases and carbon pools, the update of categories in the pool of harvested wood products, the accounting of transactions and the revision of methodology and information requirements in order to reflect changes in the IPCC Guidelines, as adopted by bodies of the UNFCCC or of the Paris Agreement. These measures shall take into account the provisions in Commission Regulation No 389/2013 establishing a Union Registry. The necessary provisions should be contained in a single legal instrument combining the accounting provisions pursuant to Directive 2003/87/EC of the European Parliament and of the Council of 13 October 20031a, Regulation (EU) No 525/2013, Regulation No (EU) .../... on binding annual greenhouse gas emission reductions by Member States from 2021 to 2030 for a resilient Energy Union, and this Regulation. It is of particular importance that the Commission carry out appropriate consultations during its preparatory work, including at expert level conducted in accordance with the principles laid down in the Inter-institutional Agreement on Better Law-Making of 13 April 20161b. In particular, to ensure equal participation in the preparation of delegated acts, the European Parliament and Council receive all documents at the same time as Member States' experts, and their experts have systematic access to meetings of Commission expert groups dealing with the preparation of delegated acts.
	________________
	1a Directive 2003/87/EC of the European Parliament and of the Council of 13 October 2003 establishing a scheme for greenhouse gas emission allowance trading within the Community and amending Council Directive 96/61/EC (OJ L 275, 25.10.2003, p. 32).
	1b OJ L 123, 12.5.2016, p. 1.
Amendment    15 Proposal for a regulation Recital 19
Text proposed by the Commission	Amendment
(19)  This Regulation should be reviewed as of 2024 and every 5 years thereafter in order to assess its overall functioning. This review can also be informed by the results of the global stocktake of the Paris Agreement.	(19)  In the light of the 2018 Facilitative Dialogue, the Commission shall report to the European Parliament and to the Council by 28 February 2019 on the adequacy of the level of ambition of this Regulation. This Regulation should be reviewed as of 2023 and every 3 years thereafter in order to assess its overall functioning. This review can also be informed by the results of the global stocktake of the Paris Agreement.
Amendment    16 Proposal for a regulation Article 2 – paragraph 1 – introductory part
Text proposed by the Commission	Amendment
1.  This Regulation applies to emissions and removals of the greenhouse gases listed in Annex I, section A, as reported pursuant to Article 7 of Regulation (EU) No 525/2013 occurring in any of the following land accounting categories on the territories of Member States during the period from 2021 to 2030:	1.  This Regulation applies to emissions and removals of the greenhouse gases listed in Annex I, section A, as reported pursuant to Article 7 of Regulation (EU) No 525/2013 occurring in any of the following land accounting categories on the territories of Member States and other accounting categories during the period from 2021 to 2030:
Amendment    17 Proposal for a regulation Article 2 – paragraph 1 – point e a (new)
Text proposed by the Commission	Amendment
	(ea)  harvested wood products.
Amendment    18 Proposal for a regulation Article 3 – paragraph 1 – point g a (new)
Text proposed by the Commission	Amendment
	(ga)  A forest reference level is an estimate of the average annual net emissions or removals resulting from managed forest land within the territory of the Member State in the periods from 2021 to 2025 and from 2026 to 2030.
Justification
The definition of a forest reference level set out in Article 8(1) should be set out in Article 3 alongside the other definitions.
Amendment    19 Proposal for a regulation Article 3 – paragraph 2
Text proposed by the Commission	Amendment
2.  The Commission shall be empowered to adopt delegated acts in accordance with Article 14 to adapt the definitions in paragraph 1 to scientific developments or technical progress and to ensure consistency between those definitions and any changes to relevant definitions in the 2006 IPCC Guidelines for National Greenhouse Gas Inventories ('IPCC Guidelines').	2.  The Commission shall be empowered to adopt delegated acts in accordance with Article 14 to adapt the definitions in paragraph 1 to ensure consistency between those definitions and any changes to relevant definitions in the 2006 IPCC Guidelines for National Greenhouse Gas Inventories ('IPCC Guidelines'), as adopted by bodies of the UNFCCC or of the Paris Agreement.
Amendment    20 Proposal for a regulation Article 4 – paragraph 1
Text proposed by the Commission	Amendment
For the period from 2021 to 2025 and from 2026 to 2030, taking into account the flexibilities provided for in Article 11, each Member State shall ensure that emissions do not exceed removals, calculated as the sum of total emissions and removals on their territory in the land accounting categories referred to in Article 2 combined, as accounted in accordance with this Regulation.	For the period from 2021 to 2025 and from 2026 to 2030, taking into account the flexibilities provided for in Article 11, each Member State shall ensure that emissions do not exceed removals, calculated as the sum of total emissions and removals on their territory in the land accounting categories and other categories referred to in Article 2 combined, as accounted in accordance with this Regulation.
Amendment    21 Proposal for a regulation Article 5 – paragraph 1
Text proposed by the Commission	Amendment
1.  Each Member State shall prepare and maintain accounts that accurately reflect the emissions and removals resulting from the land accounting categories referred to in Article 2. Member States shall ensure the accuracy, completeness, consistency, comparability and transparency of their accounts and of other data provided under this Regulation. Member States shall denote emissions by a positive sign (+) and removals by a negative sign (-).	1.  Each Member State shall prepare and maintain accounts that accurately reflect the emissions and removals resulting from the land accounting categories and other categories referred to in Article 2 in accordance with the reporting guidance adopted by bodies of the UNFCCC or of the Paris Agreement for the period 2021-2030. Member States shall ensure the accuracy, completeness, consistency, comparability and transparency of their accounts and of other data provided under this Regulation. Member States shall denote emissions by a positive sign (+) and removals by a negative sign (-).
Amendment    22 Proposal for a regulation Article 5 – paragraph 2
Text proposed by the Commission	Amendment
2.  Member States shall prevent any double counting of emissions or removals, in particular by accounting for emissions or removals resulting from more than one land accounting category under one category only.	2.  Member States shall prevent any double counting of emissions or removals, in particular by accounting for emissions or removals resulting from more than one accounting category under one category only.
Justification
It is proposed that Harvested Wood Products would be included as a separate inventory and accounted category. This would be consistent with 2006 IPCC Guidelines and UNFCCC reporting practice. This would result changes in paragraphs 5.1, 5.2 and 5.4.
Amendment    23 Proposal for a regulation Article 5 – paragraph 4
Text proposed by the Commission	Amendment
4.  Member States shall include in their accounts for each land accounting category any change in the carbon stock of the carbon pools listed in Annex I, section B. Member States may choose not to include in their accounts changes in carbon stocks for carbon pools where the carbon pool is not a source, except for above-ground biomass and harvested wood products on managed forest land.	4.  Member States shall include in their accounts for each accounting category any change in the carbon stock of the carbon pools listed in Annex I, section B. Member States may choose not to include in their accounts changes in carbon stocks for carbon pools where the carbon pool is not a source, except for above-ground biomass and harvested wood products on managed forest land.
Amendment    24 Proposal for a regulation Article 5 – paragraph 6
Text proposed by the Commission	Amendment
6.  The Commission shall be empowered to adopt delegated acts in accordance with Article 14 to amend Annex I in order to reflect changes in the IPCC Guidelines.	6.  The Commission shall be empowered to adopt delegated acts in accordance with Article 14 to amend Annex I in order to reflect changes in the IPCC Guidelines, as adopted by bodies of the UNFCCC or of the Paris Agreement.
Amendment    25 Proposal for a regulation Article 7 – paragraph 1
Text proposed by the Commission	Amendment
1.  Member States shall account for emissions and removals resulting from managed cropland calculated as emissions and removals in the periods from 2021 to 2025 and from 2026 to 2030 minus the value obtained by multiplying by five the Member State’s average annual emissions and removals resulting from managed cropland in its base period 2005-2007.	1.  Member States shall account for emissions and removals resulting from managed cropland calculated as emissions and removals in the periods from 2021 to 2025 and from 2026 to 2030 minus the value obtained by multiplying by five the Member State’s average annual emissions and removals resulting from managed cropland in its base period or its base year determined under the UNFCCC. The choice of accounting reference shall be communicated to the European Commissionby 31 December 2018. Member States may offset agri-environmental measures implemented during the base period.
Amendment    26 Proposal for a regulation Article 7 – paragraph 2
Text proposed by the Commission	Amendment
2.  Member States shall account for emissions and removals resulting from managed grassland calculated as emissions and removals in the periods from 2021 to 2025 and from 2026 to 2030 minus the value obtained by multiplying by five the Member State’s average annual emissions and removals resulting from managed grassland in its base period 2005-2007.	2.  Member States shall account for emissions and removals resulting from managed grassland calculated as emissions and removals in the periods from 2021 to 2025 and from 2026 to 2030 minus the value obtained by multiplying by five the Member State’s average annual emissions and removals resulting from managed grassland in its base period or its base year determined under the UNFCCC. The choice of accounting reference shall be communicated to the European Commission by 31 December 2018. Member States may offset agri-environmental measures implemented during the base period.
Amendment    27 Proposal for a regulation Article 7 – paragraph 2 a (new)
Text proposed by the Commission	Amendment
	2a.  Where agri-environmental measures are included in the base period as referred to in paragraphs 1 and 2, Member States may incorporate measures such as:
	-   climate change measures and climate protection;
	-   promotion of biological and genetic diversity;
	-   promotion of soil fertility; and
	-   water protection measures.
Justification
The regulation should not penalize Member States that already implemented several agri-environmental measures in compliance with the programmes of the CAP. Those Member States should be able to benefit from for their good performance in this period. When calculating their emissions and removals in a base period, agri-environmental measures already implemented should be taken into account.
Amendment    28 Proposal for a regulation Article 7 – paragraph 4
Text proposed by the Commission	Amendment
4.  Member States that have chosen to include managed wetland in the scope of their commitments in accordance with Article 2 shall account for emissions and removals resulting from managed wetland, calculated as emissions and removals in the periods from 2021 to 2025 and/or from 2026 to 2030 minus the value obtained by multiplying by five the Member State’s average annual emissions and removals resulting from managed wetland in its base period 2005-2007.	4.  Member States that have chosen to include managed wetland in the scope of their commitments in accordance with Article 2 shall account for emissions and removals resulting from managed wetland, calculated as emissions and removals in the periods from 2021 to 2025 and/or from 2026 to 2030 minus the value obtained by multiplying by five the Member State’s average annual emissions and removals resulting from managed wetland in its base period or its base year determined under the UNFCCC. The choice of accounting reference shall be communicated to the European Commission by 31 December 2018.
Amendment    29 Proposal for a regulation Article 8 – paragraph 1
Text proposed by the Commission	Amendment
1.  Member States shall account for emissions and removals resulting from managed forest land, calculated as emissions and removals in the periods from 2021 to 2025 and from 2026 to 2030 minus the value obtained by multiplying by five its forest reference level. A forest reference level is an estimate of the average annual net emissions or removals resulting from managed forest land within the territory of the Member State in the periods from 2021 to 2025 and from 2026 to 2030.	1.  Member States shall account for emissions and removals resulting from managed forest land, calculated as emissions and removals in the periods from 2021 to 2025 and from 2026 to 2030 minus the value obtained by multiplying by five its forest reference level.
Justification
The definition of a forest reference level set out in Article 8(1) should be set out in Article 3 alongside the other definitions.
Amendment    30 Proposal for a regulation Article 8 – paragraph 2
Text proposed by the Commission	Amendment
2.  Where the result of the calculation referred to in paragraph 1 is negative in relation to its forest reference level, a Member State shall include in its managed forest land accounts total net removals of no more than the equivalent of 3,5 per cent of the Member State’s emissions in its base year or period as specified in Annex III, multiplied by five.	deleted
Amendment    31 Proposal for a regulation Article 8 – paragraph 3 – subparagraph 1
Text proposed by the Commission	Amendment
Member States shall determine the new forest reference level based on the criteria set out in Annex IV, section A. They shall submit to the Commission a national forestry accounting plan including a new forest reference level, by 31 December 2018 for the period from 2021 to 2025 and by 30 June 2023 for the period 2026-2030.	Member States shall determine the new forest reference level based on the criteria set out in Annex IV, section A. They shall submit to the Commission a national forestry accounting report including a new forest reference level, by 31 December 2018 for the period from 2021 to 2025 and by 30 June 2023 for the period 2026-2030.
Amendment    32 Proposal for a regulation Article 8 – paragraph 3 – subparagraph 2
Text proposed by the Commission	Amendment
The national forestry accounting plan shall contain all the elements listed in Annex IV, section B and include a proposed new forest reference level based on the continuation of current forest management practice and intensity, as documented between 1990-2009 per forest type and per age class in national forests, expressed in tonnes of CO2 equivalent per year.	The national forestry accounting report shall contain all the elements listed in Annex IV, section B and include a proposed new forest reference level based on the continuation of active, sustainable forest management practice in accordance with the best available data and adopted national forest programmes and policies, expressed in tonnes of CO2 equivalent per year and, on the Member State’s current sustainable forest management policies and measures. It shall also be based on the sustainable forestry management principles and the national strategies published by Member States in this area up to the date of submission of the forest reference level and on long-term analyses carried out with a view to fulfilling the objective set out in Article 4.1 of the Paris Agreement, namely to achieve a balance between anthropogenic emissions by sources and removals by sinks of greenhouse gases in the second half of this century.
Amendment    33 Proposal for a regulation Article 8 – paragraph 3 – subparagraph 3
Text proposed by the Commission	Amendment
The national forestry accounting plan shall be made public and shall be subject to public consultation.	The national forestry accounting report shall be made public and shall be subject to public consultation.
Amendment    34 Proposal for a regulation Article 8 – paragraph 4
Text proposed by the Commission	Amendment
4.  Member States shall demonstrate consistency between the methods and data used to establish the forest reference level in the national forestry accounting plan and those used in the reporting for managed forest land. At the latest at the end of the period from 2021 to 2025 or from 2026 to 2030, a Member State shall submit to the Commission a technical correction of its reference level if necessary to ensure consistency.	4.  Member States shall demonstrate consistency between the methods and data used to establish the forest reference level in the national forestry accounting report and those used in the reporting for managed forest land. At the latest at the end of the period from 2021 to 2025 or from 2026 to 2030, a Member State shall submit to the Commission a technical correction of its reference level if necessary to ensure consistency.
Amendment    35 Proposal for a regulation Article 8 – paragraph 5
Text proposed by the Commission	Amendment
5.  The Commission shall review the national forestry accounting plans and technical corrections and assess the extent to which the proposed new or corrected forest reference levels have been determined in accordance with the principles and requirements set out in paragraphs (3) and (4) as well as Article 5(1). To the extent that this is required in order to ensure compliance with the principles and requirements set out in paragraphs (3) and (4) as well as Article 5(1), the Commission may recalculate the proposed new or corrected forest reference levels.	5.  As specified in Annex IV, the Commission shall facilitate the technical assessment of the national forestry accounting report submitted by a Member State and of any technical corrections or adjustments, with a view to assessing the extent to which the proposed new or corrected forest reference levels have been determined in accordance with the principles and requirements set out in paragraphs 3 and 4 as well as Article 5(1). The Commission shall provide technical recommendations to the Member States and compile a synthesis report.
Amendment    36 Proposal for a regulation Article 8 – paragraph 6
Text proposed by the Commission	Amendment
6.  The Commission shall adopt delegated acts in accordance with Article 14 to amend Annex II in the light of the review carried out pursuant to paragraph (5) to update Member State forest reference levels based on the national forestry accounting plans or the technical corrections submitted, and any recalculations made in the context of the review. Until the entry into force of the delegated act, Member State forest reference levels as specified in Annex II shall continue to apply for the period 2021-2025 and/or 2026-2030.	6.  The Commission shall adopt delegated acts in accordance with Article 14 to amend Annex II in the light of the technical assessment carried out pursuant to paragraph 5 to update Member State forest reference levels based on the national forestry accounting reports or the technical corrections submitted, and any recalculations made by the Member State in the context of the technical assessment. In the event that a Member State has not updated its forest reference level, the value as specified in Annex II shall continue to apply for the period 2021-2025 and/or 2026-2030.
Amendment    37 Proposal for a regulation Article 9 – paragraph 1 – introductory part
Text proposed by the Commission	Amendment
In accounts pursuant to Article 6(1) and 8(1) relating to harvested wood products, Member States shall reflect emissions and removals resulting from changes in the pool of harvested wood products falling within the following categories using the first order decay function, the methodologies and the default half-life values specified in Annex V:	Member States shall reflect emissions and removals resulting from changes in the pool of harvested wood products falling within the following categories using the first order decay function, the methodologies and the default half-life values specified in Annex V:
Amendment    38 Proposal for a regulation Article 9 – paragraph 1 a (new)
Text proposed by the Commission	Amendment
	Member States shall account for emissions and removals resulting from the changes in the pool of harvested wood products, as the total of emissions and removals for each of the years in the periods from 2021 to 2025 and from 2026 to 2030.
Justification
HWP is genuinely a result of human-induced/anthropogenic activity, and therefore HWP would be accounted similar manner as afforested land. This means that real changes in carbon stocks associated with HWP would be included into accounting.
Amendment    39 Proposal for a regulation Article 9 – paragraph 1 b (new)
Text proposed by the Commission	Amendment
	The Commission shall, by 31 December 2019, adopt a delegated act in accordance with Article 14 in order to update the categories in the pool of harvested wood products with additional products such as sustainable, innovative, bio-based products that have a positive substitution effect as well as the default half-life values specified in Annex V.
Justification
In order to better acknowledge the carbon storage of future innovative sustainable bio-based products in LULUCF accounting, the Commission should suggest additional categories for the Harvested Wood Products pool.
Amendment    40 Proposal for a regulation Article 10 – paragraph 4
Text proposed by the Commission	Amendment
4.  The Commission shall be empowered to adopt delegated acts in accordance with Article 14 to revise the methodology and information requirements in Annex VI in order to reflect changes in the IPCC Guidelines.	4.  The Commission shall be empowered to adopt delegated acts in accordance with Article 14 to revise the methodology and information requirements in Annex VI in order to reflect changes in the IPCC Guidelines, as adopted by bodies of the UNFCCC or of the Paris Agreement.
Amendment    41 Proposal for a regulation Article 11 – paragraph 1
Text proposed by the Commission	Amendment
1.  Where total emissions exceed removals in a Member State and that Member State has deleted annual emission allocations under Regulation [ ] on binding annual greenhouse gas emission reductions by Member States from 2021 to 2030 this quantity shall be taken into account for the Member State's compliance with its commitment pursuant to Article 4.	1.  Where total emissions exceed removals in a Member State and that Member State has chosen to delete annual emission allocations under Regulation No (EU) .../... on binding annual greenhouse gas emission reductions by Member States from 2021 to 2030, as one of the flexibility options this quantity shall be taken into account for the Member State's compliance with its commitment pursuant to Article 4.
Amendment    42 Proposal for a regulation Article 14 – paragraph 2
Text proposed by the Commission	Amendment
2.  The power to adopt delegated acts referred to in Article 3, 5, 8, 10 and 13 shall be conferred on the Commission for an indeterminate period of time from the [date of entry into force].	2.  The power to adopt delegated acts referred to in Article 3, 5, 8, 9, 10 and 13 shall be conferred on the Commission for an indeterminate period of time from the [date of entry into force].
Justification
Aligning the article with the amendment on Art.9.
Amendment    43 Proposal for a regulation Article 15 – paragraph 1
Text proposed by the Commission	Amendment
The Commission shall report to the European Parliament and to the Council by 28 February 2024 and every five years thereafter on the operation of this Regulation, its contribution to the EU's overall 2030 greenhouse gas emission reduction target and its contribution to the goals of the Paris Agreement, and may make proposals if appropriate.	In the light of the 2018 Facilitative Dialogue, the Commission shall report to the European Parliament and to the Council by 28 February 2019 on the adequacy of the level of ambition of this Regulation. The Commission shall report to the European Parliament and to the Council by 28 February 2023 and every three years thereafter on the operation of this Regulation, its contribution to the EU's overall 2030 greenhouse gas emission reduction target and its contribution to the goals of the Paris Agreement, with a view to keeping this Regulation in line with relevant decisions adopted by bodies of the UNFCCC or of the Paris Agreement, and shall make proposals.
Amendment    44 Proposal for a regulation Annex I – point B – point f
Text proposed by the Commission	Amendment
(f)  for afforested land and managed forest land: harvested wood products.	(f)  harvested wood products from both afforested land and managed forest land.
Justification
It is proposed to include HWP as a separate category, to exclude harvested wood products from the forest reference level and, thus a necessary modification to the text accordingly.
Amendment    45 Proposal for a regulation Annex II – table 2 – title
Text proposed by the Commission	Amendment
Member State forest reference levels including harvested wood products	Member State forest reference levels
Amendment    46 Proposal for a regulation Annex IV – part A – paragraph 1 – point c
Text proposed by the Commission	Amendment
(c)  Reference levels should ensure a robust and credible accounting, to guarantee that emissions and removals resulting from biomass use are properly accounted for;	(c)  Reference levels should ensure a robust and credible accounting, to guarantee that emissions and removals from managed forest land use are properly accounted for and that emissions are balanced towards removals;
Amendment    47 Proposal for a regulation Annex IV – part A – paragraph 1 – point d
Text proposed by the Commission	Amendment
(d)  Reference levels shall include the carbon pool of harvested wood products, providing a comparison between assuming instantaneous oxidation and applying the first-order decay function and half-life values;	deleted
Amendment    48 Proposal for a regulation Annex IV – part A – paragraph 1 – point e
Text proposed by the Commission	Amendment
(e)  Reference levels should take into account the objective of contributing to the conservation of biodiversity and the sustainable use of natural resources, as set out in the EU Forest Strategy, Member States' national forest policies, and the EU Biodiversity Strategy;	(e)  Reference levels should take into account the objective of contributing to the conservation of biodiversity and the sustainable use of natural resources for production of both energy and other fossil-based material substitution purposes, as set out in the Union’s Forest Strategy, Member States' national forest programmes and policies , and the Union’s Bioeconomy and Biodiversity Strategies; A Member State which has recently introduced or which wishes to introduce a new policy for forest management and exploitation resulting in an increase in wood harvesting shall not be penalised with debits under this Regulation, provided that that policy is proactive and sustainable and does not lead to a reduction in the long-term absorption capacity of the Member State’s forests.
Amendment    49 Proposal for a regulation Annex IV – part A – paragraph 1 – point g
Text proposed by the Commission	Amendment
(g)  Reference levels shall be consistent with greenhouse gas inventories and relevant historical data and shall be based on transparent, complete, consistent, comparable and accurate information. In particular, the model used to construct the reference level shall be able to reproduce historical data from the national greenhouse gas inventory.	(g)  Reference levels shall be consistent with greenhouse gas inventories and relevant historical data and shall be based on transparent, complete, consistent, comparable and accurate information. Greenhouse gas inventories shall be aligned with relevant decisions adopted by bodies of the UNFCCC or of the Paris Agreement. In particular, the model used to construct the reference level shall be able to reproduce historical data from the national greenhouse gas inventory.
Amendment    50 Proposal for a regulation Annex IV – part B – title
Text proposed by the Commission	Amendment
B.  Elements of the national forestry accounting plan	B.  Elements of the national forestry accounting report
Amendment    51 Proposal for a regulation Annex IV – part B – paragraph 1 – introductory part
Text proposed by the Commission	Amendment
The national forestry accounting plan submitted pursuant to Article 8 of this Regulation shall contain the following elements:	The national forestry accounting report submitted pursuant to Article 8 of this Regulation shall contain the following elements:
Amendment    52 Proposal for a regulation Annex IV – part B – paragraph 1 – point f – point 2
Text proposed by the Commission	Amendment
(2)  Emissions and removals from forests and harvested wood products as shown in greenhouse gas inventories and relevant historical data,	(2)  Emissions and removals from forests as shown in greenhouse gas inventories and relevant historical data,
Amendment    53 Proposal for a regulation Annex IV – part B – paragraph 1 – point f – point 3
Text proposed by the Commission	Amendment
(3)  Forest characteristics, including age-class structure, increments, rotation length and other information on forest management activities under ‘business as usual’;	(3)  Forest characteristics, including age-class structure, increments, rotation length and other relevant information on forest management activities

PROCEDURE – COMMITTEE ASKED FOR OPINION

Title	Inclusion of greenhouse gas emissions and removals from land use, land use change and forestry into the 2030 climate and energy framework and amending Regulation No 525/2013 of the European Parliament and the Council on a mechanism for monitoring and reporting greenhouse gas emissions and other information relevant to climate change
References	COM(2016)0479 – C8-0330/2016 – 2016/0230(COD)
Committee responsible        Date announced in plenary	ENVI 12.9.2016
Opinion by        Date announced in plenary	AGRI 12.9.2016
Rapporteur        Date appointed	Elisabeth Köstinger 30.8.2016
Discussed in committee	5.12.2016
Date adopted	30.5.2017
Result of final vote	+: –: 0:	20 13 3
Members present for the final vote	John Stuart Agnew, Clara Eugenia Aguilera García, Eric Andrieu, Daniel Buda, Matt Carthy, Viorica Dăncilă, Michel Dantin, Paolo De Castro, Albert Deß, Herbert Dorfmann, Norbert Erdős, Edouard Ferrand, Luke Ming Flanagan, Beata Gosiewska, Martin Häusling, Esther Herranz García, Jan Huitema, Peter Jahr, Ivan Jakovčić, Jarosław Kalinowski, Elisabeth Köstinger, Zbigniew Kuźmiuk, Philippe Loiseau, Ulrike Müller, Maria Noichl, Marijana Petir, Bronis Ropė, Maria Lidia Senra Rodríguez, Ricardo Serrão Santos, Tibor Szanyi, Marc Tarabella, Marco Zullo
Substitutes present for the final vote	Bas Belder, Franc Bogovič, Hannu Takkula
Substitutes under Rule 200(2) present for the final vote	Christofer Fjellner

FINAL VOTE BY ROLL CALL IN COMMITTEE ASKED FOR OPINION

20	+
PPE	Franc Bogovič, Daniel Buda, Michel Dantin, Albert Deß, Herbert Dorfmann, Norbert Erdős, Christofer Fjellner, Esther Herranz García, Peter Jahr, Jarosław Kalinowski, Elisabeth Köstinger, Marijana Petir
ECR	Bas Belder, Beata Gosiewska, Zbigniew Kuźmiuk
ALDE	Jan Huitema, Ulrike Müller, Hannu Takkula
ENF	Edouard Ferrand, Philippe Loiseau

13	-
S&D	Eric Andrieu, Viorica Dăncilă, Maria Noichl, Ricardo Serrão Santos, Tibor Szanyi, Marc Tarabella
ALDE	Ivan Jakovčić
GUE/NGL	Luke Ming Flanagan, Maria Lidia Senra Rodríguez
Verts/ALE	Martin Häusling, Bronis Ropė
EFDD	John Stuart Agnew, Marco Zullo

3	0
S&D	Clara Eugenia Aguilera García, Paolo De Castro
GUE/NGL	Matt Carthy

Key to symbols:

+  :  in favour

-  :  against

0  :  abstention

• [1]  Report on ‘A new EU Forest Strategy: for forests and the forest-based sector’ (2014/2223 (INI)), 7 April 2015

PROCEDURE – COMMITTEE RESPONSIBLE

Title	Inclusion of greenhouse gas emissions and removals from land use, land use change and forestry into the 2030 climate and energy framework and amending Regulation No 525/2013 of the European Parliament and the Council on a mechanism for monitoring and reporting greenhouse gas emissions and other information relevant to climate change
References	COM(2016)0479 – C8-0330/2016 – 2016/0230(COD)
Date submitted to Parliament	20.7.2016
Committee responsible        Date announced in plenary	ENVI 12.9.2016
Committees asked for opinions        Date announced in plenary	DEVE 12.9.2016	ITRE 12.9.2016	TRAN 12.9.2016	AGRI 12.9.2016
Not delivering opinions        Date of decision	TRAN 1.9.2016
Rapporteurs        Date appointed	Norbert Lins 28.9.2016
Discussed in committee	20.3.2017	25.4.2017
Date adopted	11.7.2017
Result of final vote	+: –: 0:	53 9 6
Members present for the final vote	Margrete Auken, Pilar Ayuso, Zoltán Balczó, Catherine Bearder, Ivo Belet, Biljana Borzan, Lynn Boylan, Paul Brannen, Nessa Childers, Alberto Cirio, Birgit Collin-Langen, Mireille D’Ornano, Miriam Dalli, Seb Dance, Angélique Delahaye, Stefan Eck, Bas Eickhout, José Inácio Faria, Karl-Heinz Florenz, Francesc Gambús, Elisabetta Gardini, Gerben-Jan Gerbrandy, Arne Gericke, Jens Gieseke, Julie Girling, Françoise Grossetête, Andrzej Grzyb, Jytte Guteland, Anneli Jäätteenmäki, Jean-François Jalkh, Benedek Jávor, Kateřina Konečná, Urszula Krupa, Giovanni La Via, Jo Leinen, Peter Liese, Norbert Lins, Rupert Matthews, Valentinas Mazuronis, Susanne Melior, Miroslav Mikolášik, Gilles Pargneaux, Piernicola Pedicini, Bolesław G. Piecha, Pavel Poc, Julia Reid, Frédérique Ries, Michèle Rivasi, Daciana Octavia Sârbu, Annie Schreijer-Pierik, Davor Škrlec, Renate Sommer, Claudiu Ciprian Tănăsescu, Ivica Tolić, Estefanía Torres Martínez, Adina-Ioana Vălean, Jadwiga Wiśniewska, Damiano Zoffoli
Substitutes present for the final vote	Luke Ming Flanagan, Elena Gentile, Krzysztof Hetman, Ulrike Müller, James Nicholson, Christel Schaldemose, Bart Staes, Tiemo Wölken
Substitutes under Rule 200(2) present for the final vote	Siôn Simon, Derek Vaughan
Date tabled	17.7.2017

FINAL VOTE BY ROLL CALL IN COMMITTEE RESPONSIBLE

53	+
ALDE	Catherine Bearder, Gerben-Jan Gerbrandy, Valentinas Mazuronis, Frédérique Ries
ECR	Arne Gericke, Julie Girling, Rupert Matthews, James Nicholson
EFDD	Piernicola Pedicini
GUE/NGL	Lynn Boylan, Stefan Eck, Luke Ming Flanagan, Kateřina Konečná, Estefanía Torres Martínez
NI:	Zoltán Balczó
PPE	Pilar Ayuso, Ivo Belet, Alberto Cirio, Birgit Collin-Langen, José Inácio Faria, Francesc Gambús, Jens Gieseke, Krzysztof Hetman, Peter Liese, Norbert Lins, Miroslav Mikolášik, Annie Schreijer-Pierik, Renate Sommer, Ivica Tolić, Adina-Ioana Vălean
S&D	Biljana Borzan, Paul Brannen, Nessa Childers, Miriam Dalli, Seb Dance, Elena Gentile, Jo Leinen, Susanne Melior, Gilles Pargneaux, Pavel Poc, Christel Schaldemose, Peter Simon, Daciana Octavia Sârbu, Claudiu Ciprian Tănăsescu, Derek Vaughan,Tiemo Wölken, Damiano Zoffoli
VERTS/ALE	Margrete Auken, Bas Eickhout, Benedek Jávor, Michèle Rivasi, Davor Škrlec, Bart Staes

9	-
ALDE	Anneli Jäätteenmäki, Ulrike Müller
EFDD	Julia Reid
ENF	Mireille D'Ornano, Jean-François Jalkh
PPE	Angélique Delahaye, Elisabetta Gardini, Françoise Grossetête, Giovanni La Via

6	0
ECR	Urszula Krupa, Bolesław G. Piecha, Jadwiga Wiśniewska
PPE	Karl-Heinz Florenz, Andrzej Grzyb
S&D	Jytte Guteland

Key to symbols:

+  :  in favour

-  :  against

0  :  abstention