REPORT on the proposal for a directive of the European Parliament and of the Council amending Directive 2003/87/EC so as to improve and extend the greenhouse gas emission allowance trading system of the Community
15.10.2008 - (COM(2008)0016 – C6‑0043/2008 – 2008/0013(COD)) - ***I
Committee on the Environment, Public Health and Food Safety
Rapporteur: Avril Doyle
Rapporteur for opinion (*):
Lena Ek, Committee on Industry, Research and Energy
(*) Associated committee - Rule 47 of the Rules of Procedure
- DRAFT EUROPEAN PARLIAMENT LEGISLATIVE RESOLUTION
- EXPLANATORY STATEMENT
- ANNEX - LIST OF SUBMISSIONS BY STAKEHOLDERS The list is not exhaustive
- OPINION of the Committee on Industry, Research and Energy (*)
- OPINION of the Committee on International Trade
- OPINION of the Committee on Economic and Monetary Affairs
- OPINION of the Committee on Regional Development
- PROCEDURE
DRAFT EUROPEAN PARLIAMENT LEGISLATIVE RESOLUTION
on the proposal for a directive of the European Parliament and of the Council amending Directive 2003/87/EC so as to improve and extend the greenhouse gas emission allowance trading system of the Community
(COM(2008)0016 – C6‑0043/2008 – 2008/0013(COD))
(Codecision procedure: first reading)
The European Parliament,
– having regard to the Commission proposal to the European Parliament and the Council (COM(2008)0016),
– having regard to Article 251(2) and Article 175(1) of the EC Treaty, pursuant to which the Commission submitted the proposal to Parliament (C6‑0043/2008),
– having regard to Rule 51 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 Industry, Research and Energy, the Committee on International Trade, the Committee on Economic and Monetary Affairs and the Committee on Regional Development (A6‑0406/2008),
1. Approves the Commission proposal as amended;
2. Calls on the Commission to refer the matter to Parliament again if it intends to amend the proposal substantially or replace it with another text;
3. Instructs its President to forward its position to the Council and Commission.
Amendment 1 Proposal for a directive – amending act Recital 2 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Text proposed by the Commission |
Amendment | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
(2) The ultimate objective of the United Nations Framework Convention on Climate Change, which was approved on behalf of the European Community by Council Decision 94/69/EC of 15 December 1993 concerning the conclusion of the United Nations Framework Convention on Climate Change (UNFCCC), is to stabilise greenhouse gas concentrations in the atmosphere at a level that would prevent dangerous anthropogenic interference with the climate system. In order to meet that objective, the overall global annual mean surface temperature increase should not exceed 2°C above pre-industrial levels. The latest Intergovernmental Panel on Climate Change Assessment (IPCC) report shows that, in order to reach that objective, global emissions of greenhouse gases must peak by 2020. This implies the increasing of efforts by the Community and the quick involvement of developed countries and encouraging the participation of developing countries in the emission reduction process. |
(2) The ultimate objective of the United Nations Framework Convention on Climate Change, which was approved on behalf of the European Community by Council Decision 94/69/EC of 15 December 1993 concerning the conclusion of the United Nations Framework Convention on Climate Change (UNFCCC), is to stabilise greenhouse gas concentrations in the atmosphere at a level that would prevent dangerous anthropogenic interference with the climate system. In order to meet that objective, the overall global annual mean surface temperature increase should not exceed 2°C above pre-industrial levels. The latest Intergovernmental Panel on Climate Change Assessment (IPCC) report shows that, in order to reach that objective, global emissions of greenhouse gases must peak by 2020. Recent scientific findings show that atmospheric concentration of carbon dioxide must be reduced to below 350 parts per million, which would imply a greenhouse gas emission reduction in the order of 60% by 2035. This implies the increasing of efforts by the Community and the quick involvement of developed and newly industrialised countries and encouraging the participation of developing countries in the emission reduction process. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Justification | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
As the climate situation is more serious than previously though the recent forum held in Tällberg, Sweden, with the participation of scientists from NASA and Stockholm Environment Institute suggest that we must reduce atmospheric CO2 to levels below 350 ppm (parts per million) in order to avoid catastrophic effects. Until recently, scientific consensus set the safe zone to avoid the worst effects of climate change at 450 ppm whereas new finding now show that the critical level starts already at 350 ppm. This would translate into a reduction of at least 60% GHG emissions by 2030 and 100% by 2050. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amendment 2 Proposal for a directive – amending act Recital 3 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Text proposed by the Commission |
Amendment | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
(3) The European Council has made a firm commitment to reduce the overall greenhouse gas emissions of the Community by at least 20% below 1990 levels by 2020, and by 30% provided that other developed countries commit themselves to comparable emission reductions and economically more advanced developing countries contribute adequately according to their responsibilities and respective capabilities. By 2050, global greenhouse gas emissions should be reduced by at least 50% below their 1990 levels. All sectors of the economy should contribute to achieving these emission reductions. |
(3) The European Council has made a firm commitment to reduce the overall greenhouse gas emissions of the Community by at least 20% below 1990 levels by 2020, and by 30% provided that other developed countries commit themselves to comparable emission reductions and economically more advanced developing countries contribute adequately according to their responsibilities and respective capabilities. By 2050, global greenhouse gas emissions should be reduced by at least 50% below their 1990 levels. All sectors of the economy should contribute to achieving these emission reductions, including shipping and aviation. Aviation is contributing to the 20% and 30% (provided that other developed countries and other major emitters of greenhouse gases participate in the future international agreement) reductions through its inclusion in the Community scheme. Until shipping is included in the Community scheme, emissions from shipping must be included in the Decision on the effort of Member States to meet the Community's greenhouse gas emission reduction commitments up to 2020. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Justification | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
For clarification purposes. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amendment 3 Proposal for a directive – amending act Recital 3 a (new) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Text proposed by the Commission |
Amendment | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
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(3a) In its resolution of 31 January 2008 on the outcome of the Bali Conference on Climate Change (COP 13 and COP/MOP 3), the European Parliament recalled its position that industrialised countries should commit to reducing their greenhouse gas emissions by at least 30% by 2020 and by 60-80% by 2050, compared to 1990 figures. Given that it anticipates a positive outcome to the COP 15 negotiations to be held in Copenhagen in 2009, the European Union should begin to prepare tougher emission reduction targets for 2020 and beyond and should seek to ensure that, after 2013, the Community scheme allows, if necessary, for more stringent emission caps, as part of the Union's contribution to a new international agreement. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Justification | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
It is important to stress Parliament's strong ambitions with regard to fighting climate change. The best way to accomplish this is through an international agreement, to be reached in Copenhagen by end 2009. This proposal should be seen as a proof of EU's strong commitment in this respect, but also as a signal that the EU is preparing for the tighter targets that will come with the new agreement. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amendment 4 Proposal for a directive – amending act Recital 10 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Text proposed by the Commission |
Amendment | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
(10) Where equivalent measures to reduce greenhouse gas emissions, in particular taxation, are in place for small installations whose emissions do not exceed a threshold of 10 000 tonnes of CO2 per year, there should be a procedure for enabling Member States to exclude such small installations from the emissions trading system for so long as those measures are applied. This threshold relatively offers the maximum gain in terms of reduction of administrative costs for each tonne excluded from the system, for reasons of administrative simplicity. As a consequence of the move from five-year allocation periods, and in order to increase certainty and predictability, provisions should be set on the frequency of revision of greenhouse gas emission permits. |
(10) Where equivalent measures to reduce greenhouse gas emissions, in particular taxation, are in place for small installations whose emissions do not exceed a threshold of 25 000 tonnes of CO2 per year, there should be a procedure for enabling Member States to exclude at the request of the operator such small installations from the emissions trading system for so long as those measures are applied. Hospitals may also be excluded if they undertake equivalent measures. This threshold is the economically most advantageous option and offers the maximum gain in terms of reduction of administrative costs for each tonne excluded from the system. As a consequence of the move from five-year allocation periods, and in order to increase certainty and predictability, provisions should be laid down on the frequency of revision of greenhouse gas emission permits. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amendment 5 Proposal for a directive – amending act Recital 12 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Text proposed by the Commission |
Amendment | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
(12) This contribution is equivalent to a reduction of emissions in 2020 in the Community scheme of 21% below reported 2005 levels, including the effect of the increased scope from the period 2005 to 2007 to the period 2008 to 2012 and the 2005 emission figures for the trading sector used for the assessment of the Bulgarian and Romanian national allocation plan for the period 2008 to 2012, leading to an issue of a maximum of 1 720 million allowances in the year 2020. Exact quantities of emissions will be calculated once Member States have issued allowances pursuant to Commission Decisions on their national allocation plans for the period 2008 to 2012, as the approval of allocations to some installations was contingent upon their emissions having been substantiated and verified. Once the issue of allowances for the period 2008 to 2012 has taken place, the Commission will publish the Community-wide quantity. Adjustments should be made to the Community-wide quantity in relation to installations which are included in the Community scheme during the period 2008 to 2012 or from 2013 onwards. |
(12) This contribution is equivalent to a reduction of emissions in 2020 in the Community scheme of 21% below reported 2005 levels, including the effect of the increased scope from the period 2005 to 2007 to the period 2008 to 2012 and the 2005 emission figures for the trading sector used for the assessment of the Bulgarian and Romanian national allocation plan for the period 2008 to 2012, leading to an issue of a maximum of 1 720 million allowances in the year 2020. Exact quantities of emissions will be calculated once Member States have issued allowances pursuant to Commission Decisions on their national allocation plans for the period 2008 to 2012, as the approval of allocations to some installations was contingent upon their emissions having been substantiated and verified. Once the issue of allowances for the period 2008 to 2012 has taken place, the Commission will publish the Community-wide quantity. Adjustments should be made to the Community-wide quantity in relation to installations which are included in or excluded from the Community scheme during the period 2008 to 2012 or from 2013 onwards. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Justification | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Not only upward adjustments need to take place. It is important to reduce the total amount of allowances when installations are excluded from EU ETS in order to avoid a relaxation of the cap for the remaining installations. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amendment 6 Proposal for a directive – amending act Recital 14 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Text proposed by the Commission |
Amendment | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
(14) All Member States will need to make substantial investments to reduce the carbon intensity of their economies by 2020 and those Member States where income per capita is still significantly below the Community average and whose economies are in the process of catching up with the richer Member States will need to make a significant effort to improve energy efficiency. The objectives of eliminating distortions to intra-Community competition and of ensuring the highest degree of economic efficiency in the transformation of the EU economy towards a low carbon economy make it inappropriate to treat economic sectors differently under the Community scheme in individual Member States. It is therefore necessary to develop other mechanisms to support the efforts of those Member States with relatively lower income per capita and higher growth prospects. 90% of the total quantity of allowances to be auctioned should be distributed amongst Member States according to their relative share of 2005 emissions in the Community scheme. 10% of this quantity should be distributed to the benefit of those Member States for the purpose of solidarity and growth in the Community, to be used to reduce emissions and adapt to the effects of climate change. This distribution of this 10% should take into account levels of income per capita in the year 2005 and the growth prospects of Member States, and be higher for Member States with low income levels per head and high growth prospects. Member States with an average level of income per capita that is more than 20% higher than the average in the Community should contribute to this distribution, except where the direct costs of the overall package estimated in SEC(2008) 85 exceed 0.7% of GDP. |
(14) All Member States will need to make substantial investments to reduce the carbon intensity of their economies by 2020 and those Member States where income per capita is still significantly below the Community average and whose economies are in the process of catching up with the richer Member States will need to make a significant effort to improve energy efficiency. The objectives of eliminating distortions to intra-Community competition and of ensuring the highest degree of economic efficiency in the transformation of the EU economy towards a low carbon economy make it inappropriate to treat economic sectors differently under the Community scheme in individual Member States. It is therefore necessary to develop other mechanisms to support the efforts of those Member States with relatively lower income per capita and higher growth prospects. 90% of the total quantity of allowances to be auctioned should be distributed amongst Member States according to their relative share of emissions from 2005 to 2007. 10% of this quantity should be distributed to the benefit of those Member States for the purpose of solidarity and growth in the Community, to be used to reduce emissions and adapt to the effects of climate change. This distribution of this 10% should take into account levels of income per capita in the year 2005 and the growth prospects of Member States, and be higher for Member States with low income levels per head and high growth prospects. Member States with an average level of income per capita that is more than 20% higher than the average in the Community should contribute to this distribution, except where the direct costs of the overall package estimated in SEC(2008) 85 exceed 0.7% of GDP. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Justification | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Instead of using data for an individual year, the distribution of emission allowances should be calculated on the basis of average values for at least two years. The quantities of emissions from one year to the next can also vary for natural reasons: this implies that a period, rather than a year, should be taken as the reference point. The Commission proposal states, moreover, that the Commission would be willing to factor the 2006 emission figures into the comparison once they have become available. It is important to bear in mind that a calculation base covering several years will not alter the Community’s emission allowances as a whole. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amendment 7 Proposal for a directive – amending act Recital 15 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Text proposed by the Commission |
Amendment | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
(15) Given the considerable efforts of combating climate change and of adapting to its inevitable effects, it is appropriate that at least 20% of the proceeds from the auctioning of allowances should be used to reduce greenhouse gas emissions, to adapt to the impacts of climate change, to fund research and development for reducing emissions and adaptation, to develop renewable energies to meet the EU’s commitment to using 20% renewable energies by 2020, to meet the commitment of the Community to increase energy efficiency by 20% by 2020, for the capture and geological storage of greenhouse gases, to contribute to the Global Energy Efficiency and Renewable Energy Fund, for measures to avoid deforestation and facilitate adaptation in developing countries, and for addressing social aspects such as possible increases in electricity prices in lower and middle income households. This proportion is significantly below the expected net revenues for public authorities from auctioning, taking into account potentially reduced income from corporate taxes. In addition, proceeds from auctioning of allowances should be used to cover administrative expenses of the management of the Community scheme. Provisions should be included on monitoring the use of funds from auctioning for these purposes. Such notification does not release Member States from the obligation laid down in Article 88(3) of the Treaty, to notify certain national measures. The Directive does not prejudice the outcome of any future State aid procedures that may be undertaken in accordance with Articles 87 and 88 of the Treaty. |
(15) Given the considerable efforts of combating climate change and of adapting to its inevitable effects, it is appropriate that 50% of the proceeds from the auctioning of allowances should be used in a dedicated international fund to reduce greenhouse gas emissions, to adapt to the impacts of climate change, and to fund research and development for reducing emissions and adaptation in developing countries that have ratified the international agreement. The remaining revenues from auctioning should be used to address climate change issues in the European Union, inter alia to reduce greenhouse gas emissions, to adapt to the impacts of climate change, to fund research and development for reducing emissions and adaptation, to develop renewable energies to meet the EU’s commitment to using 20% renewable energies by 2020, to meet the commitment of the Community to increase energy efficiency by 20% by 2020, for the capture and geological storage of greenhouse gases, to contribute to the Global Energy Efficiency and Renewable Energy Fund, for measures to avoid deforestation and for addressing social aspects such as energy poverty. In addition, proceeds from auctioning of allowances should be used to cover administrative expenses of the management of the Community scheme. Provisions should be included on monitoring the use of funds from auctioning for these purposes. Such notification does not release Member States from the obligation laid down in Article 88(3) of the Treaty, to notify certain national measures. The Directive does not prejudice the outcome of any future State aid procedures that may be undertaken in accordance with Articles 87 and 88 of the Treaty. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Amendment 8 Proposal for a directive – amending act Recital 15 a (new) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Text proposed by the Commission |
Amendment | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
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(15a) Given the magnitude and speed of global deforestation, it is essential that revenues from auctioning in the Community scheme be used to reduce deforestation and increase sustainable afforestation and reforestation. In addition, the EU should work to establish an internationally recognised system for reducing deforestation and increasing afforestation and reforestation. Revenues should be contributed by Member States to a dedicated fund to be effectively disbursed for this and other purposes internationally. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amendment 9 Proposal for a directive – amending act Recital 15 b (new) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Text proposed by the Commission |
Amendment | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
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(15b) Given that the auctioning revenues earmarked for deforestation, afforestation and reforestation will not suffice to halt worldwide deforestation, additional measures may be needed. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Justification | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Need to be realistic and do not pretend to solve the abovementioned problems with 20% of the auctioning revenues. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amendment 10 Proposal for a directive – amending act Recital 15 c (new) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Text proposed by the Commission |
Amendment | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
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(15c) In order to promote an equitable and cost effective distribution of projects in third countries and the dissemination of best practice concerning all activities mentioned in recital 15, mechanisms should be set up to ensure effective information sharing regarding projects undertaken by different Member States. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Justification | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
It is important that Member State projects intended to meet obligations under Article 10(3) are well coordinated so as to ensure funds are directed towards the most necessary and effective projects and that duplication is avoided. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amendment 11 Proposal for a directive – amending act Recital 16 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Text proposed by the Commission |
Amendment | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
(16) Consequently, full auctioning should be the rule from 2013 onwards for the power sector, taking into account their ability to pass on the increased cost of CO2, and no free allocation should be given for carbon capture and storage as the incentive for this arises from allowances not being required to be surrendered in respect of emissions which are stored. Electricity generators may receive free allowances for heat produced through high efficiency cogeneration as defined by Directive 2004/8/EC in the event that such heat produced by installations in other sectors were to be given free allocations, in order to avoid distortions of competition. |
(16) Consequently, full auctioning should be the rule from 2013 onwards for the power sector, taking into account their ability to pass on the increased cost of CO2. Electricity generators should receive free allowances for district heating, and for heat produced through high efficiency cogeneration as defined by Directive 2004/8/EC in respect of the production of heating and cooling, up to the level of the best available technologies, and electricity produced either in connection with industrial heat through high efficiency cogeneration as defined by Directive 2004/8/EC or from residues from an industrial process using best available technologies, provided that it is produced for the own consumption of the operators of the installations; all of these should receive allocation under the same principles as applied to that industrial activity as mentioned in Annex I to Directive 2003/87/EC. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amendment 12 Proposal for a directive – amending act Recital 16 a (new) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Text proposed by the Commission |
Amendment | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
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(16a) The main long-term incentive for carbon capture and storage and new renewable technologies is that allowances will not need to be surrendered for C02 emissions from power generation which are permanently stored, or avoided. In addition, to accelerate deployment of the first commercial facilities, auction revenues should be used and allowances should be set aside from the new entrants reserve to finance a guaranteed reward for CO2 tonnes stored or avoided for the first such facilities in the EU or any third country that has ratified the future international agreement on climate change provided there is an agreement on sharing intellectual property rights for the technology. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Justification | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
New renewable technologies that have not been commercially tested are incorporated in the extra financing mechanism. 180 GW of new wind power capacity by end 2020 would avoid an amount of emissions which corresponds to 70% of the proposed 21% ETS reduction target. Supporting new large scale innovations in the field of renewables present real opportunities for kick-starting technologies that will make a significant contribution to achieving the targets both in EU and globally. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amendment 13 Proposal for a directive – amending act Recital 16 b (new) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Text proposed by the Commission |
Amendment | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
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(16b) In order to ensure an orderly functioning of the carbon and electricity markets, the auctioning of allowances for the period from 2013 onwards should start by 2011 at the latest and be based on clear and objective principles defined well in advance. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Justification | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
It is essential that the carbon market functions timely, effectively and with sufficient liquidity in order to support the efficient operation of the electricity market. Since this market is characterized by forward contracts, the actual auctioning should start to take place well in advance of the period. Furthermore, the auctioning principles and detailed design provisions should be publicized well in advance in order to allow companies to optimise bid strategies. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amendment 14 Proposal for a directive – amending act Recital 18 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Text proposed by the Commission |
Amendment | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
(18) Transitional free allocation to installations should be provided for through harmonised Community-wide rules ("benchmarks") in order to minimise distortions of competition with the Community. These rules should take account of the most greenhouse gas and energy efficient techniques, substitutes, alternative production processes, use of biomass, renewables and greenhouse gas capture and storage. Any such rules should not give incentives to increase emissions and ensure that an increasing proportion of these allowances is auctioned. Allocations must be fixed prior to the trading period so as to enable the market to function properly. They shall also avoid undue distortions of competition on the markets for electricity and heat supplied to industrial installations. These rules should apply to new entrants carrying out the same activities as existing installations receiving transitional free allocations. To avoid any distortion of competition within the internal market, no free allocation should be made in respect of the production of electricity by new entrants. Allowances which remain in the set-aside for new entrants in 2020 should be auctioned. |
(18) Transitional free allocation to installations should be provided for through harmonised Community-wide rules in the form of ex ante sector specific benchmarks in order to minimise distortions of competition within the Community. These rules should be based on the most greenhouse gas and energy efficient techniques and technologies, substitutes, alternative production processes, use of biomass, renewables and greenhouse gas capture and storage and take into account potential, including the technical potential, to reduce emissions. Any such rules should not give incentives to increase emissions overall or per unit of production. They should ensure that an increasing proportion of these allowances is auctioned. For each sector, the benchmark should be calculated on the final product to maximise greenhouse gas emission and energy efficiency savings throughout the production process of the sector concerned. Allocations must be fixed prior to the trading period so as to enable the market to function properly. They shall also avoid undue distortions of competition on the markets for electricity and heat supplied to industrial installations. These rules should apply to new entrants carrying out the same activities as existing installations receiving transitional free allocations. A new entrant means an installation which has obtained a greenhouse gas emission permit subsequent to the submission to the Commission of the list referred to in Article 11(1), or an update of its greenhouse gas emission permit because of an extension of at least 20% in the installation's capacity or a significant change in its nature and functioning. In defining the principles for setting ex ante benchmarks in individual sectors, the Commission should consult the sectors concerned. To avoid any distortion of competition within the internal market, no free allocation should be made in respect of the production of electricity by new entrants. Allowances which remain in the set-aside for new entrants in 2020 should be auctioned. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amendment 15 Proposal for a directive – amending act Recital 19 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Text proposed by the Commission |
Amendment | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
(19) The Community will continue to take the lead in the negotiation of an ambitious international agreement that will achieve the objective of limiting global temperature increase to 2°C and is encouraged by the progress made in Bali towards this objective. In the event that other developed countries and other major emitters of greenhouse gases do not participate in this international agreement, this could lead to an increase in greenhouse gas emissions in third countries where industry would not be subject to comparable carbon constraints (“carbon leakage”), and at the same time could put certain energy-intensive sectors and sub-sectors in the Community which are subject to international competition at an economic disadvantage. This could undermine the environmental integrity and benefit of actions by the Community. To address the risk of carbon leakage, the Community will allocate allowances free of charge up to 100% to sectors or sub-sectors meeting the relevant criteria. The definition of these sectors and sub-sectors and the measures required will be subject to re-assessment to ensure that action is taken where necessary and to avoid overcompensation. For those specific sectors or sub-sectors where it can be duly substantiated that the risk of carbon leakage cannot be prevented otherwise, where electricity constitutes a high proportion of production costs and is produced efficiently, the action taken may take into account the electricity consumption in the production process, without changing the total quantity of allowances. |
(19) The Community will continue to take the lead in the negotiation of an ambitious international agreement and/or international sectoral agreements that will achieve the objective of limiting global temperature increase to 2°C and is encouraged by the progress made in Bali as Kyoto Protocol Annex I countries signed up to greenhouse gas emission reductions in the range of 25-40% by 2020 compared to 1990. To maintain the lead in that group of countries, the EU will need to reduce greenhouse gas emissions in the upper end of that range. In the event that other developed countries and other major emitters of greenhouse gases do not participate in such international agreements, this could lead to an increase in greenhouse gas emissions from less carbon efficient installations in third countries where industry would not be subject to comparable carbon constraints (“carbon leakage”), and at the same time could put certain energy-intensive sectors and sub-sectors in the Community which are subject to international competition at an economic disadvantage. This could undermine the environmental integrity and benefit of actions by the Community. To address the risk of carbon leakage, the Commission should support the setting up of global sectoral agreements and, where such agreements do not prove possible, the Community will allocate allowances free of charge up to 100% to sub-sectors or installations meeting the relevant criteria. The definition of these sub-sectors and installations and the measures required will be subject to re-assessment to ensure that action is taken where necessary and to avoid overcompensation. For those specific sub-sectors and installations where it can be duly substantiated that the risk of carbon leakage cannot be prevented otherwise, where electricity constitutes a high proportion of production costs and is produced efficiently, the action taken may take into account the electricity consumption in the production process, without changing the total quantity of allowances. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amendment 16 Proposal for a directive – amending act Recital 20 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Text proposed by the Commission |
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(20) The Commission should therefore review the situation by June 2011 at the latest, consult with all relevant social partners, and, in the light of the outcome of the international negotiations, submit a report accompanied by any appropriate proposals. In this context, the Commission should identify which energy intensive industry sectors or sub-sectors are likely to be subject to carbon leakage not later than 30 June 2010. It should base its analysis on the assessment of the inability to pass on the cost of required allowances in product prices without significant loss of market share to installations outside the Community not taking comparable action to reduce emissions. Energy-intensive industries which are determined to be exposed to a significant risk of carbon leakage could receive a higher amount of free allocation or an effective carbon equalisation system could be introduced with a view to putting installations from the Community which are at significant risk of carbon leakage and those from third countries on a comparable footing. Such a system could apply requirements to importers that would be no less favourable than those applicable to installations within the EU, for example by requiring the surrender of allowances. Any action taken would need to be in conformity with the principles of the UNFCCC, in particular the principle of common but differentiated responsibilities and respective capabilities, taking into account the particular situation of Least Developed Countries. It would also need to be in conformity with the international obligations of the Community including the WTO agreement. |
(20) The Commission should therefore review the situation by June 2010 at the latest, consult with all relevant social partners, and, in the light of the outcome of the international negotiations, submit a report accompanied by any appropriate proposals. In this context, the Commission should at the same time identify which energy intensive industry sectors or sub-sectors are likely to be subject to carbon leakage. It should base its analysis on the assessment of the inability to pass on the increased cost of required allowances in product prices due only to the provisions in this Directive without significant loss of market share to installations outside the Community not taking comparable action to reduce emissions. Energy-intensive industries which are determined to be exposed to a significant risk of carbon leakage could receive a higher amount of free allocation or an effective carbon equalisation system could be introduced with a view to putting installations from the Community which are at significant risk of carbon leakage and those from third countries on a comparable footing. Such a system could apply requirements to importers that would be no less favourable than those applicable to installations within the EU, for example by requiring the surrender of allowances. Any action taken would need to be in conformity with the principles of the UNFCCC, in particular the principle of common but differentiated responsibilities and respective capabilities, taking into account the particular situation of Least Developed Countries. It would also need to be in conformity with the international obligations of the Community including the WTO agreement. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amendment 17 Proposal for a directive – amending act Recital 21 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Text proposed by the Commission |
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(21) In order to ensure equal conditions of competition within the Community, the use of credits for emission reductions outside the Community to be used by operators within the Community scheme should be harmonised. The Kyoto Protocol to the UNFCCC sets out quantified emission targets for developed countries for the period 2008 to 2012, and provides for the creation of Certified Emission Reductions (CERs) and Emission Reduction Units (ERUs) from Clean Development Mechanism (CDM) and Joint Implementation projects respectively and their use by developed countries to meet part of these targets. While the Kyoto framework does not enable ERUs to be created from 2013 onwards without new quantified emission targets being in place for host countries, CDM credits can potentially continue to be generated. Additional use of Certified Emission Reductions (CERs) and Emission Reduction Units (ERUs) should be provided for once there is an international agreement on climate change, from countries which have concluded that agreement. In the absence of such agreement, providing for further use of CERs and ERUs would undermine this incentive and make it more difficult to achieve the objectives of the Community on increasing renewable energy use. The use of CERs and ERUs should be consistent with the goal set by the Community of generating 20% of energy from renewable sources by 2020, and promoting energy efficiency, innovation and technological development. Where it is consistent with achieving these goals, the possibility should be foreseen to conclude agreements with third countries to provide incentives for reductions in emissions in these countries which bring about real, additional reductions in greenhouse gas emissions while stimulating innovation by companies established within the Community and technological development in third countries. Such agreements may be ratified by more than one country. Upon the conclusion by the Community of a satisfactory international agreement, access to credits from projects in third countries should be increased simultaneously with the increase in the level of emission reductions to be achieved through the Community scheme. |
(21) In order to ensure equal conditions of competition within the Community, the use of credits for emission reductions outside the Community to be used by operators within the Community scheme should be harmonised. The Kyoto Protocol to the UNFCCC sets out quantified emission targets for developed countries for the period 2008 to 2012, and provides for the creation of Certified Emission Reductions (CERs) and Emission Reduction Units (ERUs) from Clean Development Mechanism (CDM) and Joint Implementation projects respectively and their use by developed countries to meet part of these targets. While the Kyoto framework does not enable ERUs to be created from 2013 onwards without new quantified emission targets being in place for host countries, CDM credits can potentially continue to be generated. Additional use of Certified Emission Reductions (CERs) and Emission Reduction Units (ERUs) should be provided for once there is an international agreement on climate change, from countries which have concluded that agreement. CER and ERU projects approved under a future international agreement on climate change should support environmental and social sustainability, demonstrate an environmental benefit, avoid carbon leakage and include a transparent mechanism of validation and verification. In the absence of such agreement, providing for further use of CERs and ERUs would undermine this incentive and make it more difficult to achieve the objectives of the Community on increasing renewable energy use. The use of CERs and ERUs should be consistent with the goal set by the Community of generating 20% of energy from renewable sources by 2020, and promoting energy efficiency, innovation and technological development. Where it is consistent with achieving these goals, the possibility should be foreseen to conclude agreements with third countries to provide incentives for reductions in emissions in these countries which bring about real, additional reductions in greenhouse gas emissions while stimulating innovation by companies established within the Community and technological development in third countries. Such agreements may be ratified by more than one country. Upon the conclusion by the Community of a satisfactory international agreement, access to credits from projects in third countries should be increased simultaneously with the increase in the level of emission reductions to be achieved through the Community scheme. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Justification | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
CDM and JI projects approved following a future international agreement on climate change should be of a high quality and able to demonstrate an environmental and social benefit. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amendment 18 Proposal for a directive – amending act Recital 22 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Text proposed by the Commission |
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(22) In order to provide predictability, operators should be given certainty about their potential after 2012 to use CERs and ERUs up to the remainder of the level which they were allowed to use in the period 2008 to 2012, from project types which were accepted by all Member States in the Community scheme during the period 2008 to 2012. As carry-over by Member States of CERs and ERUs held by operators between commitments periods under international agreements (‘banking’ of CERs and ERUs) cannot take place before 2015, and only if Member States choose to allow the banking of those CERs and ERUs within the context of limited rights to bank such credits, this certainty should be given by requiring Member States to allow operators to exchange such CERs and ERUs issued in respect of emission reductions before 2012 for allowances valid from 2013 onwards. However, as Member States should not be obliged to accept CERs and ERUs which it is not certain they will be able to use towards their existing international commitments, this requirement should not extend beyond 31 December 2014. Operators should be given the same certainty concerning such CERs issued from projects that have been established before 2013 in respect of emission reductions from 2013 onwards. |
(22) The Community scheme and other countries' emissions trading systems should facilitate demand for credits from real, verifiable, additional and permanent emission reductions from projects in countries contributing constructively to tackling climate change. Once countries have ratified the international agreement on climate change, such credits from those countries should be acceptable for all emission trading systems. In order to provide predictability, operators should be given certainty about their potential after 2012 to use high quality CERs and high quality ERUs that incentivise the linking of trading systems. Operators should be allowed to use such credits up to an average of 4% of their emissions, during the period from 2013 to 2020, provided they use less than 6,5% of ERUs and CERs compared to their 2005 emissions during each year of the 2008 - 2020 period and they do not carry over entitlements under Article 11a(2) of Directive 2003/87/EC. This system should ensure that over the period 2008 - 2020 up to 40% of the effort can be achieved through the use of CERs and ERUs. As carry-over by Member States of CERs and ERUs held by operators between commitment periods under international agreements (‘banking’ of CERs and ERUs) cannot take place before 2015, and only if Member States choose to allow the banking of those CERs and ERUs within the context of limited rights to bank such credits, this certainty should be given by requiring Member States to allow operators to exchange such CERs and ERUs issued in respect of emission reductions before 2012 for allowances valid from 2013 onwards. However, as Member States should not be obliged to accept CERs and ERUs which it is not certain they will be able to use towards their existing international commitments, this requirement should not extend beyond 31 December 2014. Operators should be given the same certainty concerning such CERs issued from projects that have been established before 2013 in respect of emission reductions from 2013 onwards. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amendment 19 Proposal for a directive – amending act Recital 23 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Text proposed by the Commission |
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(23) In the event that the conclusion of an international agreement is delayed, the possibility should be foreseen for using credits from high quality projects in the Community trading system through agreements with third countries. Such agreements, which may be bilateral or multilateral, could enable projects to continue to be recognised in the Community scheme that generated ERUs until 2012 but are not longer able to do so under the Kyoto framework. |
(23) In the event that the conclusion of an international agreement is delayed, the possibility should be foreseen for using credits from high quality projects in the Community trading system through agreements with third countries. Such agreements, which may be bilateral or multilateral, could enable projects to continue to be recognised in the Community scheme that generated ERUs until 2012 but are no longer able to do so under the Kyoto framework. Such projects should support environmental and social sustainability, demonstrate an environmental benefit, avoid carbon leakage and include a transparent mechanism of validation and verification. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Justification | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Projects agreed with third countries in the absence of a future international agreement on climate change should be of high quality and able to demonstrate an environmental and social benefit. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amendment 20 Proposal for a directive – amending act Recital 24 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Text proposed by the Commission |
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(24) Least Developed Countries are especially vulnerable to the effects of climate change, and are responsible only for a very low level of greenhouse gas emissions. Therefore, particular priority should be given to addressing the needs of Least Developed Countries when revenues generated from auctioning are used to facilitate developing countries' adaptation to the impacts of climate change. Given that very few CDM projects have been established in those countries, it is appropriate to give certainty on the acceptance of credits from projects started there after 2012, even in the absence of an international agreement. This entitlement should apply to Least Developed Countries until 2020 provided that they have by then either ratified a global agreement on climate change or a bilateral or multilateral agreement with the Community. |
(24) Least Developed Countries are especially vulnerable to the effects of climate change, and are responsible only for a very low level of greenhouse gas emissions. Therefore, particular priority should be given to addressing the needs of Least Developed Countries when revenues generated from auctioning are used to facilitate developing countries' adaptation to the impacts of climate change. Given that very few CDM projects have been established in those countries, it is appropriate to give certainty on the acceptance of credits from projects started there after 2012, even in the absence of an international agreement, when these projects are clearly additional and contribute to sustainable development. This entitlement should apply to Least Developed Countries until 2020 provided that they have by then either ratified a global agreement on climate change or a bilateral or multilateral agreement with the Community | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amendment 21 Proposal for a directive – amending act Recital 25 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Text proposed by the Commission |
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(25) Once a future international agreement on climate change has been reached, CDM credits from third countries should only be accepted in the Community scheme once those countries have ratified the international agreement. |
(25) Once a future international agreement on climate change has been ratified by the Community, additional credits up to half of the additional reduction taking place in the Community scheme may be used, and high quality CDM credits from third countries should only be accepted in the Community scheme once those countries have ratified the international agreement. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amendment 22 Proposal for a directive – amending act Recital 31 a (new) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Text proposed by the Commission |
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(31a) Third countries neighbouring the Union should be encouraged to join the Community scheme if they comply with this Directive. The Commission should make every effort in negotiations with, and in the provision of financial and technical assistance to, candidate countries and potential candidate countries and countries covered by the European neighbourhood policy to promote this aim. This would facilitate technology and knowledge transfer to these countries, which is an important means of providing economic, environmental and social benefits to all. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Justification | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
It is vital to encourage third countries bordering the EU to join the EU ETS. This is not only important from an environmental and development point of view, but will also address the issue of carbon leakage by EU companies moving over the border. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amendment 23 Proposal for a directive – amending act Recital 33 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Text proposed by the Commission |
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(33) [As regards the approach to allocation, aviation should be treated as other industries which receive transitional free allocation rather than as electricity generators. This means that 80% of allowances should be allocated for free in 2013, and thereafter the free allocation to aviation should decrease each year by equal amounts resulting in no free allocation in 2020. The Community and its Member States should continue to seek to reach an agreement on global measures to reduce greenhouse gas emissions from aviation and review the situation of this sector as part of the next review of the Community scheme.] |
(33) [As regards the approach to allocation, aviation should be treated as other industries which receive transitional free allocation rather than as electricity generators. The Community and its Member States should continue to seek to reach an agreement on global measures to reduce greenhouse gas emissions from aviation and review the situation of this sector as part of the next review of the Community scheme.] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Justification | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Aviation falls under all other sectors, for which exposure to the risk of carbon leakage needs to be determined, in case no international agreement is reached. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amendment 24 Proposal for a directive – amending act Recital 33 a (new) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Text proposed by the Commission |
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(33a) It is important that the scheme be extended in the future so as to include other significant emitters of greenhouse gases, especially in the transport sector, such as shipping operators, and possibly also the mining and waste sectors. With that aim in view, the Commission should, as soon as possible, propose appropriate amendments, accompanied by an impact assessment, with a view to incorporating the shipping sector into the Community scheme by 2013 and setting a date for the inclusion of road transport. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Justification | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Road transport and shipping should be incorporated into the EU ETS, as should, possibly, the mining and waste sectors. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amendment 25 Proposal for a directive – amending act Recital 33 b (new) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Text proposed by the Commission |
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(33b) In order to ensure a level playing field on the internal market, the Commission should, if appropriate, issue guidelines or present proposals with a view to harmonising further the application of this Directive, for example regarding the definitions, charges and penalties. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Justification | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
To provide more legal certainty and to create a true level playing field in the EU, further harmonization could be envisaged, for example regarding definitions (closure) and fees and penalties put in place by Member States. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amendment 26 Proposal for a directive – amending act Recital 34 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Text proposed by the Commission |
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(34) The measures necessary for the implementation of this Directive should be adopted in accordance with Council Decision 1999/468/EC of 28 June 1999 laying down the procedures for the exercise of implementing powers conferred on the Commission. In particular power should be conferred on the Commission to adopt measures for the auctioning of allowances, for transitional Community-wide allocation of allowances, for the monitoring, reporting and verification of emissions, for the accreditation of verifiers and for implementing harmonised rules for projects. Since those measures are of general scope and are designed to amend non-essential elements of this Directive and to supplement this Directive by the addition or modification of new non-essential elements, they should be adopted in accordance with the regulatory procedure with scrutiny provided for in Article 5a of Decision 1999/468/EC. |
(34) The measures necessary for the implementation of this Directive should be adopted in accordance with Council Decision 1999/468/EC of 28 June 1999 laying down the procedures for the exercise of implementing powers conferred on the Commission. In particular power should be conferred on the Commission to adopt measures for the auctioning of allowances, for transitional Community-wide allocation of allowances, for the monitoring, reporting and verification of emissions, for the harmonisation of rules on the definition of new entrant, for the accreditation of verifiers and for implementing harmonised rules for projects. Since those measures are of general scope and are designed to amend non-essential elements of this Directive and to supplement this Directive by the addition or modification of new non-essential elements, they should be adopted in accordance with the regulatory procedure with scrutiny provided for in Article 5a of Decision 1999/468/EC. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amendment 27 Proposal for a directive – amending act Recital 34 a (new) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Text proposed by the Commission |
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(34a) Information on the application of this Directive should be easily accessible, in particular for small- and medium-sized enterprises (SMEs). In order to help undertakings, and in particular SMEs, to comply with the requirements of this Directive, Member States should establish national helpdesks. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Justification | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Incorporated in the report without vote on the basis of Rule 47. Many of the companies that are covered by the EU ETS are SMEs, that lack sufficient resources and that might be at a disadvantage compared to big companies in acquiring allowances through auctioning and trading. The least that could be done is supplying them with easily accessible information on the detailed requirements. The best practical solution to do so vary from one Member States to the other, depending on the specific institutional framework in place, as was done in the REACH Directive. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amendment 28 Proposal for a directive – amending act Article 1 – point 1 Directive 2003/87/EC Article 1 - new paragraph | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Amendment 29 Proposal for a directive – amending act Article 1 – point 2 – point (b) Directive 2003/87/EC Article 3 – point (h) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Amendment 30 Proposal for a directive – amending act Article 1 – point 2 – point (c) Directive 2003/87/EC Article 3 – point [(v)] (new) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Amendment 31 Proposal for a directive – amending act Article 1 – point 2 a (new) Directive 2003/87/EC Article 3 c – paragraph 2 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Amendment 32 Proposal for a directive – amending act Article 1 – point 2 b (new) Directive 2003/87/EC Article 3 d – paragraph 2 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Justification | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Corresponds to the agreement of Council and Parliament on including aviation in the Emissions Trading Scheme. The agreement says that the amount of auctioning may be increased as part of the general review. The authors of the amendment referred to this possibility and support the idea that the European Commission raised in the general review. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amendment 33 Proposal for a directive – amending act Article 1 – point 2 a (new) Directive 2003/87/EC Article 4 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Justification | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
This is a technical change to Directive 2003/87/EC to an article that was not amended by the Commission's proposal. It clarifies that exemptions granted to small installations under Article 27 will no longer be temporary, but permanent in phase III. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amendment 34 Proposal for a directive – amending act Article 1 – point 3 Directive 2003/87/EC Article 5 – point (d) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Justification | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
The monitoring plan is a crucial legal requirement to obtain a GHG permit. It therefore should be mentioned in Article 5 of the EU ETS directive. This plan has to fulfil the requirements of the new monitoring and reporting regulation mentioned in article 14. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amendment 35 Proposal for a directive – amending act Article 1 – point 5 Directive 2003/87/EC Article 9 – paragraph 2 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Justification | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
The amount of allowances to be issued by Member States under their national allocation plan for 2008-2012 should be finalised before 2010, so this date can be brought forward. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amendment 36 Proposal for a directive – amending act Article 1 – point 5 Directive 2003/87/EC Article 9 – paragraph 3 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Justification | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
It is preferable to review the linear factor before the new period starts. By 2020 we will have new information indicating whether or not it is necessary/feasible to set a more stringent reduction path. There is no point in waiting until 2025. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amendment 37 Proposal for a directive – amending act Article 1 – point 6 Directive 2003/87/EC Article 9a – paragraph 2 – subparagraph 1 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Justification | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
It must be mandatory if such data are supposed to be into account for the quantity of allowances to be issued. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amendment 38 Proposal for a directive – amending act Article 1 – point 6 Directive 2003/87/EC Article 9a – paragraph 3 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Justification | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
This is a to clarify the date by which the Commission must publish the data submitted by Member States relating to installations which have been opted in during Phase II, or included from 2013. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amendment 39 Proposal for a directive – amending act Article 1 – point 6 Directive 2003/87/EC Article 9a – paragraph 3 a (new) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Justification | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
This amendment relates to the amendment to Article 27 which raises the emission threshold to 25,000. This will remove 6300 (rather than 4200) small installations from the administrative burden of the system, but only remove 2.4% of total emissions. An amendment to Article 9a is required to make a corresponding downward adjustment to the overall cap. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amendment 40 Proposal for a directive – amending act Article 1 – point 7 Directive 2003/87/EC Article 10 – paragraph 1 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Justification | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
It is critical for the proper functioning of both the ETS and the electricity sector that auctions of allowances for 2013 onwards take place well in advance of 1st January 2013. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amendment 41 Proposal for a directive – amending act Article 1 – point 7 Directive 2003/87/EC Article 10 – paragraph 2 – point a | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Amendment 42 Proposal for a directive – amending act Article 1 – point 7 Directive 2003/87/EC Article 10 – paragraph 3 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Amendment 43 Proposal for a directive – amending act Article 1 – point 7 Directive 2003/87/EC Article 10 – paragraph 3 a (new) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Amendment 44 Proposal for a directive – amending act Article 1 – point 7 Directive 2003/87/EC Article 10 – paragraph 4 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Amendment 45 Proposal for a directive – amending act Article 1 ‑ Point 7 Directive 2003/87/EC Article 10 – paragraph 5 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Justification | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
The EU must be in a position to invest more in the energy-related and CO2 emission-reducing technologies necessary in order to pave the way for the CO2 emission reduction efforts to be undertaken between now and 2050. If the revenue is used at Community level, European research can be properly organised and hence placed on a comparable footing to research in, say, the United States and Japan. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amendment 46 Proposal for a directive – amending act Article 1 – point 7 Directive 2003/87/EC Article 10 – paragraph 5a (new) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Justification | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
The total Community-wide quantum of allowances for auction must be determined and reported to allow Member States to calculate the amount of allowances they may auction in accordance with Article 10(2). The complexity and administrative cost of hosting auctions in 27 Member States should be taken into account with regard to the upcoming Commission's Regulation on Auctioning. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amendment 47 Proposal for a directive – amending act Article 1 – point 8 Directive 2003/87/EC Article 10a – paragraph 1 – subparagraph 1 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Justification | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
No extra clarity is achieved by referring to paragraphs 2 to 6 and 8, as the third sub‑paragraph already contains a harmonised benchmark system. The benchmark systems should be decided on by mid‑2010, for the sake of planning security. The amendment stresses the use and important characteristics of benchmarks. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amendment 48 Proposal for a directive – amending act Article 1 – point 8 Directive 2003/87/EC Article 10a – paragraph 1 – subparagraph 3 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Amendment 49 Proposal for a directive – amending act Article 1 – point 8 Directive 2003/87/EC Article 10a – paragraph 1 – subparagraph 4 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Justification | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amendment 50 Proposal for a directive – amending act Article 1 – point 8 Directive 2003/87/EC Article 10a – paragraph 2 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Justification | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Co-firing with biomass or -waste at coal-fired power plants is a cost-effective option for increasing the share of renewable energy in Europe. It is essential to ensure that co-firing remains an attractive option together with CCS. To secure investments in CCS it is therefore suggested that it should be possible to be credited for greenhouse gas emissions stored from fuel which is CO2 neutral and in effect extracts greenhouse gas emission from the atmosphere. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amendment 51 Proposal for a directive – amending act Article 1 – point 8 Directive 2003/87/EC Article 10a – paragraph 3 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Amendment 52 Proposal for a directive – amending act Article 1 – point 8 Directive 2003/87/EC Article 10a – paragraph 4 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Justification | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
The Commission proposal might allow some sectors to increase their emissions and pass on the burden of their reduction effort to other sectors. A uniform cross-sectoral correction factor ensures that all sectors participate in emission reduction activity. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amendment 53 Proposal for a directive – amending act Article 1 – point 8 Directive 2003/87/EC Article 10a – paragraph 5 a (new) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Justification | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
The Commission is proposing a bottom-up system for calculating how many free allowances are allocated to each installation: setting a benchmark, seeing how these add up once translated to installations and readjusting them if they overshoot the overall cap. To speed up the process and provide greater predictability to each sector, a top-down system is preferable. The Commission should first divide up the overall cap between sectors based on verified emissions and then set sector benchmarks to determine how many allowances each installation in a sector receives. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amendment 54 Proposal for a directive – amending act Article 1 - point 8 Directive 2003/87/EC Article 10a - paragraph 6 - subparagraph 3 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Amendment 55 Proposal for a directive – amending act Article 1 – point 7 Directive 2003/87/EC Article 10a – paragraph 6 a (new) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Amendment 56 Proposal for a directive – amending act Article 1 – point 8 Directive 2003/87/EC Article 10a – paragraph 6 b (new) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Justification | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
The EU must take a lead in the development of carbon capture and storage technology if it is to persuade China and other major coal-using countries to ratify an international agreement to reduce CO2 emissions substantially. This amendment works within the EU emissions cap to provide an immediate, certain and European financial mechanism to enable the first promoters of CCS projects meet development costs which initially make the technology commercially unviable. It will provide the basis for subsequent negotiations over detail with the Council. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amendment 57 Proposal for a directive – amending act Article 1 – point 8 Directive 2003/87/EC Article 10a – paragraph 7 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Amendment 58 Proposal for a directive – amending act Article 1 – point 8 Directive 2003/87/EC Article 10a – paragraph 8 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Amendment 59 Proposal for a directive – amending act Article 1 – point 8 Directive 2003/87/EC Article 10a – paragraph 9 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Amendment 60 Proposal for a directive – amending act Article 1 – point 8 Directive 2003/87/EC Article 10b | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Amendment 61 Proposal for a directive – amending act Article 1 – point 9 Directive 2003/87/EC Article 11 – paragraph 1 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Justification | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
The paragraph should clarify that the list contains the annual allocation for each of the years 2013 to 2020. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amendment 62 Proposal for a directive – amending act Article 1 – point 9 Directive 2003/87/EC Article 11 – paragraph 1a (new) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Justification | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
There is a need for the Commission to have a role in approving National Implementation Measures (NIMs) to ensure Member States are applying the rules on free allocation to their installations in a consistent manner. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amendment 63 Proposal for a directive – amending act Article 1 – point 9 Directive 2003/87/EC Article 11 - paragraph 2 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Amendment 64 Proposal for a directive – amending act Article 1 – point 9 Directive 2003/87/EC Article 11a – paragraph 7 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Amendment 65 Proposal for a directive – amending act Article 1 - point 9 Directive 2003/87/EC Article 11a - paragraph 7 a (new) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Justification | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
It is important to increase cost-efficiency. This is why, in the corresponding amendment, it is proposed to increase the amount of CDM and JI credits. At the same time, it is important to maintain the environmental integrity of the scheme. The amendment mainly intends to replace auctioning by CDM and not to jeopardise the principle of supplementarity. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amendment 66 Proposal for a directive – amending act Article 1 - point 10 a (new) Directive 2003/87/EC Article 12 - paragraphs 1 a and 3 a (new) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Justification | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
The legal nature of allowances on the financial market is unclear. Some countries consider them to be financial instruments whose trading is supervised by the financial service authority, while other countries consider them to be normal commodities and only their derivatives are viewed as financial instruments. It is important to create clarity in order to enhance business confidence and increase transparency. Inside trading and market manipulation could distort the market, reduce its credibility and harm investors' confidence. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amendment 67 Proposal for a directive – amending act Article 1 ‑ point 12 Directive 2003/87/EC Article 14 ‑ paragraph 3 a (new) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Justification | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
The use of IT systems will improve the transparency of the monitoring and reporting of emissions under the EU ETS. This will be important for further expansion or linking of the EU ETS with other sectors and ET systems. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amendment 68 Proposal for a directive – amending act Article 1 - point 13 a (new) Directive 2003/87/EC Article 15 a (new) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Justification | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
It is vital to ensure the application of rules governing financial instruments with regard to the trading of allowances in order to enhance business confidence and increase transparency. Publication of market sensitive information by the Commission and Member States should be strictly and clearly regulated. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amendment 69 Proposal for a directive – amending act Article 1 – point 17 Directive 2003/87/EC Article 22 – paragraph 1 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Justification | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Annex IIa is a political decision and therefore should be subject to co-decision, not comitology. The inclusion of GHG other than those presently listed in Annex II will cause major market distortions and planning insecurity. New gases in the EU ETS may suddenly change supply or demand of allowances and therefore cause unwelcome sudden price fluctuations. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amendment 70 Proposal for a directive – amending act Article 1 ‑ point 17 a (new) Directive 2003/87/EC Article 24 - paragraph 1- subparagraph 1 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Justification | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
This is a technical change to Directive 2003/87/EC to a paragraph that was not amended by the Commission's proposal. It ensures that there is flexibility regarding any future opt-ins, such as household heating. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amendment 71 Proposal for a directive – amending act Article 1 ‑ point 19 Directive 2003/87/EC Article 24 a - paragraph 1 a (new) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Justification | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
These gases are emissions but they do not come into contact with the air. Therefore they should not be considered as emissions. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amendment 72 Proposal for a directive – amending act Article 1 – point 20 Directive 2003/87/EC Article 25 – paragraphs 1a and 1b | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Justification | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
This clarifies that linking to schemes which are sub-national but not federal will be possible, and that regional entities include supra-national entities. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amendment 73 Proposal for a directive – amending act Article 1 - point 20 Directive 2003/87/EC Article 25 - paragraph 1b a (new) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Justification | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
It is vital to encourage third countries bordering the EU to join the EU ETS. This is not only important from an environmental and development point of view, but will also address the issue of carbon leakage by EU companies moving over the border. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amendment 74 Proposal for a directive – amending act Article 1 – point 21 Directive 2003/87/EC Article 27 – title and paragraph 1 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Amendment 75 Proposal for a directive – amending act Article 1 – point 21 Directive 2003/87/EC Article 28 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Amendment 76 Proposal for a directive – amending act Article 1 – point 21 a Directive 2003/87/EC Article 28 a (new) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Amendment 77 Proposal for a directive – amending act Annex I - point 1 Directive 2003/87/EC Annex I - point 1 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Justification | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
The Commission impact assessment shows that small emitters such as hospitals and universities will have the same costs, in terms of administrative burdens, as larger emitters. Most hospitals and health facilities receive public funding and have limited resources. It is important for their efforts to reduce carbon emissions to be factored into the equation. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amendment 78 Proposal for a directive – amending act Annex 1 – point 3 - point c - point iii Directive 2003/87/EC Annex I – point 2 - table - 3rd row of categories of activity | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Justification | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
For technical clarification purposes. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amendment 79 Proposal for a directive – amending act Annex I - point 4 Directive 2003/87/EC Annex I - point 2 - table - new category 1 - row 8 a (new) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Justification | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Emissions from this sector account for 7.9% of EU-25 methane emissions, equivalent to 0.7% of EU-25 GHG emissions. |
EXPLANATORY STATEMENT
Emissions trading is by no means a novel concept and is certainly not unique to Europe. However, the EU Emissions Trading Scheme (ETS) is unique in that it is the first international trading system for CO2 emissions. It currently covers over 10,000 installations in the energy and industrial sectors which are collectively responsible for close to half of the EU's emissions of CO2 and 40% of its total greenhouse gas emissions. It is, therefore, rightly referred to as the cornerstone of the EU's strategy for fighting climate change.
The EU ETS Review is part of the Commission's 'Climate and Renewable Energy Package', which was adopted on the 23 January of this year. The package includes draft proposals on Effort Sharing, Energy from Renewable Sources, Carbon Capture and Storage and a draft proposal on the Review of the EU ETS Directive - a proposal that is very balanced and significantly improves and extends the EU ETS.
This proposal seeks to amend the Directive 2003/87/EC[1] which established the EU ETS. The goal is, for the period beyond 2012, to strengthen, expand and improve the functioning of the ETS as one of the most important and cost-effective tools for achieving the EU's target for reducing greenhouse gas emissions. The mandate for this derives from last year's March 2007 European Council, which called for a reduction in EU emissions of at least 20% by 2020 compared with 1990 levels, and by 30% if other industrialised countries commit to comparable efforts in the framework of a global agreement to combat climate change . The decision to launch negotiations to draw up a 'post-Kyoto agreement' was taken last December at the UN climate change conference in Bali. It is imperative that an agreement at international level be reached at the Conference of Parties meeting in Copenhagen in 2009 in order to tackle this pressing global problem. If Europe is to lead the way then we will have to come up with viable solutions for tackling global climate change and a fully functioning EU ETS will make a major contribution.
The proposal to revise the Directive balances the need for economic efficiency and fairness between sectors and Member States, and will provide for more certainty for industry. It sets out projections for the emission reductions required by the sectors covered by the ETS and increased harmonisation will make the system simpler and more transparent, thereby increasing its attractiveness for other countries and regions to link up to it.
The Rapporteur appreciates the work done by the Commission and is supportive of the general framework of the Commission proposal, as well as the 21% reduction target below 2005 emissions. Upon the conclusion of an international agreement, automatic and predictable adjustments to the cap will be made, reflecting the EU’s commitment to increase its reduction target from 21% to 30%. The Rapporteur is also supportive of a single harmonised Cap, as well as the 8-year trading period to 2020 and a linear reduction in the cap to 2025, by which point a review is foreseen.
100% Auctioning for the power sector by 2013 is reasonable given the sector's clear potential to pass on any legitimate costs to the consumer, if necessary. In addition, full auctioning should be sought for all sectors by 2020 given that it is the most efficient and transparent method of allocating allowances.
However, there are areas where the Rapporteur has incorporated changes in her report.
1. There is a real need for more certainty on the issue of those sectors most affected by Carbon Leakage. European Businesses and investors need to be reassured that in the event of an International Agreement not being reached at COP-15 in 2009, they will not be left to carry the burden, alone.
The Commission will review the situation with sectors and sub sectors subject to international competition and make any necessary proposals by 31 December 2010, 6 months ahead of what was originally foreseen. Those sectors deemed to be at significant risk of carbon leakage could receive up to 100% of allowances free of charge or, a system could be introduced to put those installations at significant risk on an equal footing with those in third countries. However, the Rapporteur believes that it would be detrimental to the chances of international negotiations reaching an international climate agreement, if certain sectors were to be named outright in the proposal. Furthermore, one should not attempt to pre-empt the soon-to-be published findings on the European Commission study on this issue. The Rapporteur has also tightened the definition of what constitutes 'carbon leakage' in order to promote the global environmental benefit.
2. All operators who used a lower percentage of ERUs and CERs compared to their emissions in the 2008-2012 phase and who do not carry over entitlements, shall be allowed to use credits up to 5 % of their emissions each year during the period from 2013 to 2020, as shall new entrants and new sectors. This accounts for almost half of the abatement in the 2013 - 2020 period. Such projects would, furthermore, only be permitted from countries which have ratified the International Agreement on climate change and adhere to qualitative rules. The Rapporteur would like to highlight the need for more stringent criteria by permitting high quality CERs and ERUs only. In the case of a international agreement on climate change being reached, the amount of JI/CDM credits would be increased over.
3. Global deforestation is taking place at an alarming rate and its serious contribution to CO2 emissions cannot be ignored. For this reason, the Rapporteur has foreseen a substantial amount of the revenues from auctioning to be allocated towards contributing to funds to avoid deforestation, to promote sustainable afforestation and reforestation in countries that have ratified the international agreement on climate change.
4. Shipping has thus far not been included and an impact analysis will be required. Lack of verified emissions data to date seems to be a problem in this regard. The Rapporteur foresees that until shipping is included in the EU ETS, emissions from shipping should be included in the Decision on the effort of Member States to meet the Community's greenhouse gas emission reduction commitments up to 2020.
5. The Rapporteur is aware of the potential of Carbon Capture and Storage (CCS) technology and sees this as part of the solution to reducing global carbon emissions. Hence, it is proposed that 500 million allowances in the new entrants reserve (NER) shall be reserved to be given to the first 12 facilities, which have begun to commercially capture and geologically store carbon dioxide emissions .
6. Auctioning should be the basic principle for allocation of allowances, and should be applied to the power sector from 2013. Where producers of heating or cooling receive a free allocation in respect of the production of industrial heat through high efficiency cogeneration as defined by Directive 2004/8/EC, free allocation shall also be given to electricity generation from residues from an industrial process using best available technologies provided that it is produced for own consumption of the installations.
The Rapporteur believes that to date, politicians have failed miserably to respond adequately to the climate challenge and the 2C° target laid out so clearly in the peer reviewed scientific literature, the IPCC reports and in the Stern Review amongst others. This time we cannot be found wanting - our children, their children, depend on us.
- [1] As amended by the 'Linking Directive' 2004/101/EC.
ANNEX - LIST OF SUBMISSIONS BY STAKEHOLDERS The list is not exhaustive
Organisation |
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ACFCI |
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Aer Lingus |
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AFEP |
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Air Products |
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Alcoa Europe |
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ALSTOM |
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Arcelor Mittal |
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Arkema |
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Association of European Airlines |
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ATILH |
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Aughinish Alumina |
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Austrian Perm Rep - WKO |
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Australian Embassy and Mission |
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Australian Department of Foreign Affairs and Trade |
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AvA |
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Avisa |
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BASF |
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Bayer |
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BDI/BDA |
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Belgian DG Energy & Environment |
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Belgian Permanent Representation |
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Bellona Europa |
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Bloomberg |
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Blue Next |
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Bord na Mona |
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British Petroleum |
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Business Europe |
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Bundeskanzleramt Oesterreich |
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Burson-Marsteller |
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bvek |
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Caisse des Depots |
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CAN Europe |
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Carbon Markets Association |
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CE |
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CEFIC |
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Cembureau |
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CEMEX |
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centrica |
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Center for Clean Air Policy |
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CEPI |
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CEPS |
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CES ETUC |
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CGEMP - Paris University |
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Climate Change Capital |
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Clogrennane Lime Ltd |
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COGEN Europe |
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Coillte |
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Committee for European Integration - Poland |
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ConocoPhillips |
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Covington & Burling |
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CPA |
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Creatieve Energie |
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Cumerio / NA |
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Danish Permanent Representation |
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Deutsche Bank |
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DEFRA |
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DOW |
|
E3G |
|
EACI |
|
EAMA Energy |
|
Ecologic |
|
Eco Securities |
|
EEB |
|
EESC |
|
EFIEES |
|
Electrabel Suez |
|
Embassy of Norway to the EU |
|
Emirates |
|
Environmental Defense |
|
EON |
|
EPF |
|
Euroheat and Power |
|
European Commission - DG Enterprise & Industry |
|
European Commission - DG Environment |
|
European Environment Agency |
|
European Regions Airline Association |
|
EuLA |
|
Eurelectric |
|
Euro Alliages |
|
EUROFER |
|
Eurogypsum |
|
Eurometaux |
|
European Climate Foundation |
|
European Confederation of Woodworking industries |
|
European Investment Bank |
|
Europia |
|
Eustafor |
|
EXCA |
|
Finnish Perm Rep |
|
Fleishman Hillard |
|
Fortum |
|
French Ministry of Ecology, Sustainable Development and Town and Country Planning |
|
French Permanent Representation to the EU |
|
GCP |
|
GE |
|
German Foreign Office |
|
German Ministry for the Environment, Nature conservation & Nuclear safety |
|
German Perm Rep |
|
Grian |
|
Harvard University |
|
Hill & Knowlton |
|
Hogan & Hartson Raue |
|
Hydro |
|
IACA |
|
IATA |
|
Icelandic Mission to the EU |
|
ICOS |
|
IDDRI |
|
IEA |
|
IETA |
|
IFIEC Europe |
|
IMA Europe |
|
Icelandic Ministry for the Environment |
|
Institute for European Environmental Policy |
|
Irish Dairy Industries Association |
|
Irish Min. Agriculture, Food & Rural Development |
|
Permanent Representation of Ireland to the EU |
|
Italcementi |
|
Italian Dept. for EU affairs |
|
Italian Min. for Environment, Land & Sea |
|
JC - Consulting attorney / Emissions trading |
|
JP Morgan |
|
Kashue |
|
Kevin Leydon & Associates |
|
Lazio Regional Representation - EU Affairs |
|
Ludwig-Maximilian Universitaet Muenchen |
|
McKinsey & Company |
|
NERA |
|
OCIMF |
|
Öko-Institut |
|
Oxfam |
|
Permanent Mission of the Kingdom of the Netherlands to the EU |
|
Premier Periclase |
|
Probiotec |
|
PT Management Consultants |
|
RHI |
|
Rhodia |
|
Rio Tinto |
|
RWE |
|
SFM (UK) |
|
Shell |
|
Slovenian Perm Rep |
|
Smurfit Kappa Group |
|
Sol Group |
|
Solomon Associates |
|
Svensk Energi |
|
Swedish Energy Agency |
|
Swedish Ministry of Environment |
|
Suez |
|
The Brattle Group |
|
The Ecofin Research Foundation |
|
Thyssen Krupp |
|
Transatlantic Policy Network |
|
University College Dublin |
|
University of Cambridge - Electricity Policy Research Group |
|
Universite Paris Dauphine |
|
US House of Representatives |
|
VIK |
|
Vrom |
|
Weber Shandwick |
|
Wietersdorfer Gruppe |
|
WKO |
|
World Bank |
|
World Resources Institute |
|
WRI |
|
WWF |
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Xstrata |
|
- [1] The list is not exhaustive
OPINION of the Committee on Industry, Research and Energy (*) (15.9.2008)
for the Committee on the Environment, Public Health and Food Safety
on the proposal for a directive of the European Parliament and of the Council amending Directive 2003/87/EC so as to improve and extend the greenhouse gas emission allowance trading system of the Community
(COM(2008)0016 – C6‑0043/2008 – 2008/0013(COD))
Rapporteur (*): Lena Ek
(*) Associated committee – Rule 47 of the Rules of Procedure
SHORT JUSTIFICATION
Addressing climate change and the transition to a low carbon society is a key global priority. This is reflected by the fact that Parliament has established a dedicated Temporary Committee on Climate Change. Based on the conclusions of the 2007 Spring Council and previous resolutions from Parliament, the Commission presented in January 2008 a very ambitious package that will achieve reductions in EU greenhouse gas emissions of at least a 20% by 2020, increasing to 30% in case of a comprehensive international agreement. This quantum leap in Europe's policy making provides a crystal clear signal to other countries that the EU is seriously committed to fighting climate change.
The EU Emissions Trading Scheme (EU ETS), launched in 2005, is the world's largest cap-and-trade scheme, covering ten thousands of operators. It is the cornerstone of the EU's approach to climate change. It is also a major economic driver. Many companies covered by the EU ETS view it as one of the key issues in their long-term decision making, with a strong to medium impact on decisions to develop innovative technologies.[1] Financial institutions increasingly see the EU ETS as a serious, working and important market.
The first two phases of EU ETS have proven that a viable internal market in emissions allowances is capable of putting a price on carbon. However, they were not without problems. The dependence of the scheme on national allocation plans led to a plunging of the price for CO2 due to over allocation by Member States, unjustifiable windfall profits for many power generators, unfair competition within the EU caused by differences in national allocations and uncertainty for market players. These problems have been addressed in a comprehensive review of the EU ETS that was undertaken against the backdrop of international negotiations for a post-Kyoto agreement. In January 2008, the Commission published a proposal for a revised EU ETS
Your draftswoman welcomes the proposed revision of the EU ETS. Firstly, by introducing a single EU-wide cap on the total number of emission allowances (including a single new entrants reserve), harmonizing the allocation method (in principal auctioning - for non-power generating sectors a gradual phase-out of free allocation) and setting key definitions (such as on combustion installation), the proposal will lead to an increased harmonisation and a better level playing field. Secondly, the scheme's predictability will be enhanced by setting a longer allocation period and steady, predictable reductions in the level of the cap. Thirdly, by expanding the scope to cover new industries (e.g. aluminium and ammonia producers) and new gases (nitrous oxide and perfluorocarbons), more opportunities will be created to find cost effective ways to reduce emissions. Finally, the proposal will reduce the administrative burden (especially on SMEs) by creating an opt-out for small installations.
However, in order to further strengthen the proposal and make the scheme even more workable and effective, several elements should be changed. The aim of most of these changes is to reduce the uncertainty and enhance the predictability of the scheme. This is vital from an environmental point of view , since uncertainty is detrimental for the planning of future investments which could lead to emission reductions - e.g. through energy efficiency or through the renewal of old capacity.
Rewarding most efficient operators
Energy efficiency is a cornerstone of efforts to achieve a low carbon society. Therefore, where allowances will be allocated for free, it is important not to allocate them on an historical basis (in fact supporting incumbents), but on the basis of Best Available Practices / Best Available Technologies. By allocating the allowances on the basis of the most efficient benchmark(s), the scheme will reward energy efficient companies that have invested in environmental friendly production processes. It is critical for industry to work together to establish those benchmarks as soon as possible, since where no harmonised benchmark exists, no free allocation should be made. Energy efficiency is the most cost effective and immediately available tool for reducing emissions, as well as for enhancing security of energy supply and competitiveness. A range of energy efficiency technologies already exist and can be introduced with short lead times. In the future the EU ETS could be linked to a harmonised 'white certificates'-scheme, that promotes energy savings and energy efficiency. It is important that the Commission properly considers these possibilities.
Auction revenues
It has been estimated that the revenues from the auctioning of allowances will amount at least € 33 billion per year (assuming only auctioning for the power generation sector and a relatively modest CO2 price)[2]. In the proposal these revenues will go to the budgets of Member States, with a 'moral obligation' on them to earmark a share of them to tackle climate change in a broad sense. However, this is not strong enough and could lead for the revenues to "disappear" in the national budget. That would be a missed opportunity to use this money for emission reductions and support for the developing world, preferably at an EU level.
Insider information and market manipulation
In an average week, more than 10 million allowances are traded, resulting in a market worth several billion Euros. The legal nature of these allowances is however unclear. Some countries consider them to be financial instruments whose trading is supervised by the financial service authority, while other countries consider them to be normal commodities and only their derivatives are viewed as financial instruments.[3] In order to avoid market manipulation and inside trading, it is important to consider how to apply the rules for financial markets to emission allowances. By applying similar rules, price formation in the market will be based more on market relevant information and less on anti-competitive speculation, for example by hedge funds or sovereign wealth funds. Furthermore, publication of market sensitive information by the Commission and Member States should be strictly and clearly regulated, since the release of market sensitive data has potentially huge financial consequences. The same rules should apply to those regarding stock market sensitive information.
Carbon leakage
As long as a global framework is not in place yet, an emissions reduction regime which is too burdensome could lead to companies moving their production outside the EU. This would not only have economic and social consequences, but it would also undermine environmental goals - since these companies would no longer be subject to the same emissions controls. The Commission acknowledges this problem, but postpones the solution: By 2010 the sectors that are vulnerable to carbon leakage will be identified and by 2011 the Commission will propose possible measures to prevent it (100% free allocation of allowances and/or coverage of imports under the EU ETS). Furthermore, the list of vulnerable sectors will be reviewed every 3 years. Your draftswoman clearly prefers a global agreement, which will cover all relevant companies and sector. In the event that this goal will not be reached, global sectoral agreements (with objective, verifiable emission reduction goals) would be a 'second best' option. However, in case both options do not materialise, the EU needs to have in place a mechanism that will provide the necessary certainty and predictability needed for long term investments and the renewal of asset portfolios in these sectors. Keeping in mind that the scheme will start operating in 2013, companies and investors need earlier and longer term certainty about how many allowances each sector will get. On the other hand, international negotiations could be unnecessarily impeded if the EU specifies now which sectors will be protected through free allowances. The best way to ensure greater certainty for market players without compromising the international negotiations is to speed up the Commission's timing and lengthen the period between reviews, whilst ensuring that no announcements are made before the expected conclusion of international negotiations in December 2009.
SMEs and administrative burden
It is to the benefit of SMEs to take the lead and invest in low carbon technology. However, the precise regulatory environment needs to take into account their particular situation. The proposal allows small combustion installations (below 25MW) to be excluded from the scheme if equivalent measures are in place. This threshold is rather low. One third of the total combustion installations that are covered by the scheme is relatively small (below 50MW), but together they account for only 2% of the overall emissions reported.[4] It seems therefore to be cost effective to raise the threshold for small installations (for example to the threshold of the IPPC) to opt-out from the scheme.
Further harmonization
To provide more legal certainty and to create a true level playing field in the EU, further harmonization should be envisaged. That is the case for definitions (for example for closure), but also for fees/charges and fines/penalties. For example, the maximum fines for similar infringements deviate substantially between Member States: from € 600 to € 15 million.
International aspects
The EU ETS should constitute the first step towards a global system for emissions trading. Therefore, it is vital to make it possible to link other trading schemes to the EU ETS and - making use of all possible Community instruments - to encourage third countries bordering the EU to join the EU ETS. For developing countries, the EU must seize the opportunities offered by the EU ETS to assist these countries in becoming carbon neutral by making the necessary investments and through knowledge transfer.
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 incorporate the following amendments in its report:
Amendment 1 Proposal for a directive – amending act Recital 2 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Text proposed by the Commission |
Amendment | |||||||||||||||||||||||||||||||||||||||||||||||||||
(2) The ultimate objective of the United Nations Framework Convention on Climate Change, which was approved on behalf of the European Community by Council Decision 94/69/EC of 15 December 1993 concerning the conclusion of the United Nations Framework Convention on Climate Change (UNFCCC), is to stabilise greenhouse gas concentrations in the atmosphere at a level that would prevent dangerous anthropogenic interference with the climate system. In order to meet that objective, the overall global annual mean surface temperature increase should not exceed 2°C above pre-industrial levels. The latest Intergovernmental Panel on Climate Change Assessment (IPCC) report shows that, in order to reach that objective, global emissions of greenhouse gases must peak by 2020. This implies the increasing of efforts by the Community and the quick involvement of developed countries and encouraging the participation of developing countries in the emission reduction process. |
(2) The ultimate objective of the United Nations Framework Convention on Climate Change, which was approved on behalf of the European Community by Council Decision 94/69/EC of 15 December 1993 concerning the conclusion of the United Nations Framework Convention on Climate Change (UNFCCC), is to stabilise greenhouse gas concentrations in the atmosphere at a level that would prevent dangerous anthropogenic interference with the climate system. In order to meet that objective, the overall global annual mean surface temperature increase should not exceed 2°C above pre-industrial levels. The latest Intergovernmental Panel on Climate Change Assessment (IPCC) report shows that, in order to reach that objective, global emissions of greenhouse gases must peak by 2020. This implies the increasing of efforts by the Community and the quick involvement of developed and newly industrialised countries and the participation of developing countries in the emission reduction process. | |||||||||||||||||||||||||||||||||||||||||||||||||||
Justification | ||||||||||||||||||||||||||||||||||||||||||||||||||||
In view of the ever increasing share of newly industrialised countries’ emissions, it is necessary to set the aim of ensuring their participation, not only the aim to encourage them to do so. It is necessary to set the aim of ensuring the participation developing countries, not only the aim to encourage them to do so. | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Amendment 2 Proposal for a directive – amending act Recital 3 a (new) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Text proposed by the Commission |
Amendment | |||||||||||||||||||||||||||||||||||||||||||||||||||
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(3a) In its resolution of 31 January 2008 on the outcome of the Bali Conference on Climate Change (COP 13 and COP/MOP 3) the European Parliament recalled its position that industrialised countries should commit to reducing their greenhouse gas emissions by at least 30% by 2020 and by 60-80% by 2050, compared to 1990 figures. Given that it anticipates a positive outcome to the COP 15 negotiations to be held in Copenhagen in 2009, the European Union should begin to prepare tougher emissions reduction targets for2020 and beyond and should seek to ensure that, after 2013, the Community scheme allows, if necessary, for more stringent emissions caps, as part of the Union's contribution to a new international agreement. | |||||||||||||||||||||||||||||||||||||||||||||||||||
Justification | ||||||||||||||||||||||||||||||||||||||||||||||||||||
It is important to stress Parliament's strong ambitions with regard to fighting climate change. The best way to accomplish this is through an international agreement, to be reached in Copenhagen by end 2009. This proposal should be seen as a proof of EU's strong commitment in this respect, but also as a signal that the EU is preparing for the tighter targets that will come with the new agreement. | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Amendment 3 Proposal for a directive – amending act Recital 4 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Text proposed by the Commission |
Amendment | |||||||||||||||||||||||||||||||||||||||||||||||||||
(4) In order to contribute to achieving those long-term objectives, it is appropriate to set out a predictable path according to which the emissions of installations covered by the Community scheme should be reduced. To achieve cost-effectively the commitment of the Community to at least a 20% reduction in greenhouse gas emissions below 1990 levels, emission allowances allocated in respect of those installations should be 21% below their 2005 emission levels by 2020. |
(4) In order to contribute to achieving those long-term objectives, it is appropriate to set out a predictable path according to which the emissions of installations covered by the Community scheme should be reduced. To achieve cost-effectively the commitment of the Community to at least a 20% reduction in greenhouse gas emissions below levels in the internationally recognised Kyoto reference year of 1990, emission allowances allocated in respect of those installations should be 21% below their 2005 emission levels by 2020. | |||||||||||||||||||||||||||||||||||||||||||||||||||
Justification | ||||||||||||||||||||||||||||||||||||||||||||||||||||
On this calculation the total permitted emission level would amount to 4.65 billion tonnes by applying a reduction of 20% below 1990. By 2020, reductions of 2.67 billion tonnes are to be achieved by sectors not included in the ETS. The calculation also shows – contrary to the Commission's assertion – that the sectors covered by the ETS must be required to make a 15% reduction compared with 2005. | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Amendment 4 Proposal for a directive – amending act Recital 7 a (new) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Text proposed by the Commission |
Amendment | |||||||||||||||||||||||||||||||||||||||||||||||||||
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(7a) Standing trees, as well as wood and its derivatives, represent a very important source of carbon sequestration and storage. In addition, timber makes it possible to combat the greenhouse effect by replacing fossil energy. In conclusion, forests represent genuine natural carbon reservoirs, but this carbon is released into the atmosphere when forests are uprooted and burned, hence the importance of introducing forestry protection mechanisms in order to mitigate global warming. | |||||||||||||||||||||||||||||||||||||||||||||||||||
Justification | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Change in land use (e.g. deforestation in tropical areas) is said to be responsible for 20% of global greenhouse gas emissions. Annual greenhouse gas emissions linked to deforestation alone amount to 6 billion tonnes of CO2 equivalent. | ||||||||||||||||||||||||||||||||||||||||||||||||||||
In France alone, storage represents 15.6 million tonnes of carbon and traps 10% of greenhouse gas emissions. The replacement value is estimated at 14 million tonnes of carbon. Without forests and timber, France would emit 108 million tonnes more carbon, in other words 20% extra. | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Amendment 5 Proposal for a directive – amending act Recital 7 b (new) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Text proposed by the Commission |
Amendment | |||||||||||||||||||||||||||||||||||||||||||||||||||
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(7b) Given the significant potential of the forestry sector to mitigate global warming, incentives should be introduced to upgrade and develop it, with due regard to the other functions fulfilled by forests. | |||||||||||||||||||||||||||||||||||||||||||||||||||
Justification | ||||||||||||||||||||||||||||||||||||||||||||||||||||
The IPCC 2007 report states, ‘in the long term, a sustainable forest management strategy aimed at maintaining or increasing forest carbon stocks, while producing an annual sustained yield of timber, fibre or energy from the forest, will generate the largest sustained mitigation benefit’. Account should also be taken of the European Parliament’s resolution of 15 November 2007, which calls on the Commission to include certain forestry-related activities in the ETS. | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Amendment 6 Proposal for a directive – amending act Recital 8 a (new) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Text proposed by the Commission |
Amendment | |||||||||||||||||||||||||||||||||||||||||||||||||||
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(8a) Directive 2003/87/EC and its amending Directive 2004/101/EC should be brought into line with the measures provided for by the Kyoto Protocol concerning activities related to land use, land use change and forestry (LULUCF). | |||||||||||||||||||||||||||||||||||||||||||||||||||
Justification | ||||||||||||||||||||||||||||||||||||||||||||||||||||
The Kyoto Protocol assigns statistical targets for greenhouse gas emissions to the industrialised countries listed in Annex B. Several articles refer to LULUCF activities, namely afforestation, reforestation, deforestation, forestry management, agricultural land management, pasture management and revegetation. | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Amendment 7 Proposal for a directive – amending act Recital 8 b (new) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Text proposed by the Commission |
Amendment | |||||||||||||||||||||||||||||||||||||||||||||||||||
|
(8b) The Community scheme should be fully linked with the Kyoto Protocol project-based mechanisms by including LULUCF activities within the scope of Directives 2003/87/EC and 2004/101/EC. | |||||||||||||||||||||||||||||||||||||||||||||||||||
Justification | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Directive 2004/101/EC of 27 October 2004 amending Directive 2003/87/EC excludes from its scope activities related to forestry and agriculture. | ||||||||||||||||||||||||||||||||||||||||||||||||||||
The forestry industry and several environmental organisations support the inclusion of LULUCF activities within the EU ETS. They stress the crucial impact of these activities on climate change, pointing out that deforestation is actually responsible for 20% of global greenhouse gas emissions. Including these activities would also be a way of promoting sustainable development in the non-industrialised countries. | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Amendment 8 Proposal for a directive – amending act Recital 8 c (new) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Text proposed by the Commission |
Amendment | |||||||||||||||||||||||||||||||||||||||||||||||||||
|
(8c) The Commission should consider arrangements for including LULUCF activities within the scope of Directives 2003/87/EC and 2004/101/EC, in the light of technical progress and the proposals put forward at the Bali Conference. It should submit a legislative proposal on the matter to the European Parliament and the Council by the end of 2008 at the latest. | |||||||||||||||||||||||||||||||||||||||||||||||||||
Justification | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Some Member States have criticised the Commission for failing to provide proper justification of its decision to exclude LULUCF activities and regret this decision, bearing in mind that the conclusions of the European Council of 9 March 2007 and the European Parliament resolution of 15 November 2007 on the Bali Climate Conference called on the Commission to consider including LULUCF activities in the EU ETS. Including these activities in the developing countries would represent a not inconsiderable source of finance, capable of ensuring biodiversity protection and rehabilitation of damaged forests. | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Amendment 9 Proposal for a directive – amending act Recital 10 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Text proposed by the Commission |
Amendment | |||||||||||||||||||||||||||||||||||||||||||||||||||
(10) Where equivalent measures to reduce greenhouse gas emissions, in particular taxation, are in place for small installations whose emissions do not exceed a threshold of 10 000 tonnes of CO2 per year, there should be a procedure for enabling Member States to exclude such small installations from the emissions trading system for so long as those measures are applied. This threshold relatively offers the maximum gain in terms of reduction of administrative costs for each tonne excluded from the system, for reasons of administrative simplicity. As a consequence of the move from five-year allocation periods, and in order to increase certainty and predictability, provisions should be set on the frequency of revision of greenhouse gas emission permits. |
(10) Where equivalent measures to reduce greenhouse gas emissions, in particular taxation, are in place for small installations whose emissions do not exceed a threshold of 25 000 tonnes of CO2 per year, there should be a procedure for enabling Member States to exclude such small installations from the emissions trading system for so long as those measures are applied, albeit that such installations should be allowed to remain voluntarily within the Community scheme. This threshold offers the maximum gain in terms of reduction of administrative costs for each tonne excluded from the system, for reasons of administrative simplicity. When this Directive is reviewed, consideration should be given to altering this threshold, taking into account the contribution of small installations to total emissions, the weight of the administrative burden and experience gained in introducing equivalent measures. As a consequence of the move from five-year allocation periods, and in order to increase certainty and predictability, provisions should be set on the frequency of revision of greenhouse gas emission permits. | |||||||||||||||||||||||||||||||||||||||||||||||||||
Justification | ||||||||||||||||||||||||||||||||||||||||||||||||||||
It is important to keep searching for possibilities to further reduce the administrative burden on SMEs, avoid unnecessary administrative costs and bureaucracy and enhance the efficiency of the system. At the moment, one third of the total installations that are covered by the scheme are small installations that together account for only 2% of the overall emissions reported. | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Amendment 10 Proposal for a directive – amending act Recital 13 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Text proposed by the Commission |
Amendment | |||||||||||||||||||||||||||||||||||||||||||||||||||
(13) The additional effort to be made by the European economy requires inter alia that the revised Community scheme operate with the highest possible degree of economic efficiency and on the basis of fully harmonised conditions of allocation within the Community. Auctioning should therefore be the basic principle for allocation, as it is the simplest and generally considered to be the most economically efficient system. This should also eliminate windfall profits and put new entrants and higher than average growing economies on the same competitive footing as existing installations. |
(13) The additional effort to be made by the European economy requires inter alia that the revised Community scheme operate with the highest possible degree of economic efficiency and on the basis of fully harmonised conditions of allocation within the Community. Auctioning will therefore be the basic principle for allocation, as it is the simplest and generally considered to be the most economically efficient system. This should also eliminate windfall profits and put new entrants and fast growing economies on the same competitive footing as existing installations. The Commission should monitor auctioning and the subsequent functioning of the carbon market to ensure that these two objectives are being achieved. To ensure a common and consistent approach to auctioning throughout the Union, auctioning should be administered by the Commission or acompetent authority designated by the Commission. This would also ensure that auction revenues can be pooled and used more efficiently and effectively. | |||||||||||||||||||||||||||||||||||||||||||||||||||
Justification | ||||||||||||||||||||||||||||||||||||||||||||||||||||
In order to minimise uncertainty for business, move further towards harmonisation and maximise efficiencies, auctioning should be administered centrally. In addition, the Commission should monitor the impact of auctioning, to ensure that it is delivering the benefits promised. | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Amendment 11 Proposal for a directive – amending act Recital 16 a (new) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Text proposed by the Commission |
Amendment | |||||||||||||||||||||||||||||||||||||||||||||||||||
|
(16a) In order to ensure an orderly functioning of the carbon and electricity markets, the auctioning of allowances for the period from 2013 onwards should start by 2011 at the latest and be based on clear and objective principles defined well in advance. | |||||||||||||||||||||||||||||||||||||||||||||||||||
Justification | ||||||||||||||||||||||||||||||||||||||||||||||||||||
It is essential that the carbon market functions timely, effectively and with sufficient liquidity in order to support the efficient operation of the electricity market. Since this market is characterized by forward contracts, the actual auctioning should start to take place well in advance of the period. Furthermore, the auctioning principles and detailed design provisions should be publicized well in advance in order to allow companies to optimise bid strategies. | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Amendment 12 Proposal for a directive – amending act Recital 18 a (new) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Text proposed by the Commission |
Amendment | |||||||||||||||||||||||||||||||||||||||||||||||||||
|
(18a) The Commission should continue to investigate other means of promoting the most emission-efficient and energy-efficient practices in sectors covered by the Community scheme, as well as in other sectors. In particular, it should investigate by September 2009 the potential for developing an EU-wide system of white certificates, which would reward energy-efficient investments. | |||||||||||||||||||||||||||||||||||||||||||||||||||
Justification | ||||||||||||||||||||||||||||||||||||||||||||||||||||
In Article 4(5) Directive 2006/32/EC on end-use efficiency and energy services the Commission are required to examine whether to bring forward a proposal on white certificates based on the first three years of application of the Directive. But no firm date is set for the conclusion of this important examination. The 'Euro White Cert' Project is currently examining the potential for an EU-wide system of White Certificates, and its potential links with EU ETS. | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Amendment 13 Proposal for a directive – amending act Recital 20 a (new) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Text proposed by the Commission |
Amendment | |||||||||||||||||||||||||||||||||||||||||||||||||||
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(20a) No undue distortion of competition should be created between installations whether they are externalised or not. | |||||||||||||||||||||||||||||||||||||||||||||||||||
Justification | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Any distortion in the internal market caused by allocation of allowances which would result in a shift in production from externalised installations to internalised installations with the consequence of increased CO2 emissions should be avoided. The purpose of the EU ETS is to reduce the emissions of greenhouse gases and the disruption of current production methods of outsourcing in an energy efficient manner could have a perverse effect. | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Amendment 14 Proposal for a directive – amending act Recital 29 a (new) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Text proposed by the Commission |
Amendment | |||||||||||||||||||||||||||||||||||||||||||||||||||
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(29a) In order to improve transparency and to prevent market abuses, including damaging speculation action in the trading of allowances and their derivatives, the Commission should consider the application of Community rules relating to financial instruments to emissions trading, as well as the publication of any market sensitive information that could influence such trading. The Commission should continue to monitor the development of the carbon market to ensure that the Community scheme continues to achieve its primary purpose of reducing greenhouse gas emissions in a cost effective and economically efficient manner. | |||||||||||||||||||||||||||||||||||||||||||||||||||
Justification | ||||||||||||||||||||||||||||||||||||||||||||||||||||
It is vital to ensure the application of rules governing financial instruments with regard to the trading of allowances in order to enhance business confidence and increase transparency. Inside trading and market manipulation could not only distort the market, but also reduce its credibility and investors' confidence, leading to wrong price signals and market illiquidity. Furthermore, by defining allowances as financial instruments, their trading will fall under the supervision of the financial authorities and rules governing for example investment funds would apply to them. | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Amendment 15 Proposal for a directive – amending act Recital 31 a (new) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Text proposed by the Commission |
Amendment | |||||||||||||||||||||||||||||||||||||||||||||||||||
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(31a) Third countries neighbouring the Union should be encouraged to join the Community scheme if they comply with this Directive. The Commission should make every effort in negotiations with and in the provision of financial and technical assistance to candidate countries and potential candidate countries and countries covered by the European neighbourhood policy to promote this aim. This would facilitate technology and knowledge transfer to these countries, which is an important means of providing economic, environmental and social benefits to all. | |||||||||||||||||||||||||||||||||||||||||||||||||||
Justification | ||||||||||||||||||||||||||||||||||||||||||||||||||||
It is vital to encourage third countries bordering the EU to join the EU ETS. This is not only important from an environmental and development point of view, but will also address the issue of carbon leakage by EU companies moving over the border. | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Amendment 16 Proposal for a directive – amending act Recital 33 a (new) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Text proposed by the Commission |
Amendment | |||||||||||||||||||||||||||||||||||||||||||||||||||
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(33a) It is important that the Community scheme be extended in the future so as to include other significant emitters of greenhouse gases, especially in the transport sector, such as shipping operators. To that aim, the Commission should, as soon as possible, propose appropriate amendments, accompanied by an impact assessment, with a view to incorporating the shipping sector within the Community scheme by 2013 and setting a date for the inclusion of road transport. | |||||||||||||||||||||||||||||||||||||||||||||||||||
Justification | ||||||||||||||||||||||||||||||||||||||||||||||||||||
It is important to continue with the inclusion of transport into the EU ETS, especially shipping. For the moment, a proper impact assessment and reliable data are missing. However, in the next review, the Commission should extend the scheme. | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Amendment 17 Proposal for a directive – amending act Recital 33 b (new) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Text proposed by the Commission |
Amendment | |||||||||||||||||||||||||||||||||||||||||||||||||||
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(33b) In order to ensure a level playing field on the internal market, the Commission should, if appropriate, issue guidelines or present proposals with a view to harmonising further the application of this Directive, such as the definitions, charges and penalties. | |||||||||||||||||||||||||||||||||||||||||||||||||||
Justification | ||||||||||||||||||||||||||||||||||||||||||||||||||||
To provide more legal certainty and to create a true level playing field in the EU, further harmonization could be envisaged, for example regarding definitions (closure) and fees and penalties put in place by Member States. | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Amendment 18 Proposal for a directive – amending act Recital 34 a (new) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Text proposed by the Commission |
Amendment | |||||||||||||||||||||||||||||||||||||||||||||||||||
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(34a) Information on the application of this Directive should be easily accessible, in particular for small- and medium-sized enterprises (SMEs). In order to help undertakings, and in particular SMEs, to comply with the requirements of this Directive, Member States should establish national helpdesks. | |||||||||||||||||||||||||||||||||||||||||||||||||||
Justification | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Many of the companies that are covered by the EU ETS are SMEs, that lack sufficient resources and that might be at a disadvantage compared to big companies in acquiring allowances through auctioning and trading. The least that could be done is supplying them with easily accessible information on the detailed requirements. The best practical solution to do so vary from one Member States to the other, depending on the specific institutional framework in place, as was done in the REACH Directive. | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Amendment 19 Proposal for a directive – amending act Article 1 – point -1 (new) Directive 2003/87/EC Article 1 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
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Justification | ||||||||||||||||||||||||||||||||||||||||||||||||||||
The ETS should lead to low-carbon innovations that give EU companies a long-term advantage over competitors outside the EU. Where the ETS leads to the risk of carbon leakage the competitiveness of EU companies should be maintained. | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Amendment 20 Proposal for a directive – amending act Article 1 - point 2 - point a Directive 2003/87/EC Article 3 - point c | ||||||||||||||||||||||||||||||||||||||||||||||||||||
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Amendment 21 Proposal for a directive – amending act Article 1 - point 2 - point b Directive 2003/87/EC Article 3 - point h | ||||||||||||||||||||||||||||||||||||||||||||||||||||
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Amendment 22 Proposal for a directive – amending act Article 1 – point 2 – point c Directive 2003/87/EC Article 3 – point u | ||||||||||||||||||||||||||||||||||||||||||||||||||||
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Justification | ||||||||||||||||||||||||||||||||||||||||||||||||||||
The exposure to international competition forces to include autoproducers to free allocation. Industry other than public electricity producers must remain the possibility to run their own energy facilities already invested. Therefore the definition should be amended. Autoproducers, as defined in the Directive 96/92/EC of the European Parliament and of the Council of 19 December 1996 concerning common rules for the internal market in electricity as “a natural or legal person generating electricity essentially for his own use” should not be excluded from free allocation. | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Amendment 23 Proposal for a directive – amending act Article 1 – point 2 – point c Directive 2003/87/EC Article 3 – point u a (new) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
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Justification | ||||||||||||||||||||||||||||||||||||||||||||||||||||
The term ‘externalised installations’ should be defined in order to avoid that they suffer from different allocation methods and thus different costs, higher than those of internal generation in the sectors which they supply. | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Amendment 24 Proposal for a directive – amending act Article 1 - point 2 - point c Directive 2003/87/EC Article 3 - point u b (new) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
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Amendment 25 Proposal for a directive – amending act Article 1 – point 4 Directive 2003/87/EC Article 6 – paragraph 1 - subparagraph 3 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
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Justification | ||||||||||||||||||||||||||||||||||||||||||||||||||||
It should be stressed that the review of emissions permits and any proposed amendments will take place in the light of new scientific data. | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Amendment 26 Proposal for a directive – amending act Article 1 - point 7 Directive 2003/87/EC Article 10 - paragraph 1 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
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Justification | ||||||||||||||||||||||||||||||||||||||||||||||||||||
In order to minimise uncertainty for business, move further towards harmonisation and maximise efficiencies, auctioning should be administered centrally. | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Amendment 27 Proposal for a directive – amending act Article 1 - point 7 Directive 2003/87/EC Article 10 - paragraph 2 - introductory part | ||||||||||||||||||||||||||||||||||||||||||||||||||||
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Justification | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Whilst there still remains a case for varying the level of auctioning rights made available to participants in the different Member States, auctioning should still be administered centrally. This change is required to clarify this. | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Amendment 28 Proposal for a directive – amending act Article 1 – point 7 Directive 2003/87/EC Article 10 – paragraph 2 – point a | ||||||||||||||||||||||||||||||||||||||||||||||||||||
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Justification | ||||||||||||||||||||||||||||||||||||||||||||||||||||
The year 2008 is a first year with consistent EU ETS data will be common for all 27 Member States. In addition since 2008, the new definition of installation starts applying. | ||||||||||||||||||||||||||||||||||||||||||||||||||||
This is a proposition to introduce an additional 10% of the total quantity of allowances to be auctioned amongst Member States based on the achievements accomplished between Kyoto Protocol base year(s) and the year 2008—the first year of the Kyoto Protocol commitment period. This approach properly reflects the individual countries’ Kyoto achievements as provided for in the 2007 and 2008 Spring European Council Conclusions. | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Amendment 29 Proposal for a directive – amending act Article 1 – point 7 Directive 2003/87/EC Article 10 – paragraph 2 – point b a (new) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
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Justification | ||||||||||||||||||||||||||||||||||||||||||||||||||||
The year 2008 is a first year with consistent EU ETS data will be common for all 27 Member States. In addition since 2008, the new definition of installation starts applying. | ||||||||||||||||||||||||||||||||||||||||||||||||||||
This is a proposition to introduce an additional 10% of the total quantity of allowances to be auctioned amongst Member States based on the achievements accomplished between Kyoto Protocol base year(s) and the year 2008—the first year of the Kyoto Protocol commitment period. This approach properly reflects the individual countries’ Kyoto achievements as provided for in the 2007 and 2008 Spring European Council Conclusions. | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Amendment 30 Proposal for a directive – amending act Article 1 - point 7 Directive 2003/87/EC Article 10 - paragraph 3 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
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Amendment 31 Proposal for a directive – amending act Article 1 – point 7 Directive 2003/87/EC Article 10 – paragraph 5 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
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Justification | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Point c seeks to clarify the definition of participant to auctions, and in particular to make sure that participants provide assurance that they are able to honour their bids. Not doing so could create opportunities for speculative behaviour. | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Amendment 32 Proposal for a directive – amending act Article 1 – point 7 Directive 2003/87/EC Article 10 – paragraph 5 a (new) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
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Justification | ||||||||||||||||||||||||||||||||||||||||||||||||||||
In the absence of clear rules the emission rights will be financial products. If the auctioning and the secondary markets are open to all bidders (including institutional investors, hedge funds, state funds etc.) there will be a danger of purely speculative price formation. That is why it must the access to original auctioning procedure should be open only to the bidders who need emission rights in production processes. | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Amendment 33 Proposal for a directive – amending act Article 1 - point 8 Directive 2003/87/EC Article 10a - paragraph 1 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
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Amendment 34 Proposal for a directive – amending act Article 1 - point 8 Directive 2003/87/EC Article 10a - paragraph 1 a (new) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
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Justification | ||||||||||||||||||||||||||||||||||||||||||||||||||||
In Article 4(5) Directive 2006/32/EC on end-use efficiency and energy services the Commission are required to examine whether to bring forward a proposal on white certificates based on the first three years of application of the Directive. But no firm date is set for the conclusion of this important examination. The 'Euro White Cert' Project, supported by Intelligent Energy Europe, is currently examining the potential for an EU-wide system of White Certificates, and its potential links with EU ETS. | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Amendment 35 Proposal for a directive – amending act Article 1 – point 8 Directive 2003/87/EC Article 10a – paragraph 1 b (new) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
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Justification | ||||||||||||||||||||||||||||||||||||||||||||||||||||
In order not to create incentives from the current proposal that lead to market distortions and also increases emissions. It is essential that the text of the Directive reflects “outsourcing” of activities by many sectors. | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Amendment 36 Proposal for a directive – amending act Article 1 - point 8 Directive 2003/87/EC Article 10a - paragraph 3 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
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Amendment 37 Proposal for a directive – amending act Article 1 – point 8 Directive 2003/87/EC Article 10a – paragraph 6 – subparagraph 1 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
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Justification | ||||||||||||||||||||||||||||||||||||||||||||||||||||
The reserve delivers liquidity (allowances) for new entrants. For the whole carbon market it is essential to have instruments which allow reactions to extraordinary market situations. We urge to use a part of the reserve for increasing liquidity in the event of a critically high carbon price. In the event of too low carbon prices the liquidity should be reduced (this measure should be inserted in the auctioning rules). We suggest a price margin between 20 and 50 Euro. Liquidity measures should be dealt with by the auctioning rules referred to in Art. 10. | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Amendment 38 Proposal for a directive – amending act Article 1 - point 8 Directive 2003/87/EC Article 10a - paragraph 6 - subparagraph 3 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
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Amendment 39 Proposal for a directive – amending act Article 1 - point 8 Directive 2003/87/EC Article 10a - paragraph 7 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
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Amendment 40 Proposal for a directive – amending act Article 1 - point 8 Directive 2003/87/EC Article 10a - paragraphs 8 and 9 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
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Amendment 41 Proposal for a directive – amending act Article 1 - point 8 Directive 2003/87/EC Article 10b | ||||||||||||||||||||||||||||||||||||||||||||||||||||
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Amendment 42 Proposal for a directive – amending act Article 1 - point 9 Directive 2003/87/EC Article 11a | ||||||||||||||||||||||||||||||||||||||||||||||||||||
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Amendment 43 Proposal for a directive – amending act Article 1 - point 10 a (new) Directive 2003/87/EC Article 12 - paragraph 1 a (new) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
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Justification | ||||||||||||||||||||||||||||||||||||||||||||||||||||
The legal nature of allowances on the financial market is unclear. Some countries consider them to be financial instruments whose trading is supervised by the financial service authority, while other countries consider them to be normal commodities and only their derivatives are viewed as financial instruments. It is important to create clarity in order to enhance business confidence and increase transparency. Inside trading and market manipulation could distort the market, reduce its credibility and harm investors' confidence. | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Amendment 44 Proposal for a directive – amending act Article 1 - point 13 a (new) Directive 2003/87/EC Article 15 a (new) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
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Justification | ||||||||||||||||||||||||||||||||||||||||||||||||||||
It is vital to ensure the application of rules governing financial instruments with regard to the trading of allowances in order to enhance business confidence and increase transparency. Publication of market sensitive information by the Commission and Member States should be strictly and clearly regulated. | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Amendment 45 Proposal for a directive – amending act Article 1 - point 14 a (new) Directive 2003/87/EC Article 18 - paragraph 1 a (new) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
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Amendment 46 Proposal for a directive – amending act Article 1 - point 20 Directive 2003/87/EC Article 25 - paragraph 1b a (new) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
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Justification | ||||||||||||||||||||||||||||||||||||||||||||||||||||
It is vital to encourage third countries bordering the EU to join the EU ETS. This is not only important from an environmental and development point of view, but will also address the issue of carbon leakage by EU companies moving over the border. | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Amendment 47 Proposal for a directive – amending act Article 1 - point 21 Directive 2003/87/EC Article 27 - title and paragraph 1 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
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Amendment 48 Proposal for a directive – amending act Article 1 - point 21 Directive 2003/87/EC Article 28 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
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Amendment 49 Proposal for a directive – amending act Article 1 - point 21 a (new) Directive 2003/87/EC Article 28 a (new) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
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Amendment 50 Proposal for a directive – amending act Article 1 - point 21 b (new) Directive 2003/87/EC Article 30 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
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Justification | ||||||||||||||||||||||||||||||||||||||||||||||||||||
The original article on the review clause became obsolete and should be replaced by a new one. It is important to keep reviewing the scheme in order to enhance its efficiency, add other sectors to it and guarantee a level playing field in the EU |
PROCEDURE
Title |
Greenhouse gas emission allowance trading system |
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References |
COM(2008)0016 – C6-0043/2008 – 2008/0013(COD) |
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Committee responsible |
ENVI |
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Opinion by Date announced in plenary |
ITRE 19.2.2008 |
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Associated committee(s) - date announced in plenary |
10.4.2008 |
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Drafts(wo)man Date appointed |
Lena Ek 18.3.2008 |
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Discussed in committee |
7.4.2008 |
5.6.2008 |
16.7.2008 |
10.9.2008 |
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Date adopted |
11.9.2008 |
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Result of final vote |
+: –: 0: |
30 21 1 |
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Members present for the final vote |
Jan Březina, Jerzy Buzek, Dragoş Florin David, Pilar del Castillo Vera, Den Dover, Lena Ek, Nicole Fontaine, Adam Gierek, András Gyürk, David Hammerstein, Erna Hennicot-Schoepges, Romana Jordan Cizelj, Werner Langen, Anne Laperrouze, Patrick Louis, Eugenijus Maldeikis, Eluned Morgan, Angelika Niebler, Reino Paasilinna, Aldo Patriciello, Francisca Pleguezuelos Aguilar, Anni Podimata, Miloslav Ransdorf, Vladimír Remek, Teresa Riera Madurell, Mechtild Rothe, Paul Rübig, Britta Thomsen, Catherine Trautmann, Claude Turmes, Nikolaos Vakalis, Adina-Ioana Vălean, Alejo Vidal-Quadras |
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Substitute(s) present for the final vote |
Danutė Budreikaitė, Dorette Corbey, Avril Doyle, Christian Ehler, Göran Färm, Juan Fraile Cantón, Neena Gill, Matthias Groote, Françoise Grossetête, Satu Hassi, Eija-Riitta Korhola, Toine Manders, Vittorio Prodi, Esko Seppänen, Lambert van Nistelrooij |
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Substitute(s) under Rule 178(2) present for the final vote |
Giovanna Corda, Lily Jacobs, Johannes Lebech, Linda McAvan |
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- [1] Review of EU Emissions Trading Scheme - Survey Highlights, McKinsey, 2005
- [2] "Does the EU have sufficient resources to meet its objectives on energy policy and climate change". Policy Department on Budgetary Affairs, European Parliament, 2008.
- [3] Application of the Emissions Trading Directive by EU Member States, European Environment Agency, 2008.
- [4] idem, p. 7.
OPINION of the Committee on International Trade (17.9.2008)
for the Committee on the Environment, Public Health and Food Safety
on the proposal for a directive of the European Parliament and of the Council amending Directive 2003/87/EC so as to improve and extend the greenhouse gas emission allowance trading system of the Community
(COM(2008)0016 – C6‑0043/2008 – 2008/0013(COD))
Rapporteur: Corien Wortmann-Kool
AMENDMENTS
The Committee on International Trade calls on the Committee on the Environment, Public Health and Food Safety, as the committee responsible, to incorporate the following amendments in its report:
Amendment 1 Proposal for a directive – amending act Recital 3 | ||||||||||||||||||||||||||||||||||
Text proposed by the Commission |
Amendment | |||||||||||||||||||||||||||||||||
(3) The European Council has made a firm commitment to reduce the overall greenhouse gas emissions of the Community by at least 20% below 1990 levels by 2020, and by 30% provided that other developed countries commit themselves to comparable emission reductions and economically more advanced developing countries contribute adequately according to their responsibilities and respective capabilities. By 2050, global greenhouse gas emissions should be reduced by at least 50% below their 1990 levels. All sectors of the economy should contribute to achieving these emission reductions. |
(3) The European Council has made a firm commitment to reduce the overall greenhouse gas emissions of the Community by at least 20% below 1990 levels by 2020, and by 30% provided that other developed countries commit themselves to comparable emission reductions and economically more advanced developing countries contribute adequately according to their responsibilities and respective capabilities. This ambitious contribution by the EU, together with the emission trading system, is in any case placing a comparatively heavy burden on the European economy in the international context. By 2050, global greenhouse gas emissions should be reduced by at least 50% below their 1990 levels. All sectors of the economy should contribute to achieving these emission reductions, including international aviation and maritime transport). | |||||||||||||||||||||||||||||||||
Justification | ||||||||||||||||||||||||||||||||||
European undertakings have to compete at international level and CO2 emission reduction targets are placing a relatively heavy burden on them in this connection. This is a challenge which must therefore be met if the objectives of the Lisbon Process are to be achieved. | ||||||||||||||||||||||||||||||||||
Amendment 2 Proposal for a directive – amending act Recital 6 | ||||||||||||||||||||||||||||||||||
Text proposed by the Commission |
Amendment | |||||||||||||||||||||||||||||||||
(6) Once the Community and third countries conclude an international agreement according to which appropriate global action will be taken beyond 2012, considerable support should be given to credit emission reductions made in those countries. In advance of such an agreement, greater certainty should nonetheless be given on the continued use of credits from outside the Community. |
(6) Once the Community and third countries conclude an international agreement according to which global action will be taken beyond 2012, considerable support must be given to credit emission reductions made in those countries. In advance of such an agreement, greater certainty must nonetheless be given on the continued use of credits from outside the Community. | |||||||||||||||||||||||||||||||||
Justification | ||||||||||||||||||||||||||||||||||
The directive must create a binding framework for all concerned for the purpose of issuing emission reduction credits. | ||||||||||||||||||||||||||||||||||
Amendment 3 Proposal for a directive – amending act Recital 15 | ||||||||||||||||||||||||||||||||||
Text proposed by the Commission |
Amendment | |||||||||||||||||||||||||||||||||
(15) Given the considerable efforts of combating climate change and of adapting to its inevitable effects, it is appropriate that at least 20% of the proceeds from the auctioning of allowances should be used to reduce greenhouse gas emissions, to adapt to the impacts of climate change, to fund research and development for reducing emissions and adaptation, to develop renewable energies to meet the EU’s commitment to using 20% renewable energies by 2020, to meet the commitment of the Community to increase energy efficiency by 20% by 2020, for the capture and geological storage of greenhouse gases, to contribute to the Global Energy Efficiency and Renewable Energy Fund, for measures to avoid deforestation and facilitate adaptation in developing countries, and for addressing social aspects such as possible increases in electricity prices in lower and middle income households. This proportion is significantly below the expected net revenues for public authorities from auctioning, taking into account potentially reduced income from corporate taxes. In addition, proceeds from auctioning of allowances should be used to cover administrative expenses of the management of the Community scheme. Provisions should be included on monitoring the use of funds from auctioning for these purposes. Such notification does not release Member States from the obligation laid down in Article 88(3) of the Treaty, to notify certain national measures. The Directive does not prejudice the outcome of any future State aid procedures that may be undertaken in accordance with Articles 87 and 88 of the Treaty. |
(15) The proceeds from the auctioning of allowances should help to fund the considerable efforts being made to combat climate change and adapt to its inevitable effects. For example they could be used to reduce greenhouse gas emissions, to adapt to the impacts of climate change, to fund research and development for reducing emissions and adaptation, to develop renewable energies to meet the EU’s commitment to using 20% renewable energies by 2020, to meet the commitment of the Community to increase energy efficiency by 20% by 2020, for the capture and geological storage of greenhouse gases, to contribute to the Global Energy Efficiency and Renewable Energy Fund, for measures to avoid deforestation and facilitate adaptation in developing countries, and for addressing social aspects such as possible increases in electricity prices in lower and middle income households. This proportion is significantly below the expected net revenues for public authorities from auctioning, taking into account potentially reduced income from corporate taxes. In addition, proceeds from auctioning of allowances should be used to cover administrative expenses of the management of the Community scheme. The Member States should decide on the allocation of proceeds to individual measures depending on the Member States needs. Provisions should be included on monitoring the use of funds from auctioning for these purposes. Such notification does not release Member States from the obligation laid down in Article 88(3) of the Treaty, to notify certain national measures. The Directive does not prejudice the outcome of any future State aid procedures that may be undertaken in accordance with Articles 87 and 88 of the Treaty. | |||||||||||||||||||||||||||||||||
Justification | ||||||||||||||||||||||||||||||||||
Given that environmental policy is governed by the principle of shared competence, the Member States must be responsible for deciding on the allocation of the proceeds from the auctioning of allowances to individual measures to combat climate change. | ||||||||||||||||||||||||||||||||||
Amendment 4 Proposal for a directive – amending act Recital 17 a (new) | ||||||||||||||||||||||||||||||||||
Text proposed by the Commission |
Amendment | |||||||||||||||||||||||||||||||||
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(17a) It may realistically be assumed that the Kyoto II international agreement will lay down different obligations for industrialised and emerging countries (‘common but differentiated treatment’). This presents the Community with the challenge of making an effective contribution to containing CO2 emissions. The agreement could lead to international acceptance of increased CO2 emissions in certain emerging countries. The Community should therefore take into account the resulting distortions of competition. ‘Carbon leakage’ arises not only as a result of failure to comply with the international agreement but also where different obligations are imposed by it. Sectoral agreements and benchmarks could solve this problem. | |||||||||||||||||||||||||||||||||
Justification | ||||||||||||||||||||||||||||||||||
It is conceivable that economically emerging countries will only accede to an international agreement if they are given further margins for industrial development. The resulting disparities in CO2 reduction requirements will establish distortions in competition as a fact of life, constantly presenting the EU with the problem of how to respond to the relocation of production activities to places where CO2 requirements are less stringent. | ||||||||||||||||||||||||||||||||||
Amendment 5 Proposal for a directive – amending act Recital 18 | ||||||||||||||||||||||||||||||||||
Text proposed by the Commission |
Amendment | |||||||||||||||||||||||||||||||||
(18) Transitional free allocation to installations should be provided for through harmonised Community-wide rules ("benchmarks") in order to minimise distortions of competition with the Community. These rules should take account of the most greenhouse gas and energy efficient techniques, substitutes, alternative production processes, use of biomass, renewables and greenhouse gas capture and storage. Any such rules should not give incentives to increase emissions and ensure that an increasing proportion of these allowances is auctioned. Allocations must be fixed prior to the trading period so as to enable the market to function properly. They shall also avoid undue distortions of competition on the markets for electricity and heat supplied to industrial installations. These rules should apply to new entrants carrying out the same activities as existing installations receiving transitional free allocations. To avoid any distortion of competition within the internal market, no free allocation should be made in respect of the production of electricity by new entrants. Allowances which remain in the set aside for new entrants in 2020 should be auctioned. |
(18) Transitional free allocation to installations should be provided for through harmonised Community-wide rules and sectoral benchmarks in order to minimise distortions of competition with the Community and with regard to international competitors. These rules and benchmarks should take account of the most greenhouse gas and energy efficient techniques, substitutes, alternative production processes, use of biomass, renewables, cogeneration and greenhouse gas capture and storage. Any such rules should not give incentives to increase emissions and ensure that an increasing proportion of these allowances is auctioned. Allocations must be fixed prior to the trading period so as to enable the market to function properly. They shall also avoid undue distortions of competition on the markets for electricity and heat supplied to industrial installations. These rules should apply to new entrants carrying out the same activities as existing installations receiving transitional free allocations. To avoid any distortion of competition within the internal market, no free allocation should be made in respect of the production of electricity by new entrants with the exception of electricity produced from waste gases from industrial production processes for their own consumption. Allowances which remain in the set-aside for new entrants in 2020 should be auctioned. The Commission should consult the sectors concerned when defining benchmarks. | |||||||||||||||||||||||||||||||||
Justification | ||||||||||||||||||||||||||||||||||
Until a real quantifiable and verifiable international agreement is achieved the Commission has to allow for free allocation of allowances for industries at risk of carbon leakage not only through harmonised Community-wide rules but, more importantly, through sectoral benchmarks discussed with those involved. | ||||||||||||||||||||||||||||||||||
Cogeneration is an energy efficient production process and should be not included. | ||||||||||||||||||||||||||||||||||
Waste gases resulting from production processes have to be used immediately after their generation. To ensure their efficient recovery maximum flexibility must be allowed. Their use for electricity generation contributes to resources conservation and reduces CO2 emissions. Electricity produced under these special circumstances should be excluded from auctioning. | ||||||||||||||||||||||||||||||||||
Under the global economic system, European undertakings are forced to compete with undertakings from third countries subject to different framework conditions. Distortions of competition arriving from less stringent CO2 requirements in third countries increase the danger of production activities being relocated. The situation at international level must therefore be taken into account in seeking to contribute effectively to climate protection. | ||||||||||||||||||||||||||||||||||
Amendment 6 Proposal for a directive – amending act Recital 19 | ||||||||||||||||||||||||||||||||||
Text proposed by the Commission |
Amendment | |||||||||||||||||||||||||||||||||
(19) The Community will continue to take the lead in the negotiation of an ambitious international agreement that will achieve the objective of limiting global temperature increase to 2°C and is encouraged by the progress made in Bali towards this objective. In the event that other developed countries and other major emitters of greenhouse gases do not participate in this international agreement, could lead to an increase in greenhouse gas emissions in third countries where industry would not be subject to comparable carbon constraints (‘carbon leakage’), and at the same time could put certain energy-intensive sectors and sub-sectors in the Community which are subject to international competition at an economic disadvantage. This could undermine the environmental integrity and benefit of actions by the Community. To address the risk of carbon leakage, the Community will allocate allowances free of charge up to 100% to sectors or sub-sectors meeting the relevant criteria. The definition of these sectors and sub-sectors and the measures required will be subject to re-assessment to ensure that action is taken where necessary and to avoid overcompensation. For those specific sectors or sub-sectors where it can be duly substantiated that the risk of carbon leakage cannot be prevented otherwise, where electricity constitutes a high proportion of production costs and is produced efficiently, the action taken may take into account the electricity consumption in the production process, without changing the total quantity of allowances. |
(19) The Community will continue to take the lead in the negotiation of an ambitious international agreement and/or international sectoral agreements that will achieve the objective of limiting global temperature increase to 2°C and is encouraged by the progress made in Bali towards this objective. In the event that other developed countries and other major emitters of greenhouse gases do not participate in this international agreement, this would lead to an increase in greenhouse gas emissions in third countries where industry would not be subject to comparable carbon constraints (‘carbon leakage’), and at the same time could put certain energy-intensive sectors and sub-sectors in the Community which are subject to international competition at an economic disadvantage. This could undermine the environmental integrity and benefit of actions by the Community. To address the risk of carbon leakage, the Community will allocate allowances 100% free of charge to energy-intensive sectors. The definition of these sectors and sub-sectors and the measures required will be subject to re-assessment to ensure that action is taken where necessary and to avoid overcompensation. For those specific sectors or sub-sectors where it can be duly substantiated that the risk of carbon leakage cannot be prevented otherwise, where electricity constitutes a high proportion of production costs and is produced efficiently, the action taken may take into account the electricity consumption in the production process, without changing the total quantity of allowances. | |||||||||||||||||||||||||||||||||
Justification | ||||||||||||||||||||||||||||||||||
In order to contribute effectively to climate protection the Community must take effective preventive measures to prevent the relocation of production activities to third countries with less stringent CO2 requirements. In particular, energy-intensive sectors or subsectors are, because of the pressure of international competition, unable to pass on increased costs by raising the price of their products. Therefore additional costs resulting from emission trading would lead to the relocation of production, with a possibly unfavourable impact on global emissions. It is therefore necessary to minimise the burden through the long-term allocation of emission quotas free of charge. | ||||||||||||||||||||||||||||||||||
It is important to try not only to achieve a global international agreement but also to secure international sectoral agreements, especially with emerging economies such as China and India. | ||||||||||||||||||||||||||||||||||
Amendment 7 Proposal for a directive – amending act Recital 19 a (new) | ||||||||||||||||||||||||||||||||||
Text proposed by the Commission |
Amendment | |||||||||||||||||||||||||||||||||
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(19a) If no international agreement on limiting global warming can be achieved the Community should endeavour to conclude bilateral and multilateral agreements with other major greenhouse gas emitters. Independently of the outcome of the current negotiations, the Community should take the lead in setting up a World Environmental Organisation incorporating formal international environmental provisions already adopted, together with effective judicial mechanisms. | |||||||||||||||||||||||||||||||||
Justification | ||||||||||||||||||||||||||||||||||
It is necessary to envisage the possibility of failure of current negotiations regarding the post-Kyoto period and consider lasting and effective solutions. | ||||||||||||||||||||||||||||||||||
Amendment 8 Proposal for a directive – amending act Recital 20 | ||||||||||||||||||||||||||||||||||
Text proposed by the Commission |
Amendment | |||||||||||||||||||||||||||||||||
(20) The Commission should therefore review the situation by June 2011 at the latest, consult with all relevant social partners, and, in the light of the outcome of the international negotiations, submit a report accompanied by any appropriate proposals. In this context, the Commission should identify which energy-intensive industry sectors or sub-sectors are likely to be subject to carbon leakage not later than 30 June 2010. It should base its analysis on the assessment of the inability to pass on the cost of required allowances in product prices without significant loss of market share to installations outside the Community not taking comparable action to reduce emissions. Energy-intensive industries which are determined to be exposed to a significant risk of carbon leakage could receive a higher amount of free allocation or an effective carbon equalisation system could be introduced with a view to putting installations from the Community which are at significant risk of carbon leakage and those from third countries on a comparable footing. Such a system could apply requirements to importers that would be no less favourable than those applicable to installations within the EU, for example by requiring the surrender of allowances. Any action taken would need to be in conformity with the principles of the UNFCCC, in particular the principle of common but differentiated responsibilities and respective capabilities, taking into account the particular situation of Least Developed Countries. It would also need to be in conformity with the international obligations of the Community including the WTO agreement. |
(20) The Commission should therefore review the situation by June 2011 at the latest, consult with all relevant social partners, and, in the light of the outcome of the international negotiations, submit a report assessing the situation, accompanied by any appropriate proposals and relating to all industrial sectors, particularly energy-intensive sectors or individual sectors which have shown themselves to be subject to carbon leakage. Criteria for and the identification of such sectors and sub-sectors should be set, after consulting the social partners and affected stakeholders, in a proposal submitted to the European Parliament and the Council. That proposal should take into account the possible failure to reach an international agreement with mandatory reductions and possible alternatives to international agreements. The Commission should base its analysis on the assessment of the inability to pass on the cost of required allowances in product prices without significant loss of market share to installations outside the Community not taking comparable action to reduce emissions. Industries which are determined to be exposed to a significant risk of carbon leakage could receive a higher amount of free allocation or an effective carbon equalisation system could be introduced with a view to putting installations from the Community which are at significant risk of carbon leakage and those from third countries on a comparable footing. Such a system could apply requirements to importers that would be no less favourable than those applicable to installations within the EU, for example by requiring the surrender of allowances. The Commission should monitor the potential effects on competitiveness and employment for EU-based producers using such products as inputs in their production process. Any action taken would need to be in conformity with the principles of the UNFCCC, in particular the principle of common but differentiated responsibilities and respective capabilities, taking into account the particular situation of Least Developed Countries. It would also need to be in conformity with the international obligations of the Community including the WTO agreement. | |||||||||||||||||||||||||||||||||
Justification | ||||||||||||||||||||||||||||||||||
The report evaluating the situation and solutions proposed, where there is a significant danger of carbon leakage, must apply to all industrial sectors with particular emphasis on those consuming large amounts of energy given the legal imprecision of the term 'energy-intensive'. | ||||||||||||||||||||||||||||||||||
Criteria for identification and classification of sectors affected by carbon leakage need to be done much sooner than proposed by the Commission in order to give predictability to the industries effected; the direct and indirect effects to EU-based producers must be taken into account. | ||||||||||||||||||||||||||||||||||
Amendment 9 Proposal for a directive – amending act Recital 20 a (new) | ||||||||||||||||||||||||||||||||||
Text proposed by the Commission |
Amendment | |||||||||||||||||||||||||||||||||
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(20a) Allocation of quotas 100% free of charge will make the inclusion of imports in emission trading redundant. This would guarantee compliance with undertakings adopted in the context of the WTO and should also mean that third countries do not introduce such protectionist measures. At the same time, it would help to improve the negotiating climate and increase acceptance of effective EU CO2 reduction mechanisms. | |||||||||||||||||||||||||||||||||
Justification | ||||||||||||||||||||||||||||||||||
The WTO requires the Community to guarantee non-discriminatory access to its markets. An allocation of quotas for energy intensive sectors 100% free of charge will make any discriminatory inclusion of imports redundant while at the same time countering any danger of possible protectionist measures on the part of Member States. The objective of establishing the most comprehensive emission trading system possible can only be achieved if the negotiating partners are fully satisfied convinced that the Community has no protectionist motives for introducing such a system. | ||||||||||||||||||||||||||||||||||
Amendment 10 Proposal for a directive – amending act Recital 21 | ||||||||||||||||||||||||||||||||||
Text proposed by the Commission |
Amendment | |||||||||||||||||||||||||||||||||
(21) In order to ensure equal conditions of competition within the Community, the use of credits for emission reductions outside the Community to be used by operators within the Community scheme should be harmonised. The Kyoto Protocol to the UNFCCC sets out quantified emission targets for developed countries for the period 2008 to 2012, and provides for the creation of Certified Emission Reductions (CERs) and Emission Reduction Units (ERUs) from Clean Development Mechanism (CDM) and Joint Implementation projects respectively and their use by developed countries to meet part of these targets. While the Kyoto framework does not enable ERUs to be created from 2013 onwards without new quantified emission targets being in place for host countries, CDM credits can potentially continue to be generated. Additional use of certified emission reductions (CERs) and emission reduction units (ERUs) should be provided for once there is an international agreement on climate change from countries which have concluded that agreement. In the absence of such agreement, providing for further use of CERs and ERUs would undermine this incentive and make it more difficult to achieve the objectives of the Community on increasing renewable energy use. The use of CERs and ERUs should be consistent with the goal set by the Community of generating 20% of energy from renewable sources by 2020, and promoting energy efficiency, innovation and technological development. Where it is consistent with achieving these goals, the possibility should be foreseen to conclude agreements with third countries to provide incentives for reductions in emissions in these countries which bring about real, additional reductions in greenhouse gas emissions while stimulating innovation by companies established within the Community and technological development in third countries. Such agreements may be ratified by more than one country. Upon the conclusion by the Community of a satisfactory international agreement, access to credits from projects in third countries should be increased simultaneously with the increase in the level of emission reductions to be achieved through the Community scheme. |
(21) In order to ensure equal conditions of competition within the Community, the use of credits for emission reductions outside the Community to be used by operators within the Community scheme should be harmonised. The Kyoto Protocol to the UNFCCC sets out quantified emission targets for developed countries for the period 2008 to 2012, and provides for the creation of Certified Emission Reductions (CERs) and Emission Reduction Units (ERUs) from Clean Development Mechanism (CDM) and Joint Implementation projects respectively and their use by developed countries to meet part of these targets. While the Kyoto framework does not enable ERUs to be created from 2013 onwards without new quantified emission targets being in place for host countries, CDM credits can potentially continue to be generated. The use of certified emission reductions (CERs) and emission reduction units (ERUs) should be provided for even without an international agreement on climate change. The use of CERs and ERUs should be consistent with the goal set by the Community of generating 20% of energy from renewable sources by 2020, and promoting energy efficiency, innovation and technological development. Where it is consistent with achieving these goals, the possibility should be foreseen to conclude agreements with third countries to provide incentives for reductions in emissions in these countries which bring about real, additional reductions in greenhouse gas emissions while stimulating innovation by companies established within the Community and technological development in third countries. Such agreements may be ratified by more than one country. Upon the conclusion by the Community of a satisfactory international agreement, access to credits from projects in third countries should be increased simultaneously with the increase in the level of emission reductions to be achieved through the Community scheme. No credits should be available, however, in relation to CDM and JI projects in sectors exposed to carbon leakage. | |||||||||||||||||||||||||||||||||
Justification | ||||||||||||||||||||||||||||||||||
CDM-measures are making an effective contribution to climate protection in the developing countries. The participation of less developed countries in such projects is therefore, in any case, desirable with a view to achieving global CO2 objectives. Accordingly, measures should be taken to ensure the widest possible participation of the developing countries in the CDM, which should not be restricted to possible partners to an international agreement. Participation by individual countries in CDM arrangements may facilitate their accession to an international agreement on climate protection. | ||||||||||||||||||||||||||||||||||
Sectors exposed to carbon leakage should not be threatened by external competitors favoured through CDM and JI credits. | ||||||||||||||||||||||||||||||||||
Amendment 11 Proposal for a directive – amending act Recital 24 | ||||||||||||||||||||||||||||||||||
Text proposed by the Commission |
Amendment | |||||||||||||||||||||||||||||||||
(24) Least Developed Countries are especially vulnerable to the effects of climate change, and are responsible only for a very low level of greenhouse gas emissions. Therefore, particular priority should be given to addressing the needs of Least Developed Countries when revenues generated from auctioning are used to facilitate developing countries' adaptation to the impacts of climate change. Given that very few CDM projects have been established in those countries, it is appropriate to give certainty on the acceptance of credits from projects started there after 2012, even in the absence of an international agreement. This entitlement should apply to Least Developed Countries until 2020, provided that they have by then either ratified a global agreement on climate change or a bilateral or multilateral agreement with the Community. |
(24) Least Developed Countries are especially vulnerable to the effects of climate change, and are responsible only for a very low level of greenhouse gas emissions. Therefore, particular priority should be given to addressing the needs of Least Developed Countries when revenues generated from auctioning are used to facilitate developing countries' adaptation to the impacts of climate change. Given that very few CDM projects have been established in those countries, it is appropriate to give certainty on the acceptance of credits from projects started there after 2012, even in the absence of an international agreement. This entitlement should apply to Least Developed Countries until 2020. | |||||||||||||||||||||||||||||||||
Justification | ||||||||||||||||||||||||||||||||||
CDM-measures are making an effective contribution to climate protection in the developing countries. The participation of less developed countries in such projects is therefore, in any case, desirable with a view to achieving global CO2 objectives. Accordingly, measures should be taken to ensure the widest possible participation of the developing countries in the CDM, which should not be restricted to possible partners to an international agreement. Participation by individual countries in CDM arrangements may facilitate their accession to an international agreement on climate protection. | ||||||||||||||||||||||||||||||||||
Amendment 12 Proposal for a directive – amending act Article 1 a (new) | ||||||||||||||||||||||||||||||||||
Text proposed by the Commission |
Amendment | |||||||||||||||||||||||||||||||||
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Article 1a | |||||||||||||||||||||||||||||||||
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The Commission shall present an annual report to the European Parliament and the Council on the establishment and functioning of the revised EU Emissions Trading Scheme (EU ETS). The first such report shall be presented one year after the adoption of this Directive. | |||||||||||||||||||||||||||||||||
Justification | ||||||||||||||||||||||||||||||||||
This process is a very complex one requiring permanent inter-institutional monitoring and evaluation. | ||||||||||||||||||||||||||||||||||
Amendment 13 Proposal for a directive – amending act Article 1 – point 2 Directive 2003/87/EC Article 3 – paragraph b – point h | ||||||||||||||||||||||||||||||||||
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Justification | ||||||||||||||||||||||||||||||||||
In the current Commission proposal, capacity extensions are no longer defined as new entrants. This brings a difference, only allocating new installations with GHG credits, and leaving capacity expansions to auctioning. The Commission proposal brings uneven balance between new installations and capacity upgrades, not bringing the most efficient approach and potentially harming innovation in existing processes. | ||||||||||||||||||||||||||||||||||
Amendment 14 Proposal for a directive – amending act Article 1 - point 2 Directive 2003/87/EC Article 3 – paragraph c – point u a (new) | ||||||||||||||||||||||||||||||||||
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Justification | ||||||||||||||||||||||||||||||||||
One of the aims of the EU Climate Package is to promote recycling. Hence, it does not make sense to include recycling operations in a scheme which will penalise it. | ||||||||||||||||||||||||||||||||||
Amendment 15 Proposal for a directive Article 1 – point 7 Directive 2003/87/EC Article 10 - paragraph 3 - introductory part | ||||||||||||||||||||||||||||||||||
Text proposed by the Commission |
Amendment | |||||||||||||||||||||||||||||||||
3. At least 20% of the revenues generated from the auctioning of allowances referred to in paragraph 2, including all revenues from the auctioning referred to in point (b) thereof, should be used for the following: |
3. The revenues generated from the auctioning of allowances referred to in paragraph 2 shall be used for the following: | |||||||||||||||||||||||||||||||||
Justification | ||||||||||||||||||||||||||||||||||
Given the severity and urgency of the problem, the full proceeds of auctioning allowances should be devoted to measures designed to reduce greenhouse gas emissions, develop renewable energy, combat deforestation, assist developing countries adapt to climate change and help lower income households improve the efficiency with which they use energy. | ||||||||||||||||||||||||||||||||||
Amendment 16 Proposal for a directive – amending act Article 1 - point 7 Directive 2003/87/EC Article 10 – paragraph 3 – point g | ||||||||||||||||||||||||||||||||||
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Justification | ||||||||||||||||||||||||||||||||||
The Commission proposes that only 20% of auctioning revenues be set aside to combat climate change which is obviously insufficient, especially if administrative costs are to be included in this sum. The coverage of national budgetary deficits should not be a major stimulus for auctioning. | ||||||||||||||||||||||||||||||||||
Amendment 17 Proposal for a directive Article 1 – point 7 Directive 2003/87/EC Article 10 -paragraph 4 | ||||||||||||||||||||||||||||||||||
Text proposed by the Commission |
Amendment | |||||||||||||||||||||||||||||||||
4. Member States shall include information on the use of revenues for each of these purposes in their reports submitted under Decision No 280/2004/EC. |
4. Member States shall decide, depending on their needs, on the allocation of proceeds to individual measures and shall include information on the use of revenues for each of these purposes and the geographical distribution of the use of revenues in their reports submitted under Decision No 280/2004/EC, focusing in particular on internal market, State aid and competition issues. | |||||||||||||||||||||||||||||||||
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The Commission shall report annually to the European Parliament on the use of revenue with focusing in particular on internal market, State aid and competition issues. | |||||||||||||||||||||||||||||||||
Justification | ||||||||||||||||||||||||||||||||||
This process is a very complex one requiring permanent inter-institutional monitoring and evaluation. It is important to improve transparency, to allow compliance with the obligation in Article 10 paragraph 3a to be assessed and to ensure that, taken as a whole, the Union's effort is being distributed effectively. Given that environmental policy is governed by the principle of shared competence, the Member States must be responsible for deciding on the allocation of the proceeds from the auctioning of allowances to individual measures to combat climate change. | ||||||||||||||||||||||||||||||||||
Amendment 18 Proposal for a directive – amending act Article 1 - point 7 Directive 2003/87/EC Article 10 – paragraph 5 | ||||||||||||||||||||||||||||||||||
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Justification | ||||||||||||||||||||||||||||||||||
The Commission proposes to deal with a crucial element of the extended ETS in comitology. It is essential that the Commission come forward with a proposal for co-decision. | ||||||||||||||||||||||||||||||||||
Amendment 19 Proposal for a directive – amending act Article 1 - point 8 Directive 2003/87/EC Article 10a – paragraph 1 – subparagraph 2 | ||||||||||||||||||||||||||||||||||
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Justification | ||||||||||||||||||||||||||||||||||
The Commission proposes to deal with a crucial element of the extended ETS in comitology. It is essential that the Commission come forward with a proposal for co-decision. | ||||||||||||||||||||||||||||||||||
Amendment 20 Proposal for a directive – amending act Article 1 - point 8 Directive 2003/87/EC Article 10a – paragraph 1 – subparagraph 3 | ||||||||||||||||||||||||||||||||||
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Justification | ||||||||||||||||||||||||||||||||||
The use of waste gases from the production process for the generation of electricity contributes to the conservation of resources and reduction of CO2 emissions. Electricity produced under these special circumstances should be excluded from auctioning, and included by the same allocation methodology as applied to respective installations of the producer of these gases. This corresponds with the main content of point 92 of the Commission Communication COM(2008)830. | ||||||||||||||||||||||||||||||||||
The electricity production sector cannot be excluded from its own climate efforts by a generalised passing-on of costs. | ||||||||||||||||||||||||||||||||||
Amendment 21 Proposal for a directive – amending act Article 1 - point 8 Directive 2003/87/EC Article 10a – paragraph 3 | ||||||||||||||||||||||||||||||||||
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Justification | ||||||||||||||||||||||||||||||||||
Electricity production in co-generation plants is the most efficient form of energy production. Further measures to promote it should therefore be guaranteed after 2013 also. Free allocation of emission quotas will help to achieve this objective. | ||||||||||||||||||||||||||||||||||
Amendment 22 Proposal for a directive – amending act Article 1 - point 8 Directive 2003/87/EC Article 10a – paragraph 6 – subparagraph 3 | ||||||||||||||||||||||||||||||||||
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Justification | ||||||||||||||||||||||||||||||||||
The use of waste gases from the production process for the generation of electricity contributes to the conservation of resources and reduction of CO2 emissions. Electricity produced under these special circumstances should be excluded from auctioning, and included by the same allocation methodology as applied to respective installations of the producer of these gases. This corresponds with the main content of point 92 of the Commission Communication COM(2008)830. | ||||||||||||||||||||||||||||||||||
Amendment 23 Proposal for a directive – amending act Article 1 - point 8 Directive 2003/87/EC Article 10a – paragraph 7 | ||||||||||||||||||||||||||||||||||
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Justification | ||||||||||||||||||||||||||||||||||
The way that the Commission is proposing to deal with EU-based energy-intensive industries vulnerable to carbon leakage depends on the outcome of international negotiations. The Commission needs to determine, along with these industries, the acceptable targets for GHG reductions at EU and international level leading to real quantifiable and verifiable reductions in the EU as well as abroad. | ||||||||||||||||||||||||||||||||||
Amendment 24 Proposal for a directive – amending act Article 1 - point 8 Directive 2003/87/EC Article 10a – paragraph 9 – subparagraph 1 | ||||||||||||||||||||||||||||||||||
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Justification | ||||||||||||||||||||||||||||||||||
Sectors considered vulnerable to "carbon leakage" and the appropriate actions should be decided upon as soon as possible. A reassessment of the sectors concerned every 3 years will unnecessarily lead to uncertainty which is detrimental for investment. | ||||||||||||||||||||||||||||||||||
Amendment 25 Proposal for a directive – amending act Article 1 - point 8 Directive 2003/87/EC Article 10a – paragraph 9 – subparagraph 2 | ||||||||||||||||||||||||||||||||||
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Justification | ||||||||||||||||||||||||||||||||||
This process is a very complex one requiring permanent inter-institutional monitoring and evaluation. | ||||||||||||||||||||||||||||||||||
Amendment 26 Proposal for a directive – amending act Article 1 - point 8 Directive 2003/87/EC Article 10a – paragraph 9 – subparagraph 2a (new) | ||||||||||||||||||||||||||||||||||
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Amendment 27 Proposal for a directive – amending act Article 1 - point 8 Directive 2003/87/EC Article 10a – paragraph 9 – subparagraph 3 | ||||||||||||||||||||||||||||||||||
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Amendment 28 Proposal for a directive – amending act Article 1 - point 8 Directive 2003/87/EC Article 10a – paragraph 9 – subparagraph 3 – point c | ||||||||||||||||||||||||||||||||||
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Amendment 29 Proposal for a directive – amending act Article 1 - point 8 Directive 2003/87/EC Article 10a – paragraph 9 – subparagraph 3 – point da (new) | ||||||||||||||||||||||||||||||||||
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Amendment 30 Proposal for a directive – amending act Article 1 - point 8 Directive 2003/87/EC Article 10a – paragraph 9 – subparagraph 3 – point db (new) | ||||||||||||||||||||||||||||||||||
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Amendment 31 Proposal for a directive – amending act Article 1 - point 8 Directive 2003/87/EC Article 10a – paragraph 9 – subparagraph 4 | ||||||||||||||||||||||||||||||||||
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Justification | ||||||||||||||||||||||||||||||||||
Throughout the proposal the Commission refers to the sectors and sub-sectors vulnerable to carbon leakage therefore it makes sense to keep the same terminology throughout so as not to create confusion. | ||||||||||||||||||||||||||||||||||
Amendment 32 Proposal for a directive – amending act Article 1 - point 8 Directive 2003/87/EC Article 10b – paragraph 1 | ||||||||||||||||||||||||||||||||||
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Justification | ||||||||||||||||||||||||||||||||||
The dates need to be brought forward in order to provide predictability for industries affected by carbon leakage. | ||||||||||||||||||||||||||||||||||
An eventual international agreement needs to be quantifiable and verifiable and bring equivalent emissions reductions as proposed by the Commission. | ||||||||||||||||||||||||||||||||||
The Parliament and the Council need to be informed and give their assent on the Commission's proposal and the identification of carbon leakage sectors and sub-sectors needs to be done in consultation with the interested parties. | ||||||||||||||||||||||||||||||||||
Amendment 33 Proposal for a directive – amending act Article 1 - point 8 Directive 2003/87/EC Article 10b – paragraph 2 | ||||||||||||||||||||||||||||||||||
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Amendment 34 Proposal for a directive – amending act Article 1 - point 9 Directive 2003/87/EC Article 11 – paragraph 2 – subparagraph 2 | ||||||||||||||||||||||||||||||||||
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Justification | ||||||||||||||||||||||||||||||||||
Any installation that ceases to operate and had received free allowances will not be allowed to sell the remaining allowances on to the market but will instead give them back to the Member State, this will guarantee that there will be no abuse of the system. | ||||||||||||||||||||||||||||||||||
The Commission must also ensure that State Aid and competition rules are vigorously applied and monitored. | ||||||||||||||||||||||||||||||||||
All parties involved (from industry to end consumer) will require price transparency at all times in order to avoid market distortion, therefore the Commission should publish, on a regular basis, the end consumer price of energy products. | ||||||||||||||||||||||||||||||||||
Amendment 35 Proposal for a directive – amending act Article 1 - point 9 Directive 2003/87/EC Article 11a – paragraph 1 | ||||||||||||||||||||||||||||||||||
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Justification | ||||||||||||||||||||||||||||||||||
It is important to try not only to achieve a global international agreement but also international sectoral agreements, especially with emerging economies such as China and India in order to achieve quantifiable and verifiable emission reductions. | ||||||||||||||||||||||||||||||||||
Sectors exposed to carbon leakage should not be threatened by external competitors favoured through CDM and JI credits. | ||||||||||||||||||||||||||||||||||
Amendment 36 Proposal for a directive – amending act Article 1 - point 9 Directive 2003/87/EC Article 11a – paragraph 7 | ||||||||||||||||||||||||||||||||||
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Justification | ||||||||||||||||||||||||||||||||||
It is important to try not only for a global international agreement but also to secure international sectoral agreements, especially with emerging economies such as China and India. | ||||||||||||||||||||||||||||||||||
Amendment 37 Proposal for a directive – amending act Article 1 - point 10 Directive 2003/87/EC Article 11b | ||||||||||||||||||||||||||||||||||
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Justification | ||||||||||||||||||||||||||||||||||
Sectors exposed to carbon leakage should not be threatened by external competitors favoured through CDM and JI credits. | ||||||||||||||||||||||||||||||||||
Amendment 38 Proposal for a directive – amending act Article 1 - point 12 Directive 2003/87/EC Article 14 – paragraph 1 – subparagraph 1 | ||||||||||||||||||||||||||||||||||
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Justification | ||||||||||||||||||||||||||||||||||
It is necessary to set a date in order to have predictability in the system. | ||||||||||||||||||||||||||||||||||
Amendment 39 Proposal for a directive – amending act Article 1 - point 12 Directive 2003/87/EC Article 14 – paragraph 2 | ||||||||||||||||||||||||||||||||||
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Justification | ||||||||||||||||||||||||||||||||||
The financial institutions involved in auctioning need to have clear rules of procedure. | ||||||||||||||||||||||||||||||||||
Amendment 40 Proposal for a directive – amending act Article 1 - point 13 Directive 2003/87/EC Article 15 – point b – subparagraph 1 | ||||||||||||||||||||||||||||||||||
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Justification | ||||||||||||||||||||||||||||||||||
The date needs to be specified in order to allow for the predictability needed by the interested parties. | ||||||||||||||||||||||||||||||||||
Amendment 41 Proposal for a directive – amending act Article 1 - point 19 Directive 2003/87/EC Article 24a – paragraph 1 – subparagraph 1 | ||||||||||||||||||||||||||||||||||
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Justification | ||||||||||||||||||||||||||||||||||
Sectors exposed to carbon leakage should not be threatened by external competitors favoured through CDM and JI credits. | ||||||||||||||||||||||||||||||||||
Amendment 42 Proposal for a directive – amending act Article 1 - point 21 Directive 2003/87/EC Article 27 | ||||||||||||||||||||||||||||||||||
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Justification | ||||||||||||||||||||||||||||||||||
Small installations should have the possibility to "opt-out" from the system if equivalent measures are in place in order to reduce the administrative burden on small and medium-sized enterprises (SMEs), to avoid unnecessary administrative costs and bureaucracy and to enhance the efficiency of the system. One third of total installations that are covered by the scheme are small installations that together account for only 2% of the overall emissions reported. | ||||||||||||||||||||||||||||||||||
Amendment 43 Proposal for a directive – amending act Article 1 - point 21 Directive 2003/87/EC Article 28 – title | ||||||||||||||||||||||||||||||||||
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Justification | ||||||||||||||||||||||||||||||||||
It is important to try not only to achieve a global international agreement but also to secure international sectoral agreements, especially with emerging economies such as China and India in order to achieve quantifiable and verifiable emission reductions. | ||||||||||||||||||||||||||||||||||
Amendment 44 Proposal for a directive – amending act Article 1 - point 21 Directive 2003/87/EC Article 28 – paragraph 1 | ||||||||||||||||||||||||||||||||||
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Justification | ||||||||||||||||||||||||||||||||||
It is important to try not only to achieve a global international agreement but also to secure international sectoral agreements, especially with emerging economies such as China and India in order to achieve quantifiable and verifiable emission reductions. | ||||||||||||||||||||||||||||||||||
Amendment 45 Proposal for a directive – amending act Article 1 - point 21 Directive 2003/87/EC Article 28 – paragraph 2 | ||||||||||||||||||||||||||||||||||
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Justification | ||||||||||||||||||||||||||||||||||
It is important to try not only to achieve a global international agreement but also to secure international sectoral agreements, especially with emerging economies such as China and India in order to achieve quantifiable and verifiable emission reductions. | ||||||||||||||||||||||||||||||||||
Amendment 46 Proposal for a directive – amending act Article 1 - point 21 Directive 2003/87/EC Article 28 – paragraph 3 | ||||||||||||||||||||||||||||||||||
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Justification | ||||||||||||||||||||||||||||||||||
Sectors exposed to carbon leakage should not be threatened by external competitors favoured through CDM and JI credits. | ||||||||||||||||||||||||||||||||||
Amendment 47 Proposal for a directive – amending act Annex I – point 2 Directive 2003/87/EC Annex I – Point 2 | ||||||||||||||||||||||||||||||||||
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Justification | ||||||||||||||||||||||||||||||||||
The objective of Article 27 seeking to exclude small installations would be impossible to achieve because of the accumulation of interconnected small installations for the purposes of calculating total emissions. | ||||||||||||||||||||||||||||||||||
Amendment 48 Proposal for a directive – amending act I a (new) | ||||||||||||||||||||||||||||||||||
Text proposed by the Commission |
Amendment | |||||||||||||||||||||||||||||||||
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Annex Ia Minimum requirements for an International Agreement
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An international agreement including energy-intensive industries exposed to a significant risk of carbon leakage, or a sectoral international agreement on such industries, must comply with at least the following criteria in order to provide a level playing field for such industries: | |||||||||||||||||||||||||||||||||
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(i) involve the participation of countries representing a critical mass of at least 85% of production, | |||||||||||||||||||||||||||||||||
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(ii) contain equivalent CO2 emission targets, | |||||||||||||||||||||||||||||||||
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(iii) include similar emission reductions systems with equivalent effect imposed by all participating countries or from countries with non-equivalent CO2 emission targets in sectors covered by the EU ETS, | |||||||||||||||||||||||||||||||||
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(iv) ensure that competing materials must be subject to equivalent restrictions taking into account life cycles, | |||||||||||||||||||||||||||||||||
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(v) provide for an effective international monitoring and verification system. | |||||||||||||||||||||||||||||||||
Justification | ||||||||||||||||||||||||||||||||||
In line with amendment to Article 10b. |
PROCEDURE
Title |
Greenhouse gas emission allowance trading system |
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References |
COM(2008)0016 – C6-0043/2008 – 2008/0013(COD) |
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Committee responsible |
ENVI |
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Opinion by Date announced in plenary |
INTA 19.2.2008 |
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Drafts(wo)man Date appointed |
Corien Wortmann-Kool 9.9.2008 |
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Previous drafts(wo)man |
Jens Holm |
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Discussed in committee |
27.3.2008 |
23.6.2008 |
24.6.2008 |
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Date adopted |
9.9.2008 |
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Result of final vote |
+: –: 0: |
22 3 2 |
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Members present for the final vote |
Carlos Carnero González, Daniel Caspary, Françoise Castex, Christofer Fjellner, Béla Glattfelder, Ignasi Guardans Cambó, Jacky Hénin, Alain Lipietz, Erika Mann, Helmuth Markov, David Martin, Vural Öger, Georgios Papastamkos, Godelieve Quisthoudt-Rowohl, Peter Šťastný, Robert Sturdy, Gianluca Susta, Daniel Varela Suanzes-Carpegna, Corien Wortmann-Kool |
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Substitute(s) present for the final vote |
Jean-Pierre Audy, Albert Deß, Elisa Ferreira, Vasco Graça Moura, Eugenijus Maldeikis, Rovana Plumb, Salvador Domingo Sanz Palacio, Zbigniew Zaleski |
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OPINION of the Committee on Economic and Monetary Affairs (11.9.2008)
for the Committee on the Environment, Public Health and Food Safety
on the proposal for a directive of the European Parliament and of the Council amending Directive 2003/87/EC so as to improve and extend the greenhouse gas emission allowance trading system of the Community
(COM(2008)0016 – C6‑0043/2008 – 2008/0013(COD))
Rapporteur: Elisa Ferreira
SHORT JUSTIFICATION
The EU objective of a 30% reduction in greenhouse gas emissions (GHG) by 2020 can be fully subscribed, provided that other developed parts of the world and economically more advanced developing countries commit themselves to comparable proportionate emission reductions. The commitment of at least a 20% reduction of GHG emissions by 2020, irrespective of any international agreement can also be subscribed.
The EU has developed the Emissions Trading System (EU ETS) as the cornerstone of its strategy for reducing greenhouse gasses (GHGs) in a cost-effective and economically efficient manner. A market based instrument is an invaluable tool and the creation by Europe of the largest world carbon market, as well as the attribution of a cost to carbon is a sign of its enormous potential. However, based on past experience, it is acknowledged that there is room for improvement of the ETS Directive, in such a way that the present proposal for amending and extending the Emission Trading Scheme is welcome.
The quality of the Commission's proposal must be underlined; moving to an EU wide cap on allowances will improve the EU ETS consistency and predictability while answering serious competition concerns of the existing system. Auctioning is a rational and transparent way to allocate responsibilities. The Commissions proposal to clarify the criteria for the use of CDMs and JIs credits must also be welcomed.
On possible margins for improvement of the present proposal:
It is considered that the EU ETS should be set up in such a way that it will allow it to link with a global system of emissions trading in case there will be an international agreement. However, it is equally important that the scheme can operate in the absence of an international agreement.
In the absence of international binding agreements, that include sectoral quantifiable compromises, the risk of "carbon leakage", (i.e. the relocation of GHG emitting activities from the EU to third countries), thereby increasing global emissions and jeopardizing EU based economic activities is a major problem requiring an adequate solution.
The classification of industries in terms of vulnerability to carbon leakage is a complex and critical procedure; it should be done in full transparency in the shortest time so as to increase predictability for the industry; direct and indirect impact of expected rise in the price of inputs must be also taken into account. Free allowances should be associated with clear benchmarks in all those circumstances where international agreements do not guarantee the competitive neutrality of auctioning. This classification needs to be done in consultation with the European Parliament, the council and the sectors and sub-sectors involved.
The principle behind the auctioning of allowances by Member States to the highest bidders, including the financial sector, is still unclear and requires clarification in a detailed way; in spite of the obvious interest of this new market opportunity to operators in the financial markets, the overall objective of reducing GHGs must be kept in sight, namely in what concerns its accessibility at adequate prices to the primary operators (CO2 emitters). The practical functioning of auctioning is an essential component of the revised ETS proposal and must therefore be subject to co-decision procedure.
Similarly, the interesting revenue expected by Member States from auctioning must be seen not as a new source of revenue for current deficit coverage but rather as a new strategic opportunity to support sustainable development, mitigation efforts, technology innovation and research as well as assistance to developing countries, in particular LDCs, in the adaptation process. Such priorities will require due transparency towards the EP and citizens and a very particular control in what concerns competition and state aid issues.
Furthermore, the experiences from the first two phases show the propensity for end-consumers to be charged with the major burden of the costs of several industries, energy in particular. Full auctioning in the energy sector will require adequate control as well real internal reduction efforts by energy producers. The estimated risk that energy prices will increase for the end-consumer raises serious concerns both for their contribution to inflationary pressures inside Europe, social and economic impacts to the lower and middle income households, and their indirect impact in overall costs for energy users in economic sectors.
AMENDMENTS
The Committee on Economic and Monetary Affairs calls on the Committee on the Environment, Public Health and Food Safety, as the committee responsible, to incorporate the following amendments in its report:
Amendment 1 Proposal for a directive – amending act Recital 3 | ||||||||||||||||||||||||||||||||||
Text proposed by the Commission |
Amendment | |||||||||||||||||||||||||||||||||
(3) The European Council has made a firm commitment to reduce the overall greenhouse gas emissions of the Community by at least 20 % below 1990 levels by 2020, and by 30 % provided that other developed countries commit themselves to comparable emission reductions and economically more advanced developing countries contribute adequately according to their responsibilities and respective capabilities. By 2050, global greenhouse gas emissions should be reduced by at least 50 % below their 1990 levels. All sectors of the economy should contribute to achieving these emission reductions. |
(3) The European Council has made a firm commitment to reduce the overall greenhouse gas emissions of the Community by at least 20 % below 1990 levels by 2020, and by 30 % provided that other developed countries commit themselves to comparable emission reductions and economically more advanced developing countries contribute adequately according to their responsibilities and respective capabilities. By 2050, global greenhouse gas emissions should be reduced by at least 50 % below their 1990 levels. All sectors of the economy should contribute to achieving these emission reductions, including international aviation, maritime transport and cement industries. International maritime transport emissions should be incorporated into the EU Emissions Trading System (EU ETS) by 2015 or should otherwise be included in any decision on the effort of Member States to reduce their greenhouse gas emissions to meet the Community’s greenhouse gas emission reduction commitments up to 2020. | |||||||||||||||||||||||||||||||||
Amendment 2 Proposal for a directive – amending act Recital 7 a (new) | ||||||||||||||||||||||||||||||||||
Text proposed by the Commission |
Amendment | |||||||||||||||||||||||||||||||||
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(7a) Growing trees and wood and its derivatives, are a major source of carbon capture and storage. In addition, timber combats the greenhouse effect by substituting fossil fuel. Forests are thus real natural reserves of carbon. That carbon is released into the atmosphere when forests are pulled up and burned, however. It is therefore important to introduce forest protection mechanisms in order to reduce climate change. | |||||||||||||||||||||||||||||||||
Justification | ||||||||||||||||||||||||||||||||||
It is calculated that land use modification (for example deforestation in tropical environments) is responsible for 20% of the world’s greenhouse gas emissions. Deforestation itself is said to account for annual worldwide emissions of greenhouse gases amounting to a CO2 equivalent of 6 billion tonnes. | ||||||||||||||||||||||||||||||||||
For France alone storage itself represents 15.6 million tonnes of carbon, capturing 10% of greenhouse gas emissions. Substitution is estimated at 14 million tonnes of carbon. Without forests and wood, France would emit an additional 108 million tonnes of carbon i.e. around 20% more. | ||||||||||||||||||||||||||||||||||
Amendment 3 Proposal for a directive – amending act Recital 7 b (new) | ||||||||||||||||||||||||||||||||||
Text proposed by the Commission |
Amendment | |||||||||||||||||||||||||||||||||
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(7b) With regard to the major potential of the forest sector for reducing global warming, incentives should be provided to improve and develop the sector while respecting the other purposes of forests. | |||||||||||||||||||||||||||||||||
Justification | ||||||||||||||||||||||||||||||||||
The IPCC 2007 report indicates that, in the long term it is the sustainable development of forests seeking to maintain or increase carbon storage in forests by producing timber, pulp wood, and dendroenergy which will provide the greatest benefits in terms of attenuation. This is also the objective sought in the European Parliament resolution of 15 November 2007 calling on the Commission to include certain forestry activities in the ETS. | ||||||||||||||||||||||||||||||||||
Amendment 4 Proposal for a directive – amending act Recital 15 | ||||||||||||||||||||||||||||||||||
Text proposed by the Commission |
Amendment | |||||||||||||||||||||||||||||||||
(15) Given the considerable efforts of combating climate change and of adapting to its inevitable effects, it is appropriate that at least 20 % of the proceeds from the auctioning of allowances should be used to reduce greenhouse gas emissions, to adapt to the impacts of climate change, to fund research and development for reducing emissions and adaptation, to develop renewable energies to meet the EU’s commitment to using 20 % renewable energies by 2020, to meet the commitment of the Community to increase energy efficiency by 20 % by 2020, for the capture and geological storage of greenhouse gases, to contribute to the Global Energy Efficiency and Renewable Energy Fund , for measures to avoid deforestation and facilitate adaptation in developing countries, and for addressing social aspects such as possible increases in electricity prices in lower and middle income households. This proportion is significantly below the expected net revenues for public authorities from auctioning, taking into account potentially reduced income from corporate taxes. In addition, proceeds from auctioning of allowances should be used to cover administrative expenses of the management of the Community scheme. Provisions should be included on monitoring the use of funds from auctioning for these purposes. Such notification does not release Member States from the obligation laid down in Article 88(3) of the Treaty, to notify certain national measures. The Directive does not prejudice the outcome of any future State aid procedures that may be undertaken in accordance with Articles 87 and 88 of the Treaty. |
(15) Given the considerable efforts of combating climate change and of adapting to its inevitable effects, it is appropriate that at least 90 % of the proceeds from the auctioning of allowances should be used to reduce greenhouse gas emissions, to adapt to the impacts of climate change, to fund research and development of the sectors within the scope of this Directive for reducing emissions and adaptation, to develop renewable energies to meet the EU’s commitment to using 20 % renewable energies by 2020, to meet the commitment of the Community to increase energy efficiency by 20 % by 2020, for the capture and geological storage of greenhouse gases, to contribute to the Global Energy Efficiency and Renewable Energy Fund , for measures to avoid deforestation and facilitate adaptation in developing countries, and for addressing social aspects such as possible increases in electricity prices in lower and middle income households. This proportion is significantly below the expected net revenues for public authorities from auctioning, taking into account potentially reduced income from corporate taxes. In addition, proceeds from auctioning of allowances should be used to cover administrative expenses of the management of the Community scheme. Provisions should be included on monitoring the use of funds from auctioning for these purposes. Such notification does not release Member States from the obligation laid down in Article 88(3) of the Treaty, to notify certain national measures. The Directive does not prejudice the outcome of any future State aid procedures that may be undertaken in accordance with Articles 87 and 88 of the Treaty. | |||||||||||||||||||||||||||||||||
Amendment 5 Proposal for a directive – amending act Recital 16 | ||||||||||||||||||||||||||||||||||
Text proposed by the Commission |
Amendment | |||||||||||||||||||||||||||||||||
(16) Consequently, full auctioning should be the rule from 2013 onwards for the power sector, taking into account their ability to pass on the increased cost of CO2, and no free allocation should be given for carbon capture and storage as the incentive for this arises from allowances not being required to be surrendered in respect of emissions which are stored. Electricity generators may receive free allowances for heat produced through high efficiency cogeneration as defined by Directive 2004/8/EC in the event that such heat produced by installations in other sectors were to be given free allocations, in order to avoid distortions of competition. |
(16) Consequently, full auctioning should be the rule from 2013 onwards for the power sector, taking into account their ability to pass on the increased cost of CO2, and no free allocation should be given for carbon capture and storage as the incentive for this arises from allowances not being required to be surrendered in respect of emissions which are stored. Electricity generators may receive free allowances for heat produced through high efficiency cogeneration as defined by Directive 2004/8/EC in the event that such heat produced by installations in other sectors were to be given free allocations, in order to avoid distortions of competition. Electricity sector production should, nevertheless, continue with serious internal emission reduction efforts. Any passing on of costs will have to be evaluated and analysed, in particular with regard to its contribution to inflationary pressures within the European Union, social and economic impacts on lower and middle income households, and their indirect impact in overall costs for energy users in economic sectors. Competition authorities should be particularly vigilant in regulating abuses of market power through excessive and/or imbalanced energy price increases. | |||||||||||||||||||||||||||||||||
Amendment 6 Proposal for a directive – amending act Recital 17 | ||||||||||||||||||||||||||||||||||
Text proposed by the Commission |
Amendment | |||||||||||||||||||||||||||||||||
(17) For other sectors covered by the Community scheme, a transitional system should be foreseen for which free allocation in 2013 would be 80 % of the amount that corresponded to the percentage of the overall Community-wide emissions throughout the period 2005 to 2007 that those installations emitted as a proportion of the annual Community-wide total quantity of allowances. Thereafter, the free allocation should decrease each year by equal amounts resulting in no free allocation in 2020. |
(17) For other sectors covered by the Community scheme, 100 % of the allowances should be allocated free of charge in the event that there is no effective and verifiable international agreement and/or international sectoral agreement in place. In the event that there is such an agreement, a transitional system should be foreseen for which allocation in 2013 would be 80 % of the amount that corresponded to the percentage of the overall Community-wide emissions throughout the period 2005 to 2007 that those installations emitted as a proportion of the annual Community-wide allowances. Therefore the free allocation should decrease each year by equal amounts resulting in no free allocation in 2020. | |||||||||||||||||||||||||||||||||
Justification | ||||||||||||||||||||||||||||||||||
Idem as recital 13. Given that the stated objective of the ETS is to reduce carbon emissions at the lowest cost to the economy (Recital 1), free allocation is the most efficient allocation method for the industry with the exception of power generating sector. The only advantage of auctioning is that it expands the system to CO2-free technologies that are not included in the ETS, such as nuclear, hydro, and wind power generation. Auctioning may therefore have its merits with respect to the power industry, but is less efficient for other industry sectors. | ||||||||||||||||||||||||||||||||||
Amendment 7 Proposal for a directive – amending act Recital 18 | ||||||||||||||||||||||||||||||||||
Text proposed by the Commission |
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(18) Transitional free allocation to installations should be provided for through harmonised Community-wide rules ("benchmarks") in order to minimise distortions of competition with the Community. These rules should take account of the most greenhouse gas and energy efficient techniques, substitutes, alternative production processes, use of biomass, renewables and greenhouse gas capture and storage. Any such rules should not give incentives to increase emissions and ensure that an increasing proportion of these allowances is auctioned. Allocations must be fixed prior to the trading period so as to enable the market to function properly. They shall also avoid undue distortions of competition on the markets for electricity and heat supplied to industrial installations. These rules should apply to new entrants carrying out the same activities as existing installations receiving transitional free allocations. To avoid any distortion of competition within the internal market, no free allocation should be made in respect of the production of electricity by new entrants. Allowances which remain in the set aside for new entrants in 2020 should be auctioned. |
(18) Transitional free allocation to installations should be provided for through harmonised Community-wide rules and sectoral benchmarks in order to minimise distortions of competition with the Community. These rules and benchmarks should take account of the most greenhouse gas and energy efficient techniques, substitutes, alternative production processes, use of biomass, renewables, cogeneration and greenhouse gas capture and storage. Any such rules should not give incentives to increase emissions and ensure that an increasing proportion of these allowances is auctioned. Allocations must be fixed prior to the trading period so as to enable the market to function properly. They shall also avoid undue distortions of competition on the markets for electricity and heat supplied to industrial installations. These rules should apply to new entrants carrying out the same activities as existing installations receiving transitional free allocations. To avoid any distortion of competition within the internal market, no free allocation should be made in respect of the production of electricity by new entrants with the exception of electricity produced from waste gases for own consumption from industrial production processes. Allowances which remain in the set aside for new entrants in 2020 should be auctioned. | |||||||||||||||||||||||||||||||||
Justification | ||||||||||||||||||||||||||||||||||
Until a real quantifiable and verifiable international agreement is achieved the Commission has to allow for free allocation of allowances for industries at risk of carbon leakage and this allocation should be done not only through harmonised Community-wide rules but, more importantly, through sectoral benchmarks previously discussed with the sectors involved. | ||||||||||||||||||||||||||||||||||
Cogeneration is an energy efficient production process and should be not be excluded from this list. | ||||||||||||||||||||||||||||||||||
Waste gases resulting from production processes have to be used immediately after their generation. To ensure their efficient recovery maximum flexibility for the use of these gases must be allowed. The use of waste gases from production processes for the generation of electricity contributes to the conservation of resources and reduction of CO2 emissions. Electricity produced under these special circumstances should be excluded from auctioning. | ||||||||||||||||||||||||||||||||||
Amendment 8 Proposal for a directive – amending act Recital 19 | ||||||||||||||||||||||||||||||||||
Text proposed by the Commission |
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(19) The Community will continue to take the lead in the negotiation of an ambitious international agreement that will achieve the objective of limiting global temperature increase to 2°C and is encouraged by the progress made in Bali towards this objective. In the event that other developed countries and other major emitters of greenhouse gases do not participate in this international agreement, this could lead to an increase in greenhouse gas emissions in third countries where industry would not be subject to comparable carbon constraints (“carbon leakage”), and at the same time could put certain energy-intensive sectors and sub-sectors in the Community which are subject to international competition at an economic disadvantage. This could undermine the environmental integrity and benefit of actions by the Community. To address the risk of carbon leakage, the Community will allocate allowances free of charge up to 100 % to sectors or sub-sectors meeting the relevant criteria. The definition of these sectors and sub-sectors and the measures required will be subject to re-assessment to ensure that action is taken where necessary and to avoid overcompensation. For those specific sectors or sub-sectors where it can be duly substantiated that the risk of carbon leakage cannot be prevented otherwise, where electricity constitutes a high proportion of production costs and is produced efficiently, the action taken may take into account the electricity consumption in the production process, without changing the total quantity of allowances. |
(19) The Community will continue to take the lead in the negotiation of an ambitious international agreement and/or international sectoral agreements that will achieve the objective of limiting global temperature increase to 2°C and is encouraged by the progress made in Bali towards this objective. In the event that other developed countries and other major emitters of greenhouse gases do not participate in this international agreement, this could lead to an increase in greenhouse gas emissions in third countries where industry would not be subject to comparable carbon constraints (“carbon leakage”), and at the same time could put certain energy-intensive sectors and sub-sectors in the Community which are subject to international competition at an economic disadvantage. This could undermine the environmental integrity and benefit of actions by the Community. To address the risk of carbon leakage, the Community will allocate allowances free of charge up to 100 % to sectors or sub-sectors meeting the relevant criteria. The definition of these sectors and sub-sectors and the measures required will be subject to re-assessment to ensure that action is taken where necessary and to avoid overcompensation. For those specific sectors or sub-sectors where it can be duly substantiated that the risk of carbon leakage cannot be prevented otherwise, where electricity constitutes a high proportion of production costs and is produced efficiently, the action taken may take into account the electricity consumption in the production process, without changing the total quantity of allowances. | |||||||||||||||||||||||||||||||||
Amendment 9 Proposal for a directive – amending act Recital 20 | ||||||||||||||||||||||||||||||||||
Text proposed by the Commission |
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(20) The Commission should therefore review the situation by June 2011 at the latest, consult with all relevant social partners, and, in the light of the outcome of the international negotiations, submit a report accompanied by any appropriate proposals. In this context, the Commission should identify which energy intensive industry sectors or sub-sectors are likely to be subject to carbon leakage not later than 30 June 2010. It should base its analysis on the assessment of the inability to pass on the cost of required allowances in product prices without significant loss of market share to installations outside the Community not taking comparable action to reduce emissions. Energy-intensive industries which are determined to be exposed to a significant risk of carbon leakage could receive a hiher amount of free allocation or an effective carbon equalisation system could be introduced with a view to putting installations from the Community which are at significant risk of carbon leakage and those from third countries on a comparable footing. Such a system could apply requirements to importers that would be no less favourable than those applicable to installations within the EU, for example by requiring the surrender of allowances. Any action taken would need to be in conformity with the principles of the UNFCCC, in particular the principle of common but differentiated responsibilities and respective capabilities, taking into account the particular situation of Least Developed Countries. It would also need to be in conformity with the international obligations of the Community including the WTO agreement. |
(20) The Commission should therefore review the situation by June 2011 at the latest, consult with all relevant social partners, and, in the light of the outcome of the international negotiations, submit a report accompanied by any appropriate proposals. In this context, the Commission should identify which energy intensive industry sectors or sub-sectors are likely to be subject to carbon leakage by 30 January 2010. The criteria for and identification of such sectors and sub-sectors should be established after consulting the social partners and affected stakeholders, in a proposal submitted to the European Parliament and the Council. That proposal should take into account the possible failure to reach an international agreement with mandatory carbon reductions and should consider possible alternatives to an international agreement. It should base its analysis on the assessment of the cost structure of installations inside and outside the European Union and the inability to pass on the cost of required allowances in product prices without significant loss of market share to installations outside the Community not taking comparable action to reduce emissions. The Commission should monitor the potential competitiveness and employment effects for EU-based producers subject to mandatory carbon reductions in their production process. Any action taken would need to be in conformity with the principles of the UNFCCC, in particular the principle of common but differentiated responsibilities and respective capabilities, taking into account the particular situation of Least Developed Countries. It would also need to be in conformity with the international obligations of the Community including the WTO agreement. | |||||||||||||||||||||||||||||||||
Justification | ||||||||||||||||||||||||||||||||||
Criteria for identification and classification of sectors affected by carbon leakage need to be done much sooner than proposed by the Commission in order to give predictability to the industries effected; the direct and indirect effects to EU-based producers must be taken into account. | ||||||||||||||||||||||||||||||||||
Amendment 10 Proposal for a directive – amending act Recital 21 | ||||||||||||||||||||||||||||||||||
Text proposed by the Commission |
Amendment | |||||||||||||||||||||||||||||||||
(21) In order to ensure equal conditions of competition within the Community, the use of credits for emission reductions outside the Community to be used by operators within the Community scheme should be harmonised. The Kyoto Protocol to the UNFCCC sets out quantified emission targets for developed countries for the period 2008 to 2012, and provides for the creation of Certified Emission Reductions (CERs) and Emission Reduction Units (ERUs) from Clean Development Mechanism (CDM) and Joint Implementation projects respectively and their use by developed countries to meet part of these targets. While the Kyoto framework does not enable ERUs to be created from 2013 onwards without new quantified emission targets being in place for host countries, CDM credits can potentially continue to be generated. Additional use of Certified Emission Reductions (CERs) and Emission Reduction Units (ERUs) should be provided for once there is an international agreement on climate change, from countries which have concluded that agreement. In the absence of such agreement, providing for further use of CERs and ERUs would undermine this incentive and make it more difficult to achieve the objectives of the Community on increasing renewable energy use. The use of CERs and ERUs should be consistent with the goal set by the Community of generating 20 % of energy from renewable sources by 2020, and promoting energy efficiency, innovation and technological development. Where it is consistent with achieving these goals, the possibility should be foreseen to conclude agreements with third countries to provide incentives for reductions in emissions in these countries which bring about real, additional reductions in greenhouse gas emissions while stimulating innovation by companies established within the Community and technological development in third countries. Such agreements may be ratified by more than one country. Upon the conclusion by the Community of a satisfactory international agreement, access to credits from projects in third countries should be increased simultaneously with the increase in the level of emission reductions to be achieved through the Community scheme. |
(21) In order to ensure equal conditions of competition within the Community, the use of credits for emission reductions outside the Community to be used by operators within the Community scheme should be harmonised. The Kyoto Protocol to the UNFCCC sets out quantified emission targets for developed countries for the period 2008 to 2012, and provides for the creation of Certified Emission Reductions (CERs) and Emission Reduction Units (ERUs) from Clean Development Mechanism (CDM) and Joint Implementation projects respectively and their use by developed countries to meet part of these targets. While the Kyoto framework does not enable ERUs to be created from 2013 onwards without new quantified emission targets being in place for host countries, CDM credits can potentially continue to be generated. Additional use of Certified Emission Reductions (CERs) and Emission Reduction Units (ERUs) should be provided for once there is an international agreement on climate change, from countries which have concluded that agreement. In the absence of such agreement, providing for further use of CERs and ERUs would undermine this incentive and make it more difficult to achieve the objectives of the Community on increasing renewable energy use. The use of CERs and ERUs should be consistent with the goal set by the Community of generating 20 % of energy from renewable sources by 2020, and promoting energy efficiency, innovation and technological development. Where it is consistent with achieving these goals, the possibility should be foreseen to conclude agreements with third countries to provide incentives for reductions in emissions in these countries which bring about real, additional reductions in greenhouse gas emissions while stimulating innovation by companies established within the Community and technological development in third countries. Such agreements may be ratified by more than one country. Upon the conclusion by the Community of a satisfactory international agreement, access to credits from projects in third countries should be increased simultaneously with the increase in the level of emission reductions to be achieved through the Community scheme. No credits should be available, however, in relation to CDM and Joint Implementation projects in sectors exposed to carbon leakage. | |||||||||||||||||||||||||||||||||
Amendment 11 Proposal for a directive – amending act Recital 33 | ||||||||||||||||||||||||||||||||||
Text proposed by the Commission |
Amendment | |||||||||||||||||||||||||||||||||
(33) As regards the approach to allocation, aviation should be treated as other industries which receive transitional free allocation rather than as electricity generators. This means that 80 % of allowances should be allocated for free in 2013, and thereafter the free allocation to aviation should decrease each year by equal amounts resulting in no free allocation in 2020. The Community and its Member States should continue to seek to reach an agreement on global measures to reduce greenhouse gas emissions from aviation and review the situation of this sector as part of the next review of the Community scheme. |
(33) Aviation is an energy-intensive industry sector as defined in Council Directive 2003/96/EC of 27 October 2003 restructuring the Community framework for the taxation of energy products and electricity1. In the absence of a viable alternative fuel, aviation is fully kerosene dependent and has very high abatement costs. The ability for aircraft operators to pass on the costs of carbon allowances to their customers is limited. The Community and its Member States should continue to seek to reach an agreement on global measures to reduce greenhouse gas emissions from aviation. As long as there is no global agreement on global measures to reduce greenhouse gas emissions in relation to aviation, there are serious risks of traffic deviation and carbon leakage, particularly if a high level of auctioning is applied to the sector within the EU ETS. The level of auctioning of allowances in relation to aviation should reflect the risk of carbon leakage and the impact of the EU ETS on the competitiveness of aviation in the European Union. | |||||||||||||||||||||||||||||||||
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_______________ 1 OJ L 283, 31.10.2003, p. 51. | |||||||||||||||||||||||||||||||||
Justification | ||||||||||||||||||||||||||||||||||
Given the specific character of the aviation sector, its inclusion in the EU ETS is also subject of the ongoing revision of directive 2003 (87) EC according to Commission proposal EC (2006) 818. The level of auctioning for aviation under the general review is to be decided on after thorough investigation of the effects of carbon leakage and the impact on competitiveness of EU aviation, which is currently subject to European Commission study. | ||||||||||||||||||||||||||||||||||
Amendment 12 Proposal for a directive – amending act Article 1 – point 2 – subpoint b Directive 2003/87/EC Article 3 – point h | ||||||||||||||||||||||||||||||||||
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Justification | ||||||||||||||||||||||||||||||||||
As for the principle of non discrimination, in order to ensure a level playing field, all producers should be entitled to receive a comparable amount of free allowances based on a efficiency target (i.e. a benchmark), as they open new installations or as they increase the capacity of existing one while The Commission’s proposal restrains the free allocation to the first case. | ||||||||||||||||||||||||||||||||||
This amendment promotes the closure of outdated and inefficient installations and the transfer of the production to a centralised modern unit using the economy of scale to cope with the heavy investments required. | ||||||||||||||||||||||||||||||||||
Amendment 13 Proposal for a directive – amending act Article 1 – point 2 – point c Directive 2003/87/EC Article 3 – point t | ||||||||||||||||||||||||||||||||||
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Justification | ||||||||||||||||||||||||||||||||||
One of the aims of the EU Climate Package is to promote recycling. Hence, it does not make sense to include recycling operations in a scheme which will penalise it. | ||||||||||||||||||||||||||||||||||
Amendment 14 Proposal for a directive – amending act Article 1 – point 2 – point c Directive 2003/87/EC Article 3 – point u a (new) | ||||||||||||||||||||||||||||||||||
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Justification | ||||||||||||||||||||||||||||||||||
The risk of impermanence in forests is dealt with the CDM procedure by creating temporary credits; the arrangements were set out in 2003 at the Milan Conference (Decision 19/CP/9). | ||||||||||||||||||||||||||||||||||
Amendment 15 Proposal for a directive – amending act Article 1 – point 2 – point c Directive 2003/87/EC Article 3 – point u b (new) | ||||||||||||||||||||||||||||||||||
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Justification | ||||||||||||||||||||||||||||||||||
Clarification on exposed sectors by reference to criteria and the new Annex I a (new). | ||||||||||||||||||||||||||||||||||
Amendment 16 Proposal for a directive – amending act Article 1 – point 6 Directive 2003/87/EC Article 9a – paragraph 2 – subparagraph 1 | ||||||||||||||||||||||||||||||||||
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Justification | ||||||||||||||||||||||||||||||||||
It must be mandatory if such data are supposed to be into account for the quantity of allowances to be issued. | ||||||||||||||||||||||||||||||||||
Amendment 17 Proposal for a directive – amending act Article 1 – point 7 Directive 2003/87/EC Article 10 – paragraph 3 – introductory part | ||||||||||||||||||||||||||||||||||
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The auctioning of allowance must result in a transfer of funds from pollutant industries towards activities developing renewable sources of energy, storing carbon or preventing the release of carbon. | ||||||||||||||||||||||||||||||||||
The principal condition for the continued exploitation of tropical forests must be a certification procedure complying with the six Helsinki sustainable development criteria, in particular the sixth criteria concerning socio-economic benefits. | ||||||||||||||||||||||||||||||||||
In the European Union the forestry and wood production sector compensates for between 10% and 20% of greenhouse gas emissions. | ||||||||||||||||||||||||||||||||||
Amendment 18 Proposal for a directive – amending act Article 1 – point 7 Directive 2003/87/EC Article 10 – paragraph 3 – point a | ||||||||||||||||||||||||||||||||||
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Justification | ||||||||||||||||||||||||||||||||||
Since one of the basic assumptions of the Community scheme is that the installations under its scope can contribute substantially to the EU’s abatement objectives, revenues generated from these installations should be channelled towards these. The EU Technology Platforms is a successful instrument and should be strengthened. | ||||||||||||||||||||||||||||||||||
Amendment 19 Proposal for a directive – amending act Article 1 – point 7 Directive 2003/87/EC Article 10 – paragraph 3 – point c | ||||||||||||||||||||||||||||||||||
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Justification | ||||||||||||||||||||||||||||||||||
Since one of the basic assumptions of the Community scheme is that the installations under its scope can contribute substantially to the EU’s abatement objectives, revenues generated from these installations should be channelled towards these. The EU Technology Platforms is a successful instrument and should be strengthened. | ||||||||||||||||||||||||||||||||||
Amendment 20 Proposal for a directive – amending act Article 1 – point 7 Directive 2003/87/EC Article 10 – paragraph 3 – point d | ||||||||||||||||||||||||||||||||||
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Justification | ||||||||||||||||||||||||||||||||||
The auctioning of allowance must result in a transfer of funds from pollutant industries towards activities developing renewable sources of energy, storing carbon or preventing the release of carbon. | ||||||||||||||||||||||||||||||||||
The principal condition for the continued exploitation of tropical forests must be a certification procedure complying with the six Helsinki sustainable development criteria, in particular the sixth criteria concerning socio-economic benefits. | ||||||||||||||||||||||||||||||||||
In the European Union the forestry and wood production sector compensates for between 10% and 20% of greenhouse gas emissions. | ||||||||||||||||||||||||||||||||||
Amendment 21 Proposal for a directive – amending act Article 1 – point 7 Directive 2003/87/EC Article 10 – paragraph 3 – point g a (new) | ||||||||||||||||||||||||||||||||||
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Justification | ||||||||||||||||||||||||||||||||||
Auctioning revenues should in principle be used to create the low carbon sectors of the future, reinvesting the funds into the sectors involved. | ||||||||||||||||||||||||||||||||||
Amendment 22 Proposal for a directive – amending act Article 1 – point 7 Directive 2003/87/EC Article 10 – paragraph 3 – subparagraph 1 a (new) | ||||||||||||||||||||||||||||||||||
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Justification | ||||||||||||||||||||||||||||||||||
Revenues from auctioning of allowances should be used to tackle climate change, both in terms of mitigation and adaptation, and subsidies to help finance the necessary investments especially in low income families. At least half of the revenues should be earmarked to finance mitigation, adaptation, avoided deforestation and degradation in developing countries. | ||||||||||||||||||||||||||||||||||
Amendment 23 Proposal for a directive – amending act Article 1 – point 7 Directive 2003/87/EC Article 10 – paragraph 4 | ||||||||||||||||||||||||||||||||||
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Amendment 24 Proposal for a directive – amending act Article 1 – point 7 Directive 2003/87/EC Article 10 – paragraph 5 | ||||||||||||||||||||||||||||||||||
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Justification | ||||||||||||||||||||||||||||||||||
The Commission proposes to deal with a crucial element of the extended ETS in comitology. It would have been preferable for the Commission to come forward with a proposal for co-decision but in the absence of that criteria must be set for the Commission to respect in its decision on auctioning methods. | ||||||||||||||||||||||||||||||||||
Amendment 25 Proposal for a directive – amending act Article 1 – point 8 Directive 2003/87/EC Article 10a – paragraph 1 – subparagraph 1 | ||||||||||||||||||||||||||||||||||
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Amendment 26 Proposal for a directive – amending act Article 1 – point 8 Directive 2003/87/EC Article 10a – paragraph 1 – subparagraph 2 | ||||||||||||||||||||||||||||||||||
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Amendment 27 Proposal for a directive – amending act Article 1 – point 8 Directive 2003/87/EC Article 10a – paragraph 1 – subparagraph 3 | ||||||||||||||||||||||||||||||||||
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Justification | ||||||||||||||||||||||||||||||||||
Auctioning carries significant potential for economic damage to manufacturing industries without bringing environmental benefits that only depend on the respect of reduction targets. It should therefore be introduced only if either globally harmonised by an international agreement or at least accompanied by an appropriate border adjustment mechanism. By setting a Benchmark according to the best available technique, the economic incentive to reduce emissions by ceasing inefficient production and applying the highest technical standards is still the same. | ||||||||||||||||||||||||||||||||||
The use of waste gases from the production process for the generation of electricity contributes to the conservation of resources and reduction of CO2 emissions. Electricity produced under these special circumstances should be excluded from auctioning, and included by the same allocation methodology as applied to respective installations of the producer of these gases. This corresponds with the main content of point 92 of the Commission Communication COM(2008)830. | ||||||||||||||||||||||||||||||||||
Amendment 28 Proposal for a directive – amending act Article 1 – point 8 Directive 2003/87/EC Article 10a – paragraph 1 – subparagraph 4 | ||||||||||||||||||||||||||||||||||
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Justification | ||||||||||||||||||||||||||||||||||
The Commission should concentrate on achieving quantifiable and verifiable sectoral international agreements; the only way to avoid carbon leakage and unfair competition disfavouring EU-based sectors. | ||||||||||||||||||||||||||||||||||
Amendment 29 Proposal for a directive – amending act Article 1 – point 8 Directive 2003/87/EC Article 10a – paragraph 6 – subparagraph 3 | ||||||||||||||||||||||||||||||||||
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Justification | ||||||||||||||||||||||||||||||||||
The use of waste gases from the production process for the generation of electricity contributes to the conservation of resources and reduction of CO2 emissions. Electricity produced under these special circumstances should be excluded from auctioning, and included by the same allocation methodology as applied to respective installations of the producer of these gases. This corresponds with the main content of point 92 of the Commission Communication COM(2008)830. | ||||||||||||||||||||||||||||||||||
Amendment 30 Proposal for a directive – amending act Article 1 – point 8 Directive 2003/87/EC Article 10a – paragraph 6 – subparagraph 3 | ||||||||||||||||||||||||||||||||||
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Justification | ||||||||||||||||||||||||||||||||||
This amendment is a consequence of the previous amendment on Article 10a(1). | ||||||||||||||||||||||||||||||||||
Amendment 31 Proposal for a directive – amending act Article 1 – point 8 Directive 2003/87/EC Article 10a – paragraph 7 | ||||||||||||||||||||||||||||||||||
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Amendment 32 Proposal for a directive – amending act Article 1 – point 8 Directive 2003/87/EC Article 10a – paragraph 8 | ||||||||||||||||||||||||||||||||||
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Justification | ||||||||||||||||||||||||||||||||||
The effectiveness of a trading system to reduce emissions depends solely on the number of allowances in the system. How these allowances are eventually allocated – through auctioning or by using benchmarks – has no impact on the total volume of allowances and therefore does not affect the environmental outcome sought by the system .Free allocation is therefore equally effective to auctioning when it comes to reducing emissions while it imposes lower costs to the economy. | ||||||||||||||||||||||||||||||||||
Amendment 33 Proposal for a directive – amending act Article 1 – point 8 Directive 2003/87/EC Article 10a – paragraph 9 – subparagraph 1 | ||||||||||||||||||||||||||||||||||
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Justification | ||||||||||||||||||||||||||||||||||
Sectors considered vulnerable to "carbon leakage" and the appropriate actions should be decided upon as soon as possible. A reassessment of the sectors concerned every 3 years will unnecessarily lead to uncertainty which is detrimental for investment. | ||||||||||||||||||||||||||||||||||
Amendment 34 Proposal for a directive – amending act Article 1 – point 8 Directive 2003/87/EC Article 10a – paragraph 9 – subparagraph 1 a (new) | ||||||||||||||||||||||||||||||||||
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Justification | ||||||||||||||||||||||||||||||||||
The list of industries exposed to carbon leakage should be reviewed in 2016 and the results implemented in 2020, if necessary. This procedure provides for maximum planning security and gives certainty on avoidance of carbon leakage. | ||||||||||||||||||||||||||||||||||
The affected stakeholders should be part of the decision process. | ||||||||||||||||||||||||||||||||||
The disaggregation of sectors shall be avoided, since this will lead to administrative problems for implementation. In determining the eligible sectors the question of carbon efficiency is not relevant but the regulative framework of their operations, by which efficiency is affected. | ||||||||||||||||||||||||||||||||||
Amendment 35 Proposal for a directive – amending act Article 1 – point 8 Directive 2003/87/EC Article 10a – paragraph 9 – subparagraph 2 | ||||||||||||||||||||||||||||||||||
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Justification | ||||||||||||||||||||||||||||||||||
The list of industries exposed to carbon leakage should be reviewed in 2016 and the results implemented in 2020, if necessary. This procedure provides for maximum planning security and gives certainty on avoidance of carbon leakage. | ||||||||||||||||||||||||||||||||||
The affected stakeholders should be part of the decision process. | ||||||||||||||||||||||||||||||||||
The disaggregation of sectors shall be avoided, since this will lead to administrative problems for implementation. In determining the eligible sectors the question of carbon efficiency is not relevant but the regulative framework of their operations, by which efficiency is affected. | ||||||||||||||||||||||||||||||||||
Amendment 36 Proposal for a directive – amending act Article 1 – point 8 Directive 2003/87/EC Article 10a – paragraph 9 – subparagraph 2 a (new) | ||||||||||||||||||||||||||||||||||
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Amendment 37 Proposal for a directive – amending act Article 1 – point 8 Directive 2003/87/EC Article 10a – paragraph 9 – subparagraph 3 – introductory part | ||||||||||||||||||||||||||||||||||
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Justification | ||||||||||||||||||||||||||||||||||
To ensure legal and economic certainty, the period should be extended to 5 years and the date of the first assessment brought up to 30 June 2009. It is very difficult to predict the impact of the revised EU-ETS on industries covered by the scheme in the EU. If market information shows that carbon leakage does take place in a sector not hitherto considered as vulnerable to carbon leakage, a remedy should be available without having to wait for the next 5 year review. This amendment ensures that the future market structure as well as the carbon intensity of a product and the freight cost (a key factor when it comes to the whole carbon leakage issue) are taken into account. | ||||||||||||||||||||||||||||||||||
Amendment 38 Proposal for a directive – amending act Article 1 – point 8 Directive 2003/87/EC Article 10a – paragraph 9 – subparagraph 3 – point a | ||||||||||||||||||||||||||||||||||
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Justification | ||||||||||||||||||||||||||||||||||
To ensure legal and economic certainty, the period should be extended to 5 years and the date of the first assessment brought up to 30 June 2009. It is very difficult to predict the impact of the revised EU-ETS on industries covered by the scheme in the EU. If market information shows that carbon leakage does take place in a sector not hitherto considered as vulnerable to carbon leakage, a remedy should be available without having to wait for the next 5 year review. This amendment ensures that the future market structure as well as the carbon intensity of a product and the freight cost (a key factor when it comes to the whole carbon leakage issue) are taken into account. | ||||||||||||||||||||||||||||||||||
Amendment 39 Proposal for a directive – amending act Article 1 – point 8 Directive 2003/87/EC Article 10a – paragraph 9 – subparagraph 3 – point b | ||||||||||||||||||||||||||||||||||
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Justification | ||||||||||||||||||||||||||||||||||
The list of industries exposed to carbon leakage should be reviewed in 2016 and the results implemented in 2020, if necessary. This procedure provides for maximum planning security and gives certainty on avoidance of carbon leakage. | ||||||||||||||||||||||||||||||||||
The affected stakeholders should be part of the decision process. | ||||||||||||||||||||||||||||||||||
The disaggregation of sectors shall be avoided, since this will lead to administrative problems for implementation. In determining the eligible sectors the question of carbon efficiency is not relevant but the regulative framework of their operations, by which efficiency is affected. | ||||||||||||||||||||||||||||||||||
Amendment 40 Proposal for a directive – amending act Article 1 – point 8 Directive 2003/87/EC Article 10a – paragraph 9 – subparagraph 3 – point c | ||||||||||||||||||||||||||||||||||
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Justification | ||||||||||||||||||||||||||||||||||
The list of industries exposed to carbon leakage should be reviewed in 2016 and the results implemented in 2020, if necessary. This procedure provides for maximum planning security and gives certainty on avoidance of carbon leakage. | ||||||||||||||||||||||||||||||||||
The affected stakeholders should be part of the decision process. | ||||||||||||||||||||||||||||||||||
The disaggregation of sectors shall be avoided, since this will lead to administrative problems for implementation. In determining the eligible sectors the question of carbon efficiency is not relevant but the regulative framework of their operations, by which efficiency is affected. | ||||||||||||||||||||||||||||||||||
Amendment 41 Proposal for a directive – amending act Article 1 – point 8 Directive 2003/87/EC Article 10a – paragraph 9 – subparagraph 3 – point d | ||||||||||||||||||||||||||||||||||
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Justification | ||||||||||||||||||||||||||||||||||
The list of industries exposed to carbon leakage should be reviewed in 2016 and the results implemented in 2020, if necessary. This procedure provides for maximum planning security and gives certainty on avoidance of carbon leakage. | ||||||||||||||||||||||||||||||||||
The affected stakeholders should be part of the decision process. | ||||||||||||||||||||||||||||||||||
The disaggregation of sectors shall be avoided, since this will lead to administrative problems for implementation. In determining the eligible sectors the question of carbon efficiency is not relevant but the regulative framework of their operations, by which efficiency is affected. | ||||||||||||||||||||||||||||||||||
Amendment 42 Proposal for a directive – amending act Article 1 – point 8 Directive 2003/87/EC Article 10a – paragraph 9 – subparagraph 3 – point d a (new) | ||||||||||||||||||||||||||||||||||
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Amendment 43 Proposal for a directive – amending act Article 1 – point 8 Directive 2003/87/EC Article 10a – paragraph 9 – subparagraph 3 – point d b (new) | ||||||||||||||||||||||||||||||||||
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Amendment 44 Proposal for a directive – amending act Article 1 – point 8 Directive 2003/87/EC Article 10a – paragraph 9 – subpararagraph 4 | ||||||||||||||||||||||||||||||||||
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Justification | ||||||||||||||||||||||||||||||||||
To ensure legal and economic certainty, the period should be extended to 5 years and the date of the first assessment brought up to 30 June 2009. It is very difficult to predict the impact of the revised EU-ETS on industries covered by the scheme in the EU. If market information shows that carbon leakage does take place in a sector not hitherto considered as vulnerable to carbon leakage, a remedy should be available without having to wait for the next 5 year review. This amendment ensures that the future market structure as well as the carbon intensity of a product and the freight cost (a key factor when it comes to the whole carbon leakage issue) are taken into account. | ||||||||||||||||||||||||||||||||||
Amendment 45 Proposal for a directive – amending act Article 1 – point 8 Directive 2003/87/EC Article 10b – paragraph 1 – introductory part | ||||||||||||||||||||||||||||||||||
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Justification | ||||||||||||||||||||||||||||||||||
The dates need to be brought forward in order to provide predictability for industries affected by carbon leakage. | ||||||||||||||||||||||||||||||||||
An eventual international agreement needs to be quantifiable and verifiable and bring equivalent emissions reductions as proposed by the Commission. | ||||||||||||||||||||||||||||||||||
The Parliament and the Council need to be informed and give their assent on the Commission's proposal and the identification of carbon leakage sectors and sub-sectors needs to be done in consultation with the interested parties. | ||||||||||||||||||||||||||||||||||
Amendment 46 Proposal for a directive – amending act Article 1 – point 8 Directive 2003/87/EC Article 10b – paragraph 2 | ||||||||||||||||||||||||||||||||||
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Amendment 47 Proposal for a directive – amending act Article 1 – point 9 Directive 2003/87/EC Article 11 – paragraph 2 – subparagraph 2 | ||||||||||||||||||||||||||||||||||
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Amendment 48 Proposal for a directive – amending act Article 1 – point 9 Directive 2003/87/EC Article 11a – paragraph 1 | ||||||||||||||||||||||||||||||||||
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Amendment 49 Proposal for a directive – amending act Article 1 – point 9 Directive 2003/87/EC Article 11a – paragraph 7 | ||||||||||||||||||||||||||||||||||
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Amendment 50 Proposal for a directive – amending act Article 1 – point 10 Directive 2003/87/EC Article 11b – paragraph 1 | ||||||||||||||||||||||||||||||||||
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Amendment 51 Proposal for a directive – amending act Article 1 – point 12 Directive 2003/87/EC Article 14 – paragraph 1 – subparagraph 1 | ||||||||||||||||||||||||||||||||||
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Amendment 52 Proposal for a directive – amending act Article 1 – point 12 Directive 2003/87/EC Article 14 – paragraph 2 | ||||||||||||||||||||||||||||||||||
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Amendment 53 Proposal for a directive – amending act Article 1 – point 12 Directive 2003/87/EC Article 14 – paragraph 3 a (new) | ||||||||||||||||||||||||||||||||||
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Amendment 54 Proposal for a directive – amending act Article 1 – point 13 Directive 2003/87/EC Article 15 – point b – subparagraph 1 | ||||||||||||||||||||||||||||||||||
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Amendment 55 Proposal for a directive – amending act Article 1 – point 19 Directive 2003/87/EC Article 24a – paragraph 1 – subparagraph 1 | ||||||||||||||||||||||||||||||||||
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Amendment 56 Proposal for a directive – amending act Article 1 – point 21 Directive 2003/87/EC Article 27 – paragraph 1 – introductory part | ||||||||||||||||||||||||||||||||||
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Justification | ||||||||||||||||||||||||||||||||||
Small installations should have the possibility to "opt-out" from the system if equivalent measures are in place in order to reduce the administrative burden on small and medium-sized enterprises (SMEs), to avoid unnecessary administrative costs and bureaucracy and to enhance the efficiency of the system. One third of total installations that are covered by the scheme are small installations that together account for only 2% of the overall emissions reported. | ||||||||||||||||||||||||||||||||||
Amendment 57 Proposal for a directive – amending act Article 1 – point 21 Directive 2003/87/EC Article 27 – paragraph 1 – point b | ||||||||||||||||||||||||||||||||||
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Justification | ||||||||||||||||||||||||||||||||||
Small installations should have the possibility to "opt-out" from the system if equivalent measures are in place in order to reduce the administrative burden on small and medium-sized enterprises (SMEs), to avoid unnecessary administrative costs and bureaucracy and to enhance the efficiency of the system. One third of total installations that are covered by the scheme are small installations that together account for only 2% of the overall emissions reported. | ||||||||||||||||||||||||||||||||||
Amendment 58 Proposal for a directive – amending act Article 1 – point 21 Directive 2003/87/EC Article 27 – paragraph 1 – point c | ||||||||||||||||||||||||||||||||||
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Justification | ||||||||||||||||||||||||||||||||||
Small installations should have the possibility to "opt-out" from the system if equivalent measures are in place in order to reduce the administrative burden on small and medium-sized enterprises (SMEs), to avoid unnecessary administrative costs and bureaucracy and to enhance the efficiency of the system. One third of total installations that are covered by the scheme are small installations that together account for only 2% of the overall emissions reported. | ||||||||||||||||||||||||||||||||||
Amendment 59 Proposal for a directive – amending act Article 1 – point 21 Directive 2003/87/EC Article 28 – title | ||||||||||||||||||||||||||||||||||
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Amendment 60 Proposal for a directive – amending act Article 1 – point 21 Directive 2003/87/EC Article 28 – paragraph 1 | ||||||||||||||||||||||||||||||||||
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Amendment 61 Proposal for a directive – amending act Article 1 – point 21 Directive 2003/87/EC Article 28 – paragraph 2 | ||||||||||||||||||||||||||||||||||
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Justification | ||||||||||||||||||||||||||||||||||
The reactions to the conclusions of the negotiations on an international agreement shall not be an automatism but subject to political evaluation and decision. | ||||||||||||||||||||||||||||||||||
Amendment 62 Proposal for a directive – amending act Article 1 – point 21 Directive 2003/87/EC Article 28 – paragraph 3 | ||||||||||||||||||||||||||||||||||
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Amendment 63 Proposal for a directive – amending act Article 1 a (new) | ||||||||||||||||||||||||||||||||||
Text proposed by the Commission |
Amendment | |||||||||||||||||||||||||||||||||
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Article 1a | |||||||||||||||||||||||||||||||||
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Commission report | |||||||||||||||||||||||||||||||||
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The Commission shall present an annual report to the European Parliament and the Council on the establishment and functioning of the revised EU ETS. The first such report shall be presented by ...*. | |||||||||||||||||||||||||||||||||
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* one year after entry into force of this Directive. | |||||||||||||||||||||||||||||||||
Amendment 64 Proposal for a directive – amending act Annex I a (new) | ||||||||||||||||||||||||||||||||||
Text proposed by the Commission |
Amendment | |||||||||||||||||||||||||||||||||
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Annex Ia | |||||||||||||||||||||||||||||||||
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Minimum requirements for International Agreements | |||||||||||||||||||||||||||||||||
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An international agreement including energy-intensive industries exposed to a significant risk of carbon leakage, or a international sectoral agreement relating to such industries, must comply with at least the following criteria in order to provide a level playing field for such industries: | |||||||||||||||||||||||||||||||||
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(i) the participation of countries must represent a critical mass of at least 85 % of production, | |||||||||||||||||||||||||||||||||
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(ii) the participating countries must have equivalent CO2 emission targets, | |||||||||||||||||||||||||||||||||
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(iii) similar emission reductions systems with equivalent effect must be imposed by all participating countries or from countries with non-equivalent CO2 emission targets in sectors covered by the EU ETS, | |||||||||||||||||||||||||||||||||
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(iv) competing materials must be subject to equivalent restrictions taking into account life cycles, | |||||||||||||||||||||||||||||||||
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(v) an effective international monitoring and verification system must be implemented. | |||||||||||||||||||||||||||||||||
Justification | ||||||||||||||||||||||||||||||||||
In line with amendment to Article 10b. |
PROCEDURE
Title |
Greenhouse gas emission allowance trading system |
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References |
COM(2008)0016 – C6-0043/2008 – 2008/0013(COD) |
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Committee responsible |
ENVI |
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Opinion by Date announced in plenary |
ECON 19.2.2008 |
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Drafts(wo)man Date appointed |
Elisa Ferreira 11.3.2008 |
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Discussed in committee |
2.6.2008 |
16.7.2008 |
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Date adopted |
9.9.2008 |
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Result of final vote |
+: –: 0: |
39 1 0 |
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Members present for the final vote |
Mariela Velichkova Baeva, Paolo Bartolozzi, Zsolt László Becsey, Pervenche Berès, Sebastian Valentin Bodu, Sharon Bowles, Udo Bullmann, Manuel António dos Santos, Christian Ehler, Elisa Ferreira, José Manuel García-Margallo y Marfil, Jean-Paul Gauzès, Robert Goebbels, Donata Gottardi, Gunnar Hökmark, Karsten Friedrich Hoppenstedt, Othmar Karas, Christoph Konrad, Guntars Krasts, Kurt Joachim Lauk, Andrea Losco, Astrid Lulling, Gay Mitchell, Sirpa Pietikäinen, John Purvis, Alexander Radwan, Bernhard Rapkay, Heide Rühle, Eoin Ryan, Antolín Sánchez Presedo, Salvador Domingo Sanz Palacio, Olle Schmidt, Margarita Starkevičiūtė, Ieke van den Burg |
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Substitute(s) present for the final vote |
Harald Ettl, Piia-Noora Kauppi, Vladimír Maňka, Gianni Pittella, Bilyana Ilieva Raeva, Margaritis Schinas |
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OPINION of the Committee on Regional Development (22.7.2008)
for the Committee on the Environment, Public Health and Food Safety
on the proposal for a directive of the European Parliament and of the Council amending Directive 2003/87/EC so as to improve and extend the greenhouse gas emission allowance trading system of the Community
(COM(2008)0016 – C6‑0043/2008 – 2008/0013(COD))
Rapporteur: Kyriacos Triantaphyllides
SHORT JUSTIFICATION
The European Emission System Trading (EU ETS) started operation on 1 January 2005 and represents one of the most important instruments of EU climate policy due to its ability to achieve absolute emission reductions in an economically efficient manner. The amending Directive has been drawn up by the Commission at the request of the European Council with a view to enhancing the certainty and predictability of the Emissions trading system. The Directive is particularly aimed at codifying the interpretation of combustion installation in order to end the inconsistent application of the scope of the Directive which should be extended to include new sectors and gasses for the post 2013 period. Green house Gas trading primarily concerns National governments and Regional groupings of countries. It does not, at first glance directly concern sub-national regional authorities. This however is to take a very limited view. as of necessity the combustion installations which enter into the market are situated in one or other region of a Member State and the efficiency of its installations in terms of its efforts to adapt to changing energy sources and its reliance on or continued trading in the GHG market will directly effect the local environment, its economic development as well as its social cohesion and employment levels.
The Commission's proposal is a highly technical and precise document which forms an integral part of international agreements.
As Commissioner Hübner has frequently pointed out, under the new rules and the programming period 2007-2013 European Regional Development policy plays an important role in financing and assisting sustainable, competitive and secure energy Cohesion policy has been preparing to step up during the period 2007-2013 its already significant contribution to meet the challenge of ensuring more secure and sustainable sources of energy. In concrete financial terms" € 15.2 billion of Cohesion policy funding have been allocated for the period for investments in renewable energies and energy efficiency".
In view of these large investments and in order to enable the regions concerned to monitor the relationship between investments carried out under EU structural funds and the performance of combustion installations in their region benefiting from such investments, your draftsman proposes that regional authorities and local government authorities responsible for regional development funds be informed:
Ø Of the trading operations carried out by installations on their territory; so as to enable them to assess the effect of regional fund expenditure aimed at assisting companies operating these installations to convert the technology used to clean and or renewable sources.
Parliament has recently pointed out[1], the fact that many of the Union's regions, and particularly those whose major source of income is based on tourism, are heavily dependent on the availability of cheap air travel to ensure the continuous success of this all important industry. Thus countries such as Cyprus, Greece, Malta, and the outermost regions of the Union, have an interest in ensuring that there is a fair balance between the necessity to ensure that effective measures are taken to mitigate the effects of climate change and sustainable cheap air travel.
Lastly experience of the first trading period showed that the price of permits can vary dramatically, causing uncertainty for those considering investing in energy saving or renewable projects and so making such investments less attractive. The new system should include measures to discourage speculation which, as we currently see in other markets ranging from foods to oil, can have highly detrimental effects.
AMENDMENTS
The Committee on Regional Development calls on the Committee on the Environment, Public Health and Food Safety, as the committee responsible, to incorporate the following amendments in its report:
Amendment 1 Proposal for a directive - amending act Recital 13 | ||||||||||||||||||||||
Text proposed by the Commission |
Amendment | |||||||||||||||||||||
(13) The additional effort to be made by the European economy requires inter alia that the revised Community scheme operate with the highest possible degree of economic efficiency and on the basis of fully harmonised conditions of allocation within the Community. Auctioning should therefore be the basic principle for allocation, as it is the simplest and generally considered to be the most economically efficient system. This should also eliminate windfall profits and put new entrants and higher than average growing economies on the same competitive footing as existing installations. |
(13) The additional effort to be made by the European economy requires inter alia that the revised Community scheme operate with the highest possible degree of economic efficiency and on the basis of fully harmonised conditions of allocation within the Community. Free allocation based on benchmarks and actual production is the most economically efficient system that can provide for setting incentives for low carbon technologies and for the achievement of the reduction target. This should also eliminate windfall profits and put new entrants and higher than average growing economies on the same competitive footing as existing installations. | |||||||||||||||||||||
Justification | ||||||||||||||||||||||
To establish a cost efficient and effective emissions trading scheme that really helps meeting the reduction targets at minimal costs auctioning is not the best option. Allocation based on benchmarks and actual production is the better system that provides for ecological effectiveness at minimum costs as proven by the current ECOFYS study for IFIEC. | ||||||||||||||||||||||
Amendment 2 Proposal for a directive - amending act Recital 14 | ||||||||||||||||||||||
Text proposed by the Commission |
Amendment | |||||||||||||||||||||
(14) All Member States will need to make substantial investments to reduce the carbon intensity of their economies by 2020 and those Member States where income per capita is still significantly below the Community average and whose economies are in the process of catching up with the richer Member States will need to make a significant effort to improve energy efficiency. The objectives of eliminating distortions to intra-Community competition and of ensuring the highest degree of economic efficiency in the transformation of the EU economy towards a low carbon economy make it inappropriate to treat economic sectors differently under the Community scheme in individual Member States. It is therefore necessary to develop other mechanisms to support the efforts of those Member States with relatively lower income per capita and higher growth prospects. 90% of the total quantity of allowances to be auctioned should be distributed amongst Member States according to their relative share of 2005 emissions in the Community scheme. 10% of this quantity should be distributed to the benefit of those Member States for the purpose of solidarity and growth in the Community, to be used to reduce emissions and adapt to the effects of climate change. This distribution of this 10% should take into account levels of income per capita in the year 2005 and the growth prospects of Member States, and be higher for Member States with low income levels per head and high growth prospects. Member States with an average level of income per capita that is more than 20% higher than the average in the Community should contribute to this distribution, except where the direct costs of the overall package estimated in SEC(2008) 85 exceed 0.7% of GDP. |
deleted | |||||||||||||||||||||
Justification | ||||||||||||||||||||||
This adaptation is necessary for the adoption of the benchmark scheme. | ||||||||||||||||||||||
Amendment 3 Proposal for a directive - amending act Recital 15 | ||||||||||||||||||||||
Text proposed by the Commission |
Amendment | |||||||||||||||||||||
(15) Given the considerable efforts of combating climate change and of adapting to its inevitable effects, it is appropriate that at least 20% of the proceeds from the auctioning of allowances should be used to reduce greenhouse gas emissions, to adapt to the impacts of climate change, to fund research and development for reducing emissions and adaptation, to develop renewable energies to meet the EU’s commitment to using 20% renewable energies by 2020, to meet the commitment of the Community to increase energy efficiency by 20% by 2020, for the capture and geological storage of greenhouse gases, to contribute to the Global Energy Efficiency and Renewable Energy Fund, for measures to avoid deforestation and facilitate adaptation in developing countries, and for addressing social aspects such as possible increases in electricity prices in lower and middle income households. This proportion is significantly below the expected net revenues for public authorities from auctioning, taking into account potentially reduced income from corporate taxes. In addition, proceeds from auctioning of allowances should be used to cover administrative expenses of the management of the Community scheme. Provisions should be included on monitoring the use of funds from auctioning for these purposes. Such notification does not release Member States from the obligation laid down in Article 88(3) of the Treaty, to notify certain national measures. The Directive does not prejudice the outcome of any future State aid procedures that may be undertaken in accordance with Articles 87 and 88 of the Treaty. |
deleted | |||||||||||||||||||||
Justification | ||||||||||||||||||||||
This adaptation is necessary for the adoption of the benchmark scheme. | ||||||||||||||||||||||
Amendment 4 Proposal for a directive - amending act Recital 16 | ||||||||||||||||||||||
Text proposed by the Commission |
Amendment | |||||||||||||||||||||
(16) Consequently, full auctioning should be the rule from 2013 onwards for the power sector, taking into account their ability to pass on the increased cost of CO2, and no free allocation should be given for carbon capture and storage as the incentive for this arises from allowances not being required to be surrendered in respect of emissions which are stored. Electricity generators may receive free allowances for heat produced through high efficiency cogeneration as defined by Directive 2004/8/EC in the event that such heat produced by installations in other sectors were to be given free allocations, in order to avoid distortions of competition. |
(16) Emission allowance trading is an instrument that should help meet the CO2 reduction targets at minimal cost. Free allocation based on benchmarks and actual production sets the necessary incentives for efficiency improvements. Costs arising from emission allowance trading, both for participating installations as well as indirectly for consumers, can thereby be limited to the financial needs for abating the CO2 emissions to be reduced in accordance with the target set. The CO2 emissions still allowed in line with the cap will consequently not generate costs for the Community. They will do so only when they fall under a future, strengthened reduction target. Such a limitation does not jeopardize the climate change policy goals at all. The achievement of the CO2 reduction target can be safeguarded by setting the benchmarks correctly. The option of a downward adjustment of the benchmarks in subsequent years makes it actually possible to meet the overall reduction target. Consequently, free allocation based on benchmarks and actual production should be the rule from 2013 onwards for all sectors and during the entire period. | |||||||||||||||||||||
Justification | ||||||||||||||||||||||
To establish a cost efficient and effective emissions trading scheme that really helps meeting the reduction targets at minimal costs auctioning is not the best option. Allocation based on benchmarks and actual production is the better system that provides for ecological effectiveness at minimum costs as proven by the current ECOFYS study for IFIEC. | ||||||||||||||||||||||
Amendment 5 Proposal for a directive - amending act Recital 17 | ||||||||||||||||||||||
Text proposed by the Commission |
Amendment | |||||||||||||||||||||
(17) For other sectors covered by the Community scheme, a transitional system should be foreseen for which free allocation in 2013 would be 80% of the amount that corresponded to the percentage of the overall Community-wide emissions throughout the period 2005 to 2007 that those installations emitted as a proportion of the annual Community-wide total quantity of allowances. Thereafter, the free allocation should decrease each year by equal amounts resulting in no free allocation in 2020. |
deleted | |||||||||||||||||||||
Justification | ||||||||||||||||||||||
Price of carbon should be included in products in full to guide market towards more climate friendly consumption. Free allocation distorts the functioning of the market mechanism whereas full auctioning would save a large bureaucracy and reward best-performers. Carbon leakage and unfair competition to European production from countries that have not committed to comprehensive international agreement on climate change should be neutralised by foreign allowance import requirement. | ||||||||||||||||||||||
Amendment 6 Proposal for a directive - amending act Recital 18 | ||||||||||||||||||||||
Text proposed by the Commission |
Amendment | |||||||||||||||||||||
(18) Transitional free allocation to installations should be provided for through harmonised Community-wide rules ("benchmarks") in order to minimise distortions of competition with the Community. These rules should take account of the most greenhouse gas and energy efficient techniques, substitutes, alternative production processes, use of biomass, renewables and greenhouse gas capture and storage. Any such rules should not give incentives to increase emissions and ensure that an increasing proportion of these allowances is auctioned. Allocations must be fixed prior to the trading period so as to enable the market to function properly. They shall also avoid undue distortions of competition on the markets for electricity and heat supplied to industrial installations. These rules should apply to new entrants carrying out the same activities as existing installations receiving transitional free allocations. To avoid any distortion of competition within the internal market, no free allocation should be made in respect of the production of electricity by new entrants. Allowances which remain in the set-aside for new entrants in 2020 should be auctioned. |
(18) Free allocation to installations should be provided for through harmonised Community-wide rules ("benchmarks") in order to minimise distortions of competition with the Community. These rules should take account of the most greenhouse gas and energy efficient techniques. Any such rules should not give incentives to increase emissions from inefficient installations. | |||||||||||||||||||||
Justification | ||||||||||||||||||||||
The principle allocation mechanism should be benchmarks based on actual production for all sectors. Therefore no additional provision regarding new entrants etc. are necessary and can be deleted. Allocation based on benchmarks and actual production gives space for growth of efficient generators to the expense of inefficient and to the benefit of the overall climate policy goal. | ||||||||||||||||||||||
Amendment 7 Proposal for a directive - amending act Recital 19 | ||||||||||||||||||||||
Text proposed by the Commission |
Amendment | |||||||||||||||||||||
(19) The Community will continue to take the lead in the negotiation of an ambitious international agreement that will achieve the objective of limiting global temperature increase to 2°C and is encouraged by the progress made in Bali towards this objective. In the event that other developed countries and other major emitters of greenhouse gases do not participate in this international agreement, this could lead to an increase in greenhouse gas emissions in third countries where industry would not be subject to comparable carbon constraints (“carbon leakage”), and at the same time could put certain energy-intensive sectors and sub-sectors in the Community which are subject to international competition at an economic disadvantage. This could undermine the environmental integrity and benefit of actions by the Community. To address the risk of carbon leakage, the Community will allocate allowances free of charge up to 100% to sectors or sub-sectors meeting the relevant criteria. The definition of these sectors and sub-sectors and the measures required will be subject to re-assessment to ensure that action is taken where necessary and to avoid overcompensation. For those specific sectors or sub-sectors where it can be duly substantiated that the risk of carbon leakage cannot be prevented otherwise, where electricity constitutes a high proportion of production costs and is produced efficiently, the action taken may take into account the electricity consumption in the production process, without changing the total quantity of allowances. |
(19) The Community will continue to take the lead in the negotiation of an ambitious international agreement that will achieve the objective of limiting global temperature increase to 2°C and is encouraged by the progress made in Bali towards this objective. In the event that other developed countries and other major emitters of greenhouse gases do not participate in this international agreement, this could lead to an increase in greenhouse gas emissions in third countries where industry would not be subject to comparable carbon constraints (“carbon leakage”), and at the same time could put certain energy-intensive sectors and sub-sectors in the Community which are subject to international competition at an economic disadvantage. This could undermine the environmental integrity and benefit of actions by the Community. To address the risk of carbon leakage, the Community will also adopt the scheme of allowances free of charge based on a benchmark in sectors or sub-sectors meeting the relevant criteria. | |||||||||||||||||||||
Justification | ||||||||||||||||||||||
The benchmark scheme on the basis of the best technology available provides for the most efficient and most cost effective solution. | ||||||||||||||||||||||
Amendment 8 Proposal for a directive - amending act Recital 20 | ||||||||||||||||||||||
Text proposed by the Commission |
Amendment | |||||||||||||||||||||
(20) The Commission should therefore review the situation by June 2011 at the latest, consult with all relevant social partners, and, in the light of the outcome of the international negotiations, submit a report accompanied by any appropriate proposals. In this context, the Commission should identify which energy intensive industry sectors or sub-sectors are likely to be subject to carbon leakage not later than 30 June 2010. It should base its analysis on the assessment of the inability to pass on the cost of required allowances in product prices without significant loss of market share to installations outside the Community not taking comparable action to reduce emissions. Energy-intensive industries which are determined to be exposed to a significant risk of carbon leakage could receive a higher amount of free allocation or an effective carbon equalisation system could be introduced with a view to putting installations from the Community which are at significant risk of carbon leakage and those from third countries on a comparable footing. Such a system could apply requirements to importers that would be no less favourable than those applicable to installations within the EU, for example by requiring the surrender of allowances. Any action taken would need to be in conformity with the principles of the UNFCCC, in particular the principle of common but differentiated responsibilities and respective capabilities, taking into account the particular situation of Least Developed Countries. It would also need to be in conformity with the international obligations of the Community including the WTO agreement. |
(20) The Commission should therefore review the situation by June 2010 at the latest, consult with all relevant social partners, and, in the light of the outcome of the international negotiations, submit a report accompanied by any appropriate proposals. In this context, the Commission should identify which energy intensive industry sectors or sub-sectors are likely to be subject to carbon leakage not later than 30 June 2009. It should base its analysis on the assessment of the inability to pass on the cost of required allowances in product prices without significant loss of market share to installations outside the Community not taking comparable action to reduce emissions. | |||||||||||||||||||||
Justification | ||||||||||||||||||||||
The adoption of the benchmark scheme will lead to a minimisation of the risk of "carbon leakage". However, it is not plausible why the identification of sectors that could be affected by carbon leakage is only foreseen for 2010. This would simply delay any necessary investment. One year should be enough for the Commission to come to a decision. | ||||||||||||||||||||||
Amendment 9 Proposal for a directive- amending act Recital 33 | ||||||||||||||||||||||
Text proposed by the Commission |
Amendment | |||||||||||||||||||||
(33) [As regards the approach to allocation, aviation should be treated as other industries which receive transitional free allocation rather than as electricity generators. This means that 80% of allowances should be allocated for free in 2013, and thereafter the free allocation to aviation should decrease each year by equal amounts resulting in no free allocation in 2020. The Community and its Member States should continue to seek to reach an agreement on global measures to reduce greenhouse gas emissions from aviation and review the situation of this sector as part of the next review of the Community scheme.] |
(33) [As regards the approach to allocation, aviation should be treated in a manner which reflects its ability to find replacement fuels in the medium to long term. This means that 80% of allowances should be allocated for free in 2013, and thereafter the free allocation to aviation should decrease each year by equal amounts resulting in no free allocation in 2020. The Community and its Member States should continue to seek to reach an agreement on global measures to reduce greenhouse gas emissions from aviation and review the situation of this sector as part of the next review of the Community scheme. The Commission should adopt all the necessary measures to alleviate possible negative economic and social effects on the European Union’s remotest regions and islands (including small island Member States) and thinly-populated Northern areas to which the provisions of this directive apply.] | |||||||||||||||||||||
Amendment 10 Proposal for a directive - amending act Recital 34 | ||||||||||||||||||||||
Text proposed by the Commission |
Amendment | |||||||||||||||||||||
(34) The measures necessary for the implementation of this Directive should be adopted in accordance with Council Decision 1999/468/EC of 28 June 1999 laying down the procedures for the exercise of implementing powers conferred on the Commission. In particular power should be conferred on the Commission to adopt measures for the auctioning of allowances, for transitional Community-wide allocation of allowances, for the monitoring, reporting and verification of emissions, for the accreditation of verifiers and for implementing harmonised rules for projects. Since those measures are of general scope and are designed to amend non-essential elements of this Directive and to supplement this Directive by the addition or modification of new non-essential elements, they should be adopted in accordance with the regulatory procedure with scrutiny provided for in Article 5a of Decision 1999/468/EC. |
(34) The measures necessary for the implementation of this Directive should be adopted in accordance with Council Decision 1999/468/EC of 28 June 1999 laying down the procedures for the exercise of implementing powers conferred on the Commission. In particular power should be conferred on the Commission to adopt measures for the allocation of allowances within the benchmark scheme, for the monitoring, reporting and verification of emissions, for the accreditation of verifiers and for implementing harmonised rules for projects. Since those measures are of general scope and are designed to amend non-essential elements of this Directive and to supplement this Directive by the addition or modification of new non-essential elements, they should be adopted in accordance with the regulatory procedure with scrutiny provided for in Article 5a of Decision 1999/468/EC. | |||||||||||||||||||||
Justification | ||||||||||||||||||||||
There is no transitional free of charge allocation, because the benchmark scheme is to be applied for energy intensive industries as well. Within the benchmark scheme an auctioning should only take place, if a site falls short of the benchmark. | ||||||||||||||||||||||
Amendment 11 Proposal for a directive - amending act Article 1 – point 6 Directive 2003/87/EC Article 9a - paragraph 3 a (new) | ||||||||||||||||||||||
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Justification | ||||||||||||||||||||||
Allocating free allowances with ex post adjustment for actual production ensures achieving the CO2 reduction target and providing for efficient growth as well as for avoidance of windfall profits (shown by ECOFYS study on IFIEC method). In case of increased production, ex post adjustment might entail additional allowances in one year. Fulfilment of the overall target, however, has to be ensured. Therefore, if allocated allowances exceed the plan, the different benchmarks will be adjusted downwards according to a correction mechanism to be established in accordance with Art 23(3). | ||||||||||||||||||||||
Amendment 12 Proposal for a directive - amending act Article 1 – point 7 Directive 2003/87/EC Article 10 | ||||||||||||||||||||||
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Justification | ||||||||||||||||||||||
Auctioning within ETS means maximum cost for all consumers without additional benefits for CO2 reduction. It means nothing less than a new tax on CO2 to be paid by consumers. In order to save up to €55 bn per year for EU consumers and to keep power prices 20 – 30 €/MWh lower without questioning the effectiveness of ETS, it should not be based on auctioning. Free allocation based on benchmarks and actual production can provide for a cost efficient and ecologically effective instrument. | ||||||||||||||||||||||
Amendment 13 Proposal for a directive - amending act Article 1 – point 8 Directive 2003/87/EC Article 10a - paragraph 1 | ||||||||||||||||||||||
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Justification | ||||||||||||||||||||||
Auctioning of allowances is unnecessary for the achievement of the EU CO2 reduction target; it would entail massive energy price increases, harm the industry’s competitiveness and withdraw purchasing power from consumers. Free allocation linked to EU-wide benchmarks with ex post adjustment (taking regard of actual production) is the better option. | ||||||||||||||||||||||
Amendment 14 Proposal for a directive - amending act Article 1 – point 8 Directive 2003/87/EC Article 10a - paragraph 2 | ||||||||||||||||||||||
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Justification | ||||||||||||||||||||||
Allocation should be free of charge according to the EU-wide benchmark, with ex post adjustment in accordance with actual production. This allocation method provides for an effective climate change instrument at efficient cost for the whole economy. This allocation model is implemented in the new paragraph 2. | ||||||||||||||||||||||
Amendment 15 Proposal for a directive - amending act Article 1 – point 8 Directive 2003/87/EC Article 10a - paragraph 2 a (new) | ||||||||||||||||||||||
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Justification | ||||||||||||||||||||||
It has to be assumed that benchmarks could not be generally stipulated for all products and processes for the time being. This might be the case for highly differentiated products which stand for a small proportion of emissions under ETS. Such plants need to be granted their CO2 allowances according to a “grandfathering” approach. | ||||||||||||||||||||||
Amendment 16 Proposal for a directive - amending act Article 1 – point 8 Directive 2003/87/EC Article 10a - paragraph 3 | ||||||||||||||||||||||
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Justification | ||||||||||||||||||||||
CHP is a corner stone of climate protection. Maintaining and expanding highly efficient CHP is required and supported by Directive 2004/8/EC. It would be counterproductive to introduce additional burden as result from auctioning. In many cases, the respective MS’ promotion of CHP plants would fail to deliver the desired results, production from existing CHP would be reduced, future expansion might not be realized. In case of auctioning to be the principle allocation mechanism to electricity generators, such exception of CHP from auctioning supports climate protection. | ||||||||||||||||||||||
Amendment 17 Proposal for a directive - amending act Article 1 – point 8 Directive 2003/87/EC Article 10a - paragraph 6 - subparagraph 3 | ||||||||||||||||||||||
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Justification | ||||||||||||||||||||||
Auctioning CO2 allowances to electricity generation forms an unnecessary significant cost burden for consumers. A free of charge allocation mechanism based on benchmarks and actual production forms a more efficient ETS. | ||||||||||||||||||||||
Amendment 18 Proposal for a directive - amending act Article 1 – point 8 Directive 2003/87/EC Article 10a - paragraph 7 | ||||||||||||||||||||||
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Justification | ||||||||||||||||||||||
Auctioning within ETS means maximum cost for all consumers without additional benefits for CO2 reduction. It means nothing less than a new tax on CO2 to be paid by consumers. In order to save up to €55 bn per year for EU consumers and to keep power prices 20 – 30 €/MWh lower without questioning the effectiveness of ETS, it should not be based on auctioning. Free allocation based on benchmarks and actual production can provide for a cost efficient and ecologically effective instrument. | ||||||||||||||||||||||
Amendment 19 Proposal for a directive - amending act Article 1 – point 8 Directive 2003/87/EC Article 10a - paragraph 8 | ||||||||||||||||||||||
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Justification | ||||||||||||||||||||||
Auctioning within ETS means maximum cost for all consumers without additional benefits for CO2 reduction. It means nothing less than a new tax on CO2 to be paid by consumers. In order to save up to €55 bn per year for EU consumers and to keep power prices 20 – 30 €/MWh lower without questioning the effectiveness of ETS, it should not be based on auctioning. Free allocation based on benchmarks and actual production can provide for a cost efficient and ecologically effective instrument. | ||||||||||||||||||||||
Amendment 20 Proposal for a directive - amending act Article 1 – point 8 Directive 2003/87/EC Article 10a - paragraph 9 | ||||||||||||||||||||||
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Justification | ||||||||||||||||||||||
Auctioning within ETS means maximum cost for all consumers without additional benefits for CO2 reduction. It means nothing less than a new tax on CO2 to be paid by consumers. In order to save up to €55 bn per year for EU consumers and to keep power prices 20 – 30 €/MWh lower without questioning the effectiveness of ETS, it should not be based on auctioning. Free allocation based on benchmarks and actual production can provide for a cost efficient and ecologically effective instrument. | ||||||||||||||||||||||
Amendment 21 Proposal for a directive - amending act Article 1 – point 8 Directive 2003/87/EC Article 10b | ||||||||||||||||||||||
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Justification | ||||||||||||||||||||||
Most of these difficulties will be solved by the benchmark scheme. In view of the strongly increasing energy prices the benchmark additionally supports the investment activity in more effective technologies. This represents another competitive advantage. | ||||||||||||||||||||||
Amendment 22 Proposal for a directive - amending act Article 1 – point 9 Directive 2003/87/EC Article 11 - paragraph 1 | ||||||||||||||||||||||
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Justification | ||||||||||||||||||||||
This adaptation is necessary for the adoption of the benchmark scheme. | ||||||||||||||||||||||
Amendment 23 Proposal for a directive - amending act Article 1 – point 9 Directive 2003/87/EC Article 11 - paragraph 1 a (new) | ||||||||||||||||||||||
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PROCEDURE
Title |
Greenhouse gas emission allowance trading system |
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References |
COM(2008)0016 – C6-0043/2008 – 2008/0013(COD) |
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Committee responsible |
ENVI |
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Opinion by Date announced in plenary |
REGI 19.2.2008 |
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Drafts(wo)man Date appointed |
Kyriacos Triantaphyllides 26.3.2008 |
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Discussed in committee |
8.4.2008 |
26.6.2008 |
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Date adopted |
16.7.2008 |
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Result of final vote |
+: –: 0: |
25 17 5 |
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Members present for the final vote |
Emmanouil Angelakas, Stavros Arnaoutakis, Elspeth Attwooll, Jean Marie Beaupuy, Rolf Berend, Jana Bobošíková, Victor Boştinaru, Wolfgang Bulfon, Antonio De Blasio, Petru Filip, Iratxe García Pérez, Eugenijus Gentvilas, Ambroise Guellec, Zita Gurmai, Marian Harkin, Mieczysław Edmund Janowski, Rumiana Jeleva, Gisela Kallenbach, Tunne Kelam, Evgeni Kirilov, Constanze Angela Krehl, Florencio Luque Aguilar, Jamila Madeira, Sérgio Marques, Miguel Angel Martínez Martínez, Yiannakis Matsis, Miroslav Mikolášik, James Nicholson, Lambert van Nistelrooij, Jan Olbrycht, Maria Petre, Markus Pieper, Pierre Pribetich, Wojciech Roszkowski, Elisabeth Schroedter, Grażyna Staniszewska, Catherine Stihler, Dimitar Stoyanov, Margie Sudre, Oldřich Vlasák |
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Substitute(s) present for the final vote |
Jan Březina, Emanuel Jardim Fernandes, Lidia Joanna Geringer de Oedenberg, Zita Pleštinská, Samuli Pohjamo, Miloslav Ransdorf |
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Substitute(s) under Rule 178(2) present for the final vote |
Dimitrios Papadimoulis |
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- [1] See Ms Sudre Report on the strategy for outermost regions
PROCEDURE
Title |
Greenhouse gas emission allowance trading system |
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References |
COM(2008)0016 – C6-0043/2008 – 2008/0013(COD) |
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Date submitted to Parliament |
23.1.2008 |
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Committee responsible Date announced in plenary |
ENVI 19.2.2008 |
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Committee(s) asked for opinion(s) Date announced in plenary |
INTA 19.2.2008 |
ECON 19.2.2008 |
ITRE 19.2.2008 |
REGI 19.2.2008 |
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Associated committee(s) Date announced in plenary |
ITRE 10.4.2008 |
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Rapporteur(s) Date appointed |
Avril Doyle 5.3.2008 |
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Discussed in committee |
26.2.2008 |
7.5.2008 |
25.6.2008 |
10.9.2008 |
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Date adopted |
7.10.2008 |
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Result of final vote |
+: –: 0: |
44 20 1 |
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Members present for the final vote |
Adamos Adamou, Georgs Andrejevs, Margrete Auken, Liam Aylward, Pilar Ayuso, Irena Belohorská, Johannes Blokland, John Bowis, Frieda Brepoels, Hiltrud Breyer, Martin Callanan, Dorette Corbey, Magor Imre Csibi, Chris Davies, Avril Doyle, Mojca Drčar Murko, Edite Estrela, Jill Evans, Anne Ferreira, Karl-Heinz Florenz, Elisabetta Gardini, Matthias Groote, Françoise Grossetête, Cristina Gutiérrez-Cortines, Satu Hassi, Gyula Hegyi, Jens Holm, Caroline Jackson, Dan Jørgensen, Christa Klaß, Eija-Riitta Korhola, Holger Krahmer, Urszula Krupa, Marie-Noëlle Lienemann, Peter Liese, Jules Maaten, Linda McAvan, Roberto Musacchio, Riitta Myller, Miroslav Ouzký, Frédérique Ries, Guido Sacconi, Daciana Octavia Sârbu, Amalia Sartori, Richard Seeber, Bogusław Sonik, María Sornosa Martínez, Salvatore Tatarella, Antonios Trakatellis, Evangelia Tzampazi, Thomas Ulmer, Anja Weisgerber, Åsa Westlund, Anders Wijkman, Glenis Willmott |
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Substitute(s) present for the final vote |
Jerzy Buzek, Bairbre de Brún, Johannes Lebech, Caroline Lucas, Eluned Morgan, Hartmut Nassauer, Bart Staes |
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Substitute(s) under Rule 178(2) present for the final vote |
Domenico Antonio Basile, Ulrike Rodust, Paul Rübig |
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