AM Com LegOpinion · Article 1 – paragraph 5 – point b Text proposed by the Commission...

AM\1098409EN.doc PE585.439v01-00

EN United in diversity EN

European Parliament 2014-2019

Committee on Industry, Research and Energy

2015/0148(COD)

23.6.2016

AMENDMENTS 283 - 536

Draft opinion

Fredrick Federley

(PE582.103v01-00)

Proposal for a directive of the European Parliament and of the Council

amending Directive 2003/87/EC to enhance Cost-effective emission reductions

and low-carbon investments

Proposal for a directive

(COM(2015)0337 – C8-0190/2015 – 2015/0148(COD))

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AM_Com_LegOpinion

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Amendment 283

Dario Tamburrano, Eleonora Evi


Article 1 – paragraph 1 – point 5 – point b – introductory part

Directive 2003/87/EC

Article 10 a

Text proposed by the Commission Amendment

(b) a new third subparagraph is added

to paragraph 2 as follows:

(b) paragraphs 2 to 6 are deleted

Or. en

Amendment 284

Zdzisław Krasnodębski, Edward Czesak


Article 1 – paragraph 1 – point 5 – point b – introductory part


(b) a new third subparagraph is added

to paragraph 2 as follows:

(b) Paragraph 2 is replaced as follows:

Or. en

Amendment 285

Edouard Martin, Pervenche Berès, Zigmantas Balčytis, Eva Kaili, Theresa Griffin, José

Blanco López, Soledad Cabezón Ruiz, Csaba Molnár, Carlos Zorrinho, Jude Kirton-

Darling, Inmaculada Rodríguez-Piñero Fernández


Article 1 – paragraph 1 – point 5 – point b

Article 10 a

Paragraph 2


The benchmark values for free allocation

shall be adjusted in order to avoid

windfall profits and reflect technological

progress in the period between 2007-8 and

deleted

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each later period for which free

allocations are determined in accordance

with Article 11(1). This adjustment shall

reduce the benchmark values set by the

act adopted pursuant to Article 10a by 1%

of the value that was set based on 2007-8

data in respect of each year between 2008

and the middle of the relevant period of

free allocation, unless:

(i) On the basis of information submitted

pursuant to Article 11, the Commission

shall identify whether the values for each

benchmark calculated using the

principles in Article 10a differ from the

annual reduction referred to above by

more than 0.5% of the 2007-8 value

higher or lower annually. If so, that

benchmark value shall be adjusted either

0.5% or 1.5% in respect of each year

between 2008 and the middle of the period

for which free allocation is to be made;

(ii) By way of derogation regarding the

benchmark values for aromatics,

hydrogen and syngas, these benchmark

values shall be adjusted by the same

percentage as the refineries benchmarks

in order to preserve a level playing field

for producers of these products.

Or. en

Justification

In order to provide more accurate benchmarks it would be better to recollect real data based

on the best available technologies in 2019 rather than applying a "random" reduction factor

based on the '07-08 reference.

Amendment 286





Article 10 a

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act adopted pursuant to Article 10a by 1%

of the value that was set based on 2007-8




deleted

(i) On the basis of information submitted

pursuant to Article 11, the Commission

shall identify whether the values for each

benchmark calculated using the

principles in Article 10a differ from the


more than 0.5% of the 2007-8 value

higher or lower annually. If so, that






benchmark values for aromatics,






Or. en

Amendment 287

Françoise Grossetête, Anne Sander, Antonio Tajani




Article 10 a – paragraph 2

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The benchmark values for free allocation shall be adjusted in order to avoid windfall

profits and reflect technological progress

in the period between 2007-8 and each

later period for which free allocations are

determined in accordance with Article

11(1). This adjustment shall reduce the

benchmark values set by the act adopted

pursuant to Article 10a by 1% of the value

that was set based on 2007-8 data in

respect of each year between 2008 and the

middle of the relevant period of free

allocation, unless:

For the 2021-2030 period, the benchmark shall be determined as the average

performance of the 10% most efficient

installations in a sector or a sub-sector in

the European Union in the years 2013-

2017. In defining the benchmarks, the

Commission shall consult the relevant

stakeholders, including the sectors and

sub-sectors concerned. Data used to

determine the benchmarks shall be

representative, robust, transparent and

easily available. The Commission shall

publish the new values of the benchmark

for each sector or sub-sector and the

reasoned explanations.

Or. en

Justification

The flat rate proposed by the Commission for all industrial sectors is arbitrary because it

does not take into account the specificities of each sector in view of 2030. Therefore it is

necessary to set up benchmarks which are valid for the whole 2021-2030 period considering

the performances of the 10% best performing installations on the previous years.

Amendment 288

Paul Rübig




Article 1 – paragraph 5 – point b









Benchmarks in individual sectors and sub

sectors shall be updated before every

trading period taking into consideration

the whole amount of CO2 from waste

gases used for electricity production in

order to avoid windfall profits and reflect

technological progress in the period

between 2007-8 and the relevant trading

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allocation, unless:

period.

Or. en

Justification

Benchmarks are one of the key elements of the rules on carbon leakage protection, as they

determine the level of free allocation for installations within a sector. Benchmarks are

already very ambitious, as they are based on the average emissions intensity of 10% most

efficient installations. The linear flat rate reduction set in the Commission proposal (between

0.5% and 1.5%) is arbitrary and cannot reflect the realistic efficiency increase potential.

Waste gases used for electricity production should be considered when benchmarks are

calculated.

Amendment 289

Jens Geier, Constanze Krehl, Bernd Lange




Article 10 a – paragraph 2 – subparagraph 3










act adopted pursuant to Article 10a by 1

% of the value that was set based on 2007-

8 data in respect of each year between

2008 and the middle of the relevant period

of free allocation, unless:

Account being taken of the total carbon

content of residual gas used for electricity

production, the benchmark values for free

allocation for the fourth trading period

shall be laid down by the Commission by

31 December 2017 and shall reflect

technological progress in 2014 and 2015.

For the fourth trading period, the

benchmarks shall be determined solely on

the basis of average emissions from the

most efficient 10% of installations. The

benchmarks for the fourth period shall be

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developed with the involvement of the

industries concerned as part of an

institutionalised exchange of information.

The Commission shall document the

development process and publish the

documentation together with the

benchmarks.

Or. de

Amendment 290








profits and reflect technological progress in the period between 2007-8 and each









allocation, unless:

In defining the principles for setting ex-

ante benchmarks in individual sectors or

subsectors, the benchmark shall be the

average performance of the 10 % most

efficient installations in a sector or

subsector in the Community in the years

2013-2017.

(i) The benchmarks shall be reviewed

once at the beginning of the trading period.

The Commission shall carry out a detailed

impact assessment, taking into account

the economic and technical development

of industrial plants and processes in the

individual sectors and subsectors, and

consulting the relevant stakeholders,

including the sectors and subsectors

concerned.

The regulations pursuant to Articles 14

and 15 shall provide for harmonised rules

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on monitoring, reporting and verification

of production-related greenhouse gas

emissions with a view to determining the

ex-ante benchmarks. Data utilized to

determine the benchmarks shall be


easily available.

Or. en

Justification

Benchmarks must reflect the reality of the technological evolution of installations in Europe.

Therefore, the benchmarks shall be reviewed only once at the beginning of the fourth trading

period, and the level of ambition needs to be in line with technological progress to ensure

industry’s competitive edge. The retention of the reference years 2007-08 would result in

benchmarks that are based on historical levels of efficiency and a guess as to what has

happened since. This amendment means that the benchmark standards will be based on real,

current data – and reflect what will have been achieved. Moreover, by choosing the reference

period 2013-2017, one data collection exercise for activity and for benchmark is kept.

Amendment 291

Francesc Gambús




Article 10 a – paragraph 2 – subparagraph 2a



shall be adjusted in order to avoid windfall

profits and reflect technological progress in

the period between 2007-8 and each later

period for which free allocations are








allocation, unless:




since 2007-8. For the period 2021-2030, the benchmark value shall be the average


installations in a sector or subsector in the

Community for the years 2013-2017.

(This amendment modifies article 1 -

paragraph 5 - point b of the Commission

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proposal)

Or. en

(See wording article 10a - paragraph 2 - sub-paragraph 2a)

Amendment 292

Antonio Tajani, Massimiliano Salini, Herbert Reul, Elisabetta Gardini


















allocation, unless:


shall be adjusted taking into consideration

the real economic and technical

development of industrial plants and

processes in the individual sectors and

subsectors in order to avoid windfall

profits. This update shall be based on the

average performance of the 10% most



2013-2017. The Commission shall consult the relevant stakeholders in this regard.

Or. en

Amendment 293

András Gyürk, György Hölvényi










shall be updated in order to avoid windfall


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allocation, unless:

by 31 December 2018, and before the

beginning of each later period for which

free allocations are determined in

accordance with Article 11(1). This

adjustment shall be based on recent

verified production and emission data of

installations for the period of 2016-2017.

Or. en

Justification

Benchmarks should be based on real performances and verified emission data in order to

reflect technological improvements and avoid the application of the CSCF.

Amendment 294

Neoklis Sylikiotis, Sofia Sakorafa


















allocation, unless:


shall be reviewed every two years in order

to avoid windfall profits and reflect

technological progress:

Or. en

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Amendment 295

Flavio Zanonato, Patrizia Toia


















allocation, unless:


shall be adjourned and calculated in order

to avoid windfall profits and reflect

technological progress occurred since the

period between 2007-8. This calculation

shall review the benchmark values set by

the act adopted pursuant to Article 10a

based on verified data collected in

accordance to Article 11(1) and increase

the number of product benchmarks as

much as possible, in order to reduce the

application of fall back approaches to a

minimum. Where the calculation of

product benchmarks is not feasible and

fall back approaches still represent the

allocation method, rules to prevent from

perverse incentives deriving from activity

level reduction linked to energy efficiency

improvement shall be developed.

Or. en

Amendment 296

Marian-Jean Marinescu














the period between 2017-2018 and each


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allocation, unless:


11(1). The starting point shall be the

average performance of the 10% most



2017-18. The Commission shall consult

the relevant stakeholders, including the

sectors and subsectors concerned.

Or. en

Amendment 297

Esther de Lange, Krišjānis Kariņš, Francesc Gambús, Henna Virkkunen, Maria

Spyraki, Massimiliano Salini, Herbert Reul, Pilar del Castillo Vera, Paul Rübig




Article 10 a – paragraph 2 – third subparagraph – introductory sentence














allocation, unless:


shall be adjusted in order to reflect


between 2007-8 and each later period for

which free allocations are determined in

accordance with Article 11(1).

Or. en

Amendment 298

Adina-Ioana Vălean




Article 10 a – paragraph 2– subparagraph 2 a

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allocation, unless:


shall be updated in order to avoid windfall


the period since 2007-8. For the period

2021-2030, the benchmark value shall be

the average performance of the 10% most


subsector in the Community for the years

2013-2017, and each later period for


accordance with Article 11(1). The



subsectors concerned.

Or. en

Amendment 299

Angelika Niebler














pursuant to Article 10a by 1 % of the value




allocation, unless:


should be updated more regularly.

Updating should take place in particular

prior to the start of a new trading period in order to avoid windfall profits and

reflect technological progress. Verified

emissions data, technological progress

and actual performance shall form the

basis for updating. Particular account

shall be taken in this connection of highly

efficient installations and unavoidable

process emissions. This adjustment shall

reduce the benchmark values set by the act

adopted pursuant to Article 10a by 1 % of

the value that was set based on 2017-2018



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Or. de

Amendment 300

Barbara Kappel


















allocation, unless:


shall be adjusted for the fourth trading

period in order to avoid windfall profits as

well as undue carbon costs of most

efficient installations and reflect




accordance with Article 11(1), taking into

consideration the whole amount of CO2

from waste gases used for electricity

production. Benchmarks in individual

sectors and sub-sectors shall be updated based on the average of the verified

emissions of the 10% most efficient

installations in a sector or sub sector in

the Union in the years 2013-2017 for the

2020-2030 period. Benchmarks shall be

set on the basis of objective, faire and

non-discriminatory criteria.

Or. en

Amendment 301

Dan Nica




Article 10 a – paragraph 2 – third subparagraph

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allocation, unless:


shall be established before every trading

period taking into consideration the whole

amount of CO2 from waste gases used for

electricity production in order to avoid

windfall profits and reflect the verified

and proven technological progress of the

10% most efficient installations in a

sector or sub sector in the Union in the

years 2017 and 2018 for the 2020-2030

period. Benchmarks shall be set on the

basis of objective, fair and non-

discriminatory criteria.

Or. en

Amendment 302

Lorenzo Fontana


















allocation, unless:



profits as well as undue carbon costs of

most efficient installations and reflect




accordance with Article 11(1). This

adjustment shall reduce the benchmark

values set by the act adopted pursuant to

Article 10a by 1% of the value that was set

based on 2007-8 data in respect of each

year between 2008 and the middle of the

relevant period of free allocation, unless:

Or. en

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Amendment 303





Article 10 a – paragraph 2 – point i


(i) On the basis of information

submitted pursuant to Article 11, the

Commission shall identify whether the

values for each benchmark calculated

using the principles in Article 10a differ

from the annual reduction referred to

above by more than 0.5 % of the 2007-8

value higher or lower annually. If so, that


0.5 % or 1.5 % in respect of each year



deleted

Or. de

Amendment 304

Adina-Ioana Vălean




Article 10 a – paragraph 2 – subparagraph 2 a








above by more than 0.5% of the 2007-8






deleted

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Or. en

Amendment 305





Article 10 a














deleted

Or. en

Amendment 306

Françoise Grossetête, Anne Sander



Directive 200/87/EC











deleted

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Or. en

Amendment 307





Article 10 a – paragraph 2 – subparagraph 3 (i)














deleted

Or. en

Amendment 308

Francesc Gambús




Article 10 a – paragraph 2 – subparagraph 2 a





deleted

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(This amendment deletes sub-element (i) of

the subparagraph 2a)

Or. en

(See wording article 10a - paragraph 2 - subparagraph 2a)

Amendment 309

Edouard Martin, Pervenche Berès, Zigmantas Balčytis, Patrizia Toia, Eva Kaili, Flavio

Zanonato, Theresa Griffin, José Blanco López, Soledad Cabezón Ruiz, Csaba Molnár,

Carlos Zorrinho, Jude Kirton-Darling, Inmaculada Rodríguez-Piñero Fernández



Article 10 a

Paragraph 2














deleted

Or. en

Justification


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Amendment 310





Article 10 a – paragraph 2 – subparagraph 3 – point i














deleted

Or. en

Amendment 311














deleted

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Or. en

Amendment 312

Barbara Kappel




Article 1 (5) b














deleted

Or. en

Amendment 313

Esther de Lange, Antonio Tajani, Krišjānis Kariņš, Francesc Gambús, Henna

Virkkunen, Maria Spyraki, Massimiliano Salini, Herbert Reul, Pilar del Castillo Vera,

Paul Rübig




Article 10 a – paragraph 2 – third subparagraph – point (i)

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(i) Before the start of the trading

period benchmarks in individual sectors

and subsectors, shall be updated based on

the average of the verified emissions of

the 10% most efficient installations in a

sector or subsector in the Union in the

years 2017 and 2018. Benchmarks shall

be set on the basis of information

submitted pursuant to Article 11.

The Commission shall consult the

relevant stakeholders, including the

sectors and subsectors concerned.

Or. en

Amendment 314

Dan Nica




Article 10 a – paragraph 2 – third subparagraph – point i














(i) As of the fourth trading period, the

Commission shall update the benchmarks

in individual sectors and subsectors on

the basis of the average emission intensity

of the 10% most efficient installations in

the 5th and 4th last year preceding the

relevant trading period. In determining

the benchmarks the Commission shall

only utilise data that is exclusively


easily available, and shall opt as a

preference for data determined in

accordance with Articles 14 and 15 of this

Directive.

When establishing and updating the

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benchmarks, the Commission shall

consult the relevant stakeholders,

including the sectors and subsectors

concerned.

Or. en

Amendment 315

Hans-Olaf Henkel




Article 1 – paragraph 1 – 5b














(i) Before start of the trading period

benchmarks in individual sectors and

subsectors shall be updated based on the

average of the verified emissions of the

10% most efficient installations in a

sector or subsector in the Union for the

years 2017-2018. Benchmarks shall be set

on the basis of information submitted

pursuant to Article 11.

Or. en

Amendment 316

Antonio Tajani, Massimiliano Salini, Herbert Reul, Elisabetta Gardini










once at the beginning of the 4th trading

period., based on bottom-up real

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installation data and taking into account

sector specific characteristics.

Or. en

Amendment 317




















once at the beginning of the trading

period. The regulations pursuant to

Articles 14 and 15 shall provide for

harmonised rules on monitoring,

reporting and verification of production-

related greenhouse gas emissions with a

view to determining the ex-ante

benchmarks.

Or. en

Amendment 318

Paul Rübig



COM (2015) 337

Article1 – paragraph 5 – point (b)

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(i) (i) Beginning with the fourth

trading period, benchmarks in individual

sectors and sub sectors shall be updated on the basis of the average emission

intensity of the 10% most efficient

installations in the 5th and 4th last year

preceding the relevant trading period.

Data utilised to determine the benchmarks

shall be exclusively representative,

transparent, robust and easily available,

with preference for data determined

according to Art 14 of this directive.

Benchmarks shall fully take into account

the whole amount of waste gases used for

electricity production as well as chemical,

technical and physical limits for emission

reduction of non-combustion source

streams and process emissions.

When updating the benchmarks, the



sub sectors concerned.

Or. en

Justification

Benchmarks are one of the key elements of the rules on carbon leakage protection, as they

determine the level of free allocation for installations within a sector. Benchmarks are

already very ambitious, as they are based on the average emissions intensity of 10% most

efficient installations. The linear flat rate reduction set in the Commission proposal (between

0.5% and 1.5%) is arbitrary and cannot reflect the realistic efficiency increase potential.


calculated.

Amendment 319

Angelika Niebler




Article 10 a – paragraph 2– subparagraph 3 (i)

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values for each benchmark calculated using

the principles in Article 10a differ from the

annual reduction referred to above by more

than 0.5 % of the 2007-8 value higher or

lower annually. If so, that benchmark value

shall be adjusted either 0.5 % or 1.5 % in


middle of the period for which free

allocation is to be made;







than 0.5 % of the 2017-2018 value higher

or lower annually. If so, that benchmark

value shall be adjusted either 0.5 % or 1.5

% in respect of each year between 2018

and the middle of the period for which free

allocation is to be made; if the

Commission ascertains that there is no

deviation in the benchmarks, however, a

0% adjustment must be made;

Or. de

Amendment 320

Gunnar Hökmark




Article 10 a – paragraph 2 – point i








than 0.5% of the 2007-8 value higher or


shall be adjusted either 0.5% or 1.5% in




(i) On the basis of verified production

data and information submitted pursuant to

Article 11, the Commission shall identify

whether the values for each benchmark

calculated using the principles in Article

10a differ from the annual reduction

referred to above by more than 0.5% of the

2007-8 value higher or lower annually. If

so, that benchmark value shall be adjusted

either 0.5% or 1.5% in respect of each year



consideration shall be given to those

sectors with a limited potential of

technological development due to

unavoidable process emissions;

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accordingly, for those sectors, the

benchmark value shall be adjusted by less

than 0.5 %.

Or. en

Justification

The main point is that lower categories should be introduced in order for those sectors not to

be disfavoured by the benchmark updates.

Amendment 321

Christofer Fjellner





























allocation is to be made, for sectors with

unavoidable process emissions and where

real production and efficiency data using

Best Available Technology proves that

emissions cannot be lowered the

benchmark shall not be adjusted;

Or. en

Amendment 322

Barbara Kappel

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Article 10 a 2


(ia) applicants may demonstrate that

even most efficient installations of a

sector or sub-sector may face undue

carbon costs, because, even when applied

to their real production, the amount of

allowances which a specific benchmark

value allows to allocate, does not meet

their needs. If so, that benchmark value

shall be adjusted to meet the needs of the

most efficient installations of a sector or

sub-sector concerned, but not more than

by 20%.

Or. en

Justification

Benchmark values should reflect the performance level actually achievable, which is why

corresponding changes in these values should be possible.

Amendment 323

Pilar del Castillo Vera




Article 1 – paragraph 1 - point 5 - point b - new (i)


(ia) The determination and update of

benchmarks shall take into account

chemical, physical and technical limits for

emission reduction of non-combustion

source streams and process emissions

from raw materials.

(ib) The heat benchmark values shall be

defined according to Directive

2012/27/EU on Energy Efficiency and its

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implementing acts.

Or. en

Amendment 324

Neoklis Sylikiotis




Article 10 a – paragraph 2 – subparagraph 3 (ii)


(ii) By way of derogation regarding

the benchmark values for aromatics,






deleted

Or. en

Amendment 325





Article 10 a









deleted

Or. en

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Amendment 326

Edouard Martin, Pervenche Berès, Zigmantas Balčytis, Constanze Krehl, Eva Kaili,

Jens Geier, Flavio Zanonato, Theresa Griffin, José Blanco López, Soledad Cabezón

Ruiz, Csaba Molnár, Carlos Zorrinho, Jude Kirton-Darling, Inmaculada Rodríguez-

Piñero Fernández



Article 10 a

Paragraph 2









deleted

Or. en

Justification




Amendment 327





Article 10 a – paragraph 2 – point ii









deleted

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Or. de

Amendment 328


Spyraki, Pilar del Castillo Vera




Article 10 a – paragraph 2 – third subparagraph – point (ii)



benchmark values for aromatics, hydrogen

and syngas, these benchmark values shall

be adjusted by the same percentage as the

refineries benchmarks in order to preserve

a level playing field for producers of these

products.

(ii) During the trading period, the

benchmark values set under point (i) shall

be reduced by 1% in respect of each year

between the latest reference period and

the middle of the relevant period of free

allocation, unless the values for each

benchmark calculated using the principle

laid down in this Article differ from the


more than 0,5% of the updated value, be it

above or below that figure, annually.

Where there is such a difference, that


0,5% or 1,5% in respect of each year

between the update and the middle of the

period for which free allocation is to be

made.

Sectors with a share of more than 50% of

verified emissions considered as

unavoidable process emissions, shall not

be faced with a reduction of the

benchmark value, at least for the part of

those emissions.

For every subsequent period, the latest

benchmark value shall be used as a

reference point for calculating the new

reduction value.

By way of derogation regarding the

benchmark values for aromatics, hydrogen

and syngas, these benchmark values shall

be adjusted by the same percentage as the

refineries benchmarks in order to preserve

a level playing field for producers of these

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products.

Or. en

Amendment 329

Hans-Olaf Henkel




Article 10 a – paragraph 2 – subparagraph 3 – (ii)









(ii) During the trading period, the

benchmark values set under Point (i)

shall be reduced by 1% in respect of each

year between the most recent reference

period and the middle of the relevant

period of free allocation, unless the values

for each benchmark calculated using the

principle laid down in this article differ


above by more than 0,5% of the updated

value, be it above or below that figure,

annually. Where there is such a

difference, that benchmark value shall be

adjusted either 0,5% or 1,5% in respect of

each year between the update and the


allocation is to be made.

Sectors with a share of more than 50% of

verified emissions considered unavoidable

process emissions, shall not be faced with

a benchmark reduction.

For every subsequent period, the most

recent benchmark value shall be used as a

reference for the calculation of the new

reduction value.

Or. en

Amendment 330

Ian Duncan

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Article 10 a – paragraph 2 – subparagraph 3 – point ii





values shall be adjusted by the same percentage as the refineries benchmarks



(ii) an assessment carried out by the

Commission on the basis of information

submitted pursuant to Article 11

concludes that the rate of improvement

does not exceed 0.3%, and the benchmark

value is therefore to be reduced by that percentage in respect of each year between

2008 and the middle of the period(s)

referred to in the second subparagraph of

Article 11(1) for which free allocation is

to be made.

Or. en

Justification

For some sectors or subsectors even the 0,5% annual improvement rate is unachievable (for

example due to high process emissions), therefore a new adjustment rate should be

introduced.

Amendment 331











percentage as the refineries benchmarks in order to preserve a level playing field


(ii) Free allocation shall only be given

to sectors and subsectors for which data is

provided, collected and used according to

a harmonised methodology within the EU

institutions/Member States in order to

ensure that the data used to calculate

achievement of sector benchmarks and

free allocation is accurate.

AM\1098409EN.doc 35/164 PE585.439v01-00

EN

Or. en

Amendment 332

Lorenzo Fontana




Article 10 a – paragraph 2 – subparagraph 3 – point ii a (new)


(iia) Applicants demonstrate that even

most efficient installations of a sector or

sub-sector may face undue carbon costs,

because, even when applied to their real

production, the amount of allowances

which a specific benchmark value allows

to allocate, does not meet their needs. If

so, that benchmark value shall be

adjusted to meet the needs of the most

efficient installations of a sector or sub-

sector concerned, but not more than by

20%.

Or. en

Amendment 333

Ian Duncan




Article 10 a – paragraph 2 – subparagraph 3 – point iii (new)


(iii) By way of derogation regarding







PE585.439v01-00 36/164 AM\1098409EN.doc

EN

Or. en

Justification

The provision is moved to a separate subparagraph to make the text clearer.

Amendment 334

Hans-Olaf Henkel




Article 10a – paragraph 2 – (iia) new


(iia) For installations not included in

product benchmarks, most recent

technological progress should be assessed

based on energy efficiency improvements

in relation to the relevant heat or fuel

benchmark.

Or. en

Amendment 335


Spyraki




Article 10a – paragraph 2 – point (iia) (new)


(iia) For installations not included in

product benchmarks, technological

progress shall be assessed based on

energy efficiency improvements in

relation to the relevant heat or fuel

benchmark.

Or. en

AM\1098409EN.doc 37/164 PE585.439v01-00

EN

Amendment 336

Edward Czesak




Article 10a – paragraph 2 (iii) (new)


(iii) the sector or subsector cannot further

reduce emissions due to its physical or

chemical impossibility (process

emissions), in which case no changes to

benchmarks will be made.

Or. en

Justification

Given that technological progress has not occurred evenly in all sectors applying one

standard reduction to benchmarks risks disadvantaging those sectors that cannot further

reduce emissions due to their physical or chemical impossibility (process emissions).

Amendment 337





Article 10a – paragraph 2 – subparagraph 3 b (new)


The Commission shall adopt an

implementing act for this purpose in

accordance with Article 22a.



accordance with Article 22a. The

implementing act should take into

consideration sectoral specificities and

shall aim at reducing the administrative

burden on small emitters and SMEs, in

data collection and analysis.

Or. en

PE585.439v01-00 38/164 AM\1098409EN.doc

EN

Amendment 338



Article 1 – paragraph 1 – point 5 – point b a (new)


(ba) the first paragraph of paragraph 2

is replaced by the following:

In defining the principles for setting

realistic benchmarks taking into account

the actual activity level and conditions in

individual sectors or subsectors, the

starting point shall be the average


and representative installations in a sector

or subsector in the Community in the

years 20..-20... [latest available data].

Outlier installations should be not taken

into the benchmark values. The



subsectors concerned.

Or. en

Justification

The process of setting benchmarks in individual sectors or subsectors shall not be based only

on one criterion which is efficiency. In order to reduce emissions while preventing from

carbon leakage and maintaining production in EU ETS shall take into account the fact that

average performance of the 10% most efficient installations in a sector or subsector is fully

representative for the whole sector or subsector in EU. That is why installations that have

very specific conditions (i.e. geographical) of their production process shall not be taken into

account in defining the principles for setting benchmarks. Setting realistic benchmarks taking

into account the actual activity level (including: scale of production, raw material

characteristics) would serve to introduce dynamic allocation concept that facilitates long-

term planning by investors and provides incentives for carbon-efficient growth. Necessity of

adding new criterion of representative installations for setting benchmarks is even more

adequate and indispensable if the rule of reducing benchmark values for free allocation as

much as 1% annually is to be introduced in revised EU ETS directive. Conditions of

production process and capacities to reduce emissions may differ from one sector/subsector

to another in different parts of EU.

AM\1098409EN.doc 39/164 PE585.439v01-00

EN

Amendment 339

Henna Virkkunen




Article 1, paragraph 5, point b, sub–point 2 (new)


(ba) Article 10a (b) paragraph 3 is

amended as follows:

[3. Subject to paragraph 4 and 8, and not

withstanding Article 10c, no free

allocation shall be given to electricity

generators, to installations for the capture

of CO2, to pipelines for transport of CO2

or to CO" storage sites], except for

electricity produced from waste gases

where the whole amount of CO2 shall be

included into free allocation.

Or. en

Amendment 340

Soledad Cabezón Ruiz, José Blanco López, Inmaculada Rodríguez-Piñero Fernández




(ba) Subject to paragraphs 4 and 8, and

notwithstanding Article 10c, no free




or to CO2 storage sites, except for



included into free allocation.

Or. en

PE585.439v01-00 40/164 AM\1098409EN.doc

EN

Amendment 341





Article 10a – Paragraph 3

Present text Amendment

(ba) Article 10a(3) is amended as

follows:

"Subject to paragraphs 4 and 8, and





or to CO2 storage sites."

"

Subject to paragraphs 4 and 8, and





or to CO2 storage sites. Electricity

generators producing electricity from

residual gas are not electricity generators

within the meaning of Article 2(3)(u) of

this Directive.”

Or. de

(http://eur-

lex.europa.eu/LexUriServ/LexUriServ.do?uri=CONSLEG:2003L0087:20090625:EN:PDF)

Amendment 342

Dan Nica




Article 10a – paragraph 3


(ba) In Article 10a, paragraph 3 is

replaced by the following:

AM\1098409EN.doc 41/164 PE585.439v01-00

EN

"3. Subject to paragraphs 4 and 8, and





or to CO2 storage sites."

"3. Subject to paragraphs 4 and 8, and








included as free allocation."

Or. en

(http://eur-lex.europa.eu/legal-content/EN/TXT/HTML/?uri=CELEX:02003L0087-

20151029&from=EN)

Amendment 343

Angelika Niebler


Article 1 – paragraph 1 – point 5 – point c


Article 10a – Paragraph 5


In order to respect the auctioning share

set out in Article 10, the sum of free

allocations in every year where the sum of

free allocations does not reach the

maximum level that respects the Member

State auctioning share, the remaining

allowances up to that level shall be used

to prevent or limit reduction of free

allocations to respect the Member State

auctioning share in later years. Where,

nonetheless, the maximum level is

reached, free allocations shall be adjusted

accordingly. Any such adjustment shall be

done in a uniform manner.";

As regards the question of respecting the

auctioning share, free allocations should

not be reduced if possible or, if it is

necessary to do so, should be reduced to a

limited extent only; calls to that end on

the Commission to review all options,

such as, for example, the carryover of

allowances from the most recent trading

period, in order to prevent reductions of

free allocations as far as possible.

Or. de

Amendment 344

Lorenzo Fontana

PE585.439v01-00 42/164 AM\1098409EN.doc

EN






In order to respect the auctioning share set

out in Article 10, the sum of free





allowances up to that level shall be used to

prevent or limit reduction of free






done in a uniform manner.










auctioning share in later years.

Or. en

Amendment 345

Paul Rübig




Article 10a, para. 5












nonetheless, the maximum level is reached,

free allocations shall be adjusted













allowances from the market stability

reserve and the new entrants reserve shall

AM\1098409EN.doc 43/164 PE585.439v01-00

EN

done in a uniform manner. be utilised to compensate for the

respective lack of free allocations. Any

further adjustment of free allocation shall

only be done thereafter and should not be

applied on free allocations adjusted by a

linear reduction factor as referred to in

Article 9.

Or. en

Justification

In order to meet the principle of 100% free allocation for best performers, it must be ensured

that a sufficient total amount of allowances for free allocation to protect against carbon

leakage is available. A clarification is needed to avoid unfair treatment of CHP plants, which

are currently subject to the linear reduction factor only, against heat only boilers, which are

subject to only one reduction factor.

Amendment 346

Barbara Kappel



COM(2015)337

Article 10(a)5 Sentence 2



























the share of allowances to be auctioned by

Member States shall be reduced by up to

[X] percentage points but not more than

needed to avoid reaching the maximum

level. If, in spite of a reduction of the

Member State auctioning share at the

level of [X] percentage points, the

PE585.439v01-00 44/164 AM\1098409EN.doc

EN

maximum level is reached, free allocations

shall be adjusted accordingly. Any such

adjustment shall be done in a uniform

manner.

Or. en

Justification

The initial proposal restricts the extent of free allocation even to most efficient installations to

the overall amount of certificates available. This modification amends this situation. The

proposed measures won't affect the overall cap, yet it is necessary that the amount of

allowances reserved for auctioning are not fixed but furnished with some flexibility, which

comes into play before freely allocated allowances would be corrected downwards.

Amendment 347

Esther de Lange, Francesc Gambús, Henna Virkkunen, Maria Spyraki, Françoise

Grossetête, Massimiliano Salini, Herbert Reul, Pilar del Castillo Vera, Paul Rübig

































targeted in accordance with the carbon

leakage risk and shall in any case

guarantee that 100% free allocation up to

the level of the benchmarks is maintained.

Or. en

AM\1098409EN.doc 45/164 PE585.439v01-00

EN

Amendment 348

Miroslav Poche

































done in a uniform manner. Adjustments of

free allocations according to this

paragraph shall not apply to allocations

according to Article 10c.

Or. en

Amendment 349

Edouard Martin, Pervenche Berès, Zigmantas Balčytis, Constanze Krehl, Martina

Werner, Patrizia Toia, Olle Ludvigsson, Eugen Freund, Jens Geier, Jeppe Kofod, Flavio





Article 10a

Paragraph 5






PE585.439v01-00 46/164 AM\1098409EN.doc

EN
























applied so that the 10% best performers of

each sector or sub-sector are not

impacted.

Or. en

Justification

If it applies, the Cross Sectoral Correction Factor (CSCF) should spare the 10% most

efficient installations in order to not to discourage innovation and investment (which means

in turn hitting the others more, accordingly).

Amendment 350





article 10a, paragraph 5





















allowances up to that level shall be added

to the new entrant reserve that will be used to prevent or limit reduction of free





AM\1098409EN.doc 47/164 PE585.439v01-00

EN

done in a uniform manner. accordingly.

Or. en

Justification

The Commission proposal introduces a new approach to determine the amount of allowances

available for free, and proposes to set a fixed ratio between the share of allowances for

auctioning (57%) and for free allocations(43%). With the ETS cap being reduced 2.2% every

year after 2020, this fixed ratio means that the total volume of free allowances will be

drastically reduced compared to previous phases. Free allocation is needed to safeguard

competitiveness and investments in low carbon technologies in the EU. The reduction of the

free allowances has far-reaching consequences, and therefore, the volume of free allocation

needs to be expanded, and the unallocated allowances absorbed by the market stability

reserve shall be available for free in phase IV, in order to not undermine the free allocation.

This amendment provides that unallocated allowances are added to the new entrant reserve.

This reserve of allowances is used for allocation for new entrants, for production increases

and to avoid adjustments of allocation in later years, as referred to in the EC proposal,

amending Article 10a (5) of the directive that would lead to undue costs.

Amendment 351

Jens Geier, Constanze Krehl



















done in a uniform manner.;












exceeded, a free allocation shall be made

from the reserve in accordance with

paragraph 7. Any such adjustment shall be

done in a uniform manner.;

PE585.439v01-00 48/164 AM\1098409EN.doc

EN

Or. de

Amendment 352

Dan Nica




Article 10 a (c) paragraph (5) is replaced by the following text:



























it shall be adjusted with allowances in

accordance with paragraph 7.

Or. en

Amendment 353

Edward Czesak


















AM\1098409EN.doc 49/164 PE585.439v01-00

EN















accordingly, with the exception of those

sectors deemed to be responsible for

process emissions referenced in Article

10b(1a), that shall be excluded from any

adjustments. Any such adjustment shall be


Or. en

Justification

As the purpose of the ETS system is to “promote reductions of greenhouse gas emissions in a

cost-effective and economically efficient manner (art. 1 of the ETS Directive) and allocation

of allowances should be driven by “the potential for industrial process activities to reduce

emissions” (recital 8 of the ETS Directive), it is clear there is no purpose or objective to

require purchase of allowances where emissions simply cannot be further reduced due to

physical or chemical limitations. Therefore, if emissions results directly from the production

process itself (and not from any inefficiencies related thereto) and there are no alternative

processes available, no objective is reached by requiring purchase of emissions.

Accordingly, the cross sectoral correction factor reducing the number of free allowances

should not affect the number of free allowances for “process emissions” sectors.

Amendment 354

Maria Grapini






















PE585.439v01-00 50/164 AM\1098409EN.doc

EN












done in a uniform manner. The

Commission shall assess the effects on

supply and demand for share.

Or. ro

Amendment 355

Jakop Dalunde

on behalf of the Verts/ALE Group

































done in a uniform manner. Allowances

from the maximum amount referred to in

Article 10a(5) which have not been

allocated free of charge by 2020 and

allowances that have not been allocated

free of charge to installations by 2030

shall be cancelled.

Or. en

AM\1098409EN.doc 51/164 PE585.439v01-00

EN

Justification

All unallocated allowances from Phase 3 have to be cancelled permanently. This will ensure

that unused surplus pollution permits from the third trading phase don't undermine post-2020

greenhouse emission reductions.

Amendment 356

Barbara Kappel



COM2015(337)

Article 10(a) Para 5 new


The reference production volume for each

installation shall be recalculated starting

for the allocation due in the year 2021 by

applying the relevant production data of

the 2nd last year before the year

concerned for allocation, using data and

reporting requirements established under

article 14 of this Directive.

Or. en

Justification

The fully comply with the general principles and to protect best performers from undue

carbon costs and to provide the necessary investment cycles, the basis for the allocation of

free-of-charge certificates shall be as close as possible to the actual real production of the

recipients of free allocations.

Amendment 357

Barbara Kappel



COM(2015)337

Article 1(5)c

PE585.439v01-00 52/164 AM\1098409EN.doc

EN


In any year beginning 2021, the free

allocation of allowances to installations in

sectors at risk of carbon leakage shall be

adjusted by placing [X] percentage points

of allowances into, or withdrawing

allowances from the reserve established

under paragraph 7 of this Directive, so as

to ensure the full free allocation of

allowances up to benchmark levels in

respect of actual production to

installations in sectors at risk of carbon

leakage.

The number of allowances to be placed in

or released from the reserve under this

paragraph shall be calculated by

reference to the benchmarked carbon

emissions in respect of the actual

production of an installation and the

number of allowances allocated for free to

that installation in year x.

Any excess allowances over production

emissions given to an installation will be

withheld from, and any shortfall in

allowances over production emissions will

be added to, the allowances allocated to

the installation in year x+1.

Or. en

Amendment 358

Lorenzo Fontana


Article 1 – paragraph 1 – point 5 – point d – introductory part


(d) the first subparagraph of

paragraph 6 is replaced by the following:

(d) paragraph 6 is replaced by the

following:

Or. en

AM\1098409EN.doc 53/164 PE585.439v01-00

EN

Amendment 359



Article 1 – paragraph 1 – point 5 – point d

Directive 2003/87/CE

Article 10a


Member States should adopt financial

measures in favour of sectors or sub-

sectors which are exposed to a genuine

risk of carbon leakage due to significant

indirect costs that are actually incurred

from greenhouse gas emission costs

passed on in electricity prices, taking into

account any effects on the internal

market. Such financial measures to

compensate part of these costs shall be in

accordance with state aid rules.

deleted

Or. en

Amendment 360

Jakop Dalunde





Article 10a – paragraph 6 – subparagraph 1







from greenhouse gas emission costs

passed on in electricity prices, taking into





deleted

PE585.439v01-00 54/164 AM\1098409EN.doc

EN

Or. en

Justification

State aid for compensating indirect carbon costs is distorting the EU internal energy market

and disincentives electro - intensive industry to switch to electricity with lower carbon

emissions. Instead, electro-intensive industrial sectors should be able to receive innovation

support though mechanisms referred to elsewhere in this document to enable efficiency

improvements or a switch to sustainable renewables.

Amendment 361

Dan Nica



Directive 2003/29 CE

Article 10 a, paragraph 6







from greenhouse gas emission costs passed

on in electricity prices, taking into account

any effects on the internal market. Such

financial measures to compensate part of

these costs shall be in accordance with

state aid rules.

Sectors or sub-sectors which are exposed

to a significant risk of carbon leakage due

to indirect costs that are incurred from

greenhouse gas emission costs passed on in

electricity prices shall receive financial

compensation as set out in Article 10.

Such financial measures shall compensate

indirect costs up to the level of ex-ante

benchmarks of the indirect emissions of

CO2 per unit of production as laid out in

Annex III (new).

Where the amount of compensation is not

sufficient to compensate for all eligible

costs, the remaining share may be

compensated by Member States.

Financial compensation shall be based on

ex-ante benchmarks of the indirect

emissions of CO2 per unit of production. These benchmarks shall be calculated for

a given sector as the product of the

electricity consumption per unit of

production corresponding to the most

efficient available technologies and of the

CO2 emissions of the relevant price-

setting electricity production mix.

AM\1098409EN.doc 55/164 PE585.439v01-00

EN

By [6 months after entry into force], the

Commission shall adopt the implementing

acts in accordance with article 22a to

establish the common compensation rules

for the use of X% of the auctioned

allowances in line with Article 10, to set

ex-ante benchmarks and to define the list

of eligible sectors and the regional CO2

emission factors, as per the criteria laid

out in Annex III (new).

Or. en

Amendment 362

Edouard Martin, Pervenche Berès, Zigmantas Balčytis, Patrizia Toia, Olle Ludvigsson,

Eva Kaili, Flavio Zanonato, José Blanco López, Soledad Cabezón Ruiz, Csaba Molnár,

Carlos Zorrinho, Simona Bonafè, Inmaculada Rodríguez-Piñero Fernández



Article 10a

paragraph 6




sectors which are exposed to a genuine risk

of carbon leakage due to significant







state aid rules.

A centralised arrangement at European

level is adopted to compensate

installations which are exposed to a

genuine risk of carbon leakage due to

significant greenhouse gas emission costs

passed through to electricity prices. This

harmonised compensation is financed as

set out in Article 10 for such costs.

Compensation shall be proportionate to greenhouse gas emissions costs passed on

to electricity prices and should be applied

in a way to avoid both negative effects on

the internal market and overcompensation.

Where the amount of compensation as

defined in Article 10 is not sufficient to

compensate for all eligible costs, the

amount of aid for all eligible installations

is reduced uniformly.

PE585.439v01-00 56/164 AM\1098409EN.doc

EN

The Commission shall be empowered to

adopt a delegated act for this purpose in

accordance with Article 23.

Or. en

Amendment 363

Kathleen Van Brempt



2008/87/EC













state aid rules.

A centralised arrangement at European

level is adopted to compensate

installations which are exposed to a

genuine risk of carbon leakage due to

significant greenhouse gas emission costs

passed through in electricity prices. This

harmonised compensation is financed as

set out in Article 10 for such costs.

Compensation shall be proportionate to greenhouse gas emissions costs passed

through in the electricity prices and

should be applied in such a way to avoid

both negative effects on the internal

market as well as overcompensation of

costs incurred. Compensation should be

based on regularly updated emission

factors, taking into account the actual

decrease of carbon intensity of the energy

mix in the different geographical zones.

The amount of consumed electricity

eligible for compensation shall be limited

to a regularly updated energy efficiency

benchmark.

Where the amount of compensation as

defined in Article 10 is not sufficient to

compensate for all eligible costs, the

amount of aid for all eligible installations

AM\1098409EN.doc 57/164 PE585.439v01-00

EN

is reduced uniformly.




Or. en

Amendment 364

Esther de Lange, Francesc Gambús, Henna Virkkunen, Maria Spyraki, Pilar del

Castillo Vera, Paul Rübig
















state aid rules.

3% of auctioning allowances shall be

pooled at Union level for harmonised

arrangements in favour of sectors or sub-





on in electricity prices. The sectors that

qualify for such compensation shall be

those that are defined in accordance with

Article 10b(4).





sufficient to compensate for all costs, the

remaining share may be compensated by

Member States. Such financial measures to



Or. en

Amendment 365


PE585.439v01-00 58/164 AM\1098409EN.doc

EN
















state aid rules.

Sectors or sub-sectors which are exposed

to a significant risk of carbon leakage due

to indirect costs that are incurred from

greenhouse gas emission costs passed on in

electricity prices shall receive financial

compensation as set out in Article 10.

Such financial measures shall compensate

indirect costs up to the level of the ex-ante

benchmarks of the indirect emissions of

CO2 per unit of production as laid out in

Annex III (new).

Or. en

Amendment 366

Barbara Kappel



COM(2015)337

Article 10a Paragraph 6












state aid rules.

A fund for sectors or sub-sectors which are

exposed to a genuine risk of carbon

leakage due to significant indirect costs

that are actually incurred from greenhouse

gas emission costs passed on in electricity

prices, taking into account any effects on

the internal market, shall be established

from the period 2021-30 onwards ("the

Indirect Leakage Fund") to fully

compensate for such costs. Such financial

measures to compensate these costs shall

be in accordance with state aid rules and

fully off-set by harmonised and

transparent rules in all Member States,

through free allocation based on realistic

benchmarks.

AM\1098409EN.doc 59/164 PE585.439v01-00

EN

Or. en

Amendment 367

Antonio Tajani, Massimiliano Salini, Elisabetta Gardini




Article 10a paragraph 6












state aid rules.

Member States shall adopt financial

measures, via a harmonised EU

mechanism, in favour of sectors or sub-






any effects on the internal market.

Or. en

Amendment 368

Angelika Niebler




Article 10a – Paragraph 6 – Subparagraph 1




















PE585.439v01-00 60/164 AM\1098409EN.doc

EN


state aid rules.


state aid rules. The latter should be

clarified in the delegated acts.

Or. de

Amendment 369

Francesc Gambús
















state aid rules.











state aid rules for environmental

protection and energy.

(This amendment modifies the article 1 -

point 5 d of the Commission proposal)

Or. en

(See wording of article 10a - paragraph 6 - subparagraph 1)

Amendment 370

Gunnar Hökmark





AM\1098409EN.doc 61/164 PE585.439v01-00

EN












state aid rules.

Financial measures in favour of sectors or

sub-sectors which are exposed to a genuine




on in electricity prices shall be adopted,

taking into account any effects on the

internal market. Such financial measures to

compensate part of these costs shall be

fully harmonised at EU level in


Or. en

Amendment 371

Jens Geier, Constanze Krehl, Martina Werner
















state aid rules.








any effects on the internal market.

Compensation should take the form of

extensive reimbursement of costs

incurred, account being taken of state aid

rules.

Or. de

Amendment 372

Lorenzo Fontana

PE585.439v01-00 62/164 AM\1098409EN.doc

EN












on in electricity prices, taking into







sectors or individual installations which

are exposed to a genuine risk of carbon

leakage due to significant greenhouse gas

emission costs passed through to

electricity prices, in a technology-neutral

manner. State aid rules and the Stability

and Growth Pact shall not apply to such

financial measures to compensate 100% of

these costs.

Or. en

Amendment 373

Eva Kaili



Directive 2003/87 EC

Article 10a paragraph 6












state aid rules.







on in electricity prices as per Article 10b,

paragraphs 1 and 2. Such financial

measures to compensate part of these costs

shall be in accordance with state aid rules.

Or. en

AM\1098409EN.doc 63/164 PE585.439v01-00

EN

Amendment 374

Krišjānis Kariņš
















state aid rules.

Member States may adopt financial










state aid rules.

Or. en

Amendment 375

Hans-Olaf Henkel






Member states may provide financial

compensation in favour of sectors or sub-

sectors exposed to a genuine risk of

carbon leakage due to significant indirect

costs relating to greenhouse gas emission

costs passed on in electricity prices must

be possible. These measures may

compensate indirect emissions costs of

eligible sectors at the level of ex-ante

benchmarks of the electricity

consumption per unit of production

corresponding to the most efficient

available technologies and production

PE585.439v01-00 64/164 AM\1098409EN.doc

EN

data.

Or. en

Amendment 376

Christofer Fjellner
















state aid rules.

Financial measures in favour of sectors or

sub-sectors which are exposed to a genuine




on in electricity prices shall be adopted,

taking into account any effects on the

internal market. Such financial measures to

compensate these costs shall be fully

harmonised at EU level in accordance

with state aid rules.

Or. en

Amendment 377

Françoise Grossetête, Anne Sander, Antonio Tajani




Article 10a Paragraph 6 – subparagraph 1










measures in favour of installations in

sectors or sub-sectors which are exposed to

a genuine risk of carbon leakage due to

significant indirect costs that are actually

incurred from greenhouse gas emission

costs passed on in electricity prices receive

AM\1098409EN.doc 65/164 PE585.439v01-00

EN




state aid rules.

harmonised financial compensation

financed as set out in Article 10 for such

costs, taking into account any effects on

the internal market. Such financial

measures to compensate part of these costs

shall be in accordance with state aid rules.

The compensation should be applied in a

manner that prevents negative effects on

the internal market and

overcompensation. Where the amount of

compensation as defined in Article 10 is

not sufficient to compensate for all

eligible costs, the amount of aid for all

eligible installations is reduced uniformly.




Or. en

Justification

The current situation creates distortions regarding indirect costs on the internal and

international markets. A more systematic and harmonized indirect costs compensation

scheme need to be centralized. One should set up a withholding of auction revenues that

would compensate a harmonized amount of financial aid to all eligible industrials in the

European Union.

Amendment 378

Barbara Kappel



COM(2015)337

Article 10(a), Paragraph 6, Sentence 2


[x]% of the total quantity of allowances of

every trading period from 2021 onwards

shall be auctioned as set out in Article 10

of this Directive, without reducing the

absolute amount of free allocation

determined according to Article 10a of

this Directive, to finance that fund.

PE585.439v01-00 66/164 AM\1098409EN.doc

EN

Or. en

Amendment 379




Directive 2003/87




sufficient to compensate for all eligible

costs, the remaining share may be

compensated by Member States.

Or. en

Amendment 380

Barbara Kappel



COM(2015)337

Article 10a(6), Sentence 3


The compensation granted by the fund

shall be based on ex-ante benchmarks of

the indirect emissions of CO2 per unit of

production. The ex-ante benchmarks shall

be calculated for a given sector or

subsector as the product of the electricity

consumption per unit of production

corresponding to the most efficient

available technologies and of the CO2

emissions of the relevant European

Electricity production mix, taking the

relevant marginal production fully into

account.

Or. en

AM\1098409EN.doc 67/164 PE585.439v01-00

EN

Amendment 381




Directive 2003/87



By [6 months after entry into force], the

Commission shall adopt the implementing

acts in accordance with article 22a to

establish the common compensation rules

for the use of X% of the auctioned

allowances in line with Article 10, to set

ex-ante benchmarks and to define the list

of eligible sectors and the regional CO2

emission factors, as per the criteria laid

out in Annex III (new).

Or. en

Amendment 382

Hans-Olaf Henkel




Article 10 – paragraph 1 – subparagraph 2


From 2021 onwards, the share of

allowances to be auctioned by Member

States shall be 57%, and that share shall

decrease by up to two percentage points

up to 2030 pursuant to Article 10a(5).

Such an adjustment shall take place solely

in the form of a reduction of allowances

auctioned pursuant to point (a) of the first

subparagraph of Article 10(2).

Or. en

PE585.439v01-00 68/164 AM\1098409EN.doc

EN

Amendment 383

Hans-Olaf Henkel




Article 1 – point 4 – point a


The total remaining quantity of

allowances to be auctioned by Member

States, after deducting half of the quantity

of allowances referred to in the first

subparagraph of Article 10a(8) shall be

distributed in accordance with paragraph

2.

Or. en

Amendment 384

Barbara Kappel



COM(2015)337

Article 10a Paragraph 6, Sentence 4 (new)





Or. en

Amendment 385

Hans-Olaf Henkel




Article 1 – point 5 – point c

AM\1098409EN.doc 69/164 PE585.439v01-00

EN


Where the sum of free allocations in a

given year does not reach the maximum

level that respects the Member State

auctioning share, the remaining

allowances up to that level shall be used

to prevent or limit the reduction of free

allocations in subsequent years. Where,

however, the maximum level is reached,

an amount of allowances equivalent to a

reduction of up to two percentage points

of the share of allowances to be auctioned

by Member States, pursuant to Article

10(1), shall be distributed free of charge

to sectors and sub-sectors pursuant to

Article 10b. Where, nonetheless, this

reduction is insufficient to meet the

demand of sectors or sub-sectors pursuant

to Article 10b, free allocations shall be

adjusted accordingly by a uniform cross

sectoral correction factor.

Or. en

Amendment 386

Hans-Olaf Henkel




Article 10a – paragraph 7 – subparagraph 1a (new)


An installation shall be deemed to have a

significant production increase where one

of its sub-installations, which accounts

for at least 30 % of the installation's final

annual amount of emission allowances

allocated free of charge or which receives

more than 50 000 allowances annually,

increases its activity level in a given

calendar year by at least 10% compared to

the activity level used for calculating the

sub- installation's allocation of emission

PE585.439v01-00 70/164 AM\1098409EN.doc

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allowances.

Or. en

Justification

Currently, the allocation is only altered when there is a 50% change in an installation's

activity which can lead to over or under allocation. Changing this to 10% will allow for a

more dynamic allocation, will reduce perverse incentives and counter the risk of sustained

over or under allocation.

Amendment 387

Jakop Dalunde



Article 1 – paragraph 1 – point 5 – point d a (new)




(da) in paragraph 6, the second

subparagraph is deleted.

"Those measures shall be based on ex-

ante benchmarks of the indirect emissions

of CO2 per unit of production. The ex-

ante benchmarks shall be calculated for a

given sector or subsector as the product of

the electricity consumption per unit of

production corresponding to the most

efficient available technologies and of the

CO 2 emissions of the relevant European

electricity production mix.

""

"

Or. en

(http://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:02003L0087-

20140430&from=EN)

Justification

Compensation schemes for the so called indirect carbon costs should be abolished (wider

justification has been provided in earlier amendments).

AM\1098409EN.doc 71/164 PE585.439v01-00

EN

Amendment 388



Article 1 – paragraph 1 – point 5 – point e – point i




Allowances from the maximum amount

referred to Article 10a(5) of this Directive

which were not allocated for free up to

2020 shall be set aside for new entrants

and significant production increases,

together with 250 million allowances

placed in the market stability reserve

pursuant to Article 1(3) of Decision (EU)

2015/… of the European Parliament and

of the Council(*).

Three per cent of the Community-wide

quantity of allowances determined in

accordance with Articles 9 and 9a over

the period from 2021 to 2030 shall be set

aside for new entrants.

Or. en

Amendment 389

Eva Kaili














2015/… of the European Parliament and of

the Council(*).

Any allowances from the maximum

amount referred to Article 10a(5) which

were not allocated for free up to 2020

because of the application of article

10a(11) shall be placed into a reserve ,





the Council(*).In the event that this

reserve is exhausted, the Commission

shall be empowered to adopt a delegated

PE585.439v01-00 72/164 AM\1098409EN.doc

EN

act in accordance with Article 23

transferring allowances into this reserve

from the market stability reserve

established by Decision (EU) 2015/....

Or. en

Amendment 390

Jakop Dalunde










2020 shall be set aside for new entrants and

significant production increases, together

with 250 million allowances placed in the

market stability reserve pursuant to

Article 1(3) of Decision (EU) 2015/… of

the European Parliament and of the

Council(*).

4% of the Community-wide quantity of

allowances determined in accordance

with Articles 9 and 9a during the period

2021 to 2030 shall be set aside for new

entrants and significant production

increases.

Or. en

Justification

Phase 4 allowances should be held aside for New Entrants after 2020. Currently the reserve

for the new entrants is filled with 480 million allowances for an 8-year period. The phase 4

will last for 10 years and should therefore be 600 million to be equivalent in size. This is

about 4% of the community-wide quantity of allowances.

Amendment 391

Barbara Kappel



AM\1098409EN.doc 73/164 PE585.439v01-00

EN

COM(2015)337

Article 10(7) Sentence 1











the Council(*).

Any allowances from the maximum

amount referred to Article 10a(5) which

were not allocated for free up to 2020

because of the application of Article

10a(11) shall be placed into a reserve,





the Council(*).

Or. en

Amendment 392

Esther de Lange, Antonio Tajani, Krišjānis Kariņš, Francesc Gambús, Henna

Virkkunen, Maria Spyraki, Massimiliano Salini, Pilar del Castillo Vera, Paul Rübig




Article 10a – paragraph 7 – first subparagraph








market stability reserve pursuant to Article

1(3) of Decision (EU) 2015/… of the

European Parliament and of the

Council(*).





significant production increases of more

than 10% expressed as the rolling average

of verified production data for the two

preceding years compared to the

production activity reported in accordance

with Article 11. In addition, 250 million

allowances placed in the market stability

reserve pursuant to Article 1(3) of Decision

(EU) 2015/… of the European Parliament

and of the Council(*) shall be set aside for

this purpose.

Or. en

PE585.439v01-00 74/164 AM\1098409EN.doc

EN

Amendment 393

Dan Nica




Article 10a - paragraph 7 - first subparagraph











Council(*).





significant production increases, and for

adjusting the maximum level of free

allocation laid down in paragraph 5

together with allowances placed in the




Council(*).

Or. en

Amendment 394
















Council(*).






with the allowances placed in the market

stability reserve pursuant to Article 1(3) of

Decision (EU) 2015/… of the European

Parliament and of the Council(*), and for

adjusting the maximum level of free

AM\1098409EN.doc 75/164 PE585.439v01-00

EN

allocations, as set out in the second

sentence of paragraph 5.

Or. de

Amendment 395
















the Council(*).




2020, shall be added to the new entrant

reserve and used for new entrants,

significant production increases and to


allocations to respect the Member States

auctioning share in later years, together


market stability reserve by 2021 pursuant

to Article 1(3) of Decision (EU) 2015/1814

of the European Parliament and of the

Council(*).

Or. en

Justification

The Commission proposal introduces a new approach to determine the amount of allowances

available for free, and proposes to set a fixed ratio between the share of allowances for

auctioning (57%) and for free allocations(43%). With the ETS cap being reduced 2.2% every

year after 2020, this fixed ratio means that the total volume of free allowances will be

drastically reduced compared to previous phases. Free allocation is needed to safeguard

competitiveness and investments in low carbon technologies in the EU. The reduction of the

free allowances has far-reaching consequences, and therefore, the volume of free allocation

needs to be expanded, and the unallocated allowances absorbed by the market stability

reserve shall be available for free in phase IV, in order to not undermine the free allocation.

This amendment provides that unallocated allowances are added to the new entrant reserve.

This reserve of allowances is used for allocation for new entrants, for production increases

and to avoid adjustments of allocation in later years, as referred to in the EC proposal,

PE585.439v01-00 76/164 AM\1098409EN.doc

EN

amending Article 10a (5) of the directive that would lead to undue costs.

Amendment 396

Lorenzo Fontana




Article 10a – paragraph 7 – subparagraph 1 – first sentence











Council(*).





production increases, together with 250

million allowances placed in the market

stability reserve by 31 December 2020


2015/... of the European Parliament and of

the Council(*).

Or. en

Amendment 397

Francesc Gambús















Council(*).






with all allowances placed in the market

stability reserve pursuant to Article 1(3) of

Decision (EU) 2015/… of the European

Parliament and of the Council(*).

AM\1098409EN.doc 77/164 PE585.439v01-00

EN

(This amendment modifies article 1 - point

5 - point e of the Commission proposal)

Or. en

(See wording article 10a - paragraph 7)

Justification

During Phase IV, the New Entrants Reserve should be sufficiently funded since its use will be

extended to cover not only capacity increases but also production increases. If the New

Entrants Reserve is not sufficient, there will not be any allowances available for new entrants

towards the end of Phase IV.

Amendment 398

Barbara Kappel



COM(2015)337

Article 10(7), 2


From 2021, allowances not allocated to

installations because of the application of

paragraphs 19 and 20 shall be added to the

reserve.




reserve. In the event that this reserve is

exhausted, the Commission shall be

empowered to adopt a delegated act in

accordance with Article 23 transferring

allowances into this reserve from the

market stability reserve established by

Decision (EU) 2015/....

Or. en

Amendment 399

Jakop Dalunde




PE585.439v01-00 78/164 AM\1098409EN.doc

EN







reserve.




reserve. Allowances which are in the

reserve at the end of 2030 shall be

cancelled.

Or. en

Amendment 400










reserve.

From 2021 onwards, any allowances not

allocated to installations because of the

application of paragraphs 19 and 20 shall

be added to the reserve. Allowances which

are in the reserve by 2030 shall be

cancelled.

Or. en

Amendment 401





Paragraph 7






AM\1098409EN.doc 79/164 PE585.439v01-00

EN


reserve.


reserve. This shall not apply to removal

units (RMU)

Or. en

Justification

‘Removal unit ‘ or ‘RMU’ issued in respect of net removals by sinks from activities in the land

use, land use change and forestry sector shall not be placed in reserve so as not to punish

those who wish to use such an instrument. As MSR decision has not made any references to

removal units they shall not be placed into the reserve.

Amendment 402

Lorenzo Fontana




Article 10a – paragraph 7 – subparagraph 1 – second sentence





reserve.




reserve for new entrants and production

increases.

Or. en

Amendment 403



Article 1 – paragraph 1 – point 5 – point e – point i a (new)


(ia) The following subparagraph is

inserted: "An installation shall be deemed

to have a significant production variation

when it increases or decreases its activity

level in a given calendar year by at least

PE585.439v01-00 80/164 AM\1098409EN.doc

EN

5% compared to the activity level used for

calculating the installation's allocation of

emission allowances".

Or. en

Justification

The thresholds applied for significant activity variations within a same capacity should be

more incentivising, avoiding large gaps between thresholds, so as to stick to the reality of

activity level fluctuation.

Amendment 404



Article 1 – paragraph 1 – point 5 – point e – point ii a (new)


(iia) the second subparagraph of

paragraph 7 is deleted.

Or. en

Amendment 405


Flavio Zanonato, José Blanco López, Soledad Cabezón Ruiz, Csaba Molnár, Carlos

Zorrinho, Jude Kirton-Darling, Inmaculada Rodríguez-Piñero Fernández


Article 1 – paragraph 1 – point 5 – point e a (new)

Article 10a

Paragraph 7a (new)


(ea) A new paragraph is added:

The sectors and sub sectors concerned by

paragraphs 1 and 2 of Article 10b will

receive free allocations which annual

excess, if any, are exclusively dedicated to

low carbon investment in the installations

belonging to the same sector or sub-sector

AM\1098409EN.doc 81/164 PE585.439v01-00

EN

during the whole fourth period, in

conformity with paragraphs b, e, g, l and

m(new) of article 10 paragraph 3, as well

as with the rules for the public

investments financed by free allocations

in the article 10c paragraph 2 and 3; the

assets coming from the free allocations

monetisation during the fourth period

have to be paid or engaged for low carbon

investments at the latest 12/31/2030.

A balance will be made two times during

the fourth period, in 2025 and 2030 with a

possibility of sanctions under Article 16.

Or. en

Justification

Free allocations were designed to trigger a virtuous circle of investment in the installations to

improve their efficiency and reduce their emissions, not to feed shareholders.

Amendment 406



Article 1 – paragraph 1 – point 5 – point f


Article 10a paragraph 8 first subparagraph


400 million allowances shall be available

to support innovation in low-carbon

technologies and processes in industrial

sectors listed in Annex I, and to help

stimulate the construction and operation of

commercial demonstration projects that

aim at the environmentally safe capture

and geological storage (CCS) of CO2 as

well as demonstration projects of

innovative renewable energy technologies,

in the territory of the Union.






commercial demonstration projects of



Or. en

PE585.439v01-00 82/164 AM\1098409EN.doc

EN

Amendment 407

Hans-Olaf Henkel























aim at the environmentally safe CCS and

CCU as well as demonstration projects of



Or. en

Amendment 408


Spyraki, Françoise Grossetête, Herbert Reul, Pilar del Castillo Vera




Article 10a – paragraph 8 – first subparagraph












400 million allowances, taken from the

share of allowances to be auctioned, shall

be available to support and leverage

investments, using different instruments

managed by the European Investment

Bank, in innovation in low-carbon





AM\1098409EN.doc 83/164 PE585.439v01-00

EN

in the territory of the Union. aim at environmentally safe CCS and CCU

as well as demonstration projects of


energy conversion and storage, as well as

electric battery development in the

territory of the Union.

Or. en

Amendment 409


Werner, Olle Ludvigsson, Eva Kaili, Jens Geier, Theresa Griffin, José Blanco López,

Soledad Cabezón Ruiz, Csaba Molnár, Carlos Zorrinho, Jude Kirton-Darling,

Inmaculada Rodríguez-Piñero Fernández



Article10a

paragraph 8














to leverage investment in support

innovation in low-carbon products,




commercial demonstration and pilot

projects that aim at the environmentally

safe capture and geological storage (CCS)

of CO2 or the environmentally safe

capture and re-use of CO2 (CCU), as well

as demonstration and pilot projects of

innovative renewable energy technologies

and energy storage, in the territory of the

Union.

The leveraging can take the form of

future contracts based on an anticipated

CO2 price of 30 euros/t by 2030 and

guaranteed/refundable by the ECB.

Or. en

PE585.439v01-00 84/164 AM\1098409EN.doc

EN

Amendment 410

Neoklis Sylikiotis




Article 10a– paragraph 8, subparagraph 1














to support innovation in sustainable low-

carbon technologies and processes in

industrial sectors listed in Annex I, and to

help stimulate the construction and

operation of commercial demonstration

projects of innovative renewable energy

technologies and projects supporting

energy efficiency improvements, in the


Or. en

Amendment 411

Jakop Dalunde





























AM\1098409EN.doc 85/164 PE585.439v01-00

EN

Or. en

Justification

The support for innovation in the EU ETS needs to be scaled up in order to accelerate the

transition to low-carbon economy.

Amendment 412

Carlos Zorrinho



Directive 96/61/EC

article 10 a














to support innovation in low- carbon






and geological storage (CCS) and use

(CCU) of CO2 and demonstration projects

of innovative renewable energy

technologies, as well as electric batteries

and smart grid infrastructures notably for

the deployment of electric mobility, in the


Or. en

Amendment 413

Lorenzo Fontana






400 million allowances shall be available Up to 400 million allowances to be

PE585.439v01-00 86/164 AM\1098409EN.doc

EN











auctioned as set out in Article 10 shall be

available to support innovation in low-

carbon technologies and processes in


the extent of a maximum of 50 million

allowances, to help stimulate the

construction and operation of commercial

demonstration projects that aim at the

environmentally safe CCS and CCU as



in the territory of the Union ("the

Innovation Fund").

Or. en

Amendment 414

Paul Rübig

















400 million allowances, taken from the

auctioning share, shall be available to

support and leverage investments, using

different instruments offered by the

European Investment Bank, in innovation

in low-carbon technologies and processes

in industrial sectors listed in Annex I, and

to help stimulate the construction and




of CO2 as well as demonstration projects


technologies, in the territory of the Union.

Additionally Member States should

dedicate auctioning revenues as equity

investment to the European Investment

Bank, for example via EFSI, in order to

leverage investments towards the further

development of a competitive, innovative

AM\1098409EN.doc 87/164 PE585.439v01-00

EN

industrial base in Europe; taking into

account the EU´s reindustrialisation goal

of 20% GDP until 2020 and envisaging a

share of 30% until 2030;

Or. en

Justification

Member States would benefit from EIB leverage and pooling of resources, which still form

part of national budgets for investment in focus areas in line with European Union priority

areas with respect to the Digital Single Market, the Energy Union and the general

reindustrialisation of Europe.

Amendment 415




Directive 2003/87

















sectors listed in Annex I, including district

heating and high efficiency cogeneration, and to help stimulate the construction and




and re-use/ Carbon Capture and

Utilization (CCU) of CO2 as well as

demonstration projects of innovative

renewable energy technologies, in the


Or. en

Amendment 416

Zdzisław Krasnodębski, Edward Czesak, Evžen Tošenovský

PE585.439v01-00 88/164 AM\1098409EN.doc

EN




















sectors listed in Annex I, including district

heating, high efficiency cogeneration as

well as carbon capture and utilization

(CCU) and to help stimulate the



environmentally safe capture and

geological storage (CCS) of CO2 as well as



territory of the Union. The innovation

funds shall be complemented with other

innovation-support schemes at EU and

national levels, in particular on the

market deployment of innovative

technologies.

Or. en

Justification

Allowances being made available for innovation constitute a good basis to support industry’s

efforts to invest in breakthrough low-carbon technologies. However, it is must be

acknowledged that, given the scale of the challenges, the ETS innovation fund alone will not

be adequate to support innovation to achieve our commonly shared emissions reduction

efforts. Therefore, the innovation fund needs to be complemented with other innovation-

support schemes at EU and national level, in particular on the market deployment of

innovation technologies.

Amendment 417

Barbara Kappel



COM(2015)337

Article 10a (8), 3rd paragraph

AM\1098409EN.doc 89/164 PE585.439v01-00

EN













The revenue from 400 million allowances

to be auctioned by Member States in the

fourth trading period shall be available to

support innovation in low-carbon


sectors listed in Annex I, and to the extent

of a maximum of 50 million allowances to help stimulate the construction and




or industrial utilization of CO2 as well as




Or. en

Amendment 418

Miroslav Poche

















400 million allowances from the share of

allowances to be allocated for free shall be

made available to support innovation in

low-carbon technologies and processes in


help stimulate the construction and







Or. en

PE585.439v01-00 90/164 AM\1098409EN.doc

EN

Amendment 419

Jens Geier, Constanze Krehl, Martina Werner




Article 10b – paragraph 8 – subparagraph 1




















and geological storage (CCS) and use

(CCU) of CO2 as well as demonstration

projects of innovative renewable energy

technologies, energy conversion and

storage and battery technologies in the


Or. en

Amendment 420

Bendt Bendtsen, Seán Kelly, Luděk Niedermayer




Article 10a, para. 8























and innovative technologies for

AM\1098409EN.doc 91/164 PE585.439v01-00

EN

transmission and distribution, in the


Or. en

Amendment 421

Jude Kirton-Darling



Article 10A – paragraph 8

Article 10A – paragraph 8




















and geological storage (CCS) of CO2

(including part-chain projects) as well as




Or. en

Justification

Despite having a comparable lead on many other regions at the start of Phase III of the ETS,

the development of CCS has stalled in the EU. By allowing more flexibility in the funding of

CCS/CCU projects at the EU level, including funding a specific part of a project, it may be

possible to accelerate the commercial development of CCS/CCU projects in Europe.

Amendment 422

Gunnar Hökmark





PE585.439v01-00 92/164 AM\1098409EN.doc

EN













400 million allowances reserved for

auctioning shall be available to support

innovation in low-carbon technologies and

processes in industrial sectors listed in

Annex I, and to help stimulate the



environmentally safe capture and

geological storage (CCS) of CO2 as well as




Or. en

Amendment 423

Angelika Niebler




Article 10a, Paragraph 8, Subparagraph 1, 2 and 3























in the territory of the Union. Those

allowances should be made available from

the auctioned share.

Or. de

AM\1098409EN.doc 93/164 PE585.439v01-00

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Amendment 424

Antonio Tajani, Adina-Ioana Vălean, Massimiliano Salini, Herbert Reul, Elisabetta

Gardini, Krišjānis Kariņš


















to support innovation in the whole range

of low-carbon technologies and processes

in industrial sectors listed in Annex I, and

to help stimulate the construction and







Or. en

Amendment 425

Adam Gierek






Energy obtained from RES and saved as a

result of efficiency gains should give rise

to the free allocation of proportional

emissions allowances to entities investing

for these purposes; those allowances

could then be used by the investors for

their own purposes or sold at auction;

Or. pl

PE585.439v01-00 94/164 AM\1098409EN.doc

EN

Justification

In the same way as an increase in the use of primary energy generally results in a

proportional increase in emissions, energy efficiency gains normally lead to proportional

reductions in carbon emissions. One way of encouraging people to invest in innovative

energy-efficiency or RES solutions would be to offer them a financial reward proportional to

the emissions reductions achieved per unit of energy, on the basis of set prices, or free

emissions allowances.

Amendment 426

Jakop Dalunde







The allowances shall be made available for

innovation in low-carbon industrial

technologies and processes and support for

demonstration projects for the development

of a wide range of CCS and innovative

renewable energy technologies that are not

yet commercially viable in geographically

balanced locations. In order to promote

innovative projects, up to 60% of the

relevant costs of projects may be

supported, out of which up to 40% may not

be dependent on verified avoidance of

greenhouse gas emissions provided that

pre-determined milestones are attained

taking into account the technology

deployed.








balanced locations. Eligible low-carbon

industrial projects shall contribute to

emissions reductions of at least 20%

below the updated benchmark set out in

paragraph 2 and shall enhance

competitiveness and productivity.

Technologies shall compete on GHG

saving and on subsidy requirements.

Eligible innovative renewable energy

projects shall be defined in the delegate

act referred to in Article 23, which will

also specify a process for updating that

list. Those technologies shall compete by

their cost-per-unit performance (CPUP). In order to promote innovative projects, up

to 60% of the relevant costs of projects

may be supported, out of which up to 40%

may not be dependent on verified

avoidance of greenhouse gas emissions

provided that pre-determined milestones

are attained taking into account the

AM\1098409EN.doc 95/164 PE585.439v01-00

EN

technology deployed, except for the CCS

projects, with regard to which up to 20%

of the grant shall not be dependent on

verified avoidance of greenhouse gas

emissions.

Or. en

Justification

In NER300 projects competed against each other in the RES and CCS sections of the

competition on a single metric called ‘CPUP’. This metric is not suitable for industry projects

as they must optimise two things: CO2-saving and the cost of achieving that CO2 saving,

which will be reflected in their requirement for subsidy. ‘Subsidy’ should be understood to

include all relevant forms of public support, whether from the EU or national funds. As CCS

projects are very expensive and will carry a very high risk for public money, maximum 20% if

the grant could be paid off not dependant on verified avoidance of greenhouse gas emissions.

Amendment 427

Adina-Ioana Vălean





















deployed.
















deployed. The Commission shall publish

the state aid guidelines for Member State

co-financing of eligible projects. The

PE585.439v01-00 96/164 AM\1098409EN.doc

EN

Commission shall publish the state aid

guidelines for Member State co-financing

of eligible projects.

Or. en

Justification

ETS must provide robust and predictable legal framework which should deliver stability for

industry and all stakeholders.

Amendment 428

Lorenzo Fontana





















deployed.



technologies and processes, carbon clean

operation modes in existing installations and support for demonstration projects for

the development of a wide range of CCS

and CCU and innovative renewable energy

technologies that are not yet commercially

viable in geographically balanced

locations. In order to promote innovative

projects, up to 80% of the relevant costs of

projects, operating costs due to

modifications in existing installations or

investments in existing installations may

be supported, out of which up to 40% may

not be dependent on verified avoidance of



taking into account the technology or

process adaption deployed.

Or. en

AM\1098409EN.doc 97/164 PE585.439v01-00

EN

Amendment 429

Barbara Kappel



COM(2015)337

Article 10a (8), 3rd paragraph

















deployed.



technologies and processes, carbon lean

operation modes in existing installations and support for demonstration projects for

the development of a wide range of CCS,

CCU and innovative renewable energy





projects, operating costs due to

modifications in existing installations or

investments in existing installations may

be supported, out of which up to 40% may




taking into account the technology or

process adaption deployed.

Or. en

Amendment 430





article 10a, paragraph 8







innovation in the whole range of low-

carbon industrial technologies and

processes in existing and new installations

PE585.439v01-00 98/164 AM\1098409EN.doc

EN












deployed.

and support for demonstration projects for

the development of a wide range of CCS,






projects may be supported, out of which up

to 40% may not be dependent on verified




technology deployed. The eligibility

criteria of the fund shall be improved by

eliminating unnecessary bureaucracy and

reducing financial risk.

Or. en

Amendment 431


Werner, Eva Kaili, Jens Geier, Theresa Griffin, José Blanco López, Soledad Cabezón

Ruiz, Csaba Molnár, Carlos Zorrinho, Jude Kirton-Darling, Inmaculada Rodríguez-

Piñero Fernández



Article 10a

Paragraph 8



















products, technologies and processes in

existing and new installations and support

for demonstration and pilot projects for the

development of a wide range of CCS, CCU

and innovative renewable energy


viable, ensuring a degree of geographical

and sectoral balance in geographically






AM\1098409EN.doc 99/164 PE585.439v01-00

EN

deployed. greenhouse gas emissions provided that



deployed.

Or. en

Amendment 432





Article 10a paragraph 8 second subparagraph












supported, out of which up to 40% may





deployed.





of a wide range of innovative renewable

energy technologies that are not yet

commercially viable in geographically



relevant costs of projects may be supported

dependent on verified avoidance of

greenhouse gas emissions

Or. en

Amendment 433




Directive 2003/87


PE585.439v01-00 100/164 AM\1098409EN.doc

EN

















deployed.

















the state aid guidelines for Member State

co-financing of eligible projects.

Or. en

Amendment 434

Jens Geier, Constanze Krehl




















the entire range of innovation in low-

carbon industrial technologies and

processes and concepts for existing and

new installations as well as support for


of a wide range of CCS, CCU and


and concepts that are not yet commercially




projects may be supported, out of which up

AM\1098409EN.doc 101/164 PE585.439v01-00

EN



deployed.

to 55% may not be dependent on verified




technology deployed.

Or. en

Amendment 435


Spyraki, Françoise Grossetête, Herbert Reul




Article 10a – paragraph 8 – second subparagraph

















deployed.





of a wide range of CCS, CCU and


that are not yet commercially viable in

geographically balanced locations. In order

to promote innovative projects, up to 75%

of the relevant costs of projects may be






deployed.

Or. en

Amendment 436

Hans-Olaf Henkel





PE585.439v01-00 102/164 AM\1098409EN.doc

EN

















deployed.

















before 2018 the state aid guidelines for

Member States.

Or. en

Amendment 437

Dan Nica



Directive 2003/ 87 EC

Article 10a – paragraph 8 – second subparagraph



















of a wide range of CCS, CCU, energy

efficiency savings and innovative

renewable energy technologies/concepts

that are not yet commercially viable in

geographically balanced locations. In order

to promote innovative projects, up to 75%

of the relevant costs of projects may be



AM\1098409EN.doc 103/164 PE585.439v01-00

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deployed.




deployed.

Or. en

Amendment 438

Neoklis Sylikiotis





















deployed.


innovation in sustainable low-carbon

industrial technologies and processes and

support for demonstration projects for the

development of and innovative renewable

energy technologies that are not yet

commercially viable in geographically









deployed.

Or. en

Amendment 439

Jakop Dalunde





Article 10a – paragraph 8 – subparagraph 2 a (new)

PE585.439v01-00 104/164 AM\1098409EN.doc

EN


Projects shall be selected by way of a

transparent selection procedure on the

basis of objective criteria that include

requirements for robust knowledge

sharing.

Or. en

Justification

Supporting innovation at the EU level makes sense only if innovative technologies and know-

how are shared and allowed to proliferate rapidly across the Union.

Amendment 440

Hans-Olaf Henkel






Unallocated allowances shall be placed in

the innovation fund to support low-carbon

technologies and processes without

transferring any additional funds to the

fund.

Or. en

Amendment 441

Hans-Olaf Henkel





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EN


The allowances shall be made available

for innovation in low-carbon industrial

technologies and processes and support

for demonstration projects for the

development of a wide range of CCS and



viable. Projects shall be selected on the

basis of their impact on energy systems or

industrial processes within a Member

State, a group of Member States or the

Union. In order to promote innovative


projects may be supported, out of which

up to 60% may not be dependent on

verified avoidance of greenhouse gas

emissions provided that pre-determined

milestones are attained taking into

account the technology deployed. The

allowances shall be allocated to support

the relevant costs of individual projects

according to the needs of those projects in

relation to reaching pre-determined

milestones.

Or. en

Amendment 442

Jakop Dalunde





Article 10a – paragraph 8 – subparagraph 2 b (new)


The indicative shares of funding per

category shall be the following: 50%

industry innovation projects, including

CCS and 50% RES. The selection of

projects shall take place through four

calls for proposals. In case significant

PE585.439v01-00 106/164 AM\1098409EN.doc

EN

sectoral imbalance is observed after the

first two calls in terms of funds

absorption, the third and the fourth calls

shall implement the corrective

mechanisms to ensure full usage of the

Fund.

Or. en

Justification

Industry innovation projects are key to accelerate the transition to decarbonised economy.

The omission of these projects in NER300 should be rectified. A lesson learned from NER300

experience is that some funds remain unused due to the lack of eligible projects. To avoid the

repetition of such scenario, a corrective mechanism should be introduced with the two final

calls for proposals to ensure full usage of the Fund for the best projects, regardless of the

category.

Amendment 443

Lorenzo Fontana






In addition, 50 million unallocated


reserve established by Decision (EU)

2015/… shall supplement any existing

resources remaining under this

paragraph for projects referred to above,

with projects in all Member States

including small-scale projects, before

2021. Projects shall be selected on the

basis of objective and transparent criteria.

Projects shall be selected on the basis of

objective and transparent criteria.

Or. en

Amendment 444


Spyraki, Françoise Grossetête, Pilar del Castillo Vera

AM\1098409EN.doc 107/164 PE585.439v01-00

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Article 10a – paragraph 8 – third subparagraph






resources remaining under this paragraph

for projects referred to above, with projects

in all Member States including small-scale

projects, before 2021. Projects shall be

selected on the basis of objective and

transparent criteria.






as a consequence of funds resulting from

NER300 allowance auctions between

2013 and 2020 not having been used, for

projects referred to in subparagraphs 1

and 2, with projects in all Member States

including small-scale projects, before 2021

and from 2018 onwards. Projects shall be


transparent criteria, taking into account

their relevance in relation to the

decarbonisation of the related sectors.

Projects supported under this

subparagraph may also receive further

support under sub-paragraphs 1 and 2.

Or. en

Amendment 445

Barbara Kappel



COM(2015)337

Article 10(a) 8, 3rd Paragraph







for projects referred to above, with projects

in all Member States including small-scale






for projects operating costs or investments

referred to above, with projects in all

PE585.439v01-00 108/164 AM\1098409EN.doc

EN




Member States including small-scale




Or. en

Amendment 446


Spyraki, Herbert Reul




Article 10a – paragraph 8 – fourth subparagraph (new)


In Article 10a, the following

subparagraph is added to paragraph 8:

'The timetable for monetisation of

allowances shall be published no later

than 18 months before the start of Phase

IV and shall ensure the gradual

monetisation of the allowances spread out

throughout the Phase.'

Or. en

Amendment 447


Werner, Patrizia Toia, Kathleen Van Brempt, Olle Ludvigsson, Jens Geier, Jeppe

Kofod, Flavio Zanonato, Theresa Griffin, José Blanco López, Soledad Cabezón Ruiz,

Csaba Molnár, Carlos Zorrinho, Jude Kirton-Darling, Inmaculada Rodríguez-Piñero

Fernández



Article 10a

Paragraph 8



adopt a delegated act in accordance with



AM\1098409EN.doc 109/164 PE585.439v01-00

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Article 23. Article 23, taking due account of the

following principles:

- Projects should focus on research and

innovation for the design and

development of breakthrough solutions

and implementation of demonstration

programmes, including in real industrial

environments;

- Projects should deliver ambitious

reduction in specific GHG emission

intensity of at least 20%, with respect to

the best available technologies;

- The activities should run close-to-market

in production plants to demonstrate the

viability of breakthrough technologies in

overcoming the technological as well as

non-technological barriers;

- Projects should address technological

solutions that could have widespread

applications and may combine different

technologies;

- Solutions and technologies should

ideally have the potentials to be

transferred within the sector and possibly

to other sectors.

Or. en

Amendment 448

Francesc Gambús








Article 23.

For this purpose, the Commission shall be

empowered to adopt a delegated act in

accordance with Article 23 in order to

adapt Commission's decision

2010/670/EU.

(This amendment modifies the article 1 -

PE585.439v01-00 110/164 AM\1098409EN.doc

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paragraph 5 - point f)

Or. en

(See wording of article 10a - paragraph 8 - subparagraph 4)

Amendment 449


Werner, Kathleen Van Brempt, Olle Ludvigsson, Eugen Freund, Jens Geier, Theresa

Griffin, José Blanco López, Soledad Cabezón Ruiz, Csaba Molnár, Carlos Zorrinho,

Jude Kirton-Darling, Inmaculada Rodríguez-Piñero Fernández



Article 10a

Paragraph 8 last subparagraph


The last subparagraph of paragraph 8 is

modified as follows:

Allowances shall be set aside for the

projects that meet the criteria referred to

in the third subparagraph. Support for

these projects shall be given via Member

States and shall be complementary to

substantial co-financing by the operator

of the installation. They could also be co-

financed by the Member State concerned,

as well as by other instruments and

programmes such as EFSI and H2020.

No project shall receive support via the

mechanism under this paragraph that

exceeds 15 % of the total number of

allowances available for this purpose.

These allowances shall be taken into

account under paragraph 7.

Monetisation of allowances shall start

only in 2022 and be made gradual

throughout Phase IV.

Or. en

AM\1098409EN.doc 111/164 PE585.439v01-00

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Justification

Addition of references to EFSI and H2020 ; slightly delayed monetisation in order not to

counter effect of MSR entry into force

Amendment 450

Miapetra Kumpula-Natri


Article 1 – paragraph 1 – point 5 – point f a (new)


(fa) Projects promoting renewable

materials in innovative low-carbon

industrial technologies and processes

shall be prioritised, especially when they

substitute carbon intensive materials,

technologies and processes;

Or. en

Amendment 451

Jakop Dalunde



Article 1 – paragraph 1 – point 5 – point f a (new)




(fa) in paragraph 8, the fourth

subparagraph is replaced by the

following:

"Allowances shall be set aside for the

projects that meet the criteria referred to in

the third subparagraph. Support for these

projects shall be given via Member States

and shall be complementary to substantial

co-financing by the operator of the

installation. They could also be co-


as well as by other instruments. No project

"

PE585.439v01-00 112/164 AM\1098409EN.doc

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shall receive support via the mechanism

under this paragraph that exceeds 15 % of

the total number of allowances available

for this purpose. These allowances shall be

taken into account under paragraph 7."

Allowances shall be set aside for the

projects that meet the criteria referred to

in the third subparagraph. Support for

these projects shall be given via Member

States and shall be complementary to

substantial co-financing by the operator

of the installation. They could also be co-


as well as by other instruments. No

project shall receive support via the

mechanism under this paragraph that

exceeds EUR 300 million or 10 % of the

total number of allowances available for

that purpose. These allowances shall be

taken into account under paragraph 7."

Or. en

(http://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:02003L0087-

20140430&from=EN)

Justification

Since the Innovation Fund is expected to be considerably larger than NER300, the percentage

should be lowered to maintain a similar level of funding per project. In particular, if the

Innovation Fund includes industry innovation projects, limits are necessary to ensure that

funds are available for the increased number of projects. 300 million euros should be the

maximum available public grant for the Innovation.

Amendment 452



Article 1 – paragraph 1 – point 5 – point h




(h) in paragraph 11, the wording "with

a view to reaching no free allocation in

(h) in paragraph 11, the wording "with

a view to reaching no free allocation in

AM\1098409EN.doc 113/164 PE585.439v01-00

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2027" is deleted. 2027" is deleted. Instead the wording

"and shall remain 30% for each year of

period 2021-2030" is added.

Or. en

Justification

In order to protect district heating provision allowing the allocation of emission allowances

for sectors not exposed to carbon leakage (including heat production) shall maintain at a

level of at least 30 % throughout IV phase of EU ETS. Heating and cooling accounts for half

of the EU’s annual overall energy consumption and 68% of all its gas imports. Developing a

strategy to make heating and cooling more efficient and sustainable is a priority for the

Energy Union. Moreover, in February 2016, the Commission proposed the EU Strategy on

Heating and Cooling, as part of the Energy Union strategy. The amendment will provide

access to financial resources which should help to reduce energy dependency, to cut costs for

households and businesses, and to deliver the emission reduction targets and meet EU

commitment under the climate agreement reached at the COP21 climate conference in Paris.

Amendment 453


Spyraki, Herbert Reul, Pilar del Castillo Vera


Article 1 – paragraph 1 – point 5 – point i a (new)


Article 10a


(ia) the following paragraph is added:

'The Commission shall, as part of the

measures adopted under paragraph 1,

include measures for defining

installations that partially cease to operate

or significantly reduce or increase their

capacity or their production by more than

10%, and measures for adapting, as

appropriate, the level of free allocations.'.

Or. en

Amendment 454


PE585.439v01-00 114/164 AM\1098409EN.doc

EN

Werner, Patrizia Toia, Olle Ludvigsson, Eva Kaili, Jens Geier, Jeppe Kofod, Flavio





Article 10a

Paragraph 19


(ia) Paragraph 19 is complemented as

follows:

Where an operator fails to deliver on its

demonstration that an installation would

resume production within a given

specified and reasonable time, it shall

incur a penalty as defined by Article 16 of

this directive

Or. en

Amendment 455

Francesc Gambús




(ia) paragraph 20 is deleted

Or. en

Amendment 456

Paul Rübig


Article 1 – paragraph 1 – point 5 a (new)

COM (2015) 337

Art. 1, par.5, point (b), sub–point 2 (new)

AM\1098409EN.doc 115/164 PE585.439v01-00

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(5a) paragraph 3 is amended as

follows:

3. Subject to paragraphs 4 and 8, and






electricity produced from waste gases, for

which all emissions released from those

waste gases shall be entirely allocated to

the installation where these waste gases

originate from.

Or. en

Justification


calculated.

Amendment 457



Article 1 – paragraph 1 – point 5 a (new)


Article 10a Paragraph 1


(5a) Article 10a Paragraph 1 is

amended as follows:

"The measures referred to in the first

subparagraph shall, to the extent feasible,

determine Community-wide ex-ante

benchmarks so as to ensure that allocation

takes place in a manner that provides

incentives for reductions in greenhouse gas

emissions and energy efficient techniques,

by taking account of the most efficient

techniques, substitutes, alternative

production processes, high efficiency

"

PE585.439v01-00 116/164 AM\1098409EN.doc

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cogeneration, efficient energy recovery of

waste gases, use of biomass and capture

and storage of CO2, where such facilities

are available, and shall not provide

incentives to increase emissions. No free

allocation shall be made in respect of any

electricity production, except for cases

falling within Article 10c and electricity

produced from waste gases."

The measures referred to in the first

subparagraph shall, to the extent feasible,

determine Community-wide ex-ante

benchmarks so as to ensure that

allocation takes place in a manner that

provides incentives for reductions in

greenhouse gas emissions and energy

efficient techniques, by taking account of

the most efficient techniques, substitutes,

alternative production processes, high

efficiency cogeneration, efficient energy

recovery of waste gases, use of biomass

and capture and storage of CO2, where

such facilities are available, and shall not

provide incentives to increase emissions.

No free allocation shall be made in

respect of any electricity production,

except for cases falling within Article 10c,

for non-grid connected offshore oil and

gas platforms and for electricity produced

from waste gases."

Or. en

(http://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:02003L0087-20151029)

Justification

These platforms are not connected to the electricity grid and need to produce power for their

own use. Therefore, the risk of windfall profits does not exist.

Amendment 458



Article 1 – paragraph 1 – point 6

AM\1098409EN.doc 117/164 PE585.439v01-00

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Article 10b


Article 10b deleted

Or. en

Amendment 459

Theresa Griffin




Article 10b – paragraph 1


1. Sectors and sub-sectors where the

product exceeds 0.2 from multiplying their

intensity of trade with third countries,

defined as the ratio between the total value

of exports to third countries plus the value

of imports from third countries and the

total market size for the European

Economic Area (annual turnover plus total

imports from third countries), by their

emission intensity, measured in kgCO2

divided by their gross value added (in €),

shall be deemed to be at risk of carbon

leakage. Such sectors and sub-sectors shall

be allocated allowances free of charge for

the period up to 2030 at 100% of the

quantity determined in accordance with the

measures adopted pursuant to Article 10a.

1. To determine the exposure to risk

of carbon leakage for sectors and sub-

sectors and in view of avoiding windfall

profits, their intensity of trade with third

countries, defined as the ratio between the

total value of exports to third countries plus

the value of imports from third countries

and the total market size for the European


imports from third countries), shall be

multiplied by their emission intensity,

measured in kgCO2 divided by their gross

value added (in €). If this product exceeds

1.6, these sectors and sub-sectors shall be

deemed at high risk of carbon leakage

and be allocated allowances free of

charge for the period up to 2030 at 100%

of the quantity determined in accordance

with the measures adopted pursuant to

Article 10a. If this product exceeds 0.9,

these sectors and sub-sectors shall be

deemed at medium risk of carbon leakage

and be allocated allowances free of

charge for the period up to 2030 at 75% of

the quantity determined in accordance


Article 10a. If this product exceeds 0.2,

these sectors and sub-sectors shall be

PE585.439v01-00 118/164 AM\1098409EN.doc

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deemed at low risk of carbon leakage and





If this product is below 0,2, these sectors

and sub-sectors shall be deemed at

insignificant risk of carbon leakage and

shall not be allocated allowances free of

charge for the period up to 2030.

Or. en

Amendment 460

Ian Duncan























1. The level to which sectors and sub-

sectors are exposed to the risk of carbon

leakage shall be assessed by multiplying

their intensity of trade with third countries,








divided by their gross value added (in

EUR). Considering that some sectors and

subsectors exposed to the risk of carbon

leakage are able to pass on more of the

cost of allowances in product prices than

others, sectors and sub-sectors exposed to

the risk of carbon leakage shall be

allocated allowances free of charge for the

period up to 2030 at the following

percentages of the quantity determined in

accordance with the measures adopted

pursuant to Article 10a:

AM\1098409EN.doc 119/164 PE585.439v01-00

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(a) for sectors and sub-sectors where the

result is equal to or exceeds 1,6, the

percentage shall be 100%;

(b) for sectors and sub-sectors where the



(c) for sectors and sub-sectors where the



(d) for sectors and sub-sectors where the

result is below 0,15, the percentage shall

be 30%;

Or. en

Justification

Free allocation will become more scarce as our climate change targets continue to increase.

In order to reflect this, and the fact that some sectors can pass on more of the cost of the

carbon price in their products than others, more targeted allocation should be introduced.

Amendment 461

Jakop Dalunde




















1. Sectors and sub-sectors in which

the product exceeds 2,5 from multiplying



of exports to third countries that have not

implemented comparable climate pricing plus the value of imports from third

countries or subnational regions and the



imports from third countries that have not

implemented comparable climate pricing),

by their emission intensity, measured in

PE585.439v01-00 120/164 AM\1098409EN.doc

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kgCO2 divided by their gross value added

(in €), shall be deemed to be at risk of

carbon leakage. Such sectors and sub-

sectors shall be allocated allowances free

of charge for the period up to 2030 at 90%

of the quantity determined in accordance


Article 10a.

Sectors and sub-sectors in which the

product is below 2,5 but above 1,0 shall be

deemed to be at medium risk of carbon

leakage. Such sectors and sub-sectors

shall be allocated allowances free of


that quantity.

Sectors and sub-sectors in which the

product is below 1,0 but above 0,2 shall be

deemed to be at low risk of carbon

leakage. Such sectors and sub-sectors

shall be allocated allowances free of


that quantity.

Or. en

Justification

A targeted multi-step approach reflecting actual risk of carbon leakage should be used to

limit free allocation. If chosen, it will reduce the risk of the application of the cross sectorial

correction factor, which reduces the free allocation to all industrial sectors equally. However,

in order to ensure polluter pays principle, no sector should receive 100% free allowances,

even the most exposed.

Amendment 462

Krišjānis Kariņš










AM\1098409EN.doc 121/164 PE585.439v01-00

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leakage. Defining sectors at a high risk of

carbon leakage should take into account

that trade intensity of certain sectors in a

Member State situated at the periphery of

the EU tend to be significantly higher

compared to the EU average, therefore

attention should be paid also to the

geographical location. Such sectors and

sub-sectors shall be allocated allowances

free of charge for the period up to 2030 at

100% of the quantity determined in


pursuant to Article 10a.

Or. en

Amendment 463

Paul Rübig



COM (2015) 337

Art.1, par.1. point 6





defined as the ratio between the total

value of exports to third countries plus the

value of imports from third countries and

the total market size for the European

Economic Area (annual turnover plus

total imports from third countries), by

their emission intensity, measured in

kgCO2 divided by their gross value added


product from multiplying their intensity of

trade with third countries by their emission

intensity is above 0.01, as well as sectors

that were deemed at risk of carbon leakage

between 2013 and 2020, may be included

in the group referred to in paragraph 1,

on the basis of a qualitative assessment

using the following criteria

PE585.439v01-00 122/164 AM\1098409EN.doc

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(in €), shall be deemed to be at risk of



of charge for the period up to 2030 at




Or. en

Justification

The option to pursue a qualitative assessment should be kept. This is an important instrument

that allows for avoiding borderline cases and increase legal certainty, e.g. where trade

intensity is subject to substantial changes for installations from year to year.

Amendment 464

Angelika Niebler




















the period up to 2030 at 100 % of the

















the period up to 2030 at 100 % of the



To ensure a level playing field for the

production of aromatics, hydrogen and

syngas in refineries and chemical plants,

AM\1098409EN.doc 123/164 PE585.439v01-00

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they should be given the same carbon

leakage risk classification.

Or. de

Amendment 465

Esther de Lange, Angelika Niebler, Francesc Gambús, Henna Virkkunen, Maria

Spyraki, Françoise Grossetête, Herbert Reul, Pilar del Castillo Vera, Krišjānis Kariņš


































shall be deemed to be at high risk of



of charge for the period up to 2030 at



pursuant to Article 10a. To ensure a level

playing field for the production of

hydrogen and syngas in refineries and

chemical plants, hydrogen and syngas

shall continue to be deemed to be at the

same risk of carbon leakage as the

refinery sector.

Or. en

Amendment 466


PE585.439v01-00 124/164 AM\1098409EN.doc

EN



Article 10 b

Paragraph 1





































production of hydrogen and syngas in

refineries and chemical plants, hydrogen

and syngas shall continue to be deemed to

be at the same risk of carbon leakage as

the refinery sector

Or. en

Amendment 467

Hans-Olaf Henkel












AM\1098409EN.doc 125/164 PE585.439v01-00

EN





























Allocations must reflect real industry

activity levels. To ensure a level playing

field, hydrogen and syngas shall continue

to be considered at the same risk of

carbon leakage as the refinery sector.

(This amendment applies throughout the

text. Adopting it will necessitate

corresponding changes throughout.)

Or. en

(See Recital 8)

Amendment 468



























PE585.439v01-00 126/164 AM\1098409EN.doc

EN















In this context the application of the

cross-sectoral correction factor shall be

limited to an absolute minimum.

Or. en

Amendment 469

Barbara Kappel



COM(2015)337

Article 10(b)


































quantity required to cover their actual

production level in the year x-1 at

benchmark standards of carbon efficiency determined in accordance with the


Or. en

AM\1098409EN.doc 127/164 PE585.439v01-00

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Amendment 470

Eva Kaili






































quantity required to cover their actual

(prior year) production levels at

benchmark standards of carbon efficiency determined in accordance with the


Or. en

Amendment 471

Gunnar Hökmark














PE585.439v01-00 128/164 AM\1098409EN.doc

EN


























measures adopted pursuant to Article 10a,

in order to foster European

competitiveness and an industrial

structure for reducing carbon emissions.

Or. en

Amendment 472
























1. Sectors and sub-sectors, as defined

by PRODCOM-8 level when appropriate

and justified, where the product exceeds

0.2 from multiplying their intensity of trade

with third countries, defined as the ratio

between the total value of exports to third

countries plus the value of imports from

third countries and the total market size for

the European Economic Area (annual

turnover plus total imports from third

countries), by their emission intensity,

measured in kgCO2 divided by their gross

value added (in €), shall be deemed to be at

risk of carbon leakage. Such sectors and

sub-sectors shall be allocated allowances

free of charge for the period up to 2030 at



AM\1098409EN.doc 129/164 PE585.439v01-00

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Or. en

Justification

EU ETS rules must ensure a level competitive playing-field for similar products which have a

similar carbon impact. Therefore under Article 10b1, 10b2 and Article 10b4 the right of an

evaluation down to the product level (PRODCOM-8), where necessary, must be guaranteed.

The 2014 Carbon Leakage Impact Assessment states (page 24, footnote 35): “Any analysis at

Prodcom level (i.e. at levels further disaggregated than 4-digit NACE) must be robustly

justified, for instance with substantially different production, trade, energy consumption and

emissions profile characteristics in the context of a heterogeneous NACE-4 code. The product

in question should match the description of an existing Prodcom code derived from the

respective NACE-4 code

Amendment 473

Adina-Ioana Vălean
































emission intensity, measured in kgCO2 of

direct and indirect costs divided by their

gross value added (in €), shall be deemed

to be at risk of carbon leakage. Such

sectors and sub-sectors shall be allocated

allowances free of charge for the period up

to 2030 at 100% of the quantity determined

in accordance with the measures adopted


Or. en

PE585.439v01-00 130/164 AM\1098409EN.doc

EN

Justification

Clarification that, as it is the case today and as calculated in the Impact Assessment, both

direct and indirect emissions are accounted for in the calculation of emission intensity

Amendment 474

Lorenzo Fontana
























product exceeds 0.15 from multiplying
















Or. en

Amendment 475

Francesc Gambús





AM\1098409EN.doc 131/164 PE585.439v01-00

EN





































production of hydrogen and syngas in

refineries and chemical plants, hydrogen

and syngas shall be continue to be deemed

to be at the same risk of carbon leakage as

the refinery sector.

(This amendment refers only to article 1,

section 1 point 6 of the proposal, referring

to the article 10b - paragraph 1 of the

Directive 2003/87/CE)

Or. en

(See wording of recital 8 and article 10a of the proposed new Directive)

Justification

Necessary to avoid inconsistencies in the number of allowances allocated for nearly the same

production activity.

Amendment 476

Dan Nica



PE585.439v01-00 132/164 AM\1098409EN.doc

EN





















1. Sectors where their intensity of

trade with third countries exceeds 15%,






imports from third countries), and their

emission intensity exceeds 5,5, measured

in kgCO2 divided by their gross value

added (in €), shall be deemed to be at very

high risk of carbon leakage. Such sectors

and sub-sectors shall be allocated




pursuant to Article 10a

Or. en

Amendment 477

Edward Czesak




Article 10b – paragraph 1 a (new)


1a. Sectors and sub-sectors with

emissions resulting directly from physical

or chemical process necessary to produce

the product in question (process

emissions), where level of emissions

cannot be therefore further reduced in

this process and there are no alternative

production process resulting in lower

emissions with unavoidable emissions

resulting from the nature of their

production process, shall be deemed to be

at risk of carbon leakage and allocated

AM\1098409EN.doc 133/164 PE585.439v01-00

EN

free allowances for the period up to 2030

at 100% of the quantity determined in



Or. en

Justification

As the purpose of the ETS system is to “promote reductions of greenhouse gas emissions in a

cost-effective and economically efficient manner (art. 1 of the ETS Directive) and allocation

of allowances should be driven by “the potential for industrial process activities to reduce

emissions” (recital 8 of the ETS Directive), it is clear there is no purpose or objective to

require purchase of allowances where emissions simply cannot be further reduced due to

physical or chemical limitations. Therefore, if emissions results directly from the production

process itself (and not from any inefficiencies related thereto) and there are no alternative

processes available, no objective is reached by requiring purchase of emissions. ETS

becomes simply an added cost of production, with no positive results. Therefore, sectors

engaged in such production processes should simply obtain 100% free allowances.

Amendment 478




article 10

paragraph 1


1a. Up to 3% of the total quantity of

allowances between 2021 and 2030 shall

be auctioned to establish a harmonised

compensation scheme as set out in article

10a, paragraph 6, of this Directive.

Or. en

Amendment 479

Hans-Olaf Henkel



PE585.439v01-00 134/164 AM\1098409EN.doc

EN


Article 10b – new paragraph


1a. 2% of unallocated allowances

coming from cessations should be

transferred back to the industry.

Or. en

Amendment 480

Jakop Dalunde









trade with third countries by their

emission intensity is above 0.18 may be

included in the group referred to in

paragraph 1, on the basis of a qualitative

assessment using the following criteria:

deleted

(a) the extent to which it is possible for

individual installations in the sector or

sub-sectors concerned to reduce emission

levels or electricity consumption;

(b) current and projected market

characteristics;

(c) profit margins as a potential indicator

of long-run investment or relocation

decisions.

Or. en

Justification

The European Commission should not have the discretion to add sectors on the carbon

leakage list based on a subjective, “qualitative” assessment. The assessment of the exposure

AM\1098409EN.doc 135/164 PE585.439v01-00

EN

of sectors to the risk of carbon leakage should be made in the transparent way possible.

Amendment 481

Theresa Griffin













deleted


individual installations in the sector or




characteristics;

(c) profit margins as a potential indicator

of long-run investment or relocation

decisions.

Or. en

Amendment 482

Dan Nica









2. Sectors where their intensity of

trade with third countries exceeds 5% and

their emission intensity exceeds 2 shall be

PE585.439v01-00 136/164 AM\1098409EN.doc

EN

intensity is above 0.18 may be included in

the group referred to in paragraph 1, on

the basis of a qualitative assessment using

the following criteria:

allocated allowances free of charge for


quantity determined in accordance with

the measures adopted pursuant to Article

10a.

Or. en

Amendment 483

Antonio Tajani, Adina-Ioana Vălean, Massimiliano Salini, Herbert Reul, Elisabetta

Gardini, Krišjānis Kariņš













2. Sectors and sub-sectors may be




Or. en

Amendment 484




2003/87/EC







the group referred to in paragraph 1, on the

basis of a qualitative assessment using the




intensity is below 0.2 may be included in


basis of a qualitative assessment, based on

AM\1098409EN.doc 137/164 PE585.439v01-00

EN

following criteria: a detailed impact assessment and taking

into account sectors and sub-sectors at the

relevant level, either at PRODCOM or

NACE codes, using the following criteria:

Or. en

Justification

Sectors and sub-sectors should be able to present their characteristics and ask for a possible

qualification in the carbon leakage list. The current official procedure to decide whether this

sector or sub-sector should be added to the carbon leakage list must then remain as it is.

Amendment 485













following criteria:







a detailed impact assessment and taking

into account sectors and sub-sectors at the


NACE codes, using the following criteria:

Or. en

Justification

This amendment provides a qualitative analysis without thresholds. The aim of the carbon

leakage rules is to safeguard the international competitiveness of the EU energy intensive

industries and maintain incentives for long-term investment in low-carbon technologies; as

long as no comparable efforts are undertaken in other major economies. To achieve this,

there should be more flexibility on the qualitative threshold for carbon leakage assessment,

and issues as the risk of investment leakage, the impact on sub-sectors alongside the value

chains and the exposure to indirect costs need to be taken into consideration when developing

PE585.439v01-00 138/164 AM\1098409EN.doc

EN

a carbon leakage criteria.

Amendment 486

Patrizia Toia




Article 10b









2. Sectors and sub-sectors may be included

in the group referred to in paragraph 1, on

the basis of a qualitative assessment using

the following criteria:

Or. it

Justification

There is insufficient statistical data to support the 0.18 threshold proposed by the Commission

for a qualitative assessment of the exposure of sectors and subsectors to the risk of carbon

leakage. Setting a quantitative threshold for a qualitative assessment might make it more

difficult for facilities to show they are exposed to a risk of carbon leakage.

Amendment 487

Seán Kelly, Bendt Bendtsen, Luděk Niedermayer


















a detailed impact assessment and taking

AM\1098409EN.doc 139/164 PE585.439v01-00

EN

following criteria: into account sectors and sub-sectors at the


NACE code level as appropriate, using the

following criteria:

Or. en

Amendment 488


Grossetête, Herbert Reul, Pilar del Castillo Vera




Article 10b – paragraph 2 – introductory part








following criteria:




intensity is above 0,12, as well as sectors

that were deemed at risk of carbon

leakage between 2013 and 2020 and that

have a trade intensity of at least 40 %, may be included in the group referred to in



Or. en

Amendment 489

Eva Kaili














PE585.439v01-00 140/164 AM\1098409EN.doc

EN



following criteria:



following criteria:

Or. en

Amendment 490

Barbara Kappel



COM(2015)337









following criteria:







following criteria:

Or. en

Amendment 491

Ian Duncan












following criteria:




intensity is below the thresholds referred

to in points (a) to (d) of paragraph 1 by up

to 10%, may be included in the

corresponding higher group referred to in

points (a) to (d) of paragraph 1, on the


AM\1098409EN.doc 141/164 PE585.439v01-00

EN

following criteria:

Or. en

Justification

Qualitative assessment should be available for those sectors and sub-sectors within 10% of a

higher threshold

Amendment 492

Angelika Niebler












following criteria:







following criteria:

Or. de

Amendment 493

Lorenzo Fontana











2. Other sectors and sub-sectors may

be included in the group referred to in



PE585.439v01-00 142/164 AM\1098409EN.doc

EN



Or. en

Amendment 494

Dan Nica




Article 10b – paragraph 2 - point a


(a) the extent to which it is possible

for individual installations in the sector or



deleted

Or. en

Amendment 495

Barbara Kappel



COM(2015)337

Article 10b – paragraph 2 – point a



individual installations in the sector or sub-

sectors concerned to reduce emission levels

or electricity consumption;




or electricity consumption, including when

appropriate, the increase in production

costs, that the related investment may

entail for instance on the basis of the most

efficient techniques and technologies

applied;

Or. en

AM\1098409EN.doc 143/164 PE585.439v01-00

EN

Amendment 496

Eva Kaili




Article 10b – paragraph 2 – point a





or electricity consumption;




or electricity consumption including, as

appropriate, the increase in production

costs that the related investment may

entail, for instance on the basis of the

most efficient techniques;

Or. en

Amendment 497

Dan Nica




Article 10b – paragraph 2 – point b



characteristics;

deleted

Or. en

Amendment 498

Dan Nica




Article 10b – paragraph 2 – point c

PE585.439v01-00 144/164 AM\1098409EN.doc

EN


(c) profit margins as a potential

indicator of long-run investment or

relocation decisions.

deleted

Or. en

Amendment 499


Grossetête, Herbert Reul, Krišjānis Kariņš, Paul Rübig




Article 10b – paragraph 2 – point c


(c) profit margins as a potential



(c) profit margins or the inability to

pass on carbon costs as a potential



Or. en

Amendment 500

Adina-Ioana Vălean




Article 10b – paragraph 2 – point d (new)


(ca) d) level of the product referred to

in paragraph 1 when the assessment of a

sub-sector is realised with more targeted

data at 6- or8-digit level.

Or. en

AM\1098409EN.doc 145/164 PE585.439v01-00

EN

Amendment 501




Directive 2003/87

Article 10a – paragraph 8 – subparagraph 2 a (new)


(c a) the extent to which distance from

EU external border affects installations;

Or. en

Amendment 502







(c a) (d) level of potential competition

distortion among sectors and sub-sectors

Or. en

Amendment 503

Seán Kelly, Bendt Bendtsen




Article 10b Paragraph 2


(c a) (d) level of potential competition

distortion among sectors and sub-sectors

Or. en

PE585.439v01-00 146/164 AM\1098409EN.doc

EN

Amendment 504







(c a) the extent to which distance from

EU external border affects installations.

Or. en

Justification

The risk of carbon leakage can be determined inter alia by the geographical location.

Therefore, the EU external border factor shall be one of the criteria helping to define which

energy-intensive sectors and sub-sectors are particularly exposed to the risk of carbon

leakage.

Amendment 505

Lorenzo Fontana




Article 10b – paragraph 2 – point c a (new)


(ca) level of potential competition

distortion among sectors and sub-sectors.

Or. en

Amendment 506

Hans-Olaf Henkel, Zdzisław Krasnodębski, Edward Czesak



AM\1098409EN.doc 147/164 PE585.439v01-00

EN


article 10b, paragraph 2


(cb) level of potential competition

between distortion among sectors and

sub-sectors

Or. en

Amendment 507

Ian Duncan






3. Other sectors and sub-sectors are

considered to be able to pass on more of

the cost of allowances in product prices,

and shall be allocated allowances free of




Article 10a.

deleted

Or. en

Justification

Obsolete

Amendment 508

Edouard Martin, Pervenche Berès, Zigmantas Balčytis, Patrizia Toia, Kathleen Van

Brempt, Olle Ludvigsson, Eugen Freund, Flavio Zanonato, José Blanco López, Soledad

Cabezón Ruiz, Carlos Zorrinho, Jude Kirton-Darling, Inmaculada Rodríguez-Piñero

Fernández



PE585.439v01-00 148/164 AM\1098409EN.doc

EN

Article 10b

Paragraph 3




the cost of allowances in product prices, and shall be allocated allowances free of




Article 10a.


considered not at risk of carbon leakage

and shall not be allocated allowances free

of charge for the period up to 2030.

Or. en

Amendment 509

Jakop Dalunde














Article 10a.




and shall be allocated no allowances free

of charge.

Or. en

Justification

Sectors and sub-sectors that are not exposed to the carbon leakage risk shall not receive

allowances free of charge.

AM\1098409EN.doc 149/164 PE585.439v01-00

EN

Amendment 510


Grossetête, Pilar del Castillo Vera











the quantity determined in accordance with


10a.



the cost of allowances in product prices

and shall be deemed at low carbon

leakage risk. They shall be allocated





Or. en

Amendment 511














10a.

3. Sectors using fallback benchmarks

and other sectors and sub-sectors are







10a.

Or. en

PE585.439v01-00 150/164 AM\1098409EN.doc

EN

Justification

It shall be ensured that installations using fallback approach will receive at least 30 % of

allowances.

Amendment 512

Lorenzo Fontana













10a.

3. Sectors and sub-sectors not falling

under paragraphs 1 or 2 are considered to

be able to pass on more of the cost of

allowances in product prices, and shall be

allocated allowances free of charge for the

period up to 2030 at 30% of the quantity

determined in accordance with the


Or. en

Amendment 513

Edouard Martin, Pervenche Berès, Zigmantas Balčytis, Dan Nica, Constanze Krehl,

Martina Werner, Patrizia Toia, Jens Geier, Flavio Zanonato, José Blanco López,

Soledad Cabezón Ruiz, Csaba Molnár, Carlos Zorrinho, Jude Kirton-Darling,

Inmaculada Rodríguez-Piñero Fernández



Article 10b

Paragraph 3 a (new)


3a. A revision of the sectors concerned

by the carbon leakage criteria should be

realised in 2025.

Or. en

AM\1098409EN.doc 151/164 PE585.439v01-00

EN

Amendment 514

Jeppe Kofod




Article 1 – paragraph 1 – point b


By 31 December 2019, the Commission

shall adopt a delegated act for the

preceding paragraphs for activities at a 4-

digit level (NACE-4 code) as concerns

paragraph 1, in accordance with Article 23,

based on data for the three most recent

calendar years available.







calendar years available. In cases of

marked heterogeneity within certain

NACE-4 level subsectors, as evidenced by

i.e. substantially different energy

consumption and emission profile

characteristics, evaluations shall also be

performed at PRODCOM level to ensure

that products with similar characteristics

in different NACE 4 subsectors are

treated equally, and that emissions

profiles for the entire production chain is

taken into account.

Or. en

Justification

NACE-4 codes provide an efficient way of evaluation between different product categories.

However, products included in subsectors under the same NACE-4 codes can have

substantially different energy consumption and emission profiles. As such, it is important that

evaluation can also be performed at the product level, to ensure equal treatment of similar

products with different NACE-4 codes.

Amendment 515




PE585.439v01-00 152/164 AM\1098409EN.doc

EN

articles10B

paragraph 4













paragraph 1, in accordance with Article 23.

As concern paragraph 1, the product

calculated shall be based on data for the

three most recent calendar years available

using for each sector or sub-sector the 4-,

6-, 8- digit level code (NACE-4, CPA or

Prodcom), or the most appropriated level

of disaggregation based on public and

sectors specific data

Or. en

Amendment 516

Adina-Ioana Vălean




Article 10 b Paragraph 4















calendar years available, using for each

sector or sub-sector the 4-, 6-, 8-digit level

code (NACE-4, Prodcom-6 or Prodcom-8)

that comprises only those activities and

production covered by the EU ETS.

Or. en

AM\1098409EN.doc 153/164 PE585.439v01-00

EN

Justification

The European Commission should carry the assessment of risk of carbon leakage at the

statistical level covering the relevant manufacturing activities and production covered by the

EU ETS. This level may differ from sector to sector hence the possibility given to the

European Commission to opt for the right statistical level

Amendment 517

Esther de Lange, Francesc Gambús, Henna Virkkunen, Maria Spyraki, Massimiliano

Salini, Pilar del Castillo Vera
















digit level (NACE-4 code) or activities

which are at the relevant level of

disaggregation based on public and sector

specific data as appropriate, as concerns




Or. en

Amendment 518

Lorenzo Fontana













digit level (NACE-4 code) or at the

PE585.439v01-00 154/164 AM\1098409EN.doc

EN




relevant level of disaggregation based on

a public and sector-specific data as

concerns paragraph 1, in accordance with

Article 23, based on data for the three most

recent calendar years available.

Or. en

Amendment 519

















digit level (NACE-4 code) or at the

relevant level of disaggregation based on

public and sector specific data as concerns




Or. en

Amendment 520

Patrizia Toia, Flavio Zanonato














digit level (NACE-4 code) or at relevant

level of disaggregation based on public

AM\1098409EN.doc 155/164 PE585.439v01-00

EN



and sector specific data as concerns




Or. en

Justification

In defining Carbon Leakage list, it is important to have a clear definition at the appropriate

level of detail. It is therefore necessary to maintain the current level of disaggregation

including codes at 6 or 8 digit level.

Amendment 521




Article 10b, para. 4













digit level (NACE-4 code), or where

appropriate and justified at an 8-digit

product-level (PRODCOM-8), as concerns




Or. en

Justification

EU ETS rules must ensure a level competitive playing-field for similar products which have a

similar carbon impact. Therefore under Article 10b1, 10b2 and Article 10b4 the right of an

evaluation down to the product level (PRODCOM-8), where necessary, must be guaranteed.

The 2014 Carbon Leakage Impact Assessment states (page 24, footnote 35): “Any analysis at

Prodcom level (i.e. at levels further disaggregated than 4-digit NACE) must be robustly

justified, for instance with substantially different production, trade, energy consumption and

emissions profile characteristics in the context of a heterogeneous NACE-4 code. The product

in question should match the description of an existing Prodcom code derived from the

PE585.439v01-00 156/164 AM\1098409EN.doc

EN

respective NACE-4 code

Amendment 522

Francesc Gambús
















digit level (NACE-4 code) and, as

appropriate, at an 8-digit level (Prodcom) as concerns paragraph 1, in accordance

with Article 23, based on data for the three

most recent calendar years available.

(This amendment applies only for the

article 1 - paragraph 1 - point 6 of the

proposed Directive, referring to the article

10b paragraph 4 of the Directive

2003/87/CE)

Or. en

(See wording of the article 10b - paragraph 4 of the Directive 2003/87/CE)

Justification

This amendment would render article 10b - paragraph 4 consistent with article 10b -

paragraph 1 and 2, by ensuring the inclusion of subsectors to be assessed for carbon leakage.

Amendment 523






AM\1098409EN.doc 157/164 PE585.439v01-00

EN











preceding paragraphs for activities at an

appropriate NACE or PRODCOM code

level for the relevant sector as concerns




Or. en

Justification

This amendment ensures that the level sector aggregation for determining exposure to carbon

leakage is not mandated at NACE 4 level, but is at the relevant level. For example at

PRODCOM level 8 or NACE 2 or NACE levels depending on the sector. Forcing sectors to

aggregate at NACE 4 level when they are defined at a different aggregation makes no sense

as it gives a result different to the defined sectors and is administratively burdensome.

Amendment 524
















preceding paragraphs for activities at an

appropriate NACE or PRODCOM code

level for the relevant sector as concerns




Or. en

Justification

This amendment ensures that a level of sector aggregation for determining exposure to

PE585.439v01-00 158/164 AM\1098409EN.doc

EN

carbon leakage is not only mandated at NACE 4 level, but at the relevant level.

Amendment 525

Angelika Niebler
















digit level (PRODCOM 8) as concerns




Or. de

Amendment 526

Constanze Krehl, Martina Werner, Jens Geier, Bernd Lange




Article 10b – paragraph 4 b (new)


In 2025, the Commission shall examine

whether the ETS will meet the fourth

trading period's objectives for CO2

reduction and increased investment in

low-carbon technologies and whether

there are, or there is a risk of, unintended

side-effects, such as significant harm to

European industrial competitiveness. If

appropriate, it shall submit a legislative

proposal to the European Parliament and

the Council in order to counteract

unwelcome developments.

AM\1098409EN.doc 159/164 PE585.439v01-00

EN

Or. de

Amendment 527

Adina-Ioana Vălean






Every year the Commission may, at its

own initiative or at the request of a

Member State, add a new sector or

subsector, if it can be demonstrated that

this sector or subsector complies with the

criteria in paragraph 1 and 3 .

Or. en

Justification

We can’t risk and remain stuck with a list of sectors and subsectors deemed to be exposed to

carbon leakage for 10 years. We need a flexibility margin that will allow us to adjust the rules

if the need arises or the initial analysis proves to be faulty.

Amendment 528

Jakop Dalunde





Article 10c - heading


Article 10c deleted

Or. en

(AMs 31 - 38 that refer to the deletion of Article 10C should be fused in one amendment.)

PE585.439v01-00 160/164 AM\1098409EN.doc

EN

Justification

In order to streamline mechanisms designed to support modernisation of the electricity

systems of the low-income Member States, we propose to merge the Article 10C support with

the new Modernisation Fund, because their objectives are essentially the same. The

application of Article 10C should be phased out by 2020, while the size of the Modernisation

Fund should be increased accordingly – from 2% to 4% of all allowances. The merging

would make the support system less complex, more transparent and better co-ordinated.

Amendment 529





Article 10c


Article 10c deleted

Or. en

Amendment 530

Jakop Dalunde




Article 10c - title


Option for transitional free allocation for

the modernisation of the energy sector

deleted

Or. en

Amendment 531

Janusz Lewandowski, Jerzy Buzek, Marian-Jean Marinescu



AM\1098409EN.doc 161/164 PE585.439v01-00

EN

Directive 2003/87

Article 10c – title




Option for free allocation for the

modernisation of the energy sector

Or. en

Amendment 532





Article 10c




Option for free allocation for the

modernisation of the energy sector

Or. en

Amendment 533





Article 10b


4a. the following paragraph is added

to article 10b:

5. Every year the Commission may, at its

own initiative or at the request of a

Member State, add a sector or subsector

to the list referred to in the first

subparagraph if it can be demonstrated,

in an analytical report, that this sector or

subsector satisfies the criteria in

paragraphs 1 or 2, following a change

PE585.439v01-00 162/164 AM\1098409EN.doc

EN

that has a substantial impact on the

sector's or subsector's activities.

Or. en

Justification

The possibility to add sectors onto the carbon leakage list should be maintained in the ETS

Directive to reflect the changing market characteristics for the sectors and sub-sectors on the

borderline. The above text was deleted by the EC from its proposal and shall be reinserted

from Art. 10a (13).

Amendment 534

Lorenzo Fontana






4a. Every year the Commission may,

at its own initiative or at the request of a

Member State, add a sector or a sub-

sector to the list referred to in paragraph

1, if it can be demonstrated, in an

analytical report, that such a sector or

sub-sector satisfies the criteria laid down

in paragraphs 1 or 2, following a change

having a substantial impact on its

activities.

Or. en

Amendment 535


Flavio Zanonato, José Blanco López, Soledad Cabezón Ruiz, Csaba Molnár, Jude

Kirton-Darling, Inmaculada Rodríguez-Piñero Fernández



Article 10b

Paragraph 4 a (new)

AM\1098409EN.doc 163/164 PE585.439v01-00

EN


4a. A new paragraph is added:

Free allocations distributed to the

industrial sectors concerned by

paragraphs 1 and 2 of this article

constitute a temporary adaptation

measure for the modernisation of the

European energy intensive industries

until 2030. After Phase IV, all the

allocations will be auctioned.

Or. en

Amendment 536

Edouard Martin, Pervenche Berès, Zigmantas Balčytis, Dan Nica, Eugen Freund, Eva

Kaili, Jeppe Kofod, José Blanco López, Soledad Cabezón Ruiz, Csaba Molnár, Carlos

Zorrinho, Inmaculada Rodríguez-Piñero Fernández



Article 10b

Paragraph 4 b (new)


4b. A border adjustment mechanism is

put in place by the 1st January 2021 in

conformity with international trade rules

and in particular WTO rules to create a

level playing field between European

producers under ETS and extra-

European producers for imports as well

as for exports ; this border adjustment

mechanism is applicable only for products

and goods concerned by the ETS and with

countries which have no equivalent and

comparable system aiming at giving a

price to CO2; for that very reason it's a

temporary measure designed to vanish

when a global CO2 price is adopted.

The Commission should integrate the

climate change policy and the ETS in

particular in its negotiations of free trade

agreements with other countries.

PE585.439v01-00 164/164 AM\1098409EN.doc

EN

The Commission has to engage

discussions with others countries to

articulate the ETS with other systems

which give a price to CO2 with the target

to make them compatible in order to

create a level playing field.

Or. en

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